Medicare Blog

how does medicare evaluate medical research

by Maria Breitenberg I Published 2 years ago Updated 1 year ago
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Medical Research Studies, also known as Clinical Trials, determine whether a medical treatment or device is effective and safe (common studies are cancer treatment effectiveness). As well as, these studies explore which groups will benefit the most from the treatment. Now that Medical Research studies are defined, are you covered by Medicare?

Full Answer

Will Medicare pay for clinical research studies?

If you join certain covered clinical research studies, Medicare will pay for your covered services as if you were in Original Medicare. This means that your Medicare health plan can’t keep you from joining a clinical research study. However, you should tell your plan before you start a study. 6

What is a Medicare claim review?

A Medicare contractor may use any relevant information they deem necessary to make a prepayment or post-payment claim review determination. This includes any documentation submitted with the claim or through an additional documentation request. (See sources of Medicare requirements, listed below). Who conducts the medical reviews?

Who conducts the medical reviews for Medicare?

(See sources of Medicare requirements, listed below). Who conducts the medical reviews? Medicare Fee-for-Service (FFS) reviews are conducted by Medicare Administrative Contractors (MACs), the Supplemental Medical Review Contractor (SMRC), Recovery Audit Contractors (RACs), and others.

What are the medical review manuals for Medicare?

CMS' Manuals: CMS manuals (such as the Benefit Policy, Claims Processing, and Program Integrity Manuals) provide further interpretative medical review guidance for medical review activities. Who manages Medicare medical review contractors?

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What is Medicare analysis?

Coverage analysis is a review to determine if a research study is eligible to receive Medicare coverage and outlines what items and services performed as part of the research study should be billed to Medicare.

How do you evaluate clinical research?

Five Tips for Evaluating Clinical StudiesRead Beyond the Abstract. ... Determine Whether All Results Were Included. ... Observational Study versus Randomized Controlled Trial. ... Odds Ratios and Confidence Intervals.

What does CMS say about medical necessity?

According to CMS, medically necessary services or supplies: Are proper and needed for the diagnosis or treatment of your medical condition. Are provided for the diagnosis, direct care, and treatment of your medical condition.

What is the goal of the Medicare medical review program?

What is the purpose of the medical review program? Medical reviews identify errors through claims analysis and/or medical record review activities. Contractors use this information to help ensure they provide proper Medicare payments (and recover any improper payments if the claim was already paid).

What are five key factors that should be considered when evaluating the conclusions of a clinical trial?

A Guide to Understanding Clinical Trials: Part 2 – Five Factors to Consider When Evaluating ResultsSample size: The number of patients/participants studied. ... Placebo: An inactive substance given in the place of a treatment. ... Randomization: Assigning treatments to participants at random.More items...•

How do you analyze a medical research article?

The most important information to look for when reviewing an article can be summarized by the acronym “PP-ICONS,” which stands for the following:Problem,Patient or population,Intervention,Comparison,Outcome,Number of subjects,Statistics.

How does Medicare prove medical necessity?

Proving Medical NecessityStandard Medical Practices. ... The Food and Drug Administration (FDA) ... The Physician's Recommendation. ... The Physician's Preferences. ... The Insurance Policy. ... Health-Related Claim Denials.

Who determines if something is medically necessary?

How is “medical necessity” determined? A doctor's attestation that a service is medically necessary is an important consideration. Your doctor or other provider may be asked to provide a “Letter of Medical Necessity” to your health plan as part of a “certification” or “utilization review” process.

What are the four components of Medicare medical necessity?

What are the 4 parts of Medicare?Medicare Part A – hospital coverage.Medicare Part B – medical coverage.Medicare Part C – Medicare Advantage.Medicare Part D – prescription drug coverage.

What causes a Medicare audit?

What Triggers a Medicare Audit? A key factor that often triggers an audit is claiming reimbursement for a higher than usual frequency of services over a period of time compared to other health professionals who provide similar services.

What triggers a RAC audit?

RAC audits are not one-time or intermittent reviews and can be triggered by anything from an innocent documentation error to outright fraud. They are part of a systematic and concurrent operating process that ensures compliance with Medicare's clinical payment criteria, documentation and billing requirements.

What review requires medical records?

Review of diverse medical records will be required including physician visits, hospital visits, admission summary, discharge summary, operative summary, lab reports and more.

How do clinical studies work?

Clinical research studies (also called clinical trials) test how well different types of medical care work and if they’re safe, like how well a cancer drug works. Clinical research studies may involve diagnostic tests, surgical treatments, medicine, or new types of patient care. They may: 1 Study how well new treatments and tests benefit patients 2 Compare different treatments for the same condition to see which treatment is better 3 Study new ways to use existing treatments

What is Medicare approved amount?

Medicare-Approved Amount. In Original Medicare, this is the amount a doctor or supplier that accepts assignment can be paid. It may be less than the actual amount a doctor or supplier charges. Medicare pays part of this amount and you’re responsible for the difference. , depending on the treatment you get.

What information does Medicare use?

A Medicare contractor may use any relevant information they deem necessary to make a prepayment or post-payment claim review determination. This includes any documentation submitted with the claim or through an additional documentation request. (See sources of Medicare requirements, listed below).

What is Medicare contractor review?

Medical reviews involve the collection and clinical review of medical records and related information to ensure that payment is made only for services that meet all Medicare coverage, coding, billing, and medical necessity requirements.

What is Medicare NCD?

National Coverage Determinations (NCDs): Medicare coverage is limited to items and services that are reasonable and necessary for the diagnosis or treatment of an illness or injury (and within the scope of a Medicare benefit category).

Latest Report - Phase Two

The fourth annual evaluation report for Phase Two was released on March 17. 2021.

Prior Reports - Phase Two

The third annual evaluation report for Phase Two was released on December 16. 2019.

Final Report - Phase One

The final independent evaluation report for Phase One was released on October 20, 2017.

Prior Reports - Phase One

On March 6, 2017 the Centers for Medicare & Medicaid Services released an evaluation report demonstrating promising results for this Initiative. The report analyzed Medicare expenditures, utilization measures, and MDS-based quality measures through the end of 2015 and included qualitative findings through mid-2016.

Contact Us

For more information or questions about these reports or the Initiative as a whole, please email [email protected].

What is a CMS chartbook?

The CMS Hospital Performance Reports present analyses that provide insight into hospital performance on publicly reported outcomes measures for patients. The Chartbook provides new information about recent trends and variation in outcomes by location, hospital characteristics, patient disparities, and cost.

Does CMS conduct annual analyses?

In addition to calculating the above measures for public reporting, CMS also conducts annual analyses of its hospital outcome measures to provide greater insight into measure trends and variation. These additional analyses use calculations reported annually on Hospital Compare and are compiled in the Chartbook as described below.

How does Medicare pay hospitals?

Medicare pays hospitals using the Inpatient Prospective Payment System (IPPS). The base rate for each discharge corresponds to one of over 700 different categories of diagnoses—called Diagnosis Related Groups (DRGs)—that are further adjusted for patient severity. Medicare’s payments to hospitals also account for a portion of hospitals’ capital and operating expenses. Moreover, some hospitals receive additional payments, for example, academic medical centers receive higher payments because they provide graduate medical education and safety-net hospitals receive higher payments for treating a high proportion of indigent patients, in addition to DRG payments. 6 Recent Medicare policies can also reduce payments to some hospitals, such as hospitals that have relatively high readmission rates following hospitalizations for certain conditions. 7,8

Why are hospitals in concentrated or heavily consolidated markets using high revenues from private payers?

MedPAC analyses have asserted that hospitals in concentrated or heavily consolidated markets use high revenues from private payers to invest in cost-increasing activities like expanding facilities and clinical technologies —thereby leading to negative margins from Medicare because of an increased cost denominator. 16.

What is upcoding in Medicare?

Hospitals and physician practices may be upcoding, a practice whereby providers use billing codes that reflect a more severe illness or expensive treatment in order to seek a larger reimbursement from Medicare. A study of 364,000 physicians found that a small number billed Medicare for the most expensive type of office visit for established patients at least 90 percent of the time. 50 One such example is a Michigan orthopedic surgeon who billed at the highest level for all of his office visits in 2015. The probability that these physician practices are only treating the sickest patients is quite low. In the past, CMS has justified reductions in payments to hospitals and physician groups to compensate for the costs of this upcoding—a vicious cycle we would not want to perpetuate.

What is the ratio of payment to cost in hospitals?

We note, however, that a hospital’s ratio of payment-to-costs reflect a combination of external factors such as the local costs for wages or utilities and the hospital’s own behavior, including how efficiently it manages its resources . 13 A 2019 MedPAC analysis found that hospitals that face greater price pressure operate more efficiently and have lower costs. Relatively efficient hospitals, which MedPAC identified by cost, quality and performance criteria, had higher Medicare margins (-2 percent) than less efficient hospitals. 14

How much will Medicare save in 2020?

The move would save Medicare an estimated $810 million in 2020, while saving beneficiaries an average of $14 per visit. The agency also proposed a wage index increase for struggling rural hospitals, while decreasing the index for high-wage facilities.

What is ASP reimbursement?

Drugs administered by infusion or injection in physician offices and hospital outpatient departments are reimbursed based on the average sales price (ASP), which takes volume discounts and price concessions into account.

What is the primary driver of healthcare spending in the United States?

There is a strong consensus that the primary driver of high and rising healthcare spending in the United States is high unit prices—the individual prices associated with any product or service, like a medication or a medical procedure. 1 Moreover, research shows that these prices are highly variable and may not reflect the actual underlying cost to provide healthcare services, particularly the prices paid by commercial health insurance, which covers almost 60 percent of the U.S. population. 2

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