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Montana Administrative Register Notice 37-916 No. 9   05/15/2020    
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BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

 

In the matter of the amendment of ARM 37.85.104, 37.85.105, and 37.85.106 pertaining to updating Medicaid and non-Medicaid provider rates, fee schedules, and effective dates

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

            1. On June 4, 2020, at 10:00 a.m., the Department of Public Health and Human Services will hold a public hearing via remote conferencing to consider the proposed amendment of the above-stated rules. Because there currently exists a state of emergency in Montana due to the public health crisis caused by the coronavirus, there will be no in-person hearing. Interested parties may access the remote conferencing platform in the following ways: 

            (a) Join Zoom Meeting at: https://mtgov.zoom.us/j/96951987925?pwd=OWdKVFJzYnBaZm9YZk5OeXZ1d1o0dz09, meeting ID: 969 5198 7925, password: 491848;

            (b) Dial by telephone +1 406 444 9999 or +1 646 558 8656, meeting ID: 969 5198 7925, password: 491848; find your local number: https://mt-gov.zoom.us/u/ajQrLXmNG; or

            (c) Join by Skype for Business https://mt-gov.zoom.us/skype/96951987925.

 

2. The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Health and Human Services no later than 5:00 p.m. on May 28, 2020, to advise us of the nature of the accommodation that you need. Please contact Heidi Clark, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-4094; fax (406) 444-9744; or e-mail [email protected].

 

3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

            37.85.104 EFFECTIVE DATES OF PROVIDER FEE SCHEDULES FOR MONTANA NON-MEDICAID SERVICES (1) The department adopts and incorporates by reference the fee schedule for the following programs within the Addictive and Mental Disorders Division and Developmental Services Division on the dates stated:

            (a) Mental health services plan provider reimbursement, as provided in ARM 37.89.125, is effective July 1, 2019 July 1, 2020.

            (b) 72-hour presumptive eligibility for adult-crisis stabilization services reimbursement for services, as provided in ARM 37.89.523, is effective July 1, 2019 July 1, 2020.

            (c) Youth respite care services, as provided in ARM 37.87.2203, is effective July 1, 2019 July 1, 2020.

            (d) Substance use disorder services provider reimbursement, as provided in ARM 37.27.905, is effective October 1, 2019 July 1, 2020.

            (2) remains the same.

 

AUTH: 53-2-201, 53-6-101, 53-6-113, MCA

IMP: 53-2-201, 53-6-101, 53-6-111, MCA

 

            37.85.105 Effective dates, CONVERSION FACTORS, POLICY ADJUSTERS, AND COST-TO-CHARGE RATIOS of Montana Medicaid Provider Fee Schedules (1) remains the same.

            (2) The department adopts and incorporates by reference, the resource-based relative value scale (RBRVS) reimbursement methodology for specific providers as described in ARM 37.85.212 on the date stated.

            (a) Resource-based relative value scale (RBRVS) means the version of the Medicare resource-based relative value scale contained in the Medicare Physician Fee Schedule adopted by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services and published at 83 Federal Register 226, page 59452 (November 23, 2018) 84 Federal Register 221, page 62568 (November 12, 2019) effective January 1, 2019 January 1, 2020 which is adopted and incorporated by reference. Procedure codes created after January 1, 2020 will be reimbursed using the relative value units from the Medicare Physician Fee Schedule in place at the time the procedure code is created.

            (b) Fee schedules are effective January 1, 2020 July 1, 2020. The conversion factor for physician services is $38.46 $39.51. The conversion factor for allied services is $23.97 $24.66. The conversion factor for mental health services is $23.36 $23.40. The conversion factor for anesthesia services is $30.03 $30.57.

            (c) remains the same.

            (d) The BCBA/BCBA-D services policy adjuster is 105% effective July 1, 2020.

            (d) (e) The payment-to-charge ratio is effective July 1, 2018 July 1, 2020 and is 47% 45.2% of the provider's usual and customary charges.

            (e) through (g) remain the same but are renumbered (f) through (h).

            (h) (i) Optometric services receive a 117.26% 117.50% provider rate of reimbursement adjustment to the reimbursement for allied services as provided in ARM 37.85.105(2) effective July 1, 2019 July 1, 2020.

            (i) remains the same but is renumbered (j).

            (j) (k) Reimbursement for vaccines described at ARM 37.86.105 is effective July 1, 2019 July 1, 2020.

            (3) The department adopts and incorporates by reference, the fee schedule for the following programs within the Health Resources Division, on the date stated.

            (a) remains the same.

            (b) The outpatient hospital services fee schedules including:

            (i) the Outpatient Prospective Payment System (OPPS) fee schedule as published by the Centers for Medicare and Medicaid Services (CMS) in Federal Register Volume 83, Issue 225, page 58818 (November 21, 2018) 84, Issue 218, page 61142 (November 12, 2019), effective January 1, 2019 January 1, 2020, and reviewed annually by CMS as required in 42 CFR 419.5 (2016) as updated by the department;

            (ii) remains the same.

            (iii) the Medicaid statewide average outpatient cost-to-charge ratio is 37.30% 48%; and

            (iv) remains the same.

            (c) The hearing aid services fee schedule, as provided in ARM 37.86.805, is effective January 1, 2020 July 1, 2020.

            (d) The Relative Values for Dentists, as provided in ARM 37.86.1004, reference published in 2019 2020 resulting in a dental conversion factor of $34.09 $34.71 and fee schedule is effective January 1, 2020 July 1, 2020.

            (e) remains the same.

            (f) The outpatient drugs reimbursement, dispensing fees range as provided in ARM 37.86.1105(3)(b) is effective July 1, 2019 July 1, 2020:

            (i) for pharmacies with prescription volume between 0 and 39,999, the minimum is $2.32 $2.23 and the maximum is $15.14 $15.42;

            (ii) for pharmacies with prescription volume between 40,000 and 69,999, the minimum is $2.32 $2.23 and the maximum is $13.12 $13.36; or

            (iii) for pharmacies with prescription volume greater than 70,000, the minimum is $2.32 $2.23 and the maximum is $11.10 $11.30.

            (g) remains the same.

            (h) The outpatient drugs reimbursement, vaccine administration fee as provided in ARM 37.86.1105(6), will be $21.32 for the first vaccine and $14.08 $14.34 for each additional administered vaccine, effective July 1, 2019 July 1, 2020.

            (i) remains the same.

            (j) The home infusion therapy services fee schedule, as provided in ARM 37.86.1506, is effective July 1, 2019 July 1, 2020.

            (k) Montana Medicaid adopts and incorporates by reference the Region D Supplier Manual, effective January 1, 2020 July 1, 2020, which outlines the Medicare coverage criteria for Medicare covered durable medical equipment, local coverage determinations (LCDs), and national coverage determinations (NCDs) as provided in ARM 37.86.1802, effective January 1, 2020 July 1, 2020. The prosthetic devices, durable medical equipment, and medical supplies fee schedule, as provided in ARM 37.86.1807, is effective January 1, 2020 July 1, 2020.

            (l) The nutrition services fee schedule, as provided in ARM 37.86.2207(2), is effective July 1, 2019 July 1, 2020.

            (m) remains the same.

            (n) The orientation and mobility specialist services fee schedule, as provided in ARM 37.86.2207(2), is effective July 1, 2019 July 1, 2020.

            (o) The transportation and per diem fee schedule, as provided in ARM 37.86.2405, is effective July 1, 2019 July 1, 2020.

            (p) The specialized nonemergency medical transportation fee schedule, as provided in ARM 37.86.2505, is effective July 1, 2019 July 1, 2020.

            (q) The ambulance services fee schedule, as provided in ARM 37.86.2605, is effective January 1, 2020 July 1, 2020.

            (r) The audiology fee schedule, as provided in ARM 37.86.705, is effective July 1, 2019 July 1, 2020.

            (s) The therapy fee schedules for occupational therapists, physical therapists, and speech therapists, as provided in ARM 37.86.610, are effective July 1, 2019 July 1, 2020.

            (t) The optometric services fee schedule, as provided in ARM 37.86.2005, is effective January 1, 2020 July 1, 2020.

            (u) The chiropractic fee schedule, as provided in ARM 37.85.212(2), is effective July 1, 2019 July 1, 2020.

            (v) The lab and imaging services fee schedule, as provided in ARM 37.85.212(2) and 37.86.3007, is effective January 1, 2020 July 1, 2020.

            (w) The Targeted Case Management for Children and Youth with Special Health Care Needs fee schedule, as provided in ARM 37.86.3910, is effective July 1, 2019 July 1, 2020.

            (x) The Targeted Case Management for High Risk Pregnant Women fee schedule, as provided in ARM 37.86.3415, is effective July 1, 2019 July 1, 2020.

            (y) The mobile imaging services fee schedule, as provided in ARM 37.85.212, is effective July 1, 2019 July 1, 2020.

            (z) The licensed direct-entry midwife fee schedule, as provided in ARM 37.85.212, is effective January 1, 2020 July 1, 2020.

            (aa) The private duty nursing services fee schedule, as provided in ARM 37.86.2207(2), is effective July 1, 2019 July 1, 2020.

            (4) The department adopts and incorporates by reference, the fee schedule for the following programs within the Senior and Long Term Care Division on the date stated:

            (a) The home and community-based services for elderly and physically disabled persons fee schedule, as provided in ARM 37.40.1421, is effective July 1, 2019 July 1, 2020.

            (b) The home health services fee schedule, as provided in ARM 37.40.705, is effective July 1, 2019 July 1, 2020.

            (c) The personal assistance services fee schedule, as provided in ARM 37.40.1135, is effective July 1, 2019 July 1, 2020.

            (d) The self-directed personal assistance services fee schedule, as provided in ARM 37.40.1135, is effective July 1, 2019 July 1, 2020.

            (e) The community first choice services fee schedule, as provided in ARM 37.40.1026, is effective July 1, 2019 July 1, 2020.

            (5) The department adopts and incorporates by reference, the fee schedule for the following programs within the Addictive and Mental Disorders Division on the date stated:

            (a) The mental health center services for adults fee schedule, as provided in ARM 37.88.907, is effective October 1, 2019 July 1, 2020.

            (b) The home and community-based services for adults with severe disabling mental illness fee schedule, as provided in ARM 37.90.408, is effective July 1, 2019 July 1, 2020.

            (c) The substance use disorder services fee schedule, as provided in ARM 37.27.905, is effective October 1, 2019 July 1, 2020.

            (6) For the Developmental Services Division, the department adopts and incorporates by reference the Medicaid youth mental health services fee schedule, as provided in ARM 37.87.901, effective July 1, 2019 July 1, 2020.

 

AUTH: 53-2-201, 53-6-113, MCA

IMP: 53-2-201, 53-6-101, 53-6-125, 53-6-402

 

37.85.106 MEDICAID BEHAVIORAL HEALTH TARGETED CASE MANAGEMENT FEE SCHEDULE (1) remains the same.

(2) The Department of Public Health and Human Services (department) adopts and incorporates by reference the Medicaid Behavioral Health Targeted Case Management Fee Schedule effective March 1, 2020 July 1, 2020, for the following programs within the Developmental Services Division (DSD) and the Addictive and Mental Disorders Division (AMDD):

(a) through (3) remain the same.

 

AUTH: 53-2-201, 53-6-113, MCA

IMP: 53-2-201, 53-6-101, 53-6-113, MCA

 

            4. STATEMENT OF REASONABLE NECESSITY

 

The Department of Public Health and Human Services (department) administers the Montana Medicaid and non-Medicaid program to provide health care to Montana's qualified low income, elderly, and disabled residents. Medicaid is a public assistance program paid for with state and federal funds appropriated to pay health care providers for the covered medical services they deliver to Medicaid members.

 

Pursuant to 53-6-113, MCA, the Montana Legislature has directed the department to use the administrative rulemaking process to establish rates of reimbursement for covered medical services provided to Medicaid members by Medicaid providers. The department proposes these rule amendments to establish Medicaid rates of reimbursement which are necessary for the purposes of the Medicaid program. In establishing the proposed rates of reimbursement, the department considered as primary factors the availability of funds appropriated by the Montana Legislature during the 2019 regular legislative session, the actual cost of services, and the availability of services.

 

The purpose of the proposed rule amendments is to: 

            (1) incorporate legislatively appropriated provider rate increases with an

effective date of July 1, 2020;

            (2) incorporate the July 1, 2020 RBRVS changes;

            (3) incorporate the physician conversion factor as provided in 53-6-125, MCA;

            (4) revise fee schedules;

            (5) update federal register references for the RBRVS and Outpatient

Prospective Payment System payment methodologies; and

            (6) update the outpatient cost-to-charge ratio.

 

Proposed Provider Rate Increases

 

The department is proposing provider rate increases effective July 1, 2020, for most Medicaid and non-Medicaid provider rates in accordance with the funding appropriated by the Montana Legislature during the 2019 regular session.

 

This rule will implement the legislatively appropriated provider rate increases for the Big Sky Waiver program, effective July 1, 2020.  This fee increase will include a 1.83% increase in provider rates for the Big Sky Waiver services with the exception of transportation miles and assisted living facility residential habilitation services. The rate for transportation miles has been set in accordance with the State Plan Medicaid rate.  For both the Big Sky Waiver and the Severe and Disabling Mental Illness waiver, the rate for assisted living facility residential habilitation services remains unchanged from the October 1, 2019, rate increase provided under MAR Notice No. 37-898.

 

Resource-Based Relative Value Scale (RBRVS) Methodology Summary

 

Many Montana Medicaid providers' rates are established through the resource-based relative value scale (RBRVS) model. RBRVS is used nationwide by most health plans, including Medicare and Medicaid to establish Montana Medicaid provider rates. The relative value unit component of RBRVS is revised annually by the Centers for Medicare and Medicaid Services (CMS) and the American Medical Association (AMA). The department annually proposes to amend ARM 37.85.105 to adopt the recently revised relative value units (RVUs). An RVU is a numerical value assigned to each medical procedure. RVUs are based on physician work, practice expense, and malpractice insurance expenses, and RVUs express the relative effort and expense expended to provide one procedure compared with another. In the annual revision of RVUs, CMS and the AMA add RVUs for new procedures and increase or decrease RVUs of particular procedures, depending on the factors listed above.

 

"Conversion factor" (CF) means a dollar amount by which RVUs are multiplied to establish the RBRVS fee for a service. The department annually calculates conversion factors for allied services, mental health services, and anesthesia services taking into consideration the changes to RVUs and appropriations.

 

For allied health services, mental health services, and anesthesia services, the conversion factors were calculated to provide for an overall increase of 1.83%. In addition, the optometric rate of reimbursement was increased to 117.50% to increase the optical service reimbursement by 1.83%.

 

A BCBA and BCBA-D services policy adjustor of 105% is proposed to increase reimbursement for autism state plan services by 1.83%.

 

Physician Conversion Factor

 

Section 53-6-125, MCA, directs the department to increase the physician's conversion factor by the consumer price index (CPI) for medical care for the previous year.

 

For the fiscal year beginning July 1, 2020, 53-6-125, MCA, directs the department to reduce general fund expenditures for physicians by $400,000 to fund the Health Information Exchange.  After applying the federal match, the total expenditure reduction calculated to $1,150,086.

 

The changes to the physician conversion factor were completed in two steps, first applying the annual CPI increase and then applying the reduction associated with HB 669.  These changes were applied multiplicatively resulting in a proposed physician conversion factor of $39.51.

 

Fee Schedules

 

The department is proposing the adoption of fee schedules effective July 1, 2020. The fee schedules incorporate changes due to the proposed amendments within this rulemaking.

 

The department has posted proposed fee schedules at http://medicaidprovider.mt.gov/proposedfs.

 

Federal Register Updates

 

Effective July 1, 2020, the department is proposing to adopt the January 1, 2020, federal register references for the RBRVS and Outpatient Prospective Payment System reimbursement methodologies.  These updates are necessary to incorporate the most up-to-date changes made by CMS.

 

Outpatient Cost-to-Charge Ratio

 

The Outpatient Cost-to-Charge ratio is proposed to increase to 48% from 37.50%. This percentage is calculated utilizing the average cost-to-charge ratio from the Cost Reports for Prospective Payment System Hospitals.

 

Fiscal Impact

 

Provider type

SFY 2021 Budget Impact              (State Funds)

SFY 2021 Budget Impact
(Federal Funds)

SFY 2021 Budget Impact
(Total Funds)

Active Provider Count

Ambulance

40,301

147,608

187,909

196

Audiologist

1,040

2,506

3,546

76

Targeted Case Management - Mental Health

65,253

147,086

212,339

21

Targeted Case Management - High Risk Pregnancy

553

1,138

1,691

18

Chemical Dependency Clinic

51,748

311,853

363,601

46

Chiropractor

239

447

686

112

Community First Choice

203,763

510,442

714,205

70

Dental

346,417

920,263

1,266,680

648

Denturist

13,877

50,915

64,792

17

EPSDT

4,540

10,110

14,650

146

Hearing Aid Dispenser

1,242

3,003

4,245

35

Home & Comm Based Services

43,182

80,885

124,067

528

Home Health Agency

3,200

5,924

9,124

25

Home Infusion Therapy

8,943

26,471

35,414

17

Independent Diagnostic Testing Facility

5,384

20,694

26,078

23

Laboratory

62,968

319,040

382,008

170

Licensed Professional Counselor

123,538

376,370

499,908

966

Mental Health Center

160,408

362,376

522,784

29

Mid-Level Practitioner

120,009

272,259

392,268

5,101

Mobile Imaging Service

38,002

339,542

377,544

1

Nutritionist/Dietitian

644

1,419

2,063

114

Occupational Therapist

25,868

53,766

79,634

262

Optician

727

2,220

2,947

29

Optometrist

32,006

100,578

132,584

236

Orientation and Mobility

1,228

2,296

3,524

4

Personal Care Agency

3,324

6,701

10,025

70

Personal Care Agency Adult MH

109

207

316

70

Pharmacy Dispensing Fee

143,755

525,118

668,873

455

Physical Therapist

33,639

132,746

166,385

883

Physician

471,769

1,623,368

2,095,137

12,260

Podiatrist

7,082

26,215

33,297

76

Private Duty Nursing Agency

30,165

56,292

86,457

4

PRTF

98,943

198,107

297,050

19

Psychiatrist

26,522

83,017

109,539

200

Psychologist

8,220

26,157

34,377

319

Social Worker

76,607

238,986

315,593

795

Speech Pathologist

24,830

49,073

73,903

253

Personal and Commercial Transportation

1,589

3,502

5,091

13

Therapeutic Family Care

24,104

48,940

73,044

14

Therapeutic Group Home

138,954

265,507

404,461

21

Transportation Non-Emergency

89

174

263

7

 

The proposed rulemaking is estimated to affect 237,314 Medicaid members. In addition, it will impact the provider populations outlined in the tables above.

 

            5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Heidi Clark, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail [email protected], and must be received no later than 5:00 p.m., June 12, 2020.

 

6. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.

 

7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

 

8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will significantly and directly impact small businesses.

 

10. Section 53-6-196, MCA, requires that the department, when adopting by rule proposed changes in the delivery of services funded with Medicaid monies, make a determination of whether the principal reasons and rationale for the rule can be assessed by performance-based measures and, if the requirement is applicable, the method of such measurement. The statute provides that the requirement is not applicable if the rule is for the implementation of rate increases or of federal law.

 

The department has determined that the proposed program changes presented in this notice are not appropriate for performance-based measurement and therefore are not subject to the performance-based measures requirement of 53-6-196, MCA.

 

 

 

/s/ Brenda K. Elias                                       /s/ Sheila Hogan                                         

Brenda K. Elias                                            Sheila Hogan, Director

Rule Reviewer                                              Public Health and Human Services

 

 

Certified to the Secretary of State May 5, 2020.

 


 

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