Medicare Compliance & Reimbursement

SPECIAL REPORT:

DISASTER RELIEF--Lawmakers Pass Legislation To Up Katrina Assistance

Most measures enjoy support from both sides of aisles.

Despite disaster-budget debates, Congress pressed ahead with the Emergency Health Care Relief Act of 2005, the primary legislative vehicle to address the health care needs of Hurricane Katrina victims.

In what has proved to be a fairly bipartisan effort in both houses, congressmen agreed to these key provisions:

• Immediate access to Medicaid for displaced individuals. Katrina survivors with incomes below federal poverty level would be eligible for Disaster Relief Medicaid, a temporary program available for five months, with a possible five-month extension by the President. To respond to the intense need for mental health and home- and community-based services among survivors, the legislation would waive current state limits on these benefits, and states would be able to make an extended package of mental health services available to Katrina survivors.

• Federal support for affected states' Medicaid programs. Disaster counties in Louisiana, Mississippi and Alabama will get 100-percent federal matching funds to sustain Medicaid and SCHIP programs. Full federal funding would continue through Dec. 31, 2006. The bill will postpone for the fiscal year federal funding for other state Medicaid programs set in 2006 to ensure that states struggling to meet the new demand for services do not lose funds during the current crisis.

• Compensation to affected health providers. Health providers caring for evacuees are eligible for federal add-on payments through an emergency relief fund to alleviate the burden of uncompensated care. This fund is not only available for providers that are caring for an increased Medicaid population, but also for providers that have lost their patient base because of the hurricane. Eligible providers include any provider or supplier that Medicaid can reimburse. Additionally, certain hospitals will be able to receive 100-percent reimbursement for their Medicare bad debt, which consists of unpaid beneficiary co-payments and deductibles. The Centers for Medicare and Medicaid Services won't penalize hospitals located in the disaster areas for any failure to submit quality data.

• Private health insurance coverage assistance. Individuals with private health coverage who qualify for Disaster Relief Medicaid will be eligible for assistance in paying their health care premiums under a new Disaster Relief Fund, which state insurance commissioners will administer. Employers in the hardest-hit counties can receive assistance to help them maintain private health insurance coverage for their employees. Assistance is available to an employer only for the days on which it is inoperable--or when it ceased paying salaries or benefits to employees.

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