Policy Information Notice: Document # PIN : Sliding Fee Discount and Related Billing and Collection Program Requirements, 9/22/14
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1 Policy Information Notice: Document # PIN : Sliding Fee Discount and Related Billing and Collection Program Requirements, 9/22/14
2 What does success look like through utilization of the PIN for our center? We provide the best quality and quantity of services (within our scope of service) for our patients that we can without putting the dental program and/or the rest of the health center programs at risk.
3 Applicability Applies to all 330 Program grantees and look-alikes PIN does not apply to activities outside of the health center s federally approved scope of project
4 General Requirements 1. Fees should be designed to cover the reasonable costs of providing services in the HRSA-approved scope of services and consistent with locally prevailing rates or charges (UCF). 2. Health centers must prepare and apply a sliding fee discount schedule (SFDS), so that the amounts owed for health center services by eligible patients are adjusted based on the patient s ability to pay. Nominal fee for individuals at or below 100% FPL Full fee for patients above 200% FPL Partial discounts for patients above 100% and at/below 200% FPL 3. Health centers must make every reasonable effort to obtain reimbursement from third party payers, including public health insurance (Medicaid, CHIP, Medicare, and any other public assistance program) and private health insurance (for patients who have such coverage).
5 2015 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA Persons in family/household Poverty guideline 1 $11, , , , , , , ,890 For families/households with more than 8 persons, add $4,160 for each additional person. Differing poverty guidelines exists for Alaska and Hawaii
6 General Requirements Every service within a health center s approved scope of project for which the health center has established a charge, regardless of the service type or mode of service delivery, must be made available to all health center patients regardless of ability to pay. To facilitate patient access and utilization, health centers must ensure that: a) patients are made aware of the sliding fee discount program; and b) eligibility for discounts is based on income and family size and no other factors (such as insurance status or population type). Information about the sliding fee discount program must be available in appropriate languages and literacy levels for the health center s target population.
7 Governing Board Oversight Health center governing boards must approve general health center policies, including those associated with the sliding fee discount program. As the SFDS must be revised annually to reflect updates to the FPG (Federal Poverty Guidelines), the entire sliding fee discount program should also be evaluated at least annually and updated, as appropriate. Day-to-day direction and management responsibility for implementing the sliding fee discount program operating procedures rests with health center staff under the direction of the Chief Executive Officer or Executive Director. Health centers should routinely provide training for staff on implementation of sliding fee discount program policies and supporting operating procedures.
8 Governing Board Oversight All aspects of a health center s sliding fee discount program must be based on written policies that have been approved by its governing board, applied uniformly to all patients, and further supported by operating procedures. At a minimum, the following areas must be addressed: Patient eligibility for the SFDS, including definitions of income and family size (including what/who is included or excluded) and frequency of re-evaluation of patient eligibility; Documentation and verification requirements to determine patient eligibility for the SFDS Specific structure of the SFDS itself Billing and collections Provisions for waiving fee(s) and nominal charges for specific patient circumstances.
9 Governing Board Oversight (cont.) Alternative mechanisms for determining patient eligibility for the SFDS for circumstances in which documentation/verification is unavailable (e.g., self-declaration, conditional SFDS eligibility) and for making these mechanisms available to the entire patient population, regardless of income level, sliding fee discount pay class, or population type; Establishing and collecting nominal charges Use of multiple SFDS, if applicable, with appropriate justification(s) Applicability of SFDS or other discounts relative to supplies and equipment associated with services covered by the SFDS; and/or Other provisions related to billing and collections including payment incentives, grace periods, payment plans, or refusal to pay guidelines.
10 Fee Schedule Fees are intended to generate revenue to cover the health center s costs associated with providing services and assists in ensuring the financial viability and sustainability of the health center. The health center must assure that fees are set to cover reasonable costs and are consistent with locally prevailing rates or charges for the service. The health center s fee schedule must address all in-scope services (required and additional). Fees are used as the basis for seeking payment from patients as well as third party payers.
11 Sliding Fee Scale Discount (SFDS) All services within the health center s approved scope of project, whether required or additional, must be provided on a SFDS and without regard to the patient s ability to pay. Once established, the SFDS must be revised annually, at a minimum, to reflect annual updates to the FPG Eligibility for the SFDS is based on a patient s annual income and family size under the U.S. Department of Health and Human Services (HHS) annual FPG.
12 Sliding Fee Scale Discount (SFDS) The health center s governing board must approve in policy, consistent with any Federal, State, or local laws and requirements, its definitions of family and income. The unique characteristics of target populations (e.g., individuals experiencing homelessness) and service areas (e.g., areas with high cost of living) must be considered in developing policies and supporting operating procedures to ensure that these elements do not become a barrier to care. Once established, these policies and supporting operating procedures must be applied uniformly across the patient population.
13 Determining Eligibility for SFDS Health centers must have supporting processes/operating procedures in place for assessing income and household size for all patients, both for Health Center Program reporting purposes and to assist patients in determining whether they are eligible for sliding fee discounts. Some patients may choose not to provide information that the health center requires for assessing income and family size, even after being informed that they may qualify for sliding fee discounts. These patients are declining to be assessed for eligibility for sliding fee discounts. If the health center has followed its policies and supporting operating procedures and the patient declines to be considered for the SFDS, the health center may consider the patient ineligible for such discounts.
14 Determining Eligibility for SFDS Once assessed, a patient who meets the income guidelines would receive a sliding fee discount based on the SFDS. The health center s eligibility determination process must be documented and its implementation periodically reviewed for compliance and effectiveness. In addition to adjusting the SFDS based on annual updates to the FPG, patient eligibility for the SFDS should be renewed/reviewed at least once a year or upon the patient s next visit to the health center. Individuals and families with annual incomes above 200 percent of the FPG are not eligible for sliding fee discounts. However, health centers may receive or have access to other funding sources (e.g., Federal, State, local, or private funds) that contain terms or conditions for reducing patient costs for specific services. These terms and conditions may apply to patients over 200% of the FPG. In such cases, it is permissible for a health center to allocate a portion (or all) of this patient s charge to this grant or subsidy funding source.
15 Sliding Fee Scale Discount Structure Full discount or nominal fee for patients at or below 100% FPG. The dental nominal fee can be the same or different than the medical nominal fee. SFDS must have at least three discount pay classes above 100% and at or below 200% of the FPG tied to gradations in income levels. Each health center has discretion regarding how it structures the SFDS, including the number of discount pay classes, and the types of discounts (percentage of fee or fixed/flat fee for each discount pay class) it offers.
16 Establishing and Collecting Nominal Charges Any health center that chooses to establish a nominal charge must ensure that patients are not impeded in accessing services due to an inability to pay. A nominal charge must be a fixed fee that does not reflect the true value of the service(s) provided and is considered nominal from the perspective of the patient. The nominal charge must be less than the fee paid by a patient in the first sliding fee discount pay class beginning above 100% of the FPG.
17 Insured Patients Who Are Also Eligible for SFSD Patients with third party insurance that does not cover or only partially covers fees for certain health center services may also be eligible for the SFDS based on income and family size. Subject to potential legal and contractual limitations, the charge for each SFDS pay class is the maximum amount an eligible patient in that pay class is required to pay for a certain service, regardless of insurance status. Health centers are responsible for ensuring adherence to laws and regulations and for following the terms and conditions of their contracts and may wish to consult with their third party payers and/or private legal counsel regarding the permissibility of discounting patients out-of-pocket costs relative to the terms and conditions of private payer contracts.
18 Multiple Sliding Fee Discount Schedules Sliding fee discounts must apply to all services within a health center s approved scope of project for which there is an established charge, regardless of the service type (required or additional) or mode of delivery (direct, by contract, or by formal referral agreement). Health centers may elect to have multiple SFDS based on services/mode of delivery, but each SFDS must meet all of the following criteria: It must conform to the specific structural requirements outlined in this PIN. In cases where the health center has elected to establish a nominal charge for patients at or below 100 percent of the FPG, this charge meets the criteria for a nominal charge. Patient access and uniform implementation have been taken into consideration in developing each SFDS. The health center has a plan for routinely evaluating each SFDS and presenting this information to the board to ensure that it does not create a barrier to care. For services the health center provides only via a formal written referral arrangement, the health center is responsible for ensuring that the referral provider s discounts for health center patients meet the criteria above (including a nominal charge for patients at or below 100% FPG).
19 Laboratory Charges As a means of reducing barriers to care and improving health outcomes for its patient population, health centers may acquire, purchase, or facilitate access to supplies and equipment (e.g., eyeglasses, dentures, prescription drugs, including those purchased under discount programs) from a third party. Health centers are permitted to charge patients based on amounts that are less than the locally prevailing rates; however, such charges can be set to cover the reasonable costs of such items or can be further discounted to pass additional savings on to patients. Prior to the provision of a service, patients must be informed of the following: a) when supplies or equipment related to a given service will result in separate charges from the service; b) what the total amount of out of pocket costs for these supplies or equipment will be; and c) what, if any, payment plans will be available. Nominal fees are still collected for each visit where lab fees have been charged.
20 Billing and Collections Health centers need to have sound billing and collections processes. Patients and 3 rd party payers should be billed within 30 days of the provision of services. Health centers are required to make every reasonable effort to collect from 3 rd party payers[ public and private]. Health centers cannot require patients to enroll in public or private insurance and/or related third party coverage, but must educate patients on options available to them based on their eligibility for insurance and/or related third party coverage. Health centers must make reasonable efforts to secure payment from patients for services rendered. However, in balancing the statutory requirement of maximizing revenue with ensuring that no patient is denied services based on inability to pay, the applicable definition of reasonable effort may vary depending on elements unique to the individual health center, such as the target population.
21 Provisions for Waiving Charges The provision for waiving charges must be consistently made available to qualified patients. Therefore, health centers must establish policies and supporting operating procedures that identify circumstances with specified criteria for waiving charges. These procedures must also identify specific health center staff with the authority to approve the waiving of charges.
22 Payment Incentives Health centers may elect to offer incentives through boardapproved billing and collections policies. Such incentives are often referred to as prompt payment/cash payment incentives, to patients who pay with cash and/or who pay their bills within a specific, expedited timeframe as a method of increasing collections and reducing billing costs. These incentives must be accessible to all patients, regardless of income level or sliding fee discount pay class, and consistently applied without preferential treatment of any kind. In addition, health centers must have a mechanism for communicating the availability of these incentives to all of their patients. If you offer an incentive, then when billing commercial insurance the lowered fee becomes your usual fee!
23 Refusal to Pay If health centers elect to establish policies to address patients who refuse to pay for care, including discharging patients from the health center, they must establish supporting operating procedures that define: What constitutes refusal to pay ; What individual circumstances are to be considered in making such determinations; and What collection efforts/enforcement steps are to be taken when these situations occur (e.g., offering grace periods, establishing payment plans, meetings with a financial counselor). Discharging patients due to refusal to pay is an action of last resort to be taken only after reasonable efforts have been made to secure payments and/or bill for amounts owed to the health center for services provided. The health center must document all steps taken to secure payment from the patient prior to discharging.
24 Key Points from PIN 1. PIN does not apply to activities outside of HRSA-approved scope of project. But! If you provide dental services at full fee out of scope you need to have tail malpractice insurance for each provider. FTCA malpractice does not cover out of scope procedures. 2. Every service within scope has to be made available on the SFDS to all patients regardless of ability to pay. 3. For every service within the HRSA-approved scope, there has to be a nominal charge for patients at or below 100% of FPL, plus at least three discount categories for patients between 101% and 200% of FPL. 4. Health centers have discretion with regard to the number of discount categories (above the minimum requirement of three) and whether the discounted fees are flat fees or a percentage of full fee.
25 Key Points from PIN Nominal fee is a flat fee, not a percentage of full fees. Patients with insurance who are under 200% of FPL can be eligible for sliding fee scale discounts on non-covered services (based on determination of eligibility for sliding fee discounts). Health centers can have multiple sliding fee discount schedules based on services or mode of delivery, but each SFDS has to meet PIN requirements (nominal fee plus a minimum of three discount categories). For services provided via a formal written referral agreement, the provider receiving the referral must offer SFDS that meets PIN requirements (including a nominal fee).
26 Key Points from PIN Health centers can pass along lab costs to uninsured patients. Health centers need a formal policy defining the process of waiving charges. Health centers can offer prompt pay discounts but must be available to all patients (eg, if patients get a 10% discount for paying at the time of the visit, even a nominal fee patient paying $30 would get a 10% discount for paying at the time of the visit). Health centers can discharge patients for refusal to pay but this should be an action of last resort.
27 Actions to Consider Reviewing all intended or provided dental services, performing a cost analysis on each and making informed decisions about scope, nominal fee, and sliding fees in dental. Decisions should not be made on guess work, instinct or intuition but should be made using timely, meaningful and accurate data to inform those decisions.
28 Primary Care Drives Governance PINS Because 80-85% of the services provided in health centers are provided in the primary care setting, the formulation of governance PINS are made around that primary care medical service delivery model. It is often not reasonable nor feasible to take all of the governance contained in a PIN and simply apply those to the dental service. Retrofitting these PINS to dental does not always work perfectly. They require that we think them through and through informed justification create policies that do fit. It requires utilizing an informed decision making process. Without this approach we put the dental program at risk.
29 Key Elements to Making Informed Decisions on Sliding Fee Scales, Nominal Fees and Scope of Service: Be informed and educated about dental and how the community health center dental system works. Using HRSA s guidance agree that the goal in a health center dental program is to prevent and eliminate dental disease or to complete Phase 1 treatment which is primarily comprised of filling cavities, extracting hopeless teeth and minor gum treatment. Understand what your actual capacity is and that in health centers nationwide, dental has the capacity to provide care to 1 out of every 5 patients treated in primary medical care. Understand that your capacity is dependent on the number or chairs you have, the number of FTE dentists/hygienists/assistants you have, what the infrastructure of your support staff looks like, what your hours of operation are, and what your costs are to provide all of this is. Know what it costs you to run your dental program and what it costs you to provide each type of service.
30 Key Cost Related Data to help Determine Scope of Service Cost per visit (expenses divided by number of visits) Lab, supplies, time and costs for each procedure Reports on services provided by ADA code (transaction report) Calculation of RVUs for all services divided by expenses (determines the cost for each RVU provided)
31 Where is there Wiggle Room? The wiggle room or lack thereof is in your project scope of service as it appears in your 330 grant application. Whatever is in scope, per your 330 grant governance, is subject to nominal fees and sliding fees for all patients under 200% of the federal poverty level as per the PIN. Any services that are not listed in your scope are out of scope and therefore the fees and payment for those services can be set up differently in order to protect the financial integrity of the dental program. To offer these services you need tail malpractice insurance since your FTCA does not cover out of scope service. Many Centers choose not to offer additional, optional or rehabilitative services out of or in scope since they are determined to be too expensive to provide or too risky.
32 Partnering to Strengthen and Preserve the Oral Health Safety Net A PROGRAM OF THE 2400 Computer Drive, Westborough, MA Tel: Fax:
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