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Explore 2005 Medicaid reimbursement for hearing services, compare to 2000 data, and assess policy implications for access and affordability of audiology care.
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MEDICAID REIMBURSEMENTOF HEARING SERVICES Peggy McManus, Ruti Levtov Karl White, Irene Forsman, Terry Foust July 2005
Methodology • 15 state email survey, conducted by MCH Policy Research Center, January – March 2005 • Examined FFS policies for a comprehensive set of hearing services • Obtained 2005 fees and compared them to 2000 fees collected by MCHPRC in previous study
Research Questions • Do states have reimbursable codes for a comprehensive set of hearing services? • What are average payment amounts, range of payments, & fee distribution in 2005? • What changes in reimbursement have states made since 2000? • How do state Medicaid fees compare to Medicare fees?
Overall Findings • State Medicaid agencies have billable codes for a broad array of hearing services • Wide variation exists in FFS payments for each of the hearing services examined • Since 2000, Medicaid fees for more than half of the hearing services examined declined • Medicaid fees are low, well below Medicare fees
Fees for Selected Hearing Services (Tables 1,2, & 3) • Diagnostic & evaluation services (92506) • In 2005, 13 of 15 states had a billable code for this service (MD & ME had no code) • Average rate = $59.98; low of $12.10 (VT) to high of $127.42 in (WY; vast majority paid in low to middle fee distribution • Since 2000, fees for this service are on average 32% higher than in same states in 2000
More Medicaid Fees • Audiologic treatment services (92507) • Same 2 states had no billable code for this service • Lower fees than for 92506: $39.16 on average, low of $10.38 and high of $69.03 • Fees increased, on average, by 21% • Variation in fees may be due to length of visit, which is not distinguished in CPT codes
Medicaid Fees for Audiologic Function Tests • Almost all states had billable costs for each of the 15 tests • Fees vary significantly by test (Table 1) • Fee distribution shows no consistent pattern • Since 2000, almost all of the fees declined
Medicaid Fees for Hearing Aid Services • Billable codes for hearing aids are much more variable than for tests & evaluation & treatment services, esp. for digitally programmable hearing aids • States more likely to use manual pricing or bundled payments for hearing aid services • Range of payments is dramatic • Fees for half of the hearing aid codes that existed in 2000 actually declined since 2000
Medicaid Fees for Cochlear Implant Services • Most of these codes new since 2000; states often manually price these services or fold them into hospital payments • Several states limit their billable codes for cochlear implant services • In the 4 states with a billable code for cochlear devices, fees average $15,248, but ranged from $14,074 to $17,127 • Initial cochlear implant fees increased by 8% since 2000, but replacements decreased by almost 7%
Medicaid Fees for Assistive Communication Services • 3 of 15 states have reimbursable codes for adaptive hearing devices • State covering this service have manual pricing policies
Comparing Medicaid & Medicare Fees (Table 4) • Overall, Medicaid fees are 69% of Medicare fees • Medicaid fees as a percent of Medicare fees vary by service, with a low of 40% for pure tone audiometry (air & bone) and a high of 89% for auditory evoked potentials for evoked response audiometry
Policy Implications • Although most states have billable codes for a broad array of hearing services, it is unclear whether states without billable codes for specific hearing services are using EPSDT • Variation is state Medicaid fees are not accounted for by urban/rural state or per capita income
Policy Implications • To arrive at more consistent payment policies, states may want to adopt fees that are some proportion of Medicare fees • Low Medicaid payment levels are likely to adversely affect access to audiology services and also participation of audiologists
Policy Implications (cont.) • Despite difficult financial times, it is important for State Medicaid agencies, audiologists, and EHDI officials to work together to phase-in improvements in reimbursement to assure that low income children have access to needed hearing services