Members should be aware; the FTC has developed Red Flag Rules which require “creditors” – including health care providers -- to conduct a risk assessment to determine if they have accounts at risk for identity theft. These rules went into effect in November, 2008 with an implementation date of May 1, 2009. The AMA disputed the FTC’s inclusion of health care providers as creditors, but the FTC determined that health care providers do fall within the ambit of the rules. According to the Equal Credit Opportunity Act, a “creditor” is “any person who regularly extends, renews or continues credit.” “Credit” is defined as a “deferment of payment for goods or services rendered.” For health care providers, this means every time you submit a health insurance claim to an insurance carrier first, and then bill the patient for co-payments or deductibles after services are rendered you are deferring payment and thus are acting as a “creditor.” Medical identity theft occurs when an individual seeks care using the name or insurance information of another person. This can result if false billing and potentially life-threatening corruption of a patient’s medical records. The bottom line comes in assessing risk in your practice of possible identity theft. The FTC requires that office practice’s have written policies in place – an “Identity Theft Prevention Program” -- and a plan to “prevent and mitigate” the effects of identity theft. If you have a small practice in which all your patients are known to you or your staff, you are at lesser risk and may only need an initial copy of a state issued photo ID that is checked at each visit to ensure that the patient is who he/she says she is. There is greater risk in a large multi-doctor office or facility. It would also be required to have a procedure in place in the event that you are notified by a state or local agency that the consumer’s identity has been misused. In order to assist the membership with implementation of the Red Flag Rules, the NYSCA has put together a “Model Identity Theft Prevention Program” for members. In addition to all the information and contacts you would need in case of identity theft, this includes a “turn key” manual that only requires you to fill in your office information. They do require you to have a meeting to explain the new procedures to your staff. Everything else is done for you. Many groups are selling packages for $100 or more; as a member benefit, the Red Flag Rules package can be downloaded from the NYSCA website free-of-charge. Download your copy, fill in the information and be in-compliance by the May 1, 2009 deadline. Membership has its privileges. Sincerely, Mariangela Penna, DC President, New York State Chiropractic Association GO TO MEMBERS ONLY TO VIEW THE “Model Identity Theft Prevention Program” by clicking on the link below:

Red Flags Rule Enforcement Delayed Three Months Due to Congressional pressure supported by ACA, the Federal Trade Commission announced today it will delay enforcement of the new "Red Flags Rule" until August 1, 2009. This will give creditors and financial institutions more time to develop and implement written identity theft prevention programs. ACA will continue to monitor this important policy and support members in compliance. More information on the Red Flags Rule

Doctors beware: There are many rumors within the chiropractic profession about Medicare policies. ---Did you know that you still have to bill Medicare if you are a non-participating (non-par) physician? ---You still have to follow Medicare documentation requirements if you are non-par? ---You are still subject to reviews if you are non-par? There is no visit cap for chiropractic in Medicare? Read the MLN matters article by clicking on the link below:

Federal Trade Commission (FTC) regulations stating that financial institutions and creditors are required to develop and execute written identity theft prevention programs otherwise known as the “Red Flags Rules,” are slated to go into effect May 1, 2009. Until recently, there was much ambiguity regarding the regulations and questions were raised as to whether physician offices fell under the FTC red flags guidelines. In February, the FTC issued a statement clarifying that Identity Theft Red Flag Rules do indeed apply to physicians including doctors of chiropractic. Read the FTC statement by clicking on the link below:

(Arlington, Va.) -- The American Chiropractic Association (ACA) and the Association of Chiropractic Colleges (ACC) today expressed support for newly introduced legislation in the U.S. House of Representatives designed to codify chiropractic as a covered service through the Department of Veterans Affairs (VA) health care system. Representative Bob Filner, D-Calif., introduced HR 1017 late last week. The bill, which is similar to legislation introduced in 2007, specifically requires the VA to have a doctor of chiropractic on staff at all VA medical facilities by 2012. It also amends the current statute, the Department of Veterans Affairs Health Care Programs Enhancement Act of 2001, ensuring that chiropractic benefits cannot be denied. “The ACA and ACC applaud the work of Rep. Filner as he continues to advocate for both chiropractic and our nation’s veterans,” said ACA President Glenn Manceaux, DC. “Veterans want, need and deserve access to chiropractic care, and it is our goal to ensure that chiropractic is ultimately available and accessible at every major VA health care facility.” Further, ACC President Dr. Carl Cleveland III noted, “The chiropractic educational community welcomes the opportunity to position its graduates and the profession to serve our nation’s veterans, and this legislation allows veterans’ easier access to chiropractic care. With a reported 49 percent of eligible veterans returning with neuromusculoskeletal issues, the need for expanded access to chiropractic services has never been more crucial.” Through previous congressional action, chiropractic care is now available at 32 VA facilities across the country; however, in the more than 120 facilities without a chiropractor on staff, the chiropractic care benefit Congress authorized for America’s veterans remains virtually non-existent. Detroit, Denver, and Chicago are a few examples of major metropolitan areas without a doctor of chiropractic available at the local VA medical facility. According to ACA Vice President of Government Relations John Falardeau, without a congressional directive, further expansion to VA facilities will be on a case-by-case basis and will be excruciatingly slow. The ACA believes that integrating chiropractic treatment into the VA health care system would not only be cost-effective, it would also speed the recovery of many of the veterans returning from current operations in Iraq and Afghanistan. A January 2009 report from the Veterans Health Administration indicates that over 49 percent of veterans returning from the Middle East and Southwest Asia who have sought VA health care were treated for symptoms associated with musculoskeletal ailments – the top complaint of those tracked for the report. HR 1017 has been referred to the House Committee on Veterans’ Affairs. To view the full text of HR 1017, click here. Contact your Member of Congress and urge them to cosponsor HR 1017.

CIGNA Signs Agreement to Deliver Fair Rates to Patients Nationwide; Will Contribute $10 Million to New, Independent Database Cuomo Also Announces Intent to Sue Rochester-Based Excellus for Defrauding Consumers by Manipulating Rates, Relying on Outdated Information Attorney General Andrew M. Cuomo today announced further expansion of his historic reform of the national healthcare reimbursement system. Cuomo has reached an agreement with CIGNA (NYSE: CI), one of the nation’s ten largest health insurers, in his ongoing drive to end industry-wide conflicts of interest and generate fair reimbursement rates for working families nationwide. CIGNA will end its relationship with the defective Ingenix database, as well as pay $10 million to a qualified nonprofit organization that will establish a new, independent database to help determine fair out-of-network reimbursement rates for consumers. The agreement today with CIGNA brings the total dollar amount secured by Attorney General Cuomo for the new database to over $80 million. Attorney General Cuomo also announced that his office has served a five-day notice of intent to sue Excellus Health Plan (“Excellus”) for defrauding consumers and patients across Upstate New York by manipulating reimbursement rates for out-of-network services. Rochester-based Excellus is the largest not-for-profit insurer in New York State, and is the largest insurer in the Rochester and Syracuse areas. Excellus and its affiliates serve nearly two million people in 31 counties, with approximately 872,000 members in Rochester, 549,000 in Syracuse and Central New York, 289,000 in Utica, and 165,000 in Buffalo, where it operates as Univera Healthcare (“Univera”), one of the Buffalo area’s three largest insurers. Cuomo's case against Excellus includes information provided by the Syracuse Post-Standard newspaper showing that Excellus was under-reimbursing the Post-Standard's employees, who were members of Excellus. “Today’s agreement with CIGNA is the latest domino to fall in our industry-wide sweep of the healthcare reimbursement system and brings us another step closer to complete reform,” said Attorney General Cuomo. “Unfortunately, on the same day, we have another company that has continued to stand squarely in the way of our efforts. The bottom line is that Excellus failed to satisfy promises made to its members to deliver fair rates and give patients what they paid for. Let this notice today serve as a firm reminder to other insurers who have not yet resolved this problem - we will not hesitate to pursue legal action against companies that defraud patients.” Earlier this month, Attorney General Cuomo announced sweeping reforms to end the manipulation of reimbursement rates at the expense of patients across the country. After a year-long investigation revealed that the health insurance industry relied on a defective database to set rates, Cuomo reached groundbreaking agreements with UnitedHealth Group Inc. (“UnitedHealth”) (NYSE: UNH), the owner of the Ingenix database and the second-largest insurer in the country, along with Aetna (NYSE: AET), the nation’s third-largest health insurer. After those initial agreements, Cuomo brought his reform efforts to Upstate New York, securing agreements with the Schenectady-based MVP Health Care/Preferred Care as well as Independent Health and HealthNow, both Buffalo-based insurers. Attorney General Cuomo’s investigation concerned allegations that as a subsidiary of UnitedHealth, Ingenix had a vested interest in helping set rates low, so companies could underpay patients for out-of-network services. The investigation revealed that the database intentionally skewed “usual and customary” rates downward through faulty data collection, poor pooling procedures, and the lack of audits, meaning consumers were forced to pay more than they should have. The investigation found the rate of underpayment by insurers ranged from ten to twenty-eight percent for various medical services across the state. The Attorney General found that having a health insurer determine the “usual and customary” rate - a large portion of which the insurer then reimburses - creates an incentive for the insurer to manipulate the rate downward. The establishment of a new database, independently owned and operated by a nonprofit organization, is designed to remove this conflict of interest. Under the agreement secured with UnitedHealth, the database of billing information operated by Ingenix will close. UnitedHealth also agreed to pay $50 million to a qualified nonprofit organization that will establish a new, independent database to help determine fair out-of-network reimbursement rates for consumers throughout the United States. Cuomo’s agreement with Aetna, which will also end their relationship with Ingenix, secured another $20 million for the database. Today’s agreement with CIGNA, which insures 12 million people nationwide, brings the total dollar amount to $80 million. Under the terms of the agreement: • CIGNA will pay $10 million toward a new, independent database run by a qualified nonprofit organization; • The nonprofit will own and operate the new database, and will be the sole arbiter and decision-maker with respect to all data contribution protocols and all other methodologies used in connection with the database; • The nonprofit will develop a website where, for the first time, consumers around the country can find out in advance how much they may be reimbursed for common out-of-network medical services in their area; • The nonprofit will make rate information from the database available to health insurers; • The nonprofit will use the new database to conduct academic research to help improve the health care system; • The nonprofit will be selected and announced at a future date. Cuomo also announced today that he has served a five-day notice of intent to sue Rochester-based Excellus for defrauding consumers across the state. During the investigation into the use of the Ingenix databases, the Attorney General has uncovered a trove of e-mails pointing to an egregious scheme by Excellus to defraud its members by using obsolete fee schedules to reimburse members for out-of-network care. The investigation has found that, for at least the past fifteen years, Excellus has used years-old fee schedules to reimburse consumers for out-of-network claims, saving itself countless dollars which should have been paid to consumers. Because medical costs rise substantially every year, the use of old fee schedules hurts consumers by paying them substantially less than they are owed. For every year by which the fee schedule is outdated, the harm to the consumer is compounded. For many years, Excellus has relied on pricing information that was as much as nine years old. Furthermore, emails and other internal communications secured by the Attorney General’s Office during the investigation show that Excellus employees were aware of their outdated rates and did nothing to correct the problem or pay members what they were owed. “In some of the most egregious evidence of fraud we have seen in this investigation, these emails reveal that not only did Excellus use outdated UCR fee schedules, but it made zero effort to fix the problem and pay members what they deserved. The company’s own internal communications show total disregard for the effect their skewed rates were having on hard-working families, especially across Upstate New York where Excellus controls the lion’s share of the health insurance market,” said Cuomo. According to a 2007 market report by the American Medical Association, Excellus controls 57 percent of the Rochester market for commercial health insurance and 66 percent of the PPO (“preferred provider organization”) market there; 42 percent of the Syracuse market for commercial health insurance and 97 percent of the HMO (“health maintenance organization”) market there; 27 percent of the Binghamton market for commercial health insurance and 80 percent of the HMO market there; and 15 percent of the Ithaca market for commercial health insurance and 100 percent of HMO market there. The Attorney General’s industry-wide investigation into rate manipulation began in February 2008, when Cuomo announced that he had issued subpoenas to the nation’s largest health insurance companies that use the Ingenix database, including Aetna, CIGNA and WellPoint/Empire BlueCross BlueShield (NYSE: WLP). To date the investigation is ongoing. Jeff Kang, M.D., Chief Medical Officer for CIGNA, said: "CIGNA commends the Attorney General’s efforts to bring greater transparency to the pricing of health care services and we are pleased to partner in the creation of an independent not-for-profit organization to administer the new database. We recognize the Attorney General’s concern that there are inherent conflicts of interest related to the Ingenix database and expect that this new database will further enable people to make informed choices about their health care purchases.” Nancy Nielsen, M.D., President of the American Medical Association (AMA), said: “The American Medical Association commends CIGNA for committing today to the groundbreaking insurer settlements arranged by New York Attorney General Andrew Cuomo. In the wake of these agreements, the AMA calls upon all health insurers to reject the fatally flawed Ingenix database. Health insurers who truly recognize the importance of restoring their damaged relationships with patients and physicians should commit to the solution proposed by Attorney General Cuomo without delay.” Michael H. Rosenberg, MD, President of the Medical Society of the State of New York (MSSNY), said, “Attorney General Andrew Cuomo has taken another important step in propelling state and national healthcare reform and leveling the playing field with managed care organizations. Just a month after negotiating the first agreement, Attorney General Cuomo has managed to achieve what MSSNY and the AMA sought for more than eight years. With CIGNA joining United, Aetna, MVP, HealthNow and Independent Health - in abandoning the flawed Ingenix system - patients and physicians will now have the assurance of a viable and transparent reimbursement system for out-of-network services. At a time of great economic distress, this is a major step forward in the assurance of quality health care delivery.” Chuck Bell, Programs Director of Consumers Union, said: “Attorney General Cuomo's sweeping national investigation of the previously obscure Ingenix database has lifted the veil on this appalling financial rip-off, and created a new framework for a fair, consumer-friendly solution. Today's announcement shows that national insurers are coalescing behind a comprehensive, industry-wide strategy to reform the way that out-of-network charges are calculated, so consumers will be paid fairly.” The agreement announced today is the result of an investigation by Deputy Chief of the Health Care Bureau James E. Dering, Senior Trial Counsel Kathryn E. Diaz, and Assistant Attorneys General Brant Campbell and Sandra Rodriguez, under the direction of Linda A. Lacewell, the head of the Attorney General’s Healthcare Industry Taskforce. In January, Cuomo also issued a report on his investigation, “Health Care Report: The Consumer Reimbursement System is Code Blue.” The report highlights the conflicts of interest and other defects in the current system and calls for the reforms announced today. To access the report, get consumer tips for out-of-network care, or to file a complaint, please visit http://www.oag.state.ny.us.

United Health Care used a faulty method to calculate risk costs and overcharged the state nearly $4 million for insuring the New York State Health Insurance Program (NYSHIP), according to an audit released today by State Comptroller Thomas P. DiNapoli. “United Health Care overcharged the state nearly $4 million,” DiNapoli said. “These days every dime counts and $4 million is a lot of taxpayer dimes. This practice must stop.” Civil Service Commissioner Nancy G. Groenwegen said, “This Department is constantly seeking ways to reduce premium costs to the State and local NYSHIP participants, and ultimately the taxpayers. We agree with the Comptroller and have begun negotiations with United Health Care to change the way it assesses and charges for the risks it undertakes.” New York State provides health insurance coverage to active and retired state, local government and school district employees. United Health Care is responsible for administering the medical/surgical and major medical portion of the Empire Plan, the primary health plan of NYSHIP. The New York State Department of Civil Service is responsible for overseeing the program. Auditors found that United Health Care was improperly calculating the amount it charged the state for insuring the risk associated with administering the Empire Plan. It is standard industry policy for insurance companies to charge employers for the risk of insuring their employees. United Health Care calculated its risk charge using gross premium costs rather than net, or actual, premium costs. For the last 20 years United Health Care has consistently overestimated gross premium payments the state must pay to cover anticipated costs and had to return money to the state. The three other insurance providers that administer the Empire Plan use actual costs to calculate the state’s risk charge. From 2004 to 2007, United Health Care charged the state $71.6 million for the risk associating with insuring the plan, which is $3.9 million more than if it had calculated the risk charge based on actual costs. Government Accountability The Office of the State Comptroller regularly audits state agencies, public authorities and New York City agencies. Auditors ensure that programs achieve their established goals, funds are used efficiently and assets are adequately protected against fraud, waste and abuse. DiNapoli’s office completes approximately 200 state audits annually and identifies hundreds of millions in savings and fraud each year. Click below for a copy of the audit.

MVP Health Care is First Upstate, Non-Profit Insurer to Sign Agreement with Cuomo AG Also Issues Five-Day Notice to File Suit Against CDPHP for Consumer Fraud Attorney General Andrew M. Cuomo today announced the expansion of his historic reform of the nationwide healthcare reimbursement system to Upstate New York. Cuomo has reached an agreement with the Schenectady-based insurer MVP Health Care, Inc. in his ongoing drive to eliminate the defective and conflict-of-interest ridden Ingenix database and generate fair, out-of-network reimbursement rates for patients. Cuomo also announced that he has filed a five-day notice to file suit against another Upstate health insurer, Capital District Physician’s Health Plan (CDPHP), for failure to embrace these reforms. MVP, a non-profit health insurer that covers over 700,000 patients across Upstate New York and the East Coast, did not contribute data to Ingenix, but, like other insurers across the country, relied on the database to determine reimbursement rates for patients who went out of network. Despite not being a contributor, MVP has proactively agreed to embrace Cuomo’s reform efforts and end its relationship with Ingenix, becoming an industry-wide leader in the fight to ensure fair reimbursement rates for working families nationwide. “Companies like MVP that proactively embrace reform are an essential part of our continued momentum towards change that is nationwide and industry-deep,” said Attorney General Cuomo. “I commend MVP for being a true industry leader and hope that their forward-thinking actions today encourage others to follow suit. If they do not, as my notice to CDPHP today makes clear, this Office will not hesitate to bring legal action against anyone who was involved with Ingenix.” Earlier this month, Attorney General Cuomo announced sweeping reforms to end the manipulation of reimbursement rates at the expense of patients across the country. After a months-long investigation revealed that the health insurance industry relied on a faulty database to set rates, Cuomo reached groundbreaking agreements with UnitedHealth Group Inc. (NYSE: UNH), the owner of the Ingenix database and the second-largest insurer in the country, along with Aetna (NYSE: AET), the nation’s third-largest insurer. Attorney General Cuomo’s investigation concerned allegations that as a subsidiary of a major health insurer, Ingenix had a vested interest in setting rates low, so companies could underpay patients for out-of-network services. The investigation revealed that the database intentionally skewed “usual and customary” rates downward through faulty data collection, poor pooling procedures, and the lack of audits. That means many consumers were forced to pay more than they should have. The investigation found the rate of underpayment by insurers ranged from ten to twenty-eight percent for various medical services across the state. The Attorney General found that having a health insurer determine the “usual and customary” rate – a large portion of which the insurer then reimburses – creates an incentive for the insurer to manipulate the rate downward. The establishment of a new database, independently maintained by a nonprofit organization, is designed to remove this conflict of interest. In early January, Attorney General Cuomo announced the first settlement in his investigation with UnitedHealth, under which the database of billing information operated by Ingenix will close. United also agreed to pay $50 million to a qualified nonprofit organization that will establish a new, independent database to help determine fair out-of-network reimbursement rates for consumers throughout the United States. Cuomo has since reached an agreement with Aetna who will pay $20 million to the new database. Today’s agreement with MVP is the first involving a non-profit, upstate insurer and demonstrates the industry’s growing commitment to Cuomo’s reforms. Under the terms of the agreement: • MVP will cease using the Ingenix databases to calculate out-of-network reimbursement rates; • MVP will also amend their member disclosures to provide clearer information to its members about their method of determining reimbursement rates; • If MVP continues to promise its members that they will be reimbursed based on “usual and customary rates,” MVP will use the new database; • MVP will contribute $535,000 over a five-year period to help fund the new, independent database; • A nonprofit will own and operate the new database, and will be the sole arbiter and decision-maker with respect to all data contribution protocols and all other methodologies used in connection with the database; • The nonprofit will develop a website where, for the first time, consumers around the country can find out in advance how much they may be reimbursed for common out-of-network medical services in their area; • The nonprofit will make rate information from the database available to health insurers; • The nonprofit will use the new database to conduct academic research to help improve the health care system; • The nonprofit will be selected and announced at a future date Denise Gonick, MVP Health Care executive vice president and chief legal officer, said: “Like many other health insurers, MVP used the Ingenix database. We recognize the Attorney General’s concern about conflicts of interest inherent in the Ingenix database and appreciate his providing our industry with an independent process that is transparent and helps consumers make more informed health care purchasing decisions. MVP welcomes the opportunity to be the first upstate New York based health insurer to introduce this reform to our members, and believes that consumers and providers will be well-served by the joint effort that we are announcing today.” Dr. Nancy Nielsen, President of the American Medical Association, said: "We are encouraged that health insurers are stepping forward and recognizing the importance of restoring their damaged relationships with patients and physicians by committing to the creation of a new, independent database that will restore fair reimbursements. The American Medical Association commends MVP/Preferred Care for joining United Healthcare and Aetna by agreeing to the solution proposed by New York Attorney General Cuomo and calls upon other health insurers to do the same." Dr. Michael H. Rosenberg, President of the Medical Society of the State of New York, said: “Today’s announcement – that brings us another big step closer to achieving a major goal that the Medical Society of the State of New York and the American Medical Association have been working on since 2000. This agreement with MVP is particularly noteworthy because it will help to reduce the cost of out-of-network medical care for patients in this area, which has been impacted by the economic downturn. Efficient use of the healthcare dollar is particularly important to these New Yorkers today.” Chuck Bell, Programs Director for Consumers Union, said: “Attorney General Andrew Cuomo’s investigation of the health insurance industry has blown the cover on a massive, national problem in the out-of-network reimbursement system. Thanks to this investigation, we now know that many, many consumers are being grossly underpaid by their insurers when they go out of network to visit a physician or medical provider. We commend MVP Health Care for being an early leader in supporting a new independent nonprofit institute based in New York state that will collect and maintain data on out-of-network charges, and contributing half a million dollars to fund its work.” Cuomo also announced today that he has given CDPHP five-day notice of intent to sue for refusing to abandon the use of the Ingenix database and embrace reform. CDPHP is another non-profit insurer based in the Capital Region that insures 400,000 patients throughout 29 counties in New York State. The Attorney General’s five-day notice states that the Office intends to commence litigation against CDPHP in order to stop the unlawful acts and practices that they have engaged in and continue to engage in. It will also seek to obtain injunctive relief, restitution, damages, and civil penalties. The unlawful acts and practices complained of consist of engaging in repeated and persistent fraudulent, deceptive, and illegal business practices in connection with CDPHP’s continued use of the Ingenix databases for reimbursing members’ covered out-of-network services in New York State. The agreement announced today is the result of an investigation by Deputy Chief of the Health Care Bureau James E. Dering, Senior Trial Counsel Kathryn E. Diaz, and Assistant Attorneys General Brant Campbell and Sandra Rodriguez, under the direction of Linda A. Lacewell, the head of the Attorney General’s Healthcare Industry Taskforce. Earlier this month, Cuomo also issued a report on his investigation, “Health Care Report: The Consumer Reimbursement System is Code Blue.” The report highlights the conflicts of interest and other defects in the current system and calls for the reforms announced today. To access the report, get consumer tips for out-of-network care, or to file a complaint, please visit:

Industry-Wide Reform of Reimbursement System Will End Conflicts of Interest and Create Fair Rates for Consumers Nationwide NEW YORK, NY (January 13, 2009) – Attorney General Andrew M. Cuomo today announced historic reform of the nationwide health care reimbursement system that will end conflicts of interest and generate fair reimbursement rates for working families nationwide. Cuomo has reached an agreement with UnitedHealth Group Inc. (NYSE: UNH) (“United”), the nation’s second largest health insurer, after conducting an industry-wide investigation into a scheme to defraud consumers by manipulating reimbursement rates. At the center of the scheme is Ingenix, Inc. (“Ingenix”), a wholly-owned subsidiary of United, which is the nation’s largest provider of health care billing information. Under the agreement with United, the database of billing information operated by Ingenix will close. United will pay $50 million to a qualified nonprofit organization that will establish a new, independent database to help determine fair out-of-network reimbursement rates for consumers throughout the United States. “For the past ten years, American patients have suffered from unfair reimbursements for critical medical services due to a conflict-ridden system that has been owned, operated, and manipulated by the health insurance industry. This agreement marks the end of that flawed system,” said Attorney General Cuomo. “As working families throughout our nation struggle with the burden of health care costs, we will make sure that health insurers keep their promise to pay their fair share. The industry reforms that we announce today will bring crucial accuracy, transparency, and independence to a broken system. During these tough economic times, this agreement will keep hundreds of millions of dollars in the pockets of over one hundred million Americans.” In February 2008, the Attorney General announced an industry-wide investigation into allegations that health insurers unfairly saddle consumers with too much of the cost of out-of-network health care. Seventy percent of insured working Americans pay higher premiums for insurance plans that allow them to use out-of-network doctors. In exchange, insurers often promise to cover up to eighty percent of the “usual and customary” rate of the out-of-network expenses, and consumers are responsible for paying the balance of the bill. United and the largest health insurers in the country rely on the United-owned Ingenix database to determine their “usual and customary” rates. The Ingenix database uses the insurers’ billing information to calculate “usual and customary” rates for individual claims by assessing how much the same, or similar, medical services would typically cost, generally taking into account the type of service and geographical location. Under this system, insurers control reimbursement rates that are supposed to fairly reflect the market. Attorney General Cuomo’s investigation concerned allegations that the Ingenix database intentionally skewed “usual and customary” rates downward through faulty data collection, poor pooling procedures, and the lack of audits. That means many consumers were forced to pay more than they should have. The investigation found the rate of underpayment by insurers ranged from ten to twenty-eight percent for various medical services across the state. The Attorney General found that having a health insurer determine the “usual and customary” rate – a large portion of which the insurer then reimburses – creates an incentive for the insurer to manipulate the rate downward. The creation of a new database, independently maintained by a nonprofit organization, is designed to remove this conflict of interest. Under Attorney General Cuomo’s agreement with United: ---United will pay $50 million to establish a new, independent database run by a qualified nonprofit organization; ---The nonprofit will own and operate the new database, and will be the sole arbiter and decision-maker with respect to all data contribution protocols and all other methodologies used in connection with the database; ---The nonprofit will develop a website where, for the first time, consumers around the country can find out in advance how much they may be reimbursed for common out-of-network medical services in their area; ---The nonprofit will make rate information from the database available to health insurers; ---The nonprofit will use the new database to conduct academic research to help improve the health care system; ---The nonprofit will be selected and announced at a future date. In February 2008, Cuomo also announced that he had issued subpoenas to the nation’s largest health insurance companies that use the Ingenix database, including Aetna (NYSE: AET), CIGNA (NYSE: CI), and WellPoint/Empire BlueCross BlueShield (NYSE: WLP). The Attorney General’s industry-wide investigation is ongoing. Cuomo continued, “Our agreement with United removes the conflicts of interest that have been inherent in the consumer reimbursement system. This has been an industry-wide problem, and it demands an industry-wide reform. We commend United for leading the industry on this issue, and we encourage other insurers to follow suit.” Cuomo was joined by representatives from United and from leading medical and consumer organizations in making today’s announcement at the Saint Vincent Catholic Medical Center in Manhattan. “We are committed to increasing the amount of useful information available in the health care marketplace so that people can make informed decisions, and this agreement is consistent with that approach and philosophy,” said Thomas L. Strickland, Executive Vice President and Chief Legal Officer of UnitedHealth Group. “We are pleased that a not-for-profit entity will play this important role for the marketplace.” President of the American Medical Association (AMA), Nancy Nielsen, M.D., said, “Today, patients and physicians prevailed over health insurance giant UnitedHealth Group when New York Attorney General Cuomo stopped the insurer from using a rigged Ingenix database that increased insurer profits at the expense of patients and physicians. The AMA appreciates the leadership of Attorney General Cuomo in initiating his investigation into the Ingenix database, and fully supports the Attorney General’s actions to have a nonprofit entity create a new, reliable database that is fair to patients and physicians.” President of the Medical Society of the State of New York (MSSNY) Michael H. Rosenberg, M.D., said, “We thank Attorney General Cuomo for taking decisive action to finally achieve one of the major goals of a lawsuit that the Medical Society of the State of New York initiated with two other medical societies over eight years ago. Because of the thorough research and diligent negotiation of Mr. Cuomo and his expert staff, patients and their physicians will no longer be subject to inadequate out-of-network payments determined by the flawed Ingenix database.” Consumers Union Programs Director Chuck Bell said, “Consumers Union greatly appreciates the care that Attorney General Cuomo and his staff have taken in investigating these issues, and creating the careful architecture in this settlement. This is an extremely sensible, fair solution, which will be of great benefit for consumers nationwide. We appreciate the fact that United Healthcare has come to the table to resolve these issues in a comprehensive way, and we hope that other insurance companies will quickly get on board, and strongly support this excellent plan to improve transparency for out-of-network charges.” Consumers Union is the nonprofit publisher of Consumer Reports. Today, Cuomo also issued a report on his investigation, “Health Care Report: The Consumer Reimbursement System is Code Blue.” The report highlights the conflicts of interest and other defects in the current system and calls for the reforms announced today. It can be accessed at reimbursement rates. The agreement announced today is the result of an investigation by Deputy Chief of the Health Care Bureau James E. Dering, Senior Trial Counsel Kathryn E. Diaz, and Assistant Attorneys General Brant Campbell and Sandra Rodriguez, under the direction of Linda A. Lacewell, the head of the Attorney General’s Healthcare Industry Taskforce. The Attorney General expressed his appreciation to Steven E. Fineman, Esq., of Lieff Cabraser Heimann & Bernstein, LLP, for his pro bono services in this matter. For more information, including consumer tips for out-of-network care, or to file a complaint, please visit reimbursement rates.

In July, Congress passed the Medicare Improvement for Patients and Providers Act of 2008 (MIPPA). This legislation staved off a 10.6 percent across-the-board cut facing all Medicare providers and provided for a 1.1 percent positive reimbursement update for providers in 2009. Based on this update, as well as work and practice expense changes, doctors of chiropractic can expect a 2 percent overall increase in Medicare reimbursement rates, as indicated in a final rule released last week by the Centers for Medicare and Medicaid Services (CMS). Changes to the fee schedule will take effect Jan. 1, 2009. Accurate fee schedule information may be obtained from your local Medicare contractor prior to billing for dates of service in 2009. Members can view the new Chiropractic Medicare Fee Schedule by clicking on the link below.

In July, Congress passed the Medicare Improvement for Patients and Providers Act of 2008 (MIPPA). This legislation staved off a 10.6 percent across-the-board cut facing all Medicare providers and provided for a 1.1 percent positive reimbursement update for providers in 2009. Based on this update, as well as work and practice expense changes, doctors of chiropractic can expect a 2 percent overall increase in Medicare reimbursement rates, as indicated in a final rule released last week by the Centers for Medicare and Medicaid Services (CMS). Changes to the fee schedule will take effect Jan. 1, 2009. Accurate fee schedule information may be obtained from your local Medicare contractor prior to billing for dates of service in 2009. Members can view the new Chiropractic Medicare Fee Schedule by login to Members Only section.

The Department of Health and Human Services (HHS), Office of the Inspector General (OIG), the entity responsible for identifying and reporting inefficiency in Medicare, Medicaid and other related HHS agencies, has announced in its 2009 Work Plan that it will again seek records from doctors of chiropractic as a follow-up to previous reports on chiropractic documentation. These requests for records are expected in FY2009. To view the entire OIG report click on the link below (OIG report pg-16 or PDF pg-34).

Did you know that the Employee Retirement Income Security Act (ERISA) governs nearly 2.5 million health benefit plans nationwide? In total, these plans provide health care benefits to 134 million Americans. The far-reaching nature of ERISA regulations is important because these regulations have very specific requirements aimed at ensuring fair treatment to the beneficiary. ERISA regulations require a timely response from the insurer, delineate standards of claims decisions, and require the insurer to disclose detailed information regarding any adverse determinations. It is important to familiarize yourself with these regulations so you can assist your patients in ensuring their health plan is following ERISA regulations, if applicable. ACA has updated and simplified the information available for members regarding ERISA. Please take time today to have your staff review this information and think about whether you have any patients that might qualify for and benefit from an ERISA appeal. This resource can be found at:

The most recent ABN released by the Centers for Medicare and Medicaid Services (CMS) was published in March 2008 and was previously required for use by Sept. 1, 2008. The date for implementation has now changed. The new ABN form is mandatory for use by March 1, 2009. Among other changes, the new form may be used for non-covered services, or anything that is NOT spinal CMT (CPT codes 98940, 98941, 98942). This includes exams, modalities, x-rays, labs, etc. This version of the ABN will also eliminate the need for the previous Notice of Exclusion from Medicare Benefits (NEMB) form, which was considered OPTIONAL by CMS. For more information, visit the ABN portion of the ACA Web site at: additional ABN information

Department of Banking and Insurance (DOBI) Commissioner Steven M. Goldman today announced that Health Net of New Jersey has paid $26 million in restitution and interest covering 88,000 New Jersey members to compensate them due to under-reimbursements for out-of-network services over more than a decade. These payments have already been issued to the affected New Jersey members. Health Net waived its right to a hearing and has agreed to resolve the matter with the payment of $14 million in unpaid claims, $12 million in interest on those claims, $2 million in examination fees and a record $13 million fine, for a total of $41 million. “Health Net dramatically underpaid claims to New Jerseyans to reimburse them for out-of-network health care services,” said DOBI Commissioner Goldman. “I’m pleased that we were able to obtain the return of this money to Health Net’s New Jersey members, together with interest, since this is what Health Net promised to pay but had not. The fine represents an appropriate penalty for this improper business practice.” The actions are the result of a 21 month examination into claims paid by Health Net, of Shelton, CT., and its predecessors, First Option Health Plan of New Jersey and Physicians Health Services of New Jersey, for out-of-network service to persons covered in New Jersey between 1996 to 2006. Health Net’s vendors for chiropractic services and for mental health services also made underpayments. Health Net cooperated with the investigation. The Department first became aware of the problem in 2002 through a consumer complaint. DOBI investigated and in December 2002 settled with Health Net for more than $800,000 in restitution to more than 4,700 Health Net members for underpayments. At that time Health Net represented that the underpayments occurred only from July 2001 through October 2002. In 2005, the Department learned that Health Net’s underpayments had begun earlier than it had previously disclosed. By the end of 2005, DOBI decided to conduct an examination of Health Net that concluded in May of this year with the finding that Health Net and its predecessors made underpayments of out-of-network medical claims from 1996 to 2005 and of out-of-network dental claims, mental health claims and chiropractic claims from 1999 to 2006. Health Net has acknowledged its responsibility to comply with all applicable laws, and has overhauled the systems and practices that led to its misconduct. The Department will continue to monitor the company for compliance. “Today’s announcement highlights DOBI’s commitment to protecting New Jersey consumers,” said DOBI Insurance Director Donald Bryan. “The Department’s mission to help consumers exists not only in the very important healthcare insurance sector, but in all financial services industries DOBI regulates.” To view the Consent Order E08-71 click on the link below:

Congress overrides Bush's Medicare veto scheduled to take effect Tuesday, July 1, 2008 and cut 10.6% in Medicare payments to physicians. The US Congress canceled the reduction in Medicare payments to doctors treating elderly patients. Within hours of President Bush’s Veto Representatives voted 383-41 to override it. The Senate followed suit soon after, by a vote of 70-26.

The neglect or failure of a carrier or self–insured employer to pay awards for medical bills in a timely manner has a significant impact on the ability of all injured workers to obtain effective and immediate treatment, as it discourages health care providers from seeking or retaining authorization to treat workers' compensation claimants. Additionally, it may result in the health care provider seeking direct payment from the claimant, despite the statutory prohibition against direct payments. A claimant's ability to obtain proper medical treatment expeditiously not only benefits the claimant, but also results in lower medical costs for employers. Claimants who receive prompt and proper attention are more likely to be able to return to work swiftly and less likely to have long term disabling conditions. The integrity of the workers' compensation system is compromised when carriers and self–insured employers do not meet their legal obligations to pay awards. The Board has received an increasing number of complaints by health care providers that bills rendered for the treatment and care of workers' compensation claimants are not being paid in a timely manner. In particular, providers are concerned that bills are not paid in many instances even after issuance of an administrative and/or arbitration award by the Board. Further, concern has been expressed that some bills are automatically rejected by the carrier due solely to a carrier's policy against paying bills for certain specific coded procedures, regardless of the apparent medical necessity for such treatments. It is the Board's intent that health care provider bills be paid in a timely manner after the carrier or self–insured employer has had a full and fair opportunity to contest the compensability or value of the bills if it elects to do so. Further, effective March 13, 2007, the Workers' Compensation Law, § 54–b was amended to authorize the Chair (or the Chair's designee) to issue a consent to file judgment when a carrier, self–insured employer or the State Insurance Fund fails to pay indemnity or medical benefits to a claimant or medical provider. Failure or neglect to pay awards for medical bills will be subject to judgment collection. In any case where the insurance carrier or self–insured employer has failed to make timely payments after an administrative or arbitration award and all appeals have been exhausted or no timely appeal has been taken, the health care provider may also seek to enter judgment for payment, pursuant to Workers' Compensation Law § 54–b. Workers' Compensation Law § 54–b specifically provides that in the event an employer or insurance carrier defaults in the payment of an award and/or an award of benefits made by the Board, any party to an award may, with the Chair's consent, file for judgment against the employer with the county clerk for the county in which the injury occurred or the county in which the employer has its principal place of business. Workers' Compensation Board authorized providers seeking payment of administrative and/or arbitration awards made on or after March 13, 2007 are asked to submit Form HP-J1, Provider's Request for Judgment of Award and to enclose a copy of the original award(s) issued. In order to allow for billing cycle payments, please allow 60 days after issuance of the administrative and/or arbitration award prior to requesting judgment. Send requests to: Workers' Compensation Board Bureau of Health Management Office of Health Provider Administration 100 Broadway – Menands Albany, NY 12241 The continued viability of the workers' compensation system is substantially dependent upon voluntary compliance of all parties with the Workers' Compensation Law, rules and regulations of the Board, and legal responsibilities imposed upon the parties. The Board remains committed to reducing adjudicatory delay and costs to all participants in the system. Self–insured employers and workers' compensation insurance carriers can contribute significantly to adjudication reform measures instituted by the Governor, the Legislature and the Board by meeting its obligations without the need to resort to extraordinary enforcement measures. If you have any questions, please contact the Office of Health Provider Administration at 1-800-781-2362. Zachary S. Weiss Chair

Given the failed efforts by Congress to avoid the looming cuts to the Medicare Physician Fee Schedule slated to take effect Tuesday, July 1, 2008, the Department of Health and Human Services (HHS) has intervened. The Agency announced that they would essentially freeze the Fee Schedule at its current levels for a period of ten days. That allows Congress three days to address the matter once they return from recess for the July 4th Holiday. Thank you to all of the ACA members who contacted your Members of Congress to request action. We will continue to keep you updated on any future action on legislation to address these draconian cuts.

Despite the aggressive efforts by ACA and its members, after multiple attempts by Congress, no agreement could be reached on legislation to avoid the looming cuts to the Medicare Physician Fee Schedule. The 10.6% across-the-board cut will go into effect on Tuesday, July 1, 2008. Doctors of chiropractic are urged to contact their local Medicare contractor or visit their carrier’s website for the most up to date information. Although the House of Representatives overwhelmingly passed legislation (355-59) earlier this week that would continue the Fee Schedule at its current levels through the end of the year, supporters in the Senate fell one vote short of overcoming a Republican filibuster. Leadership in the Senate has promised that they will revisit the issue when they return from next week’s recess for the Fourth of July Holiday. It is believed that any fix to be implemented would be retroactive to restore payments and compensate for the cuts. Some providers may wish to hold their claims until Congress acts to readjust the fee schedule. Thank you to all of the ACA members who contacted your Members of Congress to request action. We will continue to keep you updated on any future action on legislation to address these draconian cuts.

US Senate fails to pass a bill that would cancel the 10 percent cut scheduled to occur on Tuesday July 1, 2008. The bill would increase Medicare payments to doctors by 1.1 percent in January and cancel the 10 percent cut scheduled to occur on Tuesday. The President threatened to veto the bill, because it would reduce federal payments to private insurance plans, like UnitedHealth, Humana and Blue Cross and Blue Shield companies that offer Medicare Advantage plans.