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Superior HealthPlan moves forward with cuts to Medicaid therapy

By Sarah Mills posted Jul 15,2016 03:58 PM

  

Superior HealthPlan is moving forward with rate reductions for Medicaid therapy as of today, July 15, 2016. In response, TAHC&H has released the following:

FOR IMMEDIATE RELEASE                                                                

CONTACT: Bill Noble (512) 296-4651 cell bnoble@noblestrategic.com

July 15, 2016                                                              

 

                                                                                   

 

Contractor providing care to Texas foster children and other Medicaid recipients

moves forward with cuts to therapy

                     

Superior HealthPlan claims care for kids will continue while parents and therapy providers cry foul

 

Cuts are deeper in some areas of the state than those proposed by Health and Human Services Commission that prompted lawmaker and public outrage

 

Austin – One of the largest managed care organizations (MCO) that Texas contracts with to provide Medicaid services for disabled kids and impoverished seniors is moving forward with cuts to the reimbursement rates therapists receive for providing care. 

Superior HealthPlan, which serves 650,000 kids and seniors in STAR; nearly 60,000 in STAR+PLUS; and more than 31,000 kids in foster care in Texas, first announced the rate cuts to therapy providers in April.  The cuts to the reimbursement rates paid to therapist to provide services for Superior’s patients was originally scheduled to go into effect July 1, but Superior delayed implementation of the cuts to July 15.  Some therapy providers have found Superior is retroactively cutting rates for care already provided since July 1, 2016.

“Because of these extreme cuts, therapy providers are now forced to decide if they should put children currently receiving care on temporary or permanent hold, stop accepting new referrals for kids, reduce the communities they serve or cancel their contract with Superior,” said Rachel Hammon, executive director of the Texas Association for Home Care & Hospice (TAHC&H) whose members provide therapy services. “These rates are deep and unsustainable and will result in longer waiting lists for kids in need of immediate care or the complete abandonment of care for kids with urgent health needs. The end result: taxpayers will pay more for urgent care and institutionalization of kids that could not get the vital care they needed.”

Superior’s move comes following cuts made last year by the Texas Health and Human Services Commission (HHSC), which oversees Medicaid, in the amount of money given to MCOs to provide Medicaid services: The HHSC decides on the amount of money that is paid to managed care organizations (MCO) for each patient they will serve on behalf of the State of Texas. The HHSC also planned cuts to “fee-for-service” Medicaid reimbursements paid directly to therapy providers that were scheduled to take effect July 15 until the Supreme Court of Texas temporarily put the cut on hold July 8.

TAHC&H is not alone in expressing their concerns: Republican and Democratic lawmakers made specific mention of their concerns with Superior’s move and HHSC still has not responded to their concerns:

(HHSC should) “ensure that there are specific, measurable and public standards by which the HHSC evaluates adequate Medicaid beneficiary access to therapy services both in fee for service and managed care, particularly in rural areas of the state,” wrote 14 Republican lawmakers late last month in a letter to HHSC’s Executive Commissioner Charles Smith. “(HHSC should also) “review cost analyses performed by contracted Medicaid managed care organizations used to justify rate reductions to therapy providers for actuarial soundness…” the letter added.

 

TAHC&H reviewed Superior’s new rates and found specific services most often used by disabled children and seniors experienced reductions ranging from 10 to a shocking 60 percent from the current rates paid to provide service.

“Several home care therapy providers have announced the unfortunate need to layoff therapists and reduce or discontinue offering therapy services because they can’t continue operations at these new rate levels,” said Hammon.  “We believe the rate reductions should be stopped until a review is conducted of the impact the cuts will have on access to care.”

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