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On July 28, 2000, I submitted the following comments to the Office of Regulations, California Department of Health Services, on behalf of  MS-CAN.  The comments were in response to a proposed change affecting coverage of durable medical equipment (DME) and other items under Medi-Cal (California's Medicaid program).  Some other groups representing people with disabilities, as well as some individuals with disabilities, sent letters endorsing these comments and/or paraphrasing them.  The discussion of the Medicare DME standard may be of particular interest, since even if Medi-Cal backs off on this issue, most private health plans still follow the Medicare standard.  This may be an subject on which we will need to advocate further in the future, not only legislatively but also, perhaps, in direct contact with health plans and insurers.

--Laura Remson Mitchell


 
 
July 28, 2000

Office of Regulations                                                  Re: Regulation R-5-99E
Dept. of Health Services,
714 P Street, Room 1000
PO Box 942732
Sacramento, CA 94234-7320

To Whom It May Concern:

On behalf of the California chapters of the National Multiple Sclerosis Society, I am writing to express our concern about Regulations Package R-5-99E, which despite the limited description in the subject line, appears to make some very significant changes in Medi-Cal coverage criteria and procedures for durable medical equipment (DME) and oxygen equipment and supplies, in addition to antidecubitus care support services.

The proposed changes ostensibly are intended to provide more consistency in Medi-Cal coverage decisions, but they do much more.  They create an environment in which people who need equipment covered under this regulation will find it more difficult, if not impossible, to get it in a timely manner. 

Of particular concern is the adoption of the Medicare standard for DME coverage. While we have no quarrel with the language itself, we know that the requirement that equipment be "appropriate for use in the patient's home" frequently is applied as if the word "appropriate" were missing.  The practical result often has been that coverage is denied for a person who needs equipment to shop, attend school, work or otherwise take part in community life but who doesn't need the equipment in the smaller, more familiar confines of home--even though the item may be useable (i.e., “appropriate”) in the home.

In effect, this kind of standard turns the home of a person with a disability into a prison and prevents that individual from fully integrating into the community.  That violates the spirit, if not the letter, of the U.S. Supreme Court's Olmstead decision, which held that states must provide services to people with disabilities in the most integrated community setting possible.  Although the Olmstead decision was about allowing Medicaid beneficiaries who are receiving institutional care to instead receive the services they need in the community, we believe there also is some relevance to the current regulatory package. 

On January 14, 2000, officials of the Health Care Financing Administration (HCFA) sent a letter to all state Medicaid directors concerning the Olmstead decision.  The letter read, in part:
 

"The recent Supreme Court decision in Olmstead v. L. C., 119 S.Ct. 2176 
(1999), provides an important legal framework for our mutual efforts to 
enable individuals with disabilities to live in the most integrated setting 
appropriate to their needs. The Court's decision clearly challenges us to 
develop more opportunities for individuals with disabilities through more 
accessible systems of cost-effective community-based services. 

"This decision confirms what this Administration already believes: that no one should have to live in an institution or a nursing home if they can live in the community with the right support. Our goal is to integrate people with disabilities into the social mainstream, promote equality of opportunity and maximize individual choice...."

In concluding, the letter states (in part): 
"We recommend that States do the following: 
  • "Develop a comprehensive, effectively working plan (or plans) to strengthen community service systems and serve people with disabilities in the most integrated setting appropriate to their needs; 

  •  
  • "Actively involve people with disabilities, and where appropriate, their family members or representatives, in design, development and implementation...." 
  • The current Medicare standard for DME, as it usually is applied, works against the goal of integrating people with disabilities into the mainstream and could, in many cases, lead to isolation that is the equivalent of unnecessary institutionalization.

    We make this point not as a legal argument but rather as an important reminder of what the Medi-Cal program means for recipients with disabilities and of the critically important role it can play in supporting or undermining the independence of those individuals.

    The Olmstead decision isn't the only policy at odds with the current Medicare DME standard.  Recent federal (Work Incentives Improvement Act) and state (AB 155/Migden, 1999) have taken steps to make it easier for people with disabilities who are receiving Medi-Cal services to accept employment and still retain their Medi-Cal health coverage.  One reason this is so important is that through Medi-Cal, recipients can obtain the services, items and equipment they need to function in the community. Based on the typical interpretation of the Medicare standard, however, Medi-Cal could refuse to cover a powered wheelchair or scooter that a beneficiary needs in order to accept a job on the grounds that the powered chair may not be needed at home.

    In short, we believe that unless these regulations are modified to state very clearly that "appropriate for use in the patient's home" does not preclude coverage for items needed in the community, they will result in inappropriate denial of DME for beneficiaries who should be receiving it.

    Regarding another part of the proposed definition of durable medical equipment, we suggest that subparagraph (c) be amended to add the words "functional impairment," as follows:

      "(c) Is not useful to an individual in the absence of an illness, injury, functional impairment or congenital anomaly."
    The purpose of this change is to focus on the need for the equipment (functional limitation) rather than on the cause of the condition that is responsible for that need.

    In addition to our dismay over incorporating the Medicare definition of durable medical equipment into this regulations package, we also must express our concern about the new requirements for Treatment Authorization Requests (TARs).  Even under current regulations, it is often difficult to get physicians and/or equipment suppliers to deal with Medi-Cal patients.  Though the goal here may be consistency, accountability and a desire to prevent fraud (laudable goals that we certainly can support), the additional burden these regulations place on legitimate suppliers is liable to drive some of them out of the Medi-Cal market, if not out of business. Despite the standard statement on fiscal impact that claims no fiscal impact on
    "private persons or businesses directly affected," the "Statements of Determinations" page of the R-5-99E package clearly acknowledges that these regulations will affect small businesses.  For Medi-Cal beneficiaries,  that's likely to  mean  more difficulty getting needed equipment even when Medi-Cal is willing to pay for it. 

    And in some cases, delays can be deadly.  Consider what happened to Matt Johnson. A report by the Santa Cruz County Commission on Disabilities summarized the case as follows:

    "In May of 1998, the local newspaper ran an article about the delivery of a power wheelchair to a Santa Cruz resident who was a Medi-Cal recipient.  The delivery of the power chair was newsworthy because it was delivered nine months after the prescription had been sent to SCCHO [Santa Cruz County Health Options] for the chair, and because it was delivered one day after Matt Johnson had committed suicide."
    The Johnson case involved Medi-Cal managed care, but the result of the delay is a cautionary tale that should be heeded by the Department of Health Services and Medi-Cal on behalf of all recipients.  To the extent that these new regulations further reduce the already-limited number of providers who are willing to serve Medi-Cal beneficiaries and/or extend the time required to get TARs approved for DME, they could contribute to more cases like Johnson's, as well as to avoidable institutionalization (resulting in higher costs to Medi-Cal). 

    Finally, we note that the proposed regulations would specifically exclude Medi-Cal coverage for stair lifts.  The state should recognize that if a home is not accessible, (1) it often is harder to recruit and retain home-care workers for people with severe disabilities, and (2) in the absence of available in-home help, institutionalization may be the only remaining living option.  Once again, the result is liable to be higher costs
    to the state--and a conflict with state and federal policies aimed at helping people with disabilities to remain as independent as possible.  By definition, Medi-Cal beneficiaries have low incomes and few financial resources.  If Medi-Cal won't pay for equipment like a stair lift, the lift is unlikely to be installed, and Medi-Cal recipients don't have the resources to remodel their homes if structural changes are needed to assure access to all necessities (e.g., food, water, sanitary facilities) on one floor.  In some cases, the absence of a stair lift may even mean that there is no safe entrance or exit from the building. All of this  could pose serious health and safety problems. 

    For all of the above reasons, we urge you to reconsider these regulations and, instead, work with equipment suppliers and the disability community to develop regulations that will provide consistency without harming program recipients.

    Thank you for your consideration.

    Sincerely,
     
     

    Laura Remson Mitchell
    Government Issues Coordinator
    Multiple Sclerosis California Action Network
    National Multiple Sclerosis Society

    UPDATE: I am very pleased to report that the Sept. 25, 2000, version of Medi-Cal Regulation R-5-99E  (which was revised following the comment period) specifies that the Medi-Cal definition of "durable medical equipment" includes equipment needed because of a functional impairment and that it includes equipment appropriate for use outside of the patient's home as well as inside. This is a very significant change for the better.
     

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