Senate Subcommittee Hears Testimony on Opioid Settlement Dollars

capitol building

capitol buildingThe Senate Appropriations Department of Health and Human Services Subcommittee convened March 28 to hear testimony on the state’s opioid settlement dollars. Testimony began with Amy Dolinky, technical adviser for opioid settlement funds at the Michigan Association of Counties (MAC), providing an overview of the MAC’s role in supporting the distribution of settlement dollars through county governments. She stressed the importance of utilizing the evidence-based strategies and principles outlined by the Johns Hopkins Bloomberg School of Public Health for spending of opioid settlement dollars. Next to provide testimony was Dr. Natasha Bagdasarian, chief medical executive, and Amy Epkey, senior deputy director of financial operations, both representing the Michigan Department of Health and Human Services (MDHHS). MDHHS used the opportunity to provide an overview of opioid settlement spending, to date.

Last to provide testimony was Dr. Cara Anne Poland, chair of the Opioid Settlement Commission (OAC), Hon. Jamie Stuck, OAC Commissioner representing Tribal Nations and Tara King, coordinator of the OAC. The testimony from the OAC centered around the challenges and barriers the OAC encounters coordinating opioid settlement work with MDHHS. Additionally, the OAC representatives provided an overview of the soon-to-be-released OAC 2024 Annual Report.

The MHA submitted written testimony advocating for the distribution of opioid settlement funds to communities most impacted by opioid and substance use disorder. The testimony also included a list of specific ways the legislators could allocate funds to improve treatment options for patients impacted by opioid and substance use.

Members with questions should contact Lauren LaPine at the MHA.

MAC Releases Resources Through the Michigan Opioid Settlement Fund

The Michigan Association of Counties (MAC) has recently unveiled a range of valuable resources made available through the Michigan Opioid Settlement Fund. These resources encompass information about the agencies responsible for managing the settlement, as well as a compilation of frequently asked questions for reference and clarity.

The Michigan Opioid Settlement Funds Part I: Key Agencies and Settlements resource includes information about funding sources and the distribution of funds. It also includes a detailed list of key agencies involved in the fund appropriation.

The MAC also included the Michigan Opioid Settlement Funds Part II: Frequently Asked Questions to address complexities of the Michigan Opioid Funds. This document contains a wealth of information regarding funding, spending, reporting, considerations for tribal partners and additional resources related to the opioid settlement dollars.

Members with questions may contact Lauren LaPine at the MHA.

Sept 1 Deadline for Wage and Occupational Mix Survey Data Revisions

The Centers for Medicare & Medicaid Services (CMS) released a corrected public use file (PUF) Aug. 14 containing wage and occupational mix survey data being used to develop the fiscal year (FY) 2025 Medicare wage index, which will take effect Oct. 1, 2024. The MHA urged the CMS to release the corrected PUF for hospital review following an error in the July PUF that resulted in reflecting 0 for nursing aide salary and hours for many hospitals. The MHA also recently provided hospitals with updated reports that included the corrected PUF data.

Hospitals can submit requests for any changes to their wage and 2022 occupational mix survey data until Sept. 1. The MHA encourages hospitals to review their data and submit requests for any changes, along with supporting documentation, to the Medicare Administrative Contractor by Sept. 1.

Members with questions should contact Vickie Kunz at the MHA.

CMS Releases Occupational Mix Data

The Centers for Medicare & Medicaid Services (CMS) released July 12 the FY 2025 Hospital Wage Index Development Timetable, a public use file (PUF). The PUF contains data reported by prospective payment system hospitals on the 2022 occupational mix (OM) survey submitted to the Medicare Administrative Contractor (MAC) by June 30. The 2022 OM data will be used to adjust the Medicare wage index for fiscal years 2025, 2026 and 2027.

The MHA provided updated hospital wage data worksheets that include the 2022 OM data based on the July 12 PUF. Hospitals are encouraged to review both the wage and OM data and submit all requests for changes, along with supporting documentation, to the MAC by Sept. 1, 2023.

The MHA recently became aware of an issue with the latest PUF that has resulted in 0 being reflected for nursing aide dollars and hours for a significant number of Michigan hospitals. The MHA is currently working with the CMS and American Hospital Association on a resolution. The MHA has also urged the CMS to release a corrected PUF as soon as possible. 

The MHA hosted an educational webinar in late June to assist hospitals with the annual data review process with materials available upon request. Members with questions regarding the OM or wage data should contact Vickie Kunz at the MHA.

CMS Releases Medicare Wage Index Information

The Centers for Medicare & Medicaid Services (CMS) recently released the timetable and preliminary hospital data that will be used to develop the Medicare wage index for fiscal year (FY) 2025, which begins Oct. 1, 2024. The wage index is used to adjust Medicare fee-for-service payments for geographic variations in labor costs and adjusts up to 68% of the inpatient payment rate and 60% of the outpatient payment rate. The hospital wage index is also used to adjust post-acute care payments. Hospitals have until Sept. 1, 2023, to review their data and submit requests for changes to the Medicare Administrative Contractor (MAC), along with supporting documentation.

The MHA is hosting an educational webinar at 10 a.m. June 29 to assist hospitals with data reporting. The webinar is free of charge, but registration is required. The MHA will provide hospitals with comparative data from the latest CMS public use file within the next few weeks. Contract labor will have a significant impact on the FY 2025 wage index due to the workforce shortage and heavy reliance on agency staffing during the pandemic. Hospitals are encouraged to begin reviewing agency staffing invoices for cost reporting periods beginning in federal FY 2021 to ensure the information required for the MAC review process is available.

All prospective payment system hospitals are also required to submit a completed occupational mix survey to the MAC by June 30, with survey results used to adjust the wage index for FYs 2025, 2026 and 2027. The CMS is scheduled to release the preliminary survey results July 12, 2023. Resources on completing the occupational mix survey are available upon request.

Members with questions should contact Vickie Kunz at the MHA.