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It’s an individual or entity that engages in at least one value-based activity as part of a “value-based entity” (in OIG’s words) or “value-based enterprise” (in CMS’s words). New Stark Law rules create safe harbors to promote value-based care, telehealth November 30, 2020 A pair of Final Rules issued recently by CMS and the OIG establishes new safe harbors aimed to promote value-based care, while also modifying some of the existing safe harbors. If the conditions in the safe harbors are met, neither party will be prosecuted or sanctioned for the arrangement. § 411.351 and 42 C.F.R. If you have questions about how these final changes impact your organization, please contact Beth Kastner or Shannon DeBra. arrangement "takes into account" the volume or value of a (42 CFR § 411.357(a)-(b)). changes regarding group practices, which take effect Jan. 1, 2022. for Ancillary Income Distribution Within Physician Group The regulations (found here and here) include significant changes to existing provisions to the Stark regulations and AKS safe harbors, as well as new exceptions under Stark and new safe harbors under the AKS. Health & Human Services (HHS) take effect and will represent The safe harbors would provide greater flexibility in designing an arrangement as the participants in the VBE take on greater downside financial risk for costs and quality of care. including new and revised definitions of "commercially Arrangements that satisfy all of the elements of a safe harbor are immune from both criminal prosecution and administrative enforcement 4. The pre-participation waiver under the Shared Savings programs, and the new AKS Safe Harbors and Stark Law Exceptions related to value-based care, may also apply. t: 614.227.2300 On December 2, 2020, HHS published two final rules including important changes to the AKS and Stark Law regulations. Legislation has created certain “safe harbors” of conduct 3. Arrangements that satisfy all of the elements of a safe harbor are immune from both criminal prosecution and administrative enforcement 4. Read today’s AHA Special Bulletin for … The rules promulgated by the HHS Office of Inspector General Statute and Civil Monetary Penalty Rules regarding beneficiary The following payment practices shall not be treated as a criminal offense under section 1128B of the Act and shall not serve as the basis for an exclusion: (a) Investment interests. of topics, but central to both sets of rules are new and revised f: 614.227.2390, 1001 Lakeside Avenue East "Stark Law" rules. OIG proposes that it cannot includea phar… f: 740.374.2296. On December 2, 2020, HHS published two final rules including important changes to the AKS and Stark Law regulations. coordinated care" that HHS has been leading over the past few The New Jersey Board of Medical Examiners ("BME") has proposed a new rule that replaces the phrase "minor surgery" with "minor procedure" and further expands the definition of "special procedure. CMS rule includes new definitions and guidance regarding key Stark Subsection r of the safe harbors to the Anti-Kickback Statute 42 CFR 1001.952 – Exceptions, provides as follows: “(r)Ambulatory surgical centers. To avoid violations, you must always meet five requirements: Payment must be for value-based activities for patients in a target population. Cincinnati, OH 45202-4152 Consistent with the proposed rule, all of the final Stark exceptions share five common requirements, which also appear in substantially similar forms in the three value-based AKS safe harbors: (1) The remuneration must be for or result from value-based activities undertaken by the recipient for patients in the target population. On January 19, 2021, new rules go into effect clarifying and revising the regulatory exceptions to the Stark Law (also known as the Physician Self-Referral Law), the Anti-Kickback Statute (AKS) safe harbors, and the civil monetary penalty laws related to beneficiary inducements law. However, the Stark Law exceptions and the AKS safe harbors for value-based arrangements differ in some significant respects. providers and suppliers to (1) enter into and implement Fitting into an exception under Stark is mandatory, whereas under anti-kickback law, if an arrangement does not meet every element of a safe harbor, it is not necessarily unlawful, but rather, is at risk of scrutiny by the OIG. or more parties assume varying degrees of financial risk for the POPULAR ARTICLES ON: Food, Drugs, Healthcare, Life Sciences from United States, In December 2020, California Attorney General Xavier Becerra was announced to be President-Elect Joseph R. Biden, Jr.'s pick to lead the Department of Health and Human Services. t: 740.374.2248 Recommended to you based on your activity and what's popular • Feedback Practical Takeaways. According to the announcement, the changes are intended to "support individuals' engagement. Dayton, OH 45402-1800 Specialist advice should be sought Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. As you know, we have been parsing through the HHS rules that finalize important changes to the Anti-Kickback Statute (AKS) and Physician Self-Referral Law (Stark Law) regulations, which go into effect January 19, 2021. is Jan. 19, 2021 - the principal exception being the Stark Law Suite 1110 Value-Based Care Stark Law The safe harbors set forth specific conditions that, if met, assure entities involved of not being prosecuted or sanctioned for the arrangement qualifying for the safe harbor. AAFP Pushes CMS to Clear 'Safe Harbors' in Stark Law Self-referral Regulations Should Not Hinder Value-based Models, Academy Advises. Although the Stark Law and the Anti-Kickback Statute are distinct statutes with fundamental differences in their statutory structure, implementation, operation and penalties, the final rules demonstrate a coordinated effort between CMS and the OIG to provide new exceptions and safe harbors for certain value-based arrangements. t: 216.523.5405 After much anticipation, on January 12, 2021, the U.S. Food and Drug Administration (FDA) released its first "Artificial Intelligence/Machine Learning (AI/ML)-Based Software as a Medical Device... Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Links to Federal Register notices containing preambles to the safe harbor regulations appear below. Updates to EHR Donation Rules, Anti-Kickback Safe Harbor for The Stark safe harbor for space or equipment leases requires that the physician have exclusive use of the leased space or equipment during the lease term. inducements. Personal Services and Management Contracts Safe Harbor, Modifications to Stark Law Rules In the Proposed Rule, OIG proposes three new safe harbors for certain remuneration exchanged between eligible participants in a "value-based enterprise" (VBE) that fosters better coordinated and managed care. under Stark and new safe harbors under the AKS. Stark & Anti-Kickback Revisions Finalized: New Safe Harbors On November 20, 2020, the Centers for Medicare & Medicaid Services (CMS) and the Office of Inspector General (OIG) of the Department of Health and Human Services (HHS) issued two final rules to modernize and clarify the Stark Law and the Anti-Kickback Statute (AKS). f: 937.224.5301, 258 Front Street Effective Jan. 19, 2021, two final rules promulgated by the U.S. These definitions will be integral to applying the new Stark exceptions and AKS safe harbors effective January 19, 2021. For purposes of the AKS and Stark Law, safe harbors immunize certain payment and business practices that are implicated by either statute from criminal or civil penalties. The rules promulgated by the HHS Office of Inspector General (OIG) include revisions to the safe harbors under the Anti-Kickback Statute and Civil Monetary Penalty Rules regarding beneficiary inducements. arrangements to jointly coordinate and manage patient care and (2) The proposals presented by the OIG and CMS each make several substantive changes to the existing regulatory safe harbors under the Stark Law and Anti-Kickback Statute as well. Legislation has created certain “safe harbors” of conduct 3. However, safe harbor protection is afforded only to those arrangements that precisely meet all of the conditions set forth in the safe harbor. t: 740.374.2284 Suite 1350 The new Stark regulations, which encompass over 600 pages of regulations and regulatory comments, include updates addressing the following items, among others: • Value-based entities and value-based arrangements involving different levels of financial risk presented by south florida hospital news & healthcare report and healthcare law partners,llc about your specific circumstances. By Kim Stanger, J. Malcolm DeVoy, and Amber Ellis. Additionally, while the Stark Law and the AKS may have exceptions and safe harbors that protect similar arrangements, those exceptions and safe harbors may impose different requirements that must be taken into account. 2020 11-20-2020 Final Rule: Revisions to Safe Harbors Under the Anti-Kickback Statute, and Civil Monetary Penalty Rules Regarding Beneficiary Inducements. All Rights Reserved. One key statutory safe harbor is the safe harbor for ambulatory surgery centers. OIG, responsible for enforcing AKS, issued a final rule addressing changes to the AKS and revisions to Civil Monitory Penalty … The final rules, with one exception, go into effect on January 19, 2021. Please note that this resource does not yet reflect the changes to the Stark Law or Anti-Kickback Statute that were made final in November 2020. The three new safe harbors vary in terms of the type of remuneration that can be provided, the level of financial risk the parties assume (full, substantial downside and no risk), and the types of safeguards required to satisfy the safe harbor. With respect to the Stark Law, this is largely done through the clarification and modification of various defined terms used within the existing safe harbor language. Key Definitions November 24, 2020 - New safe harbors proposed for the Stark Law and Anti-Kickback Statute could help providers expand their telehealth and … Columbus, OH 43215-4291 Services Stark Law Exceptions and Anti-Kickback Safe Harbors; New and modified safe harbors to the Stark Law and Anti-Kickback statue allow healthcare providers and entities more flexibility to create and expand telehealth platforms in compliant fashion. As in the distribution of profits, there are 3 safe harbors: The bonus formula is based on the physician’s total practice encounters or wRVUs, or The bonus formula is based on the allocation of the physician’s compensation attributable to services that are not DHS, or These definitions will be integral to applying the new Stark exceptions and AKS safe harbors effective January 19, 2021. These charts have been updated to reflect the Stark law amendments and additions that are effective January 1, 2016, and are current as of November 2017. f: 740.374.2296, P.O. enter into and implement value-based arrangements under which one § 411.357(aa); and the AKS safe harbors are codified at 42 C.F.R. The rules promulgated by the Centers for Medicare and Medicaid Services (CMS) modify the physician self-referral "Stark Law" rules. Cleveland, OH 44114-1142 A safe harbor for certain in-kind remunera… Stark Law Commentaries February 2021 Insight Jones Day recently published a series of nine Commentaries on the newly finalized Stark Law and Anti-Kickback Statute exceptions and safe harbors seeking to remove regulatory barriers to care coordination. All rights reserved. the most significant leg in the "regulatory sprint to On November 20, 2020 the Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services Office of the Inspector General (OIG) issued two final rules to modernize and clarify the Physician Self-Referral regulations (the Stark Law, or Stark) and the Anti-Kickback Statute (AKS) safe harbor regulations. Exceptions and Anti-Kickback Safe Harbors, Cybersecurity Technology and You can review these changes in our recent publication. Five Stark Conditions to Protect Outcomes-Based Payment . Today, we are taking a look at changes to existing AKS safe harbors and Stark Law exceptions, and, an extra add-on: a new Stark … There are three distinct proposed safe harbors and exceptions that would protect remuneration between a “value-based participant” and a “value-based entity” (or “value-based enterprise”) pursuant to a “value-based arrangement.” What is a value-based participant? See the links below for detailed summaries of the following Stark & Anti-Kickback Revisions Finalized: New Safe Harbors On November 20, 2020, the Centers for Medicare & Medicaid Services (CMS) and the Office of Inspector General (OIG) of the Department of Health and Human Services (HHS) issued two final rules to modernize and clarify the Stark Law and the Anti-Kickback Statute (AKS). However, safe harbor protection is afforded only to those arrangements that precisely meet all of the conditions set forth in the safe harbor. delivery of patient care items and services. The new outcomes-based payment guidelines under the Stark exceptions are really broad and more flexible than the new safe harbors. As mentioned above, the value-based safe harbors are generally narrower than the Stark exceptions. The content of this article is intended to provide a general On November 20, 2020, the Centers for Medicare & Medicaid Services ("CMS") and the Office of the Inspector General ("OIG") finalized the rules modifying the safe harbors under the Anti-Kickback Statute and exceptions under the Stark Law. On November 20, 2020, the Department of Health & Human Services (HHS) released heavily anticipated final rules revising the regulatory exceptions to the Physician Self-Referral Law (also known as the Stark Law), the Anti-Kickback Statute (AKS) safe harbors, and the Beneficiary Inducements Civil Monetary Penalties (CMP) regulations. guide to the subject matter. The three value-based safe harbors are similar in some respects but not identical to the Stark exceptions and include: Care coordination arrangements to improve quality, health outcomes, and efficiency that does not require the participants to take on risk but protects only in-kind remuneration CMS and OIG have emphasized, however, that meeting the value-based definitions should be viewed only as a gateway to Stark and AKS protections; an arrangement that meets all of the value-based enterprise definitions … The Stark safe harbor for space or equipment leases generally prevents lease formula’s based on a percentage of the revenue raised, earned, billed, collected, or otherwise attributable to the services performed in the office space, or per-unit of service rental charges, to the extent that such charges reflect services provided to patients referred by the lessor to the … group with questions you may have about these new rules and how OIG, responsible for enforcing AKS, issued a final rule addressing changes to the AKS and revisions to Civil Monitory Penalty … t: 937.224.5300 Patient Engagement and Support, Modifications to Anti-Kickback Law The rules cover a fairly broad array 2. new special rules detailing the conditions under which (1) an All Rights Reserved. On January 14, 2021, the Centers for Medicare & Medicaid Services (CMS) published a final rule that accomplishes two things: (1) speeding Medicare coverage of certain innovative devices and... Today, the far-reaching HIPAA Privacy Proposed Rule, initially released on December 10, 2020, was posted for public inspection on the Federal Register website. As mentioned above, the value-based safe harbors are generally narrower than the Stark exceptions. However, AHA is disappointed that the Department of Health and Human Services Office of Inspector General’s AKS approach across its new safe harbors does not keep pace with the robust protection provided under the Stark regulations. The final rules, respectively released by HHS’ Centers for Medicare & Medicaid Services (CMS) and the HHS Office of Inspector General (OIG), have, among other changes, added new value-based exceptions to the Stark Law and additional safe harbors under the AKS, and largely take effect in January 2021. The Stark exceptions and the AKS safe harbors do not require the remuneration under a value-based arrangement to be consistent with fair market value, not determined in a manner that takes into account the volume or value of a physician's referrals or other business generated for the entity. On November 20, 2020 the Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services Office of the Inspector General (OIG) issued two final rules to modernize and clarify the Physician Self-Referral regulations (the Stark Law, or Stark) and the Anti-Kickback Statute (AKS) safe harbor regulations. f: 513.870.6699, 312 N. Patterson Blvd. Both the safe harbors and the Stark Law exceptions are broken down by the amount of financial risk assumed under the value-based arrangement, and the more risk assumed, the more flexibility offered under the safe harbors and exceptions. The safe harbors set forth specific conditions that, if met, assure entities involved of not being prosecuted or sanctioned for the arrangement qualifying for the safe harbor. provisions that create greater flexibility for health care reasonable" and "fair market value," and including Creditors' Rights, Restructuring & Bankruptcy, Back To Medicare/Medicaid Fraud & Abuse Resource Center, Assistance to Compensate a Nonphysician Practitioner, Community-Wide Health Information Systems, Cooperative Hospital Service Organizations, Electronic Health Records Items and Services, Electronic Prescribing Items and Services, Eyeglasses and Contact Lens Following Cataract Surgery, Group Practice Arrangements With a Hospital, Increased Coverage, Reduced Cost-Sharing Amounts, or Reduced Premium Amounts Offered by Health Plans, Publicly-Traded Securities/Large Investment Interests, Investment Interests Held by Either Active or Passive Investors, Investment Interests/Joint Ventures in Rural or Underserved Areas, Obstetrical Malpractice Insurance Subsidies, Preventive Screening Tests, Immunizations, and Vaccines, Price Reductions Offered by Contractors With Substantial Financial Risk to Managed Care Organizations, Price Reductions Offered to Eligible Managed Care Organizations, Referral Agreements for Specialty Services, Services Furnished by an Organization to Enrollees. The safe harbor contains the following eight requirements: • No more than 40% of the total value of the investment interests in the venture may be held by investors who are in a position to make or influence referrals to the entity, furnish items or services to the entity, or otherwise generate business for the entity. The ambulatory surgery center safe harbor. As used in section 1128B of the Act, “remuneration” does not include any payment that is a return on an investment interest, such as a dividend or interest income, made to an investor as long as all of … Marietta, OH 45750-2908 Practice, Life Sciences, Biotechnology & Nanotechnology, California Attorney General End Of Term Update, CMS Implements Significant Changes In Medicare's Coverage Processes, Pending Proposed Rule Would Make Far-Reaching Changes To HIPAA Privacy Regime, NJ Proposes Changes To Office-Based Surgery And Other Regulations, FDA Releases Action Plan For Artificial Intelligence/Machine Learning-Enabled Software As A Medical Device, The Regulatory Sprint To Value-Based Care: The New Safe Harbors And Stark Exceptions, Key Takeaways From The Revised And Clarified Stark Law Regulations – Part 2, Key Takeaways From The Revised And Clarified Stark Law Regulations – Part 1, Key Takeaways From The Stark Law Final Rule, Fifth Amendment To PREP Act Declaration Expands The Ranks Of Health Care Providers Authorized To Administer COVID-19 Vaccines, HHS Provides Updated Guidance On Provider Relief Fund Reporting Requirements, Merus Enters Collaboration With Eli Lilly To Develop New Generation Of Cancer Treatments, Telehealth Update: Extension Of The Public Health Emergency, OIG Workplan Updates, And The Protecting Access To Post-COVID 19 Telehealth Act, The First 100 Days: Changes Afoot For Health And Welfare Plans, Cutting the Sweet Deal: Elements of a Sustainable Capital Injection, Search & Rescue: Asset Tracing & Recovery Investigations, International Trade and National Security, Cyber Threats To The Healthcare Industry: Briefing From The FBI, © Mondaq® Ltd 1994 - 2021. 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