State news: Minnesota, Kansas

Tuesday, February 26, 2019

Minnesota Gov. Tim Walz has released budget recommendations for 2020 and 2021 that include reimbursement cuts for DME, MAMES reports. Walz proposes changing “the medical assistance reimbursement formula for durable medical equipment that is also covered by Medicare to pay equivalent to the Medicare rate…This would reduce payment for DME starting in FY 2019 and reduce the value of recoveries in the forecast starting in FY 2021.” Walz also proposes simplifying reimbursement for products that don’t have a Medicare rate. “This new methodology would be based on the provider’s cost, not billed charges, to ensure the state pays a fair, predictable and efficient rate.” MAMES members will be meeting with state legislators this week to discuss Walz’s proposals…MAMES continues to push for a meeting with Medicaid officials in Kansas in response to a change* in reimbursement to 65% of the Medicare non-rural rate on Jan. 1. The association has learned that a provider received a payment from Aetna Better Health of Kansas at 65% of the Medicare non-rural rate. “We now have examples of all three Medicaid MCOs who appear to be using the Medicaid fee for service rates,” MAMES reports.