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Tag: 2019 News

Patients Over Paperwork Initiative Targets $39B in Costs

The Centers for Medicare & Medicaid Services (CMS) launched the Patients Over Paperwork Initiative in 2017, which seeks feedback from industry stakeholders on ways to reduce administrative burdens in health care and improving the patient experience.

The Initiative was in accord with President Trump’s Executive Order that directs federal agencies to “cut the red tape” to reduce burdensome regulations.

This year, CMS received over 560 comments in response to its request for information.

The American Hospital Association (AHA) asserted that providers spend nearly $39 billion each year on administrative activities related to regulatory compliance.

Other stakeholders pointed to prior authorization as a problematic practice, with the American Academy of Ophthalmology calling it the “most burdensome requirement in Medicare.”

The American Association of Neurological Surgeons argues that patients are experiencing significant barriers to medically necessary care because of prior authorization requirements.

Numerous stakeholders called for prior authorization reform in Medicare Advantage plans, but America’s Health Insurance Plans (AHIP) has pushed back, saying that less than 15 percent of covered treatments and services require prior authorization.

However, stakeholders agreed that greater automation would reduce the burdens of prior authorization. Greater standardization of prior authorizations would increase the speed at which they are approved and reduce care delays.

CMS has enacted several regulatory reforms as a result of information gathered through the Patients Over Paperwork Initiative, including reforming evaluation and management (E/M) coding, simplifying office visit documentation, and reducing the complexity of the Quality Payment Program.

Will prior authorization reform be the agency’s next target?

Conviction Illustrates Dark Web and Drugs

Sky Justin Gornik, age 39, of San Diego was sentenced to 70 months in prison for  participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet. Gornik previously pled guilty to that charge and also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies.

As part of his guilty plea, Gornik admitted that he bought and sold controlled substances on the Dark Web.  Employing anonymous screen names, Gornik used multiple Dark Web marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances.  

Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone.

Agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages.  

Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search.  The public record reflects that Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Dark Web vendor, identified as Steven Wallace George, who resides in Oklahoma.  George, who manufactured pure fentanyl obtained from China into gelatin tablets, was prosecuted by federal authorities in Oklahoma.

As part of his guilty plea, Gornik agreed to forfeit millions of dollars in digital or crypto currency including Bitcoins, Stratis, Ethereum, 2350 Monero, digital currency contained in Gornik’s Bittrex accounts, and digital currency contained in Gornik’s Poloniex accounts.  Gornik admitted that these digital or crypto currency represented drug trafficking proceeds of the offense and were involved in the offense of money laundering over the Dark Web.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

More Opioid Drugmakers Settle Claims

Reuters reports that Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic.

The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic.

Endo announced said it had reached an agreement-in-principle to pay Cuyahoga and Summit counties $10 million to and provide them up to $1 million worth of two of its of its drug products free of charge.

Allergan has tentatively agreed to pay $5 million to resolve claims involving its branded opioids, though the deal does not resolve claims involving generic painkillers, said Frank Gallucci, a lawyer for Cuyahoga County.

The accords are the first to result from the counties’ cases, which were selected for the first bellwether, or test, trial in the litigation to allow parties to gauge the value of the remaining claims and inform potential settlement talks.

Other companies still set to face trial on Oct. 21 include drugmakers Purdue Pharma LP, Teva Pharmaceutical Industries Ltd and Johnson & Johnson and drug distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp.

Endo, which in 2017 withdrew its painkiller Opana ER from the market, said the settlement includes no admission of wrongdoing.

More than 2,300 lawsuits by state and local governments are pending nationally, accusing drug manufacturers of deceptively marketing opioids in ways that downplayed their risks and drug distributors of failing to detect and halt suspicious orders.

Most of the lawsuits are before U.S. District Judge Dan Polster in Cleveland, who has pushed for a settlement and will preside over the bellwether trial.

Purdue and Teva this year settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively, ahead of a trial before a state-court judge.

The state subsequently took Johnson & Johnson to trial. An Oklahoma judge will rule on Monday on whether the company should be held liable in a lawsuit by the state’s attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic.

More Opioid Drugmakers Settle Claims

Reuters reports that Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic.

The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic.

Endo announced said it had reached an agreement-in-principle to pay Cuyahoga and Summit counties $10 million to and provide them up to $1 million worth of two of its of its drug products free of charge.

Allergan has tentatively agreed to pay $5 million to resolve claims involving its branded opioids, though the deal does not resolve claims involving generic painkillers, said Frank Gallucci, a lawyer for Cuyahoga County.

The accords are the first to result from the counties’ cases, which were selected for the first bellwether, or test, trial in the litigation to allow parties to gauge the value of the remaining claims and inform potential settlement talks.

Other companies still set to face trial on Oct. 21 include drugmakers Purdue Pharma LP, Teva Pharmaceutical Industries Ltd and Johnson & Johnson and drug distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp.

Endo, which in 2017 withdrew its painkiller Opana ER from the market, said the settlement includes no admission of wrongdoing.

More than 2,300 lawsuits by state and local governments are pending nationally, accusing drug manufacturers of deceptively marketing opioids in ways that downplayed their risks and drug distributors of failing to detect and halt suspicious orders.

Most of the lawsuits are before U.S. District Judge Dan Polster in Cleveland, who has pushed for a settlement and will preside over the bellwether trial.

Purdue and Teva this year settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively, ahead of a trial before a state-court judge.

The state subsequently took Johnson & Johnson to trial. An Oklahoma judge will rule on Monday on whether the company should be held liable in a lawsuit by the state’s attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic.

More Opiod Drugmakers Settle Claims

Reuters reports that Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic.

The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic.

Endo announced said it had reached an agreement-in-principle to pay Cuyahoga and Summit counties $10 million to and provide them up to $1 million worth of two of its of its drug products free of charge.

Allergan has tentatively agreed to pay $5 million to resolve claims involving its branded opioids, though the deal does not resolve claims involving generic painkillers, said Frank Gallucci, a lawyer for Cuyahoga County.

The accords are the first to result from the counties’ cases, which were selected for the first bellwether, or test, trial in the litigation to allow parties to gauge the value of the remaining claims and inform potential settlement talks.

Other companies still set to face trial on Oct. 21 include drugmakers Purdue Pharma LP, Teva Pharmaceutical Industries Ltd and Johnson & Johnson and drug distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp.

Endo, which in 2017 withdrew its painkiller Opana ER from the market, said the settlement includes no admission of wrongdoing.

More than 2,300 lawsuits by state and local governments are pending nationally, accusing drug manufacturers of deceptively marketing opioids in ways that downplayed their risks and drug distributors of failing to detect and halt suspicious orders.

Most of the lawsuits are before U.S. District Judge Dan Polster in Cleveland, who has pushed for a settlement and will preside over the bellwether trial.

Purdue and Teva this year settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively, ahead of a trial before a state-court judge.

The state subsequently took Johnson & Johnson to trial. An Oklahoma judge will rule on Monday on whether the company should be held liable in a lawsuit by the state’s attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic.

NCCI Reviews Medical Marijuana and Workers’ Compensation

NCCI’s Court Case Update provides a look at some of the cases and decisions monitored by NCCI’s Legal Division that may impact workers compensation across the states. This August 2019 edition contains updated information on cases previously introduced and presents new cases and decisions.

Legalization of marijuana is an ongoing area of broad interest at the state and federal levels.

In the 2019 state legislative sessions, legislatures stayed the course in taking up issues surrounding the legalization of marijuana. State courts are also engaged in reviewing marijuana-related issues in workers compensation, as well as the workplace.

In Oklahoma the case of Rose v. Berry Plastics Corp. is on appeal to the state supreme court; the court of appeals concluded that the presence of THC in an employee’s blood after a workplace accident does not automatically mean that the employee was intoxicated so as to deny workers compensation benefits.

In the Florida case of Jones v. Grace Health Center, a workers compensation judge (JCC) found that Florida’s medical marijuana statute prohibits reimbursement under workers compensation, and that requiring employers and insurers to pay for a worker’s medical marijuana would violate the federal Controlled Substances Act. The JCC also determined that employers and insurers should not be required to pay for a worker’s medical evaluation to obtain medical marijuana because the cost of the evaluation would be part and parcel of the cost of obtaining marijuana. The case has been appealed to Florida’s First District Court of Appeal.

In New Jersey the case of Wild v. Carriage Funeral Holdings, Inc., the New Jersey Supreme Court is expected to review the state’s medical marijuana law to determine whether a worker – who was a state-authorized medical marijuana user – can sue his former employer for violation of a state antidiscrimination law, when the employer terminated the worker for a drug test that was positive for marijuana metabolites.

At the federal level, pending proposals seek to decriminalize marijuana (S1552), allow state regulation without federal interference (HR2093), and protect financial institutions and insurance companies that provide services for legitimate cannabis businesses (HR1595).

In a recent development, the federal Court of Appeals for the Second Circuit, in Washington et al. v. Barr, declined to consider a constitutional challenge to the inclusion of marijuana as a controlled substance, ruling that plaintiffs should exhaust their administrative remedies before suing in court.

Panel Affirms 132a Award and Clarifies “Lauher” Standard

Ehsan Alnimri sustained injury to his low back on June 20, 2010, while employed by Southwest Airlines as a ramp agent Ontario International Airport. He was required frequent lifting and carrying of weights up to 70 pounds and it occasionally involved lifting up to 100 pounds.

He was taken off work by his PTP, Dr. Sobol until September 2010 when he was returned to full duty.  Alminri continued to work full duty without restriction until he was taken off the job on November 26, 2011.

Dr. Sobol the PTP issued findings based on the AMA Guides of approximately 28 % but with no work restrictions appearing in the report. Dr. Wakim found 14% impairment under the AMA Guides and found work restrictions which precluded him from very heavy lifting on a constant basis and 70 pounds on an occasional basis.”

On November 26, 2011, Alnimri was informed that he was being removed from duty due to a doctor’s report, but was not told which one. He eventually obtained a supplemental report from Dr. Wakim which returned him to full duty as of May 2012. He actually returned to work on June 20, 2012. Thus he was removed from work until June 19, 2012, when he returned to work without restrictions.

The parties resolved the case in chief by Stipulations with Request for Award on August 8, 2013. It proceeded to trial on the remaining L.C. 132a claim for the lost pay between November 26, 2011 and June 19, 2012. The WCJ ruled in favor in Alnimri finding discrimination under L.C. 132a, and awarded a $10,000 penalty and back wages. The WCAB affirmed in th panel decision of Alnimri v Southwest Airlines.

The WCAB conceded the determination by the California Supreme Court in Department of Rehabilitation v. Workers’ Comp. Appeals Bd (Lauher) (2003 ) 30 Cal.4th 1281, 1298-1299 [68 Cal.Comp.Cases 831] that an employer “does not necessarily engage in ‘discrimination’ prohibited by section 132a merely because it requires an employee to shoulder some of the disadvantages of his industrial injury. By prohibiting ‘discrimination’ in section 132a, we assume that the Legislature meant to prohibit treating injured employees differently, making them subject to disadvantages not visited on other employees because the employee was injured or had made a claim.”

But, the panel went on to say “Based on its specific application to the facts of Lauher, we view the Court’s phrase “singled out for disadvantageous treatment ” to be an application of the broader standard adopted by Lauher-that, in addition to showing that he or she suffered an industrial injury and that he or she suffered some adverse consequences as a result of some action or inaction by the employer that was triggered by the industrial injury, an applicant “must also show that he or she had a legal right to receive or retain the deprived benefit or status, and the employer had a corresponding legal duty to provide or refrain from taking away that benefit or status.” (Lauher, supra at p. 1300.) Stated another way, an employee must show they were subject to “disadvantages not visited on other employees because they were injured. .. .” (Id.) Because the employee in Lauher was not deprived of a legal right to TDI, and therefore could not show he was treated differently than other employees with respect to his alleged detriment, he could not establish a prima facie case of discrimination.”

“Thus, on the record before us, including the absence of evidence that defendant acted upon its decision to refer applicant to a company physician or otherwise complete its usual process for resolving conflicts between work status reports before dismissing applicant, we conclude that defendant subjected applicant to disadvantages not visited upon other employees because they were injured.”

Charges Against 4 Doctors Dismissed in Orange County

The Sacramento Bee reports that charges against four of the local doctors in a $40 million medical fraud case were dismissed in Orange County Superior Court.

A judge dismissed the insurance fraud allegations against doctors John Casey, Jonathan Cohen, Mohamed Ibrahim and William Pistel during a July 19 hearing in Southern California. The physicians practice medicine at Stanislaus Orthopaedic and Sports Medicine Clinic in Modesto.

The physicians did not respond to a request for comment.

In April 2017, the orthopedic surgeons were among two dozen defendants in California charged with multiple counts of insurance fraud, filing false and fraudulent claims and conspiracy, following an investigation by the state Insurance Commissioner, former Orange County District Attorney Tony Rackauckas and other agencies.

Authorities said a Beverly Hills couple masterminded a complex insurance fraud scheme, in which doctors and pharmacists were recruited to prescribe unnecessary treatment for workers compensation insurance patients.

Two other Modesto physicians, Robert Caton and Jerome Robson, accepted plea agreements last year serving to dismiss the felony charges against them.

Robson pled guilty Dec. 3 to a misdemeanor charge of unlawful referral of patients. The court sentence included a $17,500 fine, payment of restitution and three years’ informal probation. Robson was ordered not to treat workers compensation patients for three years.

In September 2018, Caton pled guilty to a misdemeanor charge of false and fraudulent claims and accepting kickbacks. He was ordered to pay $175,270 in restitution to the insurance companies and $18,000 to a victims witness emergency fund and was placed on three years probation.

Late last year, the Orange County DA’s office said there was no evidence any patients were harmed by the Modesto doctors who allegedly participated in the scheme but the prosecution vowed to secure restitution for the insurance companies. More than 25 insurance companies were victimized by the alleged scam from 2011 through 2015.

In announcing the charges in April 2017, authorities said that Christopher King of Beverly Hills masterminded a scheme in order to maximize profits from workers comp patients.

He allegedly made payments to physicians across the state when those doctors prescribed a compound cream, oral medications and urine tests. The Kings billed insurers up to $700 per tube for the creams with no therapeutic value that were administered to patients. The doctors prescribing the creams were paid a $50 flat rate, according to authorities.

Christopher King has pled guilty to two felony charges, and admitted to four others. He is set for a sentencing hearing next month.

Task Force Suggests Physicians Screen for Illegal Drugs

Created in 1984, the U.S. Preventive Services Task Force is an independent, volunteer panel of national experts in prevention and evidence-based medicine. The Task Force works to improve the health of all Americans by making evidence-based recommendations about clinical preventive services such as screenings, counseling services, and preventive medications. All recommendations are published on the Task Force’s Web site and/or in a peer-reviewed journal.

The influential group of health experts recommended that doctors screen all adults for use of illegal drugs, another step toward curbing the epidemic that claims tens of thousands of lives each year.

The U.S. Preventive Services Task Force said that health providers should attempt to determine whether their patients 18 or older are using illicit drugs, including nonmedical use of prescription drugs. But the panel said it did not have enough information to decide whether all adolescents should be screened.

The recommendation is the first time the panel has concluded there is enough evidence to support screening all adults. In 2008, it declined to do so.

The guidance is important because the Affordable Care Act requires that services recommended by the task force be covered free or with very small co-payments. The proposed recommendations are open for public comment until Sept. 9, after which the task force will consider them for final approval.

The panel concluded screening is effective when “services for accurate diagnosis of unhealthy drug use or drug use disorders, effective treatment, and appropriate care can be offered or referred.”

It cited the findings of a 2017 national survey that 11.5 percent of Americans 18 or older were using illegal drugs at the time and data that showed that 8.5 percent of pregnant women aged 18 to 44 had used drugs in the past month.

Among drug users aged 12 and over, 85.3 percent said they used cannabis and 19.5 percent used “psychotherapeutic drugs,” including opioids and other pain relievers.

In 2017, 70,237 people died of drug overdoses in the United States, according to the Centers for Disease Control and Prevention.

The panel suggested several questionnaires, administered by health care providers or taken by patients on their own, that it said were effective in picking up illicit drug use. It warned primary care providers that “screening tools are not meant to diagnose drug dependence, abuse, addiction, or use disorders. Patients with positive screening results may therefore need to be offered or referred for diagnostic assessment.”

It said providers also would have to be aware of state requirements for reporting results to legal authorities.

WCAB Proposes Regulation Changes

The Workers’ Compensation Appeals Board (WCAB) has issued a notice of public hearing regarding proposed additions, amendments and repeals to its Rules of Practice and Procedure (Rules).

The public hearing is scheduled at 9 a.m. on Tuesday, September 24 in Room 7 of the Elihu Harris State Office Building, 1515 Clay Street, Oakland. Members of the public may also submit written comments until 4 p.m. that day.

The purposes of this rulemaking are to organize articles to reflect the order of events in a case, eliminate duplicative rules, break up complex rules, simplify and modernize language of rules for clarity, and create some room between rules so that additional rules can be added in the future without need for decimals.

WCAB’s notice of the proposed rulemaking, the text of the proposed regulations and the initial statement of reasons can be found on its rulemaking page.

Although equal weight will be accorded to oral and written comments, WCAB prefers written comments submitted by email. Comments may be submitted by email to WCABRules@dir.ca.gov or by mail to:

Workers’ Compensation Appeals Board
Attention: Rachel E. Brill, Industrial Relations Counsel
P.O. Box 429459
San Francisco CA 94142-9459

WCAB will consider all timely public comments and encourages all interested members of the workers’ compensation community to participate in this important process.