THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net



Date: Thu, 04 Oct 2007 03:03:42 -0700

08 02 04 61 07100401




James Mayhew
CMS
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Subject:   Clinical Trials Managed Care Provider Makes Referral

Dear James,

Following our telecon yesterday, this issue arises from a patient enrolled in Kaiser's Senior Advantage [managed care] program since approximately 2004, and with Kaiser for 20+ years. Kaiser describes Senior Advantage as shown in the record on 070927 (September 27, 2007), and with comments showing the plain language is not dispositive...
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(Note: this is a knowledge management environment; click on subsidiary links only when you want to know more about an issue, e.g., a case study)
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On 061230 (December 30, 2006), Kaiser made arrangements for UCSF to treat a patient in a clinical trial determined by Kaiser to be the best course of care. The patient made no self-referral, but merely followed the doctor's orders. Kaiser agreed to pay UCSF any costs not covered by the clinical trial.
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A policy question is whether Kaiser is prevented from prescribing and paying for treatments Kaiser determines medically essential and which it cannot otherwise provide? Does CMS and Medicare recognize distinctions between physician referral and patient "self-referral"?
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Subsidiary question is whether the patient can rely on authority of the doctor to prescribe treatments based on past pattern and practice, or may Kaiser lead a patient into expensive treatment without notice, and then 6 months later start demanding payments?
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Not sure these issues are very elegantly presented. It is a little late and we have to leave for San Francisco in a few hours for Millie's weekly treatments at UCSF.
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The record on 070830 provides context with several case studies on patient history that may be helpful (this is a bit complex, showing for example mind boggling invoices).
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The most glaring question is how a patient sent for treatment with assurances of no cost can wind up with a bill for "coinsurance" 8 months later for $10K per year at 56% of amounts approved by Medicare?
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Millie's specific concerns on coinsurance are listed on 070830.
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There are few lessons learned that may be helpful...
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Thanks for taking a look. Don't get lost in links. If the case seems interesting, please call 925 680 8947 to discuss your ideas.

Sincerely,



Rod Welch
rodwelch@pacbell.net