Senate Finance Subcommittee Issues Testimony From GAO Acting Director
"Chairman Toomey, Ranking Member Stabenow, and Members of the Subcommittee:
"I am pleased to be here to discuss our
"The
"HHS's
"The Medicaid program also covers opioid prescriptions for its beneficiaries. In our prior work, we have reported on potentially inappropriate activities involving Medicaid's prescription drug coverage. In 2017, for example, we reported on prescriptions for opioid pain medication among Medicaid beneficiaries. In that report, we noted that while opioid pain medication can constitute proper medical care for beneficiaries suffering from painful conditions, the use of these medications among Medicaid beneficiaries with diagnosed opioid abuse or dependence raises concerns about potential inappropriate prescribing.8 In addition, in a
"In
"
"My remarks today discuss the findings and recommendations from our 2017 report on CMS efforts to oversee prescription opioids in Medicare.13 Accordingly, this testimony focuses on how:
- CMS oversees beneficiaries who receive opioid prescriptions under Medicare Part D, and
- CMS oversees providers who prescribe opioids to Medicare Part D beneficiaries.
"For our report, we reviewed CMS opioid utilization and prescriber data, CMS guidance for plan sponsors--private organizations, such as health insurance companies, contracted by CMS to provide outpatient drug benefit plans to Medicare beneficiaries--and CMS's strategy to prevent opioid misuse. We also interviewed officials from CMS, the six largest Part D plan sponsors, and 12 national associations selected to represent insurance plans, pharmacy benefit managers, physicians, patients, and regulatory and law enforcement agencies. More detailed information on our objectives, scope, and methodology for that work can be found in the issued report. We conducted the work on which this statement is based in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.
CMS Delegated Monitoring of Beneficiaries who Receive Opioid Prescriptions to Plan Sponsors, but Did Not Have Sufficient Information on Those Most at Risk for Harm
CMS Delegated Monitoring of Individual Beneficiaries' Opioid Prescriptions to Plan Sponsors
"Our
"Also in 2013, CMS created the Overutilization Monitoring System (OMS), which outlined criteria to identify beneficiaries with high-risk use of opioids, and to oversee sponsors' compliance with CMS's opioid overutilization policy. Plan sponsors may use the OMS criteria for their DUR systems, but they had some flexibility to develop their own targeting criteria within CMS guidance. At the time of our review, the OMS considered beneficiaries to be at a high risk of opioid overuse when they met all three of the following criteria:
1. received a total daily MED greater than 120 mg for 90 consecutive days,
2. received opioid prescriptions from four or more health care providers in the previous 12 months, and
3. received opioids from four or more pharmacies in the previous 12 months.16
"The criteria excluded beneficiaries with a cancer diagnosis and those in hospice care, for whom higher doses of opioids may be appropriate.
"We found that through the OMS, CMS generated quarterly reports that list beneficiaries who met all of the criteria and who were identified as high-risk, and then distributed the reports to the plan sponsors. Plan sponsors were expected to review the list of identified beneficiaries, determine appropriate action, and then respond to CMS with information on their actions within 30 days. According to CMS officials, the agency also expected plan sponsors to share any information with CMS on beneficiaries that they identified through their own DUR systems. We found that some actions plan sponsors may take included the following:
* Case management. Case management may include an attempt to improve coordination issues, and often involves provider outreach, whereby the plan sponsor will contact the providers associated with the beneficiary to let them know that the beneficiary is receiving high levels of opioids and may be at risk of harm.
* Beneficiary-specific point-of-sale (POS) edits. Beneficiary-specific POS edits are restrictions that limit these beneficiaries to certain opioids and amounts. Pharmacists receive a message when a beneficiary attempts to fill a prescription that exceeds the limit in place for that beneficiary.
* Formulary-level POS edits. These edits alert providers who may not have been aware that their patients are receiving high levels of opioids from other doctors.
* Referrals for investigation. According to the six plan sponsors we interviewed, the referrals can be made to CMS's National Benefit Integrity Medicare Drug Integrity Contractor (NBI MEDIC), which was responsible for identifying and investigating potential Part D fraud, waste, and abuse, or to the plan sponsor's own internal investigative unit, if they have one. After investigating a particular case, they may refer the case to the HHS-OIG or a law enforcement agency, according to CMS, NBI MEDIC, and one plan sponsor.
"Based on CMS's use of the OMS and the actions taken by plan sponsors, CMS reported a 61 percent decrease from calendar years 2011 through 2016 in the number of beneficiaries meeting the OMS criteria of high risk--from 29,404 to 11,594 beneficiaries--which agency officials considered an indication of success toward its goal of decreasing opioid use disorder.
"In addition, we found that CMS relied on separate patient safety measures developed and maintained by the
CMS Did Not Have Sufficient Information on Most Beneficiaries Potentially at Risk for Harm
"Our
"Based on the
* having an average daily MED greater than 90 mg for any duration; and
* receiving opioids from four or more providers and four or more pharmacies, or from six or more providers regardless of the number of pharmacies, for the prior 6 months.18
"Based on 2015 data, CMS found that 33,223 beneficiaries would have met these revised criteria. While the revised criteria would help identify beneficiaries who CMS determined are at the highest risk of opioid misuse and therefore may need case management by plan sponsors, they did not provide information on the total number of Part D beneficiaries who may be at risk of harm. In developing the revised criteria, CMS conducted a one-time analysis that estimated there were 727,016 beneficiaries with an average MED of 90 mg or more, for any length of time during a 6 month measurement period in 2015, regardless of the number of providers or pharmacies used. According to the
(figure 1 omitted)
"We also found that in 2016, CMS began to gather information from its patient safety measures on the number of beneficiaries who use more than 120 mg MED of opioids for 90 days or longer, regardless of the number of providers and pharmacies. The patient safety measures identified 285,119 such beneficiaries--counted as member-years--in 2016.19 However, this information did not include all at-risk beneficiaries, because the threshold was more lenient than indicated in
"CMS Oversees Providers through its Contractor and Plan Sponsors, but Efforts Did Not Specifically Monitor Opioid Prescriptions
"Our
* NBI MEDIC's data analyses to identify outlier providers. CMS required NBI MEDIC to identify providers who prescribe high amounts of Schedule II drugs, which include but are not limited to opioids.20 Using prescription drug data, NBI MEDIC conducted a peer comparison of providers' prescribing practices to identify outlier providers--the highest prescribers of Schedule II drugs--and reported the results to CMS.
* NBI MEDIC's other projects. NBI MEDIC gathered and analyzed data on Medicare Part C and Part D, including projects using the Predictive Learning Analytics Tracking Outcome (PLATO) system. According to NBI MEDIC officials, these PLATO projects sought to identify potential fraud by examining data on provider behaviors.
* NBI MEDIC's investigations to identify fraud, waste, and abuse. NBI MEDIC officials conducted investigations to assist CMS in identifying cases of potential fraud, waste, and abuse among providers for Medicare Part C and Part D. The investigations were prompted by complaints from plan sponsors; suspected fraud, waste, or abuse reported to NBI MEDIC's call center; NBI MEDIC's analysis of outlier providers; or from one of its other data analysis projects.
* NBI MEDIC's referrals. After identifying providers engaged in potential fraudulent overprescribing, NBI MEDIC officials said they may refer cases to law enforcement agencies or the HHS-OIG for further investigation and potential prosecution.
* Plan sponsors' monitoring of providers. CMS required all plan sponsors to adopt and implement an effective compliance program, which must include measures to prevent, detect, and correct Part C or Part D program noncompliance, as well as fraud, waste, and abuse. CMS's guidance focused broadly on prescription drugs, and did not specifically address opioids.
"Our report concluded that although these efforts provided valuable information, CMS lacked information necessary to adequately oversee opioid prescribing. CMS's oversight actions focused broadly on Schedule II drugs rather than specifically on opioids. For example, NBI MEDIC's analyses to identify outlier providers did not indicate the extent to which they may be overprescribing opioids specifically. According to CMS officials, they directed NBI MEDIC to focus on Schedule II drugs, because these drugs have a high potential for abuse, whether they are opioids or other drugs. However, without specifically identifying opioids in these analyses--or an alternate source of data--CMS lacked data on providers who prescribe high amounts of opioids, and therefore cannot assess progress toward meeting its goals related to reducing opioid use, which would be consistent with federal internal control standards. Federal internal control standards require agencies to conduct monitoring activities and to use quality information to achieve objectives and address risks.21 As a result, we recommended that CMS require NBI MEDIC to gather separate data on providers who prescribe high amounts of opioids. This would allow CMS to better identify those providers who are inappropriately and potentially fraudulently overprescribing opioids. HHS agreed, and in
"In addition, our 2017 report found that CMS also lacked key information necessary for oversight of opioid prescribing, because it did not require plan sponsors to report to NBI MEDIC or CMS cases of fraud, waste, and abuse; cases of overprescribing; or any actions taken against providers.22 Plan sponsors collected information on cases of fraud, waste, and abuse, and could choose to report this information to NBI MEDIC or CMS. While CMS receives information from plan sponsors who voluntarily reported their actions, it did not know the full extent to which plan sponsors had identified providers who prescribed high amounts of opioids, or the full extent to which sponsors had taken action to reduce overprescribing. We concluded that without this information, it was difficult for CMS to assess progress in this area, which would be consistent with federal internal control standards. In our report, we recommended that CMS require plan sponsors to report on investigations and other actions taken related to providers who prescribe high amounts of opioids. HHS did not concur with this recommendation. HHS noted that plan sponsors have the responsibility to detect and prevent fraud, waste, and abuse, and that CMS reviews cases when it conducts audits. HHS also stated that it seeks to balance requirements on plan sponsors when considering new regulatory requirements. However, without complete reporting--such as reporting from all plan sponsors on the actions they take to reduce overprescribing--we believe that CMS is missing key information that could help assess progress in this area. Due to the importance of this information for achieving the agency's goals, we continue to believe that CMS should require plan sponsors to report on the actions they take to reduce overprescribing.
Conclusions
"In conclusion, a large number of Medicare Part D beneficiaries use potentially harmful levels of prescription opioids, and reducing the inappropriate prescribing of these drugs has been a key part of CMS's strategy to decrease the risk of opioid use disorder, overdoses, and deaths. Despite working to identify and decrease egregious opioid use behavior--such as doctor shopping--among Medicare Part D beneficiaries, CMS lacked the necessary information to effectively determine the full number of beneficiaries at risk of harm, as well as other information that could help CMS assess whether its efforts to reduce opioid overprescribing are effective. It is important that health care providers help patients to receive appropriate pain treatment, including opioids, based on the consideration of benefits and risks. Access to information on the risks that Medicare patients face from inappropriate or poorly monitored prescriptions, as well as information on providers who may be inappropriately prescribing opioids, could help CMS as it works to improve care.
"Chairman Toomey, Ranking Member Stabenow, and Members of the Subcommittee, this concludes my prepared statement. I would be pleased to respond to any questions that you may have at this time."
* * *
Footnotes:
1See GAO, Prescription Opioids: Medicare Needs to Expand Oversight Efforts to Reduce the Risk of Harm, GAO-18-15 (
2See
3Medicare consists of Parts A, B, C, and the Part D prescription drug program. Parts A and B are known as traditional Medicare or Medicare fee-for-service. Medicare Part C, also known as Medicare Advantage, is a private plan alternative to traditional Medicare, and covers all traditional Medicare services.
4Within broad federal requirements, states have significant flexibility to design and implement their Medicaid programs based on their unique needs, resulting in 56 distinct programs. Medicaid programs are administered by the 50 states, the
5See GAO, High-Risk Series: Progress on Many High-Risk Areas, While Substantial Efforts Needed on Others, GAO-17-317 (
6Department
7See GAO, Medicare Part D: Instances of Questionable Access to Prescription Drugs, GAO-11-699 (
8GAO, Medicaid Expansion: Behavioral Health Treatment Use in Selected States in 2014, GAO-17-529 (
9GAO, Medicaid: Additional Reporting May Help CMS Oversee Prescription-Drug Fraud Controls, GAO-15-390 (
10Department
11Department
12Centers
13See GAO-18-15.
14Centers
15In addition to instructing plan sponsors to implement retrospective DUR systems, the guidance in the 2013 call letter includes information on other mechanisms to control overutilization. See https://www.cms.gov/Medicare/Health-Plans/HealthPlansGenInfo/Downloads/2013-Call-Letter.pdf.
16These criteria were in effect through 2017. CMS announced in its
17The
18According to CMS officials, the changes are partially in response to
19Patient safety measures count member-years, which account for beneficiaries who are enrolled in a Part D plan for only part of a year.
20Under the Controlled Substances Act, which was enacted in 1970, drugs are classified as controlled substances and placed into one of five schedules based on their medicinal value, potential for abuse, and risk of dependence. Schedule II drugs have the highest potential for abuse of any drugs approved for medical use.
21GAO, Standards for Internal Control in the Federal Government, GAO-14-704G (
22According to CMS officials, the agency's regulations currently make reporting inappropriate prescribing and any actions against providers voluntary for plan sponsors. See 42 C.F.R. * 423.504(b)(4)(vi)(G)(3).
Former Investment Advisor Indicted Accused of Stealing Client’s Retirement Accounts
Briefing on Release of 2017 Annual Report on International Religious Freedom
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News