Suppliers and physicians who owe back-taxes to the IRS may want to get their accounts squared away as soon as possible. According to a recent piece of legislation passed by the Senate, suppliers who owe on their taxes are seen as more likely to commit Medicare fraud and abuse than those who don’t and could become subject to additional scrutiny during enrollment.

The legislation, entitled the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (H.R. 3962), would require the IRS to inform the Department of Health and Human Services (HHS) about “delinquent tax debts” held by physicians and suppliers who apply to enroll or reenroll in the Medicare program. Upon request, the IRS must confirm the identity of the party in question and provide HHS with information on the amount of tax owed by the individual, along with the year to which the debt applies.

The bill would grant the Secretary the authority to use this tax information when determining whether a physician or supplier is eligible to enroll or reenroll in the Medicare program. Suppliers and physicians with delinquent tax debts – defined as debt for which a lien has been issued, or a collection hearing is in process, and no payment arrangements have been made - may be subjected to periods of enhanced oversight or denied enrollment entirely. The Secretary is also granted the authority to adjust Medicare payments to suppliers and physicians based on the amount of delinquent tax owed.

As you may recall, H.R. 3962 was once known as the Affordable Health Care for America Act and was originally passed in the House as their version of healthcare reform. Because the U.S. Constitution requires all revenue-generating bills to originate in the House, the Senate took H.R. 3962 (a House originated bill), completely stripped it of all original content, renamed it, and is now using it as a medium for the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.

Before this bill may become law, the House and Senate must marry their two versions of the bill together and reconcile their differences. Since this bill is completely unrelated to the original version, members of the House will likely vote to reject the bill entirely or accept it only on the condition that certain amendments are included. If amendments are made to the bill, it will once again go back to the Senate for approval.

It’s possible that Congressmen whose healthcare reform ideas were not included in the signed Patient Protection and Affordable Care Act (PPACA or H.R. 3590) may continue to fight for their inclusion in this bill, and we may see several unrelated amendments added to the bill in order to secure votes.

We will keep you apprised of any updates or changes to the bill’s status in our August issue of Vista Notes. You may also read the full text of the bill here:  http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.3962.

MiraVista traveled all the way from Columbia, SC to Las Vegas, NV to attend this year’s Spring Medtrade.

While there, Medicare consultant Andrea Stark held two courses - one regarding DME respiratory regulations and the other on Medicare billing. In between classes, we had an opportunity to walk the exhibit floor and mingle with other members of the DME industry.

Suppliers attending the event were able to get glimpses of the latest DMEPOS products, as well as educate themselves about recent Medicare changes.

Watch this VistaCast to see highlights of the Spring 2009 Medtrade event.

Trouble viewing this VistaCast? Watch it on YouTube here: http://www.youtube.com/watch?v=E9pZpLJ5v-U.