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Hospital Care Assurance Program (HCAP)


The Hospital Care Assurance Program is a state and federal program administered by the Ohio Department of Medicaid, which provides funding to hospitals that have a disproportionately high share of uncompensated care costs for services to indigent and uninsured Ohioans. Part of the program offers Ohioans with family incomes at or below 100% of the current Federal Poverty Guidelines, and who are ineligible for Medicaid, help with unpaid hospital bills.


2015 HCAP Assessment and Payment Schedule
 

Assessment due June 8, 2016
Payment made June 17, 2016







These dates are preliminary and subject to change.


UPDATES:
 

2016 Preliminary HCAP Update - June 16, 2016
 

OHA presented the updated 2016 Preliminary HCAP Model at its annual meeting on Tuesday, June 14.
  • A copy of the PowerPoint presentation can be found here.
  • A summary of the model and its distribution pots can be found here.
  • The hospital-specific total distributions and payments for each pot can be found here.
If you have any questions or concerns, please contact Daniel Vielhaber (Daniel.Vielhaber@ohiohospitals.org) or Ryan Biles (Ryan.Biles@ohiohospitals.org).

2015 HCAP Delayed by Rulemaking Process - January 28, 2016

OHA continues to monitor the state’s rulemaking for the 2015 Hospital Care Assurance Program (HCAP). The program, which was slightly altered from the 2014 version at OHA’s request, received federal approval from CMS, but has yet to be fully authorized in the Ohio Administrative Code (The rules include OAC 5160-2-08 on data policies, 5160-2-08.1 on assessment rates and 5160-2-09 on the distribution formula). The rules await review and approval by the Lieutenant Governor’s Common Sense Initiative office, but are expected to move soon onto the final phase, which includes a public hearing and review by the Joint Committee on Agency Rule Review (JCARR). As of today, OHA anticipates HCAP 2015 assessment notices will be sent in May, with assessments and payments to follow in June/July. Note that even this new timeline is subject to change, so OHA will continue to update the membership as details become available.

 
Regarding the 2016 and 2017 HCAPs: the OHA Board of Trustees last August recommended the Ohio Department of Medicaid transition from a pre-Medicaid expansion HCAP distribution formula to a post-Medicaid expansion formula. If fully adopted, by 2017 HCAP would no longer have a distribution pool devoted solely to the provision of uncompensated care to Ohioans with incomes at or below the poverty line. ODM states it will soon seek approval from CMS on this two-year recommendation, and OHA hopes the 2016 HCAP will be completed before the close of CY 2016 and the 2017 HCAP before the close of FFY 2017 (9/30/17). Stay tuned for more details as the CMS process unfolds.
 
One additional item to highlight regards an ODM agreement to amend its data policies to allow for an additional Medicaid Cost Report correction period for all hospitals in the program. Beginning with the 2016 HCAP, hospitals will be granted an additional 30-day period during which cost report data can be corrected. The new 30-day period will apply to all hospitals beginning at the conclusion of the last hospital’s 30-day “free” revision window. As proposed, a hospital wishing to revise its cost report during this new grace period would have to pay an administrative fee equal to 0.03 percent of its adjusted facility costs in order to reopen its cost report. This additional period should allow hospitals to review OHA’s preliminary HCAP model before losing the opportunity to correct major errors and make revisions. 

2015 Preliminary HCAP Update - November 9, 2015

The 2015 Preliminary HCAP Model has been updated. One hospital re-filed their cost report which resulted in a reduced payment for that hospital. Consequently, all other hospitals receiving a payment will see a small increase to their total distribution. The updated model can be found here.

2015 Preliminary HCAP Update - October 23, 2015

The 2015 Preliminary HCAP Model has been updated. There was an error in the cost report data for one hospital, and that error has been corrected. The pots have not been affected, but the assessment lower rate has changed. The updated model can be found here.

2015 Preliminary HCAP Update - August 26, 2015 

The 2015 Preliminary HCAP Model has been updated. The updated model can be viewed here. This update includes changes to the Rural Pot (4B) distribution. No other pots were affected.

At this point, OHA sill anticipates HCAP 2015 will be administered around January 2016.

FFY2013 Medicaid DSH Program Audit Webinar Recording  

A recording of the Sept. 10, 2015 webinar on the FFY 2013 Medicaid Disproportionate Share Hospital (DSH) program audits is available here. OHA presented the session with the Ohio Department of Medicaid and Myers and Stauffer. Attendees' questions from the session were also recorded and will posted here once formal answers are completed. 

2015 Preliminary HCAP Update - July 28, 2015

The 2015 Preliminary HCAP Model has been updated. You can view the model here.

Points of interest in regards to this model include:

  • The numbers in the model have been developed in parallel with ODM, so OHA does not expect significant changes to this model before assessments and payments are made. However, the model is still preliminary and numbers still subject to change.

  • ODM has initiated the CMS review process with regard to the 2015 model in the hopes of avoiding delays similar to those that occurred in the 2014 HCAP process.

  • ODM is moving forward with OHA’s recommended changes to the model, which include further reforms to reward hospitals for total uncompensated care costs (including Medicaid shortfall) rather than just free care provided to HCAP-eligible patients.

At this point, OHA anticipates HCAP 2015 will be administered around January 2016.

Annual Updates to Ohio HCAP and Free Care Requirement - June 12, 2015

July 1 marks the start of state fiscal year 2016 and with it comes the annual updates to the Medicaid Cost Report, the HCAP/free care data review Agreed Upon Procedures and to OHA’s Frequently-Asked Questions, designed to help clarify it all.

Details were released at the July 9 HCAP policy session during OHA’s 2015 Annual Meeting. Links to all presentation and supporting materials from the session are provided below.

Ohio Medicaid Issues 2014 HCAP Assessment Letter to Hospitals - May 26, 2015

While the Centers for Medicare and Medicaid Services (CMS) continue to review the proposed state plan amendment that will implement OHA-recommended changes to the distribution of Hospital Care Assurance Program (HCAP) funding for 2014, on Friday, May 22, the Ohio Department of Medicaid (ODM) distributed a letter (click here) to Ohio hospitals regarding the HCAP assessment and payment process for the 2014 Program Year. In order to complete the assessment and payment cycles as quickly as possible, ODM has combined the preliminary and final assessment letter in their distribution. The preliminary assessment becomes the final assessment after fourteen days unless a hospital requests a reconsideration.

The first assessment is due on June 12, with payment to hospitals on or about June 22. The second assessment is scheduled for June 26, with payment to hospitals on or about July 8. However, this timeline is subject to change depending on the timing of CMS approving the state plan amendment. If approval is not granted prior to the first assessment due date, ODM will postpone collection of any assessments and release a new timeline. Though CMS technically has until the end of July to make its decision on approving the amendment, OHA is working to expedite their review process to allow for the distribution of funds according to the schedule released by ODM.

In 2014, Ohio hospitals anticipate receiving $374,022,303 in HCAP funding from the federal government in return for paying assessments totaling $220,030,862. The distribution formula will undergo significant changes in 2014 due to Medicaid expansion and the ability of federal DSH auditors to recoup overpayments from hospitals found to have received payments in excess of their hospital-specific DSH limit.

Ohio Medicaid DSH Program Audits

The Ohio Department of Medicaid and its independent auditor, Myers and Stauffer, have released preliminary results letters to Ohio hospitals on their SFY 2012 Ohio Medicaid Disproportionate Share Hospital (DSH) Audit. OHA will publish a preliminary statewide report as soon as one is available.

A comprehensive report on the FFY 2011 Ohio Medicaid DSH Audit is available here.


HCAP-Related Ohio Hospital Free Care Requirement 

OAC 5160-2-07.17 requires that all hospitals write off bills for basic, medically necessary hospital level services to patients with family incomes at or below federal poverty limits, as defined by the rule. 

OAC 5160-2-07.17 does not cover transplant services, physician charges, ambulance and patient convenience items (telephone, parking, television, personal items). In order for a patient’s care to qualify, (s)he must be an Ohio resident, not be covered by Medicaid recipient, and have a family income at or below the federal poverty line.

Each hospital has a policy for the review and approval of free care eligibility under the state rule. The patient should contact the hospital for an application. In some hospitals the patient will be required to provide proof of income (pay stubs or W-2s). 

Resources

For more information, please visit our most recent Frequently Asked Questions about HCAP/free care rules, eligibility and audit. If you are a hospital patient and have a question about the status of a pending HCAP application or need to request an application, please contact the hospital where you applied or would like to apply for the program.
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