CMS Administrator Announces Stark Law Overhaul

CMS Administrator Announces Stark Law Overhaul

After having received over 300 comments on recommended modifications to the Stark law, the Centers for Medicare and Medicaid Services (CMS) decided to make major changes to the federal law.

CMS Administrator Seema Verma announced part of the big improvement to the Stark law on Monday, stating that the CMS will a major part will give more clarification on volume or value and will be the biggest change to the Stark law since it was enacted in 1989.

The Stark law, which is a federal law that prohibits physician self-referral, specifically if a referral is made by a physician who is treating Medicare or Medicare patients, which is aimed to prevent kickbacks for physicians. The changes that will be made in the upcoming overhaul will be to clarify areas of noncompliance, specifically referring to items such as signatures, incorrect dates and technical noncompliance.

Also, the major changes to the Stark law include the shift from the fee-for-service model to value-based care, clarifying the definition of value care.

In August of 2018, the U.S. Department of Health and Human Services (HHS) had announced a notice that stated that the Stark law could be an impediment to coordinated care.

Read the original article from Modern Healthcare here.