Very few people make "streamline accounting services" their new year's resolution. Nonetheless, January is the perfect time for long term care facilities to assess the upcoming changes in legislation that will affect accounts receivable and accounts payable. Take note of these important dates to help ensure effective revenue cycle management.
January 31: Standard Federal Unemployment Tax Act (FUTA) rate is currently 6% of first $7,000 of wages subject to FUTA. Employers get a 5.4% credit from the federal government, resulting in employers paying 0.6%, or $42 per employee. Since 2014 is the third consecutive year in which Ohio owes the federal government for borrowing funds to cover unemployment, employers are now charged an additional 0.9% of FUTA wages. This equates to employers paying up to $63 more per employee. These taxes are reported on Form 940, which must be filed by the end of January.
Additionally, skilled nursing facilities must start preparing 1099 forms at the beginning of each year. The most common item on 1099 forms for a continuing care facility would be any non-corporate service provider who was paid more than $600 in total for the year. If these services cost more than $600, they must be reported on your 1099. Ensure that you have these contacts' social security numbers before you begin. Complete your 1099 by the end of January to ensure it will be processed effectively.
The priority of any LTC facility's accounting department must be to properly manage cash and billing. While the mission of a SNF may be to provide quality care, it is important that facilities get paid for that care. Rates are consistently changing and reimbursements are going down; it is vital to keep abreast of these changes to stay afloat. Don't waste money. Get bills out right and on time.
March 1: MyCare Ohio, a new managed care program for Ohioans who receive both Medicare and Medicaid benefits, will go into effect for 29 counties that surround the major cities of Ohio (Council on Aging of Southwestern Ohio). According to the Ohio Office of Medical Assistance, the MyCare Ohio program aims to improve the overall health and well-being of the individual while also improving health care quality and outcomes, as well as containing costs. Ohio has chosen five managed care plans through a competitive process. The state has been divided into seven regions, each offering a choice of several managed care plan options. Depending on the county of residency, dual eligible individuals will be able to choose from at least two managed care plans in each region to provide their Medicare and Medicaid benefits. Residents who are dual-eligible may opt to keep traditional Medicare but must select a managed care plan for Medicaid. If they fail to select a managed care plan, one will be selected for them.
Residents and family members of licensed nursing homes should have received letters describing the new program guidelines in late December 2013. Facilities may provide information to their residents and family members but are strictly prohibited from "steering" residents toward a particular managed care plan.
It is important for LTC communities to be proactive during the first quarter of 2014 in their preparation efforts for the transition to MyCare Ohio. First steps include information gathering, training and engagement of the managed care plan providers. Leadership should initiate dialogue with managed care plan providers regarding establishment of contracts to help ensure that the community residents will be able to participate in the plans available within a particular region. Ample time will be needed for contract negotiation, review as well as application to become a provider with the managed care plan. It will be necessary to update billing software to reflect the setup up of the new managed care payers that are contracted with your community. Each managed care plan will have its own billing guidelines and requirements. LTC Communities may wish to involve their local Office on Aging or other elder services provider in helping to offer resident and family education about the MyCare Ohio program.
Both of the deadlines referenced are important for Long Term Care providers in Ohio. With effective preparation and planning for upcoming deadlines, improving operational efficiency will become a reachable goal for 2014.
