Days could be numbered for Stark law as we know it.
The U.S. Senate Committee on Finance released a report to update Stark law, which could be "doing more harm than good for Medicare program objectives in implementing new value and quality-based payment models," according to The National Law Review. The report doesn't call for a repeal, but highlights concerns with the law as is. Here are five things to know about the report.
1. The Committee alluded to continuing to monitor Stark law issues while outlining the purpose, issues and benefits of Stark law as well as its impact on the industry. The law could be an obstacle to new payment models and overlaps with the federal anti-kickback statute and False Claims Act liability.
2. The Committee's report cites Stark law's complexity and impenetrability as issues and suggests pealing down Stark law for more linear and effective conflict-of-interest provisions, according to the report.
3. The report found Stark law is impeding value-based payment models for government and commercial health insurers.
4. The fee-for-service model raised concerns because there was an incentive for over-utilization; however, alternative payment models have largely rendered that concern obsolete.
5. The Committee also suggested reforming Stark law by aligning with the anti-kickback statute, creating tax-exempt exceptions for some compensation arrangements and modifying the burden of proof as well as simplifying and clarifying the technical requirements and payments associated with personally performed services.