HHS Casts Larger Net to Reach Appellants and Reduce ALJ Backlog

Two new programs have significant potential in collectively effectuating a meaningful reduction in the appeals backlog.

In casting a larger net, the Office of Medicare Hearings and Appeals (OMHA) hopes to engage more providers and suppliers in settlement agreements as it seeks to improve the Medicare claims appeals process by expanding its current Settlement Conference Facilitation (SCF) program.

The announcement last week by the U.S. Department of Health and Human Services (HHS) comes on the reels of an announcement made in late December 2017, in which the agency announced that providers and suppliers with fewer than 500 appeals pending at OMHA and the Medicare Appeals Council could be eligible to participate in a new low-volume appeals (LVA) settlement offer. HHS, in its announcement last week, was quick to point out that this latest SCF offer is separate and distinct from the LVA, which was issued by the Centers for Medicare & Medicaid Services (CMS). 

SCF is an alternative dispute resolution process that gives certain providers and suppliers an opportunity to resolve their eligible Part A and Part B appeals. 

“OMHA’s prior SCF programs were attractive and popular opportunities for Medicare providers and suppliers to negotiate a settlement payout from CMS to achieve an efficient and expedited resolution to their pending, eligible appeals,” said healthcare attorney Andrew Wachler in an email to RACmonitor.

The prior SCF programs were more limited in scope, Wachler noted, applying only to Part A or Part B Medicare providers and suppliers, and to appeals involving administrative law judge (ALJ) hearing requests filed on or before specific dates in fall or winter of 2015.

According to Wachler, the expanded SCF applies to both Medicare Part A and Part B providers and suppliers, and both ALJ hearing and Council requests for review regarding eligible claims filed on or before Nov. 3, 2017. The most recently announced SCF expands both the scope of eligible participants and the scope of eligible claims.

“Under the Part A SCF, at least 50 claims and $20,000 had to be in controversy, and requests for (an) ALJ hearing had to be filed on or before  Dec. 31, 2015,” Wachler said. “Under the Part B SCF, at least 20 claims or at least $10,000 had to be in controversy … and the request for ALJ hearing had to be filed by Sept. 30, 2015.”

Wachler said this expansion of the SCF applies to appellants with 500 or more appeals pending at the ALJ or Council levels combined, or any number of appeals pending at the ALJ or Council levels combined if each appeal has $9,000 or more in billed charges. Under all three SCF programs, the value of each individual claim or extrapolated sample must be $100,000 or less.

“The expanded SCF program to be initiated in April 2018, in conjunction with the LVA settlement, has the potential to collectively resolve a large volume of the appeals backlog,” Wachler said. “Because these two alternative dispute resolution processes collectively appear to cover nearly every appeal under $100,000 that were pending with the ALJ or Council levels as of Nov. 3, 2017, we believe there should be few appeals that are not eligible for resolution under either the expanded SCF or the LVA settlement.”

Wachler urged Medicare Part A and Part B providers and suppliers to review “expeditiously” their pending appeals for eligibility, as the participation timeline for the LVA Settlement is limited.

“Appellants with NPI numbers that end in an even number have from Feb. 5, 2018 through March 9, 2018 to submit an expression of interest,” Wachler said. “Appellants with NPI numbers that end in an odd number have from March 12, 2018 through April 11, 2018 to submit an expression of interest. The expanded SCF is expected to open in April 2018.”

Wachler believes that as a result of the broad appellant and appeal eligibility criteria, these programs have significant potential in collectively effectuating a meaningful reduction in the appeals backlog.

Read the HHS/SCF announcement click here.

 

Facebook
Twitter
LinkedIn

Chuck Buck

Chuck Buck is the publisher of RACmonitor and is the program host and executive producer of Monitor Monday.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Sepsis Sequencing in Focus: From Documentation to Defensible Coding

Sepsis sequencing continues to challenge even experienced coding and CDI professionals, with evolving guidelines, documentation gaps, and payer scrutiny driving denials and data inconsistencies. In this webcast, Payal Sinha, MBA, RHIA, CCDS, CDIP, CCS, CCS-P, CCDS-O, CRC, CRCR, provides clear guideline-based strategies to accurately code sepsis, severe sepsis, and septic shock, assign POA indicators, clarify the relationship between infection and organ dysfunction, and align documentation across teams. Attendees will gain practical tools to strengthen audit defensibility, improve first-pass accuracy, support appeal success, reduce denials, and ensure accurate quality reporting, empowering organizations to achieve consistent, compliant sepsis coding outcomes.

March 26, 2026
I022426_SQUARE

Fracture Care Coding: Reduce Denials Through Accurate Coding, Sequencing, and Modifier Use

Expert presenters Kathy Pride, RHIT, CPC, CCS-P, CPMA, and Brandi Russell, RHIA, CCS, COC, CPMA, break down complex fracture care coding rules, walk through correct modifier application (-25, -57, 54, 55), and clarify sequencing for initial and subsequent encounters. Attendees will gain the practical knowledge needed to submit clean claims, ensure compliance, and stay one step ahead of payer audits in 2026.

February 24, 2026
Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 25, 2025

Trending News

Featured Webcasts

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

AI in Claims Auditing: Turning Compliance Risks into Defensible Systems

As AI reshapes healthcare compliance, the risk of biased outputs and opaque decision-making grows. This webcast, led by Frank Cohen, delivers a practical Four-Pillar Governance Framework—Transparency, Accountability, Fairness, and Explainability—to help you govern AI-driven claim auditing with confidence. Learn how to identify and mitigate bias, implement robust human oversight, and document defensible AI review processes that regulators and auditors will accept. Discover concrete remedies, from rotation protocols to uncertainty scoring, and actionable steps to evaluate vendors before contracts are signed. In a regulatory landscape that moves faster than ever, gain the tools to stay compliant, defend your processes, and reduce liability while maintaining operational effectiveness.

January 13, 2026

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24