{"id":5143,"date":"2022-03-24T18:13:31","date_gmt":"2022-03-24T18:13:31","guid":{"rendered":"https:\/\/melodybenefits.com\/?p=5143"},"modified":"2023-08-18T15:05:50","modified_gmt":"2023-08-18T15:05:50","slug":"wage-parity-annual-compliance-statement","status":"publish","type":"post","link":"https:\/\/melodybenefits.com\/wage-parity-annual-compliance-statement\/","title":{"rendered":"Why You Should (and Shouldn\u2019t) Worry About Your Wage Parity Annual Compliance Statement"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Is anyone in home healthcare NOT talking about the wage parity Annual Compliance Statement?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s new. It\u2019s complicated. And there are criminal penalties on the line.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Mordechai Wolhendler, healthcare consultant at GlattHealth Consulting Group, offers some welcome advice and perspective. He explains how you can ace your Annual Compliance statement\u2012but why it needs your attention <\/span><b>now<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Wage parity reporting review<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">First, a quick review of the certifications <\/span><b>due on or before May 31<\/b><span style=\"font-weight: 400;\"> each year. The <\/span><a href=\"https:\/\/melodybenefits.com\/20-21-ny-state-budget-wage-parity\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">20-21 NY State Budget<\/span><\/a><span style=\"font-weight: 400;\"> mandates these forms to report information from the previous calendar year.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Providers<\/b><span style=\"font-weight: 400;\">, meaning LHCSAs (Licensed Home Care Services Agencies) and FIs (Fiscal Intermediaries), need to complete 3 certifications:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer\u2019s Annual Compliance Statement of Wage Parity, Hours and Expenses (LS300) &#8211; <\/b><span style=\"font-weight: 400;\">The LS300 asks for detailed information about the wage parity benefits you paid this year.<br \/>\n<img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-5146 size-full\" src=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls300.png\" alt=\"\" width=\"626\" height=\"506\" srcset=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls300.png 626w, https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls300-300x242.png 300w\" sizes=\"(max-width: 626px) 100vw, 626px\" \/><\/span><span style=\"font-weight: 400;\"><br \/>\nProviders must submit a separate LS300 to each payor (CHHA, MCO, or LTHHCP) with whom they contract.<br \/>\n<\/span>You can download the <a href=\"https:\/\/dol.ny.gov\/system\/files\/documents\/2022\/10\/ls300.pdf\" target=\"_blank\" rel=\"noopener\" class=\"broken_link\">LS300<\/a> here.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Independent Auditor\u2019s Statement Verifying Employer\u2019s Wage Parity Hours and Expenses (LS301) &#8211; <\/b>On the LS301, an independent auditor certifies that the provider\u2019s Annual Compliance Statements are accurate. Only one LS301 is needed, but providers must send it to each payor. It also must be made available upon request to the New York State Department of Health (DOH) or the Department of Labor (DOL.)<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You can download the <\/span><a href=\"https:\/\/dol.ny.gov\/system\/files\/documents\/2021\/03\/ls301_wage-parity-audito-statement.pdf\" target=\"_blank\" rel=\"noopener\" class=\"broken_link\"><span style=\"font-weight: 400;\">LS301<\/span><\/a><span style=\"font-weight: 400;\"> here.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer\u2019s Annual Written Certification &#8211; <\/b><span style=\"font-weight: 400;\">Agencies submit this certification electronically to the DOH <\/span><span style=\"font-weight: 400;\">affirming that:\u00a0<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Their services were fully compliant with wage parity laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They didn\u2019t take back any of their wage parity dollars.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They will keep wage parity records for ten years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They submitted the LS300 and LS301 to each payor.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You can access this form through your <\/span><a href=\"https:\/\/id.emedny.org\/login?redirect_uri=https%3A%2F%2Fpe.emedny.org&amp;response_type=code&amp;client_id=2ja1sbi7njhu3fs46pq9olarr9&amp;state=gNpzIDTr9YBYQOLG4JJz7zIbQwi5R6tA&amp;scope=openid\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">eMedNY Provider Portal<\/span><\/a><span style=\"font-weight: 400;\"> account.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Payors,<\/b><span style=\"font-weight: 400;\"> meaning CHHAs (certified home health agencies), LTHHCPs (long-term home health care programs), or MCPs (managed care plans), also need to submit an <\/span><b>Annual Wage Parity Certification<\/b><span style=\"font-weight: 400;\">. They affirm that:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Their services were fully compliant with wage parity laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They didn\u2019t take back any of their wage parity dollars.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They will keep wage parity records for ten years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They received, reviewed, and assessed the LS300 and LS301 of every provider with whom they contract.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">They will make a written referral to the DOL if they suspect that a provider didn\u2019t conform to wage parity requirements.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Red lines \u2014 and gray areas<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cNo problem,\u201d you might be thinking. \u201cI don\u2019t need to worry about this until May.\u201d But Mordechai warns otherwise.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe have a lot of questions about the new certifications,\u201d he explains. \u201cYou need time to ask for guidance as gray areas come up.\u201d\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What gray areas?\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The LS301 must be completed by an independent auditor. <\/span><span style=\"font-weight: 400;\">You can\u2019t audit yourself, but what does \u201cindependent\u201d mean beyond the obvious? <\/span>In its instructions, the LS301 offers only this circular explanation, underlined in red:<br \/>\n<img decoding=\"async\" class=\"alignnone wp-image-5151 size-full\" src=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls301.png\" alt=\"\" width=\"625\" height=\"374\" srcset=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls301.png 625w, https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls301-300x180.png 300w\" sizes=\"(max-width: 625px) 100vw, 625px\" \/><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What does the independent auditor need to review? Looking at the LS301 again, it references \u201cfinancial statements and business records.\u201d\u00a0 Do you need to generate your complete financials for your auditor to review? Or is it enough, as it seems when you read on, for your audit to verify that the financial information on your Compliance Statement is accurate?<br \/>\n<img decoding=\"async\" class=\"alignnone wp-image-5174 size-full\" src=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls3012.png\" alt=\"\" width=\"627\" height=\"177\" srcset=\"https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls3012.png 627w, https:\/\/melodybenefits.com\/wp-content\/uploads\/2022\/03\/ls3012-300x85.png 300w\" sizes=\"(max-width: 627px) 100vw, 627px\" \/><\/span><\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wage parity law itself has areas that are interpreted differently depending on the attorneys. A CPA can verify that the Compliance Statement is accurate, but not if it\u2019s lawful. What if your CPA notices a practice that falls into one of wage parity\u2019s ambiguous zones? Can the CPA sign your certification?<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fitting your benefits information accurately on the LS300 may be tricky and time-consuming. For each LS300, you need to specify which benefits were earned only under that plan and payor source. Non-wage parity benefits need to be separated out. And do you need to report overtime hours?\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">The REAL reporting deadline<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mordechai also warns that your deadline may be much sooner than you think. Remember that payors need to submit a certification by June 1st, too. In that certification, they attest that they \u201creceived, reviewed, and assessed\u201d every compliance statement from every provider. They need time to do that.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>\u201cI know of at least one insurance plan that\u2019s asking for the certification by April 15th,\u201d <\/b><span style=\"font-weight: 400;\">says Mordechai. \u201cMore will follow suit. And keep in mind that CPAs are also dealing with tax season. You can\u2019t just dump the LS301 on them without warning.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">No worries<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cThe bottom line is this,&#8221; Mordechai concludes. &#8220;You need to work with a wage parity vendor that understands <\/span><a href=\"https:\/\/melodybenefits.com\/make-ny-wage-parity-laws-work-for-you\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">wage parity law<\/span><\/a><span style=\"font-weight: 400;\"> and provides 100% kosher benefits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u201cThere have been many <a href=\"https:\/\/melodybenefits.com\/home_healthcare_audits_surveys\/\">audits<\/a> and subpoenas already, and now there will be even more scrutiny. An experienced, transparent vendor will give you all the necessary information to pass your audit.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Shaya Sternhill, Melody Benefits Head Of Business Development &amp; Sales, notes that Melody\u2019s monthly reports already give clients much of the information breakdown required for the LS300:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total wage parity spend<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wage parity spend broken down by benefit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete benefits usage report for each employee<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cWe do the work for you,\u201d he says.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">And beyond that, \u201cwe won\u2019t rest until our clients have what they need,\u201d says Shaya. \u201cWe\u2019re developing new reports geared explicitly for the LS300. We\u2019re speaking to attorneys, asking questions so we can advise our clients and give them the correct information.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u201cCall us, and we\u2019ll walk you through the process.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Complete your LS300 with confident compliance. Insights and advice about requirements, deadlines, and reports.<\/p>\n","protected":false},"author":1,"featured_media":5412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":"","_vp_format_video_url":"","_vp_image_focal_point":[]},"categories":[16],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ace Your Wage Parity Annual Compliance Statement<\/title>\n<meta name=\"description\" content=\"NY home healthcare agencies: Your Annual Compliance Statement is due soon. 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