Janaury 4, 2008 Part B Medicare Bulletin
Posted January 4, 2008
Table of Contents
- 2007 - 2008 Influenza (Flu) Season Resources for Health Care Professionals
- 2008 Annual Update to the Therapy Code List
- Additional Common Working File (CWF) Editing for Skilled Nursing Facility (SNF) Consolidated Billing (CB) — Part II
- Ambulance Inflation Factor for CY 2008
- An Overview of Medicare Covered Diabetes Supplies and Services
- Anesthesia Conversion Factors
- Annual Certification for CR3274
- Crossover of Assignment of Benefits Indicator (CLM08) From Paper Claim Input
- Fee Schedule Correction for Moderate (Conscious) Sedation Codes 99143, 99144, and 99145
- Implementation of 2008 Ambulatory Surgical Center (ASC) Payment System Changes
- Individuals Authorized Access to CMS Computer Services - Provider Community (IACS-PC): The First In A Series of Articles
- Mandatory Reporting of the National Provider Identifier (NPI) on all Part B Claims
- Medicare Payments for Ambulance Transports
- Problems with Global Surgical Billing
- Reasonable Charge Update for 2008 for Splints, Casts, Dialysis Supplies, Dialysis Equipment, and Certain Intraocular Lenses
- Rejection of Electronic Claim Status Requests that Lack National Provider Identifiers (NPIs)
- Revision of Erythropoietin Analog Policy
- Revisions to CR 4294 - Low Vision Rehabilitation Demonstration
2007 - 2008 Influenza (Flu) Season Resources for Health Care Professionals
News Flash - Effective January 1, 2008, National Provider Identifiers (NPIs) will be required to identify the primary providers (the Billing and Pay-to Providers) in Medicare electronic and paper institutional claims (i.e. 837I and UB-04 claims). You may continue to use the legacy identifier in these fields as long as you also use the NPI in these fields. This means that 837I and UB-04 claims with ONLY legacy identifiers in the Billing and Pay-to Provider fields will be rejected starting on January 1, 2008. (Pay-to Provider is identified only if it is different from the Billing Provider.) You may continue to use only legacy identifiers for the secondary provider fields in the 837I and UB-04 claims until May 23, 2008, if you choose.
Provider Types Affected
All Medicare fee-for-service (FFS) physicians, non-physician
practitioners, providers, suppliers, and other health care professionals
who bill Medicare for flu vaccines and vaccine administration provided
to Medicare beneficiaries
Provider Action Needed
- Keep this Special Edition MLN Matters article and refer to it throughout the 2007 - 2008 flu season.
- Talk with your patients about their risk of contracting the flu virus and complications arising from the virus and encourage them to get the flu shot. (Medicare provides coverage of the flu vaccine and its administration without any out-of-pocket costs to the Medicare beneficiaries, (i.e., no deductible or copayment/coinsurance.))
- Stay abreast of the latest flu information and inform your patients.
- Order appropriate provider resources for yourself and your staff.
- Have appropriate literature on hand about seasonal flu that can be handed out to your patients during the flu season.
- Don't forget to immunize yourself and your staff – Get the Flu Shot – Not the Flu!
Introduction
Historically the flu vaccine has been an under-utilized benefit by
Medicare beneficiaries. Yet, of the nearly 36,000 people who, on
average, die every year in the United States from seasonal flu
and complications arising from the flu, the majority of deaths
occur in persons 65 years of age and older. People with chronic
medical conditions such as diabetes and heart disease are considered
to be at high risk for serious complications from the flu, as are
people in nursing homes and other long-term care facilities. Complications
of flu can include bacterial pneumonia, ear infections, sinus infections,
dehydration, and worsening of chronic medical conditions, such
as congestive heart failure, asthma, or diabetes.
Prevention is Key to Public Health!
- While flu season can begin as early as October and last as late as May the optimal time to get a flu vaccine is in October or November. However, protection can still be obtained if the flu vaccine is given in December or later. The flu vaccine continues to be the most effective method for preventing flu virus infection and its potentially severe complications. You can help your Medicare patients reduce their risk for contracting seasonal flu and serious complications by recommending that they take advantage of the annual flu shot covered by Medicare.
- Medicare Part B reimburses health care professionals who accept the Medicare-approved payment amount for the flu vaccine and its administration. There is no beneficiary coinsurance or copayment and beneficiaries do not have to meet their deductible to receive the flu shot.
- Health care providers and their staff are also at risk for contracting the flu, so do not forget to immunize yourself and your staff. Protect yourself, your patients, your staff, and your family and friends. Get Your Flu Shot – Not the Flu!
Helping You Stay Informed
- CMS has developed a variety of educational resources to help promote increased awareness and utilization of the flu vaccine among beneficiaries, providers, and their staff and to ensure that Medicare FFS health care professionals have the information they need to bill Medicare correctly for the flu vaccines and their administration.
- MLN Matters Articles
- MM5744: Payment Allowances for the Influenza Virus Vaccine and the Pneumococcal Vaccine When Payment is Based on 95 Percent of the Average Wholesale Price (AWP) located at http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM5744.pdf on the CMS Web site.
- MM5511: Update to Medicare Claims Processing Manual (Publication 100-04), Chapter 18, Section 10 For Part B Influenza Billing located at http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM5511.pdf on the CMS Web site.
- MM4240: Guidelines for Payment of Vaccine (Pneumococcal Pneumonia Virus, Influenza Virus, and Hepatitis B Virus) Administration located at http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM4240.pdf on the CMS Web site.
- MM5037: Reporting of Diagnosis Code V06.6 on Influenza Virus and/or Pneumococcal Pneumonia Virus (PPV) Vaccine Claims and Acceptance of Current Procedural Terminology (CPT) Code 90660 for the Reporting of the Influenza Virus Vaccine located at http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM5037.pdf on the CMS Web site.
- MLN Influenza Related Products for Health Care Professionals
- Quick Reference Information: Medicare Immunization Billing - This two-sided laminated chart provides Medicare FFS physicians, providers, suppliers, and other health care professionals with quick information to assist with filing claims for the influenza, pneumococcal, and hepatitis B vaccines and their administration. Available in print and as a downloadable PDF file at http://www.cms.hhs.gov/MLNProducts/downloads/qr_immun_bill.pdf on the CMS Web site.
- The Guide to Medicare Preventive Services for Physicians, Providers, Suppliers, and Other Health Care Professionals, Second Edition - This updated comprehensive guide to Medicare-covered preventive services and screenings provides Medicare FFS physicians, providers, suppliers, and other health care professionals information on coverage, coding, billing, and reimbursement guidelines of preventive services and screenings covered by Medicare. The guide includes a chapter on influenza, pneumococcal, and hepatitis B vaccines and their administration. Also includes suggestions for planning a flu clinic and information for mass immunizers and roster billers. Available as a downloadable PDF file. Updated August 2007 at http://www.cms.hhs.gov/MLNProducts/downloads/mps_guide_Web-061305.pdf on the CMS Web site.
- Medicare Preventive Services Adult Immunizations Brochure - This two-sided tri-fold brochure provides health care professionals with an overview of Medicare's coverage of influenza, pneumococcal, and hepatitis B vaccines and their administration. Updated August 2007. Available in print and as a downloadable PDF file at http://www.cms.hhs.gov/MLNProducts/downloads/Adult_Immunization.pdf on the CMS Web site.
- Medicare Preventive Services Series: Part 1 Adult Immunizations Web-based Training (WBT) Course - This WBT course contains four modules that include information about Medicare's coverage of influenza, pneumococcal, and hepatitis B vaccines. Module Four includes lessons on mass immunizers, roster billing, and centralized billing. This course was updated September 2007 and has been approved for .1 IACET* CEU for successful completion. This course can be accessed through the MLN Product Ordering Web page located at http://cms.meridianksi.com/kc/main/kc_frame.asp?kc_ident=kc0001&loc=5 on the CMS Web site.
- An Overview of Medicare Preventive Services for Physicians, Providers, Suppliers, and Other Health Care Professionals video program - This educational video program provides health care professionals with an overview of Medicare-covered preventive services. The program includes a segment on Medicare's coverage of influenza, pneumococcal, and hepatitis B vaccines. Included in the segment are strategies that providers may use to increase the use of these vaccines in their practices and tips for setting up a flu clinic. This educational video has been approved for .1 IACET* CEU for successful completion. This video program can be ordered through the MLN Product Ordering Web page located at http://cms.meridianksi.com/kc/main/kc_frame.asp?kc_ident=kc0001&loc=5 on the CMS Web site.
- Quick Reference Information: Medicare Preventive Services - This two-sided laminated chart gives Medicare FFS physicians, providers, suppliers, and other health care professionals a quick reference to Medicare's preventive services and screenings, identifying coding requirements, eligibility, frequency parameters, and copayment/coinsurance and deductible information for each benefit. This chart includes influenza, pneumococcal, and hepatitis B. Available in print or as a downloadable PDF file at http://www.cms.hhs.gov/MLNProducts/downloads/MPS_QuickReferenceChart_1.pdf on the CMS Web site.
- Medicare Preventive Services Bookmark - This bookmark lists the preventive services and screenings covered by Medicare (including influenza) and serves as a handy reminder to health care professionals about the many preventive benefits covered by Medicare. Appropriate for use as a give away at conferences and other provider related gatherings. Available in print or as a downloadable PDF file at http://www.cms.hhs.gov/MLNProducts/downloads/medprevsrvcesbkmrk.pdf on the CMS Web site.
MLN Preventive Services Educational Products Web Page - This Medicare Learning Network (MLN) Web page provides descriptions of all MLN preventive services related educational products and resources designed specifically for use by Medicare FFS providers. PDF files provide product ordering information and links to all downloadable products, including those related to the influenza vaccine and its administration. This Web page is updated as new product information becomes available. Bookmark this page (http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp#TopOfPage) for easy access.
- Other CMS Resources
- CMS Adult Immunizations Web Page located at http://www.cms.hhs.gov/AdultImmunizations/ on the CMS Web site.
- CMS Frequently Asked Questions located at http://questions.cms.hhs.gov/cgi-bin/cmshhs.cfg/php/enduser/std_alp.php?p_sid=I3ALEDhi on the CMS Web site.
- Medicare Benefit Policy Manual - Chapter 15, Section 50.4.4.2 – Immunizations
located at
http://www.cms.hhs.gov/manuals/downloads/bp102c15.pdf on the CMS Web site. - Medicare Claims Processing Manual – Chapter 18, Preventive
and Screening Services located at
http://www.cms.hhs.gov/manuals/downloads/clm104c18.pdf on the CMS Web site.
- Other Resources
The following non-CMS resources are just a few of the many available in which clinicians may find useful information and tools to help increase flu vaccine awareness and utilization during the 2007 – 2008 flu season:
- Advisory Committee on Immunization Practices located at http://www.cdc.gov/vaccines/recs/acip/default.htm on the Internet.
- American Lung Association's Influenza (Flu) Center located at http://www.lungusa.org on the Internet. - This site provides a flu clinic locator at http://www.flucliniclocator.org on the Internet. Individuals can enter their zip code to find a flu clinic in their area. Providers can also obtain information on how to add their flu clinic to this site.
- Centers for Disease Control and Prevention - http://www.cdc.gov/flu
- Immunization Action Coalition - http://www.immunize.org
- Immunization: Promoting Prevention for a Healthier Life - http://www.nfid.org/pdf/publications/naiaw06.pdf
- Medicare Quality Improvement Community - http://www.medqic.org
- National Alliance for Hispanic Health - http://www.hispanichealth.org/
- The National Center for Immunization and Respiratory Diseases (NCIRD) (established spring 2007) replaces the name National Immunization Program (NIP) - http://www.cdc.gov/vaccines/about/
- National Foundation For Infectious Diseases - http://www.nfid.org/influenza
- National Network for Immunization Information - http://www.immunizationinfo.org
- National Vaccine Program - http://www.hhs.gov/nvpo
- Office of Disease Prevention and Promotion - http://odphp.osophs.dhhs.gov
- Partnership for Prevention - http://www.prevent.org
- World Health Organization - http://www.who.int/csr/disease/influenza/en/.
Additional Information
For information to share with your Medicare patients, please
visit, http://www.medicare.gov on
the Web.
*Note: The Centers for Medicare & Medicaid Services (CMS) has been reviewed and approved as an Authorized provider by the International Association for Continuing Education and Training (IACET), 8405 Greensboro Drive, Suite 800, McLean, VA 22102. The authors of the video program and Web-based training course have no conflicts of interest to disclose. The video program and Web-based training course were developed without any commercial support.
2008 Annual Update to the Therapy Code List
News Flash - The Centers for Medicare & Medicaid
Services (CMS) reminds health care professionals that Medicare provides
coverage of diabetes screening tests for beneficiaries at risk for
diabetes or those diagnosed with pre-diabetes, as well as other covered
services for people with diabetes. CMS has published a new provider
brochure entitled Diabetes-Related Services. This tri-fold brochure
provides health care professionals with an overview of Medicare's
coverage of diabetes screening tests, diabetes self-management training,
medical nutrition therapy, and supplies and other services for Medicare
beneficiaries with diabetes. You may download, view and print this
new brochure by visiting the Medicare Learning Network (MLN) at http://www.cms.hhs.gov/MLNProducts/downloads/DiabetesSvcs.pdf on
the CMS Web site. Printed copies of the brochure may be ordered,
free of charge, from the MLN Product Ordering Page by visiting
http://cms.meridianksi.com/kc/main/kc_frame.asp?kc_ident=kc0001&loc=5 on
the CMS Web site.
Provider Types Affected
Physicians, therapists, and providers of therapy services billing
Medicare Carriers, Fiscal Intermediaries (FIs), including Regional
Home Health Intermediaries (RHHIs), or Part A/B Medicare Administrative
Contractors (A/B MACs) for rehabilitation services
Provider Action Needed
STOP – Impact to You - One new code will be added to the therapy code list for CY 2008. Code 96125 will be used for standard cognitive performance testing per hour of a qualified health care professional's time, both face-to-face with the patient and time interpreting test results and preparing the report.
CAUTION – What You Need to Know - Code 96125 is considered "always therapy" regardless of who performs the service and will always require a therapy modifier (GN, GO, GP).
GO – What You Need to Do - Make certain your office staffs are aware of the new code.
Background
Section 1834(k)(5) of the Social Security Act requires that all claims
for outpatient rehabilitation therapy services and all comprehensive
outpatient rehabilitation facility services be reported using a
uniform coding system. The Healthcare Common Procedure Coding System/Current
Procedural Terminology, 2008 Edition (HCPCS/CPT-4) is the coding
system used for the reporting of these services.
Therapy services, including "always therapy" services,
must follow all the policies for therapy services detailed in the Medicare
Claims Processing Manual, Publication 100-4, Chapter 5 and the Medicare
Benefit Policy Manual, Publication 100-2, Chapters 12 and 15.
That manual is available at http://www.cms.hhs.gov/Manuals/IOM/list.asp#TopOfPage on
the Centers for Medicare & Medicaid Services (CMS) Web site.
Additional Information
If you have questions, please contact your Medicare Carrier, FI,
RHHI, or A/B MAC at their toll-free number, which can be found at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on
the CMS Web site.
For complete details regarding CR5810, please see the official instruction issued to your Medicare FI, RHHI, Carrier or A/B MAC. That instruction may be viewed by going to http://www.cms.hhs.gov/transmittals/downloads/R1377CP.pdf on the CMS Web site.
Additional Common Working File (CWF) Editing for Skilled Nursing Facility (SNF) Consolidated Billing (CB) — Part II
News Flash - The revised Skilled Nursing Facility
Prospective Payment System Fact Sheet (October 2007), which provides
the elements of the Skilled Nursing Facility Prospective Payment
System, is now available in downloadable format at
http://www.cms.hhs.gov/MLNProducts/downloads/snfprospaymtfctsht.pdf on
the CMS Web site.
Provider Types Affected
Physicians and providers who bill Medicare Carriers or Medicare Administrative
Contractors (A/B MAC) for therapy services provided to Medicare
beneficiaries in SNF stays
What Providers Need To Know
Effective for dates of service on or after April 1, 2001, Change
Request (CR) 5757, from which this article is taken, instructs
Medicare carriers and A/B MACs to modify the existing therapy edit
for Part B claims processing to ensure that all therapy services
are subjected to SNF consolidated billing edits when provided in
a covered or non-covered SNF stay.
Background
Since therapy services provided in a SNF must be consolidated when
a beneficiary is in a SNF stay, whether covered or non-covered
by Medicare, Medicare systems will reject claims with dates of
service falling within a SNF stay. As a result of this specific
change, Medicare's CWF system will reject claims with dates of
service after the posted SNF claim until a discharge claim is processed.
The entity furnishing the therapy services must look to the SNF
for payment, rather than billing Medicare.
Medicare contractors (carrier or A/B MAC) will re-open and re-process inappropriately denied claims for dates of service on or after April 1, 2001 through April 6, 2008, when you bring such claims to their attention. You should contact your Medicare contractor to have claims re-processed that you feel were erroneously subject to these consolidated billing edits, and denied. However, if you received payment directly from the SNF, you must return that payment to the SNF before requesting payment through the Medicare contractor.
Additional Information
You may see the official instruction (CR5757) issued to your Medicare
Carrier or A/B MAC by going to http://www.cms.hhs.gov/Transmittals/downloads/R1365CP.pdf on
the Centers for Medicare & Medicaid Services (CMS) Web site.
As an attachment to CR5757, you will find updated Medicare Claims
Processing Manual, Chapter 6 (SNF Inpatient Part A Billing), Sections
110.2.2 (A/B Crossover Edits).
If you have questions, please contact your Medicare Carrier or A/B
MAC, at their toll-free number, which may be found at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterToll
NumDirectory.zip on the CMS Web site.
Ambulance Inflation Factor for CY 2008
News Flash – Medicare Remit Easy Print (MREP) – Still using Standard Paper Remittance Advices (SPRs)? Did you know that with the new MREP software that is available to you (for free!), you can view and print as many or as few claims as needed? With the MREP software, you can navigate and view an Electronic Remittance Advice (ERA) using your personal computer. This is especially helpful when you need to print only one claim from the Remittance Advice (RA) when forwarding a claim to a secondary payer. CMS developed the MREP software to enable you to read and print the HIPAA-compliant ERA, also known as Transaction 835 or "the 835." Contact your carrier, A/B MAC or DME MAC to find out more about MREP and/or for information on how to receive HIPAA compliant ERAs.
Provider Types Affected
Providers and suppliers of ambulance services who bill Medicare carriers,
fiscal intermediaries (FIs), or Part A/B Medicare Administrative
Contractors (A/B MACs) for those services
What You Need to Know
CR 5801, from which this article is taken provides the Ambulance
Inflation Factor (AIF) for Calendar Year (CY) 2008. The AIF for
CY 2008 is 2.7%.
Background
Section 1834(l) (3) (B) of the Social Security Act (the Act) provides
the basis for updating payment limits that carriers, FIs, and A/B
MACs use to determine how much to pay you for the claims that you
submit for ambulance services.
Specifically, this section of the Act provides for a 2008 payment update that is equal to the percentage increase in the urban consumer price index (CPI-U), for the 12-month period ending with June of the previous year. The resulting percentage is referred to as the ambulance inflation factor (AIF).
CR 5801, from which this article is taken furnishes the CY 2008 AIF, which will be 2.7%. The following table displays the AIF for CY 2008 and for the previous 5 years.
Ambulance Inflation Factor by CY
| 2008 | 2.7% |
| 2007 | 4.3% |
| 2006 | 2.5% |
| 2005 | 3.3% |
| 2004 | 2.1% |
| 2003 | 1.1% |
The national fee schedule for ambulance services was phased in over
a five-year transition period beginning April 1, 2002. Further, the
Medicare Prescription Drug, Improvement and Modernization Act of
2003 (MMA) established that the ground ambulance base rate (for services
furnished during the period July 1, 2004 through December 31, 2009)
is subject to a "floor amount."
Payment will not be less than this "floor," which is determined
by establishing nine fee schedules (one for each of the nine census
divisions) and then using the same methodology that was used to establish
the national fee schedule.
Some key issues related to the AIF include:
National or Regional Fee Schedules
Either the national fee schedule or regional fee schedule
applies for all providers and suppliers in the census division, depending
on the payment amount that the regional methodology yields. The national
fee schedule amount applies when the regional fee schedule methodology
results in an amount (for a given census division) that is lower
than the national ground base rate. Conversely, the regional fee
schedule applies when its methodology results in an amount (for the
census division) that is greater than the national ground base rate.
When the regional fee schedule is used, that census division's fee
schedule portion of the base rate is equal to a blend of the national
rate and the regional rate.
Payments Based on Blended Methodology
During the five-year transition period, your payments have
been based on a blended methodology. For CY 2008, this blend is 20%
regional ground base rate and 80% national ground base rate.
Before January 1, 2006, for each ambulance provider or supplier, the AIF was applied to both the fee schedule portion of the blended payment amount (both national and regional (if it applied)), and to the reasonable cost or charge portion of the blended payment amount. Then, these two amounts were added together to determine each provider or supplier's total payment amount.
As of January 1, 2006, the total payment amount for air ambulance providers and suppliers is based on 100% of the national ambulance fee schedule. As of January 1, 2008, the total payment amount for ground ambulance providers and suppliers is based on either 100% of the national ambulance fee schedule or 80% of the national ambulance fee schedule and 20% of the regional ambulance fee schedule, whichever is greater.
Part B Coinsurance and Deductible Requirements
Part B coinsurance and deductible requirements apply.
Additional Information
You can find more information about the 2008 ambulance inflation
factor by going to CR 5801 located at http://www.cms.hhs.gov/transmittals/downloads/R1375CP.pdf on
the Centers for Medicare & Medicaid (CMS) Web site. There you
will find updated Medicare Claims Processing Manual, Chapter
15 (Ambulance), Section 20.6.1 (Ambulance Inflation Factor (AIF))
as an attachment to that CR.
If you have any questions, please contact your Medicare carrier, FI, or A/B MAC at their toll-free number, which may be found at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on the CMS Web site.
An Overview of Medicare Covered Diabetes Supplies and Services
News Flash - Understanding the Remittance Advice: A Guide for Medicare Providers, Physicians, Suppliers, and Billers serves as a resource on how to read and understand a Remittance Advice (RA). Inside the guide, you will find useful information on topics such as the types of RAs, the purpose of the RA, and the types of codes that appear on the RA. The RA Guide is available as a downloadable document from the Medicare Learning Network Publications Web page. To download and view, please go to http://www.cms.hhs.gov/MLNProducts/downloads/RA_Guide_Full_03-22-06.pdf on the CMS Web site.
Provider Types Affected
Physicians, providers, suppliers, and other health care professionals
who furnish or provide referrals for and/or file claims to Medicare
contractors (carriers, DME Medicare Administrative Contractors
(DME MACs), Fiscal Intermediaries (FIs), and/or Part A/B Medicare
Administrative Contractors (A/B MACs)) for Medicare-covered diabetes
benefits.
Provider Action Needed
This article is informational only and represents no Medicare policy
changes.
Background
Diabetes is the sixth leading cause of death in the United States,
and approximately 20 million Americans have diabetes with an estimated
20.9 percent of the senior population age 60 and older being affected.
Millions of people have diabetes and do not know it. Left undiagnosed,
diabetes can lead to severe complications such as heart disease,
stroke, blindness, kidney failure, leg and foot amputations, and
death related to pneumonia and flu. Scientific evidence now shows
that early detection and treatment of diabetes with diet, physical
activity, and new medicines can prevent or delay much of the illness
and complications associated with diabetes.
This special edition article presents an overview of the diabetes services and supplies covered by Medicare (Part B and Part D) to assist physicians, providers, suppliers, and other health care professionals who provide diabetic supplies and services to Medicare beneficiaries.
Medicare Part B Covered Diabetic Supplies
Medicare covers certain supplies if a beneficiary has Medicare Part
B and has diabetes. These supplies include:
- Blood glucose self-testing equipment and supplies;
- Therapeutic shoes and inserts; and
- Insulin pumps and the insulin used in the pumps
Blood Glucose Self-testing Equipment and Supplies
Blood glucose self-testing equipment and supplies are covered
for all people with Medicare Part B who have diabetes. This includes
those who use insulin and those who do not use insulin. These supplies
include:
- Blood glucose monitors;
- Blood glucose test strips;
- Lancet devices and lancets; and
- Glucose control solutions for checking the accuracy of testing equipment and test strips.
Medicare Part B covers the same type of blood glucose testing supplies for people with diabetes whether or not they use insulin. However, the amount of supplies that are covered varies.
If the beneficiary
- Uses insulin, they may be able to get up to 100 test strips and lancets every month, and 1 lancet device every 6 months.
- Does not use insulin, they may be able to get 100 test strips and lancets every 3 months, and 1 lancet device every 6 months.
If a beneficiary's doctor says it is medically necessary, Medicare will cover additional test strips and lancets for the beneficiary.
Medicare will only cover a beneficiary's blood glucose self-testing equipment and supplies if they get a prescription from their doctor.
Their prescription should include the following information:
- That they have diabetes;
- What kind of blood glucose monitor they need and why they need it (i.e., if they need a special monitor because of vision problems, their doctor must explain that.);
- Whether they use insulin;
- How often they should test their blood glucose; and
- How many test strips and lancets they need for one month.
A beneficiary needing blood glucose testing equipment and/or supplies:
- Can order and pick up their supplies at their pharmacy;
- Can order their supplies from a medical equipment supplier, but they will need a prescription from their doctor to place their order. Their doctor cannot order it for them;
- Must ask for refills for their supplies; and
- Needs a new prescription from their doctor for their lancets and test strips every 12 months.
Note: Medicare will not pay for any supplies not asked for, or for any supplies that were sent to a beneficiary automatically from suppliers. This includes blood glucose monitors, test strips, and lancets. Also, if a beneficiary goes to a pharmacy or supplier that is not enrolled in Medicare, Medicare will not pay. The beneficiary will have to pay the entire bill for any supplies from non-enrolled pharmacies or non-enrolled suppliers.
All Medicare-enrolled pharmacies and suppliers must submit claims for blood glucose monitor test strips. A beneficiary cannot submit a claim for blood glucose monitor test strips themselves. The beneficiary should make sure that the pharmacy or supplier accepts assignment for Medicare-covered supplies. If the pharmacy or supplier accepts assignment, Medicare will pay the pharmacy or supplier directly. Beneficiaries should only pay their coinsurance amount when they get their supply from their pharmacy or supplier for assigned claims. If a beneficiary's pharmacy or supplier does not accept assignment, charges may be higher, and the beneficiary may pay more. They may also have to pay the entire charge at the time of service and wait for Medicare to send them its share of the cost.
Before a beneficiary gets a supply, it is important for them to ask the supplier or pharmacy the following questions:
- Are you enrolled in Medicare?
- Do you accept assignment?
If the answer to either of these two (2) questions is "no," they should call another supplier or pharmacy in their area who answers "yes" to be sure their purchase is covered by Medicare, and to save them money.
If a beneficiary can not find a supplier or pharmacy in their area that is enrolled in Medicare and accepts assignment, they may want to order their supplies through the mail, which may also save them money.
Therapeutic Shoes and Inserts
If a beneficiary has Medicare Part B, has diabetes, and
meets certain conditions (see below), Medicare will cover therapeutic
shoes if they need them. The types of shoes that are covered each
year include one of the following:
- One pair of depth-inlay shoes and three pairs of inserts; or
- One pair of custom-molded shoes (including inserts) if the beneficiary cannot wear depth-inlay shoes because of a foot deformity and two additional pairs of inserts.
Note: In certain cases, Medicare may also cover separate inserts or shoe modifications instead of inserts.
In order for Medicare to pay for the beneficiary's therapeutic shoes, the doctor treating their diabetes must certify that they meet all of the following three conditions:
- They have diabetes;
- They have at least 1 of the following conditions in one or both feet:
- Partial or complete foot amputation;
- Past foot ulcers;
- Calluses that could lead to foot ulcers;
- Nerve damage because of diabetes with signs of problems with calluses;
- Poor circulation; or
- Deformed foot;
- They are being treated under a comprehensive diabetes care plan and need therapeutic shoes and/or inserts because of diabetes.
Medicare also requires the following:
- A podiatrist or other qualified doctor must prescribe the shoes, and
- A doctor or other qualified individual like a pedorthist, orthotist, or prosthetist must fit and provide the shoes to the beneficiary.
Medicare helps pay for one pair of therapeutic shoes and inserts per calendar year, and the fitting of the shoes or inserts is covered in the Medicare payment for the shoes.
Insulin Pumps and the Insulin Used in the Pumps
Insulin pumps worn outside the body (external), including the insulin
used with the pump, may be covered for some people with Medicare
Part B who have diabetes and who meet certain conditions. If a
beneficiary needs to use an insulin pump, their doctor will need
to prescribe it. In the Original Medicare Plan, the beneficiary
pays 20% of the Medicare-approved amount after the yearly Part
B deductible. Medicare will pay 80% of the cost of the insulin
pump. Medicare will also pay for the insulin that is used with
the insulin pump.
Medicare Part B covers the cost of insulin pumps and the insulin used in the pumps. However, if the beneficiary injects their insulin with a needle (syringe), Medicare Part B does not cover the cost of the insulin, but the Medicare prescription drug benefit (Part D) covers the insulin and the supplies necessary to inject it. This includes syringes, needles, alcohol swabs and gauze. The Medicare Part D plan will cover the insulin and any other medications to treat diabetes at home as long as the beneficiary is on the Medicare Part D plan's formulary.
Coverage for diabetes-related durable medical equipment (DME) is provided as a Medicare Part B benefit. The Medicare Part B deductible and coinsurance or copayment applies after the yearly Medicare part B deductible has been met. In the Original Medicare Plan, Medicare covers 80% of the Medicare-approved amount (after the beneficiary meets their annual Medicare Part B deductible of $131 in 2007), and the beneficiary pays 20% of the total payment amount (after the annual Part B deductible of $131 in 2007). This amount can be higher if the beneficiary's doctor does not accept assignment, and the beneficiary may have to pay the entire amount at the time of service. Medicare will then send the beneficiary its share of the charge.
Medicare Part D Covered Diabetic Supplies and Medications
This section provides information about Medicare prescription drug
coverage (Part D) for beneficiaries with Medicare who have or are
at risk for diabetes. If a beneficiary wants Medicare prescription
drug coverage, they must join a Medicare drug plan. The following
diabetic medications and supplies are covered under Medicare drug
plans:
- Diabetes supplies;
- Insulin; and
- Anti-diabetic drugs.
Diabetes Supplies
Diabetes supplies associated with the administration of
insulin may be covered for all people with Medicare Part D who have
diabetes. These medical supplies include the following:
- Syringes;
- Needles;
- Alcohol swabs;
- Gauze; and
- Inhaled insulin devices.
Insulin
Injectable insulin not associated with the use of an insulin infusion
pump is covered under Medicare Part D drug plans.
Anti-diabetic Drugs
Blood glucose that is not controlled by insulin may be maintained
by anti-diabetic drugs, and Medicare drug plans can cover anti-diabetics
drugs such as:
- Sulfonylureas (i.e. Glipizide, Glyburide);
- Biguanides (i.e. metformin);
- Thiazolidinediones (i.e. Starlix® and Prandin®); and
- Alpha glucosidase inhibitors (i.e. Precose®).
Medicare Part B Covered Diabetic Services
All of the diabetes services listed in this section are
covered by Medicare Part B unless otherwise noted. For people with
diabetes, Medicare covers certain services. A doctor must write an
order or referral for the beneficiary to get these services. These
services include the following:
- Diabetes screenings;
- Diabetes self-management training;
- Medical nutrition therapy services;
- Hemoglobin A1c tests; and
- Special eye exams.
Diabetes Screenings
Medicare pays for a beneficiary to get diabetes screening
tests if they are at risk for diabetes. These tests are used to detect
diabetes early, and some, but not all, of the conditions that may
qualify a beneficiary as being at risk for diabetes include:
- High blood pressure;
- Dyslipidemia (history of abnormal cholesterol and triglyceride levels);
- Obesity (with certain conditions);
- Impaired blood glucose tolerance; and
- High fasting blood glucose.
Diabetes screening tests are also covered if a beneficiary answers "yes" to two or more of the following questions:
- Are you age 65 or older?
- Are you overweight?
- Do you have a family history of diabetes (parents, siblings)?
- Do you have a history of gestational diabetes (diabetes during pregnancy),or
- Did you deliver a baby weighing more than 9 pounds?
Based on the results of these tests, a beneficiary may be eligible
for up to 2 diabetes screenings every year at no cost (no coinsurance,
or copayment or Part B deductible). Medicare will pay for a beneficiary
to get 2 diabetes screening tests in a 12-month period, but not less
than 6 months apart.
After the initial diabetes screening test, the beneficiary's doctor
will determine when to do the second test. Diabetes screening tests
that are covered include the following:
- Fasting blood glucose tests; and
- Other tests approved by Medicare as appropriate.
Diabetes Self-management Training (DSMT)
Diabetes self-management training helps a beneficiary learn how to
successfully manage their diabetes. Their doctor or qualified non-physician
practitioner must prescribe this training for them for Medicare
to cover it. A beneficiary can get diabetes self-management training
if they met one (1) of the following conditions during the last
twelve (12) months:
- They were diagnosed with diabetes;
- They changed from taking no diabetes medication to taking diabetes medication, or from oral diabetes medication to insulin;
- They have diabetes and have recently become eligible for Medicare;
- They are at risk for complications from diabetes. A doctor may consider the beneficiary at increased risk if they have any of the following:
- They had problems controlling their blood glucose, have been treated in an emergency room or have stayed overnight in a hospital because of their diabetes,
- They have been diagnosed with eye disease related to diabetes,
- They had a lack of feeling in their feet or some other foot problems like ulcers, deformities, or have had an amputation, or
- Been diagnosed with kidney disease related to diabetes.
A beneficiary must get this training from an accredited diabetes self-management education program as part of a plan of care prepared by their doctor or qualified non-physician practitioner. These programs are accredited by the American Diabetes Association or the Indian Health Service. Classes are taught by health care providers who have special training in diabetes education.
A beneficiary is covered by Medicare to get a total of 10 hours of initial training within a continuous 12-month period. One of the hours can be given on a one-on-one basis. The other 9 hours must be training in a group class. The initial training must be completed no more than 12 months from the time the beneficiary starts the training.
A doctor or qualified non-physician practitioner may prescribe 10 hours of individual training if the beneficiary is blind or deaf, has language limitations, or no group classes have been available within 2 months of the doctor's order. To be eligible for 2 more hours of follow-up training each year after the year the beneficiary received initial training, they must get another written order from their doctor. The 2 hours of follow-up training can be with a group or they may have one-on-one sessions. A doctor or qualified non-physician practitioner must prescribe the follow-up training each year for Medicare to cover it.
Beneficiaries learn how to successfully manage their diabetes in DSMT classes, and the training includes information on self-care and making lifestyle changes. The first session consists of an individual assessment to help the instructors better understand the beneficiary's needs. Classroom training includes topics such as the following:
- General information about diabetes, and the benefits and risks of blood glucose control;
- Nutrition and how to manage ones diet;
- Options to manage and improve blood glucose control;
- Exercise and why it is important to ones health;
- How to take ones medications properly;
- Blood glucose testing and how to use the information to improve ones diabetes control;
- How to prevent, recognize, and treat acute and chronic complications from ones diabetes;
- Foot, skin, and dental care;
- How diet, exercise, and medication affect blood glucose;
- How to adjust emotionally to having diabetes;
- Family involvement and support; and
- The use of the health care system and community resources.
Note: If a patient lives in a rural area, they may be able to get DSMT in a Federally Qualified Health Center (FQHC). For more information about FQHCs, visit http://www.cms.hhs.gov/center/fqhc.asp on the CMS Web site. FQHCs are special health centers, usually located in urban or rural areas, and they can give routine health care at a lower cost. Some FQHCs are Community Health Centers, Tribal FQHC Clinics, Certified Rural Health Clinics, Migrant Health Centers, and Health Care for the Homeless Programs.
Medical Nutrition Therapy (MNT) Services
In addition to DSMT, medical nutrition therapy services are also
covered for people with diabetes or renal disease. To be eligible
for this service, a beneficiary's fasting blood glucose has to
meet certain criteria. Also, their doctor must prescribe these
services for them. These services can be given by a registered
dietitian or certain nutrition professionals, and the services
include the following:
- An initial nutrition and lifestyle assessment;
- Nutrition counseling (what foods to eat and how to follow an
individualized diabetic meal
plan); - How to manage lifestyle factors that affect diabetics; and
- Follow-up visits to check on progress in managing diet.
Medicare covers 3 hours of one-on-one medical nutrition therapy services the first year the service is provided, and 2 hours each year after that. Additional MNT hours of service may be obtained if the beneficiary's doctor determines there is a change in their diagnosis, medical condition, or treatment regimen related to diabetes or renal disease and orders additional MNT hours during that episode of care.
Foot Exams and Treatment
If a beneficiary has diabetes-related nerve damage in either
of their feet, Medicare will cover 1 foot exam every 6 months by
a podiatrist or other foot care specialist, unless they have seen
a foot care specialist for some other foot problem during the past
6 months. Medicare may cover more frequent visits to a foot care
specialist if a beneficiary has had a non-traumatic (not because
of an injury) amputation of all or part of their foot or their feet
have changed in appearance which may indicate they have serious foot
disease.
Hemoglobin A1c Tests
A hemoglobin A1c test is a lab test ordered by the beneficiary's
doctor. It measures how well a beneficiary's blood glucose has been
controlled over the past 3 months. Anyone with diabetes is covered
for this test if it is ordered by their doctor. Medicare may cover
this test when a beneficiary's doctor orders it.
Glaucoma Tests
Medicare will pay for a beneficiary to have their eyes checked
for glaucoma once every 12 months. This test must be done or supervised
by an eye doctor who is legally allowed to give this service in their
state.
Special Eye Exam
People with Medicare who have diabetes can get special eye
exams to check for eye disease (called a dilated eye exam). These
exams must be done by an eye doctor who is legally allowed to provide
this service in their state. The dilated eye exam is recommended
once a year and must be performed by an eye doctor who is legally
allowed to provide this service in the beneficiary's state.
Diabetes Supplies and Services Not Covered by Medicare
The Original Medicare Plan and Medicare drug plans (Part
D) don't cover everything. Diabetes supplies and services not covered
by Medicare include:
- Eye exams for glasses (eye refraction);
- Orthopedic shoes (shoes for people whose feet are impaired, but intact);
- Routine or yearly physical exams (Medicare will cover a one-time initial preventive physical exam (the "Welcome to Medicare" physical exam) within the first 6 months of the beneficiary enrolling in Part B—coinsurance and Part B deductible applies.); and
- Weight loss programs.
Additional Information
The Centers for Medicare & Medicaid Services (CMS) has
developed a variety of educational resources for use by health care
professionals and their staff as part of a broad outreach campaign
to promote awareness and increase utilization of preventive services
covered by Medicare. For more information about coverage, coding,
billing, and reimbursement of Medicare-covered preventive services
and screenings, visit http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp#TopOfPage on
the CMS Web site.
- Medicare Learning Network - The Medicare Learning Network (MLN) is the brand name for official CMS educational products and information for Medicare fee-for-service providers. For additional information visit the Medicare Learning Network's Web page at http://www.cms.hhs.gov/MLNGenInfo on the CMS Web site.
- Patient Resources - For literature to share with Medicare patients, please visit http://www.medicare.gov on the Internet.
- The National Diabetes Education Program - NDEP (http://ndep.nih.gov/) provides a wealth of resources for health care professionals, educators, business professionals, and patients about diabetes, its complications, and self-management.
If you have any questions, please contact your Medicare contractor
(carrier, DME MAC, FI, and/or A/B MACs) at their toll-free number,
which may be found at
http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on
the CMS Web site.
Anesthesia Conversion Factors
The 2008 anesthesia conversion factor for the state of Idaho is $16.41.
The 2008 anesthesia conversion factor for the state of North Carolina is $16.75.
The 2008 anesthesia conversion factor for the state of Tennessee is $16.74.
Annual Certification for CR3274
"The acceptance of a voluntary refund as repayment for the claims specified in no way affects or limits the rights of the Federal Government, or any of its agencies or agents, to pursue any appropriate criminal, civil, or administrative remedies arising from or relating to these or any other claims."
Crossover of Assignment of Benefits Indicator (CLM08) From Paper Claim Input
News Flash - Effective January 1, 2008, National Provider Identifiers (NPIs) will be required to identify the primary providers (the Billing and Pay-to Providers) in Medicare electronic and paper institutional claims (i.e. 837I and UB-04 claims). You may continue to use the legacy identifier in these fields as long as you also use the NPI in these fields. This means that 837I and UB-04 claims with ONLY legacy identifiers in the Billing and Pay-to Provider fields will be rejected starting on January 1, 2008. (Pay-to Provider is identified only if it is different from the Billing Provider.) You may continue to use only legacy identifiers for the secondary provider fields in the 837I and UB-04 claims until May 23, 2008, if you choose.Provider Types Affected
Physicians and suppliers submitting paper claims to Medicare
contractors (carriers, Durable Medical Equipment Medicare Administrative
Contractors (DME MACs), and Part A/B Medicare Administrative Contractors
(A/B MACs)) for services provided to Medicare beneficiaries
Provider Action Needed
STOP – Impact to You - This article is based on Change Request (CR) 5780 which makes system changes to the manner in which the Medicare sets the CLM08 value in the Coordination of Benefits (COB) flat file for transmission of claims to COB partners.
CAUTION – What You Need to Know – CR 5780 will result in changes to Medicare systems to appropriately set the correct indicator in CLM08 based on the presence of or lack of a patient signature in box/item 13 of the Form CMS-1500.
GO – What You Need to Do – See the Background and Additional Information Sections of this article for further details regarding these changes and be sure billing personnel complete box/item 13 of the Form CMS-1500 in accordance with the revised instructions.
Background
The basic claims form prescribed by the Centers for Medicare & Medicaid
Services (CMS) for the Medicare program is the Form CMS-1500. It
answers the needs of many health insurers, and it is only accepted
from physicians and suppliers that are excluded from the mandatory
electronic claims submission requirements set forth in the Administrative
Simplification Compliance Act, Public Law 107-105 (ASCA) and the
implementing regulation at 42 CFR 424.32
(http://www.access.gpo.gov/nara/cfr/waisidx_02/42cfr424_02.html).
Coordination of Benefits (COB) trading partners requested that CMS
change the current process of automatically setting a "Y" value
in the CLM08 segment of the 837 Professional Coordination of Benefits
(COB) claim crossover file. Trading partners may use the CLM08 value
to determine where the claim reimbursement is to go and have, in
some cases, reimbursed the provider instead of the beneficiary.
Note: CLM08 is the assignment of benefits indicator, and a "Y" value indicates insured or authorized person authorizes benefits to be assigned to the provider; an "N" value indicates benefits have not been assigned to the provider.
CR 5780 initiates system changes to appropriately set the correct indicator in CLM08 based on the presence of or lack of a signature in box/item 13 of the Form CMS-1500. In addition, CR5780 revises the Form CMS-1500 claim completion instructions in order to inform providers regarding how the presence or lack of a signature in box 13 will affect downstream patient assignment of benefits. Specifically, the Medicare Claims Processing Manual (Chapter 26, Section 10.3 – Items 11a-13 – Patient and Insured Information) is revised (changes are bolded and italicized) as follows:
"Item 13 - The patient's signature or the statement "signature
on file" in this item authorizes payment of medical benefits
to the physician or supplier. The patient or his/her authorized representative
signs this item or the signature must be on file separately with
the provider as an authorization.
The presence of or lack of a signature or "signature on file" in
this field will be indicated as such to any downstream Coordination
of Benefits trading partners (supplemental insurers) with whom we
have a payer-to-payer coordination of benefits relationship. Medicare
has no control over how supplemental claims are processed, so it
is important that providers accurately address this field as it may
or may not affect supplemental payments to providers and/or their
patients.
In addition, the signature in this item authorizes payment of mandated Medigap benefits to the participating physician or supplier if required Medigap information is included in item 9 and its subdivisions. The patient or his/her authorized representative signs this item or the signature must be on file as a separate Medigap authorization. The Medigap assignment on file in the participating provider of service/supplier's office must be insurer specific. It may state that the authorization applies to all occasions of service until it is revoked.
NOTE: This can be "Signature on File" signature and/or a computer generated signature."
The business requirements in CR 5780 do not affect inbound claims or current Medicare claims processing guidelines. They specifically address COB claims only which are sent to trading partners.
Additional Information
The official instruction, CR5680, issued to your carrier,
DME MAC, and A/B MAC regarding this change may be viewed at http://www.cms.hhs.gov/Transmittals/downloads/R1369CP.pdf on
the CMS Web site.
If you have any questions, please contact your Medicare carrier,
DME MAC, or A/B MAC at their toll-free number, which may be found
at
http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on
the CMS Web site.
Fee Schedule Correction for Moderate (Conscious) Sedation Codes 99143, 99144, and 99145
The Part B Physician Fee Schedule amounts published for Carrier priced AMA CPT® Moderate (Conscious) Sedation codes 99143, 99144, 99145 are incorrect. The amounts have been verified and were correctly loaded into the MCS system. Therefore, submitted services effective January 1, 2006 using these codes have been paid at the appropriate amount.
The correct payment amounts are as follows:
| Code | Par | Non-Par | Limiting |
| 99143 | 22.50 | 21.38 | 24.59 |
| 99144 | 18.50 | 17.58 | 20.22 |
| 99145 | 9.00 | 8.55 | 9.83 |
An update to the Fee Schedule has been requested and those changes will be loaded onto our Web site as expediently as possible. We apologize for any inconvenience this may have caused.
References: CMS Transmittal # 1324 http://www.cms.hhs.gov/transmittals/downloads/R1324CP.pdf
Implementation of 2008 Ambulatory Surgical Center (ASC) Payment System Changes
News Flash – Medicare Remit Easy Print (MREP) – Still using Standard Paper Remittance Advices (SPRs)? Did you know that with the new MREP software that is available to you (for free!), you can view and print as many or as few claims as needed? With the MREP software, you can navigate and view an Electronic Remittance Advice (ERA) using your personal computer. This is especially helpful when you need to print only one claim from the Remittance Advice (RA) when forwarding a claim to a secondary payer. CMS developed the MREP software to enable you to read and print the HIPAA-compliant ERA, also known as Transaction 835 or "the 835." Contact your carrier, A/B MAC or DME MAC to find out more about MREP and/or for information on how to receive HIPAA compliant ERAs.
Provider Types Affected
Providers who bill contractors (Fiscal Intermediaries, carriers and
Medicare Administrative Contractors (A/B MAC) for ambulatory surgical
center services for Medicare Beneficiaries
What You Need to Know
The Centers for Medicare & Medicaid Services (CMS) is required
to implement a new Ambulatory Surgical Center (ASC) payment system
no later than January 1, 2008. An overview of the new system has
already been provided in the MLN Matters article SE0742, which is
available at http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0742.pdf on
the CMS Web site. CR 5680, from which this article is taken, provides
additional information on the background, policy, and instructions
that your Medicare contractor will use to implement this revised
payment system.
Background
Section 626 of the Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 (MMA) requires the Centers for Medicare & Medicaid
Services (CMS) to implement a new Ambulatory Surgical Center (ASC)
payment system not later than January 1, 2008. In part, the law
requires that ASCs be paid the lesser of the actual charge or the
ASC fee schedule payment rates. See MLN Matters article SE0742
at http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0742.pdf for
an overview of the new ASC payment system.
In addition to the new payment instructions, ASCs will be paid a reduced amount for certain procedures when you receive a partial credit for more than 50 percent of the cost of a medical device. You will need to include an FC modifier on certain procedure codes that include payment for a device, to report that you received a partial credit for more than 50 percent of the cost of the device. For those procedure codes where the FC modifier may be applicable, CMS will provide Medicare contractors with a price for the procedure code, both with and without, the FC modifier.
CR 5680 also includes a number of changes to two Medicare manuals as summarized below. (Only the key changes/revisions are included in this article). These revised manual instructions are attached to CR5680.
Revisions to the Medicare Claims Processing Manual
(These revisions are attached to CR5680 at http://www.cms.hhs.gov/Transmittals/downloads/R1325CP.pdf on
the CMS Web site.) Key revisions are:
Chapter 1 (General Billing Requirements)
Section 30.3.1 (Mandatory Assignment on Carrier Claims)
For colorectal cancer screening colonoscopies (G0105 and G0121),
there is no deductible and a 25 percent coinsurance. Effective January
1, 2008, for service G0104, there will be no deductible and the 25
percent coinsurance rate will apply.
Chapter 4 (Part B Hospital (Including Inpatient Hospital Part B and
OPPS) Section 120 (General Rules for Reporting Outpatient Hospital
Services)
Effective for dates of service on or after January 1, 2008, the Medicare
contractor no longer processes claims on TOB 83X for ASCs. All ASC
providers (including Indian Health Service providers) must submit
their claims to the designated carrier or A/B MAC Section 180.1 (General
Rules)
Effective for dates of service on or after January 1, 2008, the Medicare contractor no longer processes claims on TOB 83X for ASCs. All ASC providers (including Indian Health Service providers) must submit their claims to the designated carrier or A/B MAC
Chapter 14 (Ambulatory Surgical Centers)
Section 10 (General)
Beginning January 1, 2008, Medicare will:
- Pay ASCs (under Part B) for all surgical procedures except those that CMS determines may pose a significant safety risk to beneficiaries or that are expected to require an overnight stay when furnished in an ASC;
- Pay ASCs (under Part B) for certain ancillary services such as certain drugs and biologicals, pass through devices, brachytherapy sources, and radiology procedures;
- Continue to pay ASCs for new technology intraocular lenses and corneal tissue acquisition as it did prior to January 1, 2008; and
- Not pay ASCs for procedures that are excluded from the list of covered surgical procedures or covered ancillary services.
To be paid under this provision, a facility must be certified as
meeting the requirements for an ASC and must enter into a written
agreement with the Centers for Medicare & Medicaid Services (CMS).
The State Operations Manual, which you can find at http://www.cms.hhs.gov/Manuals/IOM/itemdetail.asp?filterType=none&filterByDID=
99&sortByDID=1&sortOrder=ascending&itemID=CMS1201984&intNumPerPage=10 describes
the certification process.
Section 10.2. (Ambulatory Surgical Center Services on ASC
List)
Under the new payment system, ASC services for which payment is included
in the ASC payment include, but are not limited to:
- Nursing technician, and related services;
- Use of the facility where the surgical procedures are performed;
- Any laboratory testing performed under a clinical Laboratory
Improvement Amendments of
1988 (CLIA) certificate waiver; - Drugs and biologicals for which separate payment is not allowed under the hospital outpatient prospective payment system (OPPS);
- Medical and surgical supplies not on pass-through status under
Subpart G of Part 419.62 of
42 CFR located at http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=
2196cd71379f6eba74e7f54cfe19fc60&rgn=
div8&view=text&node=42:3.0.1.1.6.7.1.1&idno=42; - Equipment;
- Surgical dressings;
- Implanted prosthetic devices, including intraocular lenses (IOLs), and related accessories and supplies not on pass-through status under Subpart G of Part 419.62 of 42 CFR located at http://ecfr.gpoaccess. gov/cgi/t/text/textidx?c=ecfr&sid=2196cd71379f6e ba74e7f54cfe19fc60&rgn=div8&view=text&node= 42:3.0.1.1.6.7.1.1&idno=42);
- Implanted DME and related accessories and supplies not on pass-through
status under Subpart G of Part 419 of 42 CFR located at http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=
2196cd71379f6eba74e7f54cfe19fc60&rgn
=div8&view=text&node=42:3.0.1.1.6.7.1.1&idno=42; - Splints and casts and related devices;
- Radiology services for which separate payment is not allowed under the OPPS, and other diagnostic tests or interpretive services that are integral to a surgical procedures;
- Administrative, recordkeeping and housekeeping items and services;
- Materials, including supplies and equipment for the administration and monitoring of anesthesia; and
- Supervision of the services of an anesthetist by the operating surgeon.
In addition, Medicare will pay ASCs separately for certain covered
ancillary services that are provided
integral to a covered ASC surgical procedure. The services are:
- Brachytherapy sources;
- Certain implantable items that have pass-through status under the Outpatient Prospective Payment System (OPPS);
- Certain items and services that CMS designates as contractor-priced, including, but not limited to, the procurement of corneal tissue;
- Certain drugs and biologicals for which separate payment is allowed under the OPPS; and
- Certain radiology services for which separate payment is allowed under the OPPS.
Beginning January 1, 2008, the ASC facility payment for drugs and biologicals includes those that are not usually self-administered, and are considered to be packaged into the payment for the surgical procedure under the outpatient prospective payment system (OPPS). Beginning January 1, 2008, Medicare makes separate payment to ASCs for drugs and biologicals that are furnished integral to an ASC covered surgical procedure and are separately payable under the OPPS.
Section 10.4. (Coverage of Services in ASCs, Which Are Not ASC Facility Services)
Physician Services
Includes most covered services performed in ASCs, which are not considered
ASC facility services. Consequently, physicians who perform covered
services in ASCs may bill and receive separate payment under Part
B. Physicians' services include the services of anesthesiologists
administering or supervising the administration of anesthesia to
beneficiaries in ASC's and the beneficiaries' recovery from the
anesthesia.
Implantable Durable Medical Equipment (DME)
If the ASC furnishes items of implantable DME items to beneficiaries,
the ASC bills and receives payment from the local carrier or A/B
MAC for the surgical procedure and the implantable device. When the
surgical procedure is not on the ASC list, the physician bills the
carrier or A/B MAC for both the surgical procedure and the implanted
device, coding the ASC as the place of service (POS code 24) on the
bill.
Non-Implantable DME
If the ASC furnishes items of non-implantable DME to beneficiaries,
it is treated as a DME supplier, and all the rules and conditions
ordinarily applicable to DME are applicable, including obtaining
a supplier number and billing the DME MAC where applicable.
Services of Independent Laboratory
As noted in the Medicare Claims Processing Manual,
Chapter 14, Section 10.2., only very limited numbers and types of
diagnostic tests are considered ASC facility services and are included
in the ASC facility payment rate. Since Section 1861(s) of the Act
limits coverage of diagnostic lab tests in facilities other than
physicians' offices, rural health clinics, or hospitals to those
that meet the statutory definition of an independent laboratory,
in most cases, diagnostic tests that an ASC performs directly are
not considered ASC facility services and not covered under Medicare.
The ASC's laboratory must be CLIA certified and will need to enroll
with the carrier or A/B MAC, as a laboratory and the certified clinical
laboratory must bill for the services provided to the beneficiary
in the ASC. Otherwise, the ASC must make arrangements with a covered
laboratory or laboratories for laboratory services, as set forth
in 42CFR416.49 located at
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=737c29dc4bb9dd89c5b72ca82f9b40c5&rgn=div8&view=text&node=
42:3.0.1.1.3.3.1.10&idno=42 on the Internet.
Section 20 (List of Covered Ambulatory Surgical Center Procedures)
The complete lists of ASC covered surgical procedures and ASC covered
ancillary services; the applicable payment indicators, payment
rates for each covered surgical procedure and ancillary service
before adjustments for regional wage variations; and the wage adjusted
payment rates, and wage indices are available at http://www.cms.hhs.gov/ASCPAYMENT on
the CMS Web site.
Section 20.1 (Nature and Applicability of ASC List)
The ASC list of covered procedures indicates procedures, which are
covered and paid for if performed in the ASC setting. It does not
require the covered surgical procedures to be performed only in
ASCs. The decision regarding the most appropriate care setting
for a given surgical procedure is made by the physician based on
the beneficiary's individual clinical needs and preferences. In
addition, all the general coverage rules requiring that any procedure
be reasonable and necessary for the beneficiary are applicable
to ASC services in the same manner as all other covered services.
Section 20.2. (Types of Services Included on the List)
The Medicare approved procedures are all considered "surgical
procedures" for purposes of ASC coverage, regardless of the
use of the procedure. For example, many of the "oscopy" procedures
listed - bronchoscopy, laryngoscopy, etc., may be employed for either
diagnostic or therapeutic purposes, or even both at the same time,
such as when the "oscopy" permits both detection and removal
of a polyp. Those procedures are considered "surgical procedures" within
the context of the ASC provision. In addition, surgical procedures
are commonly thought of as those involving an incision of some type,
whether done with a scalpel or (more recently) a laser, followed
by removal or repair of an organ or other tissue.
In recent years, the development of fiber optics technology, together with new surgical instruments using that technology, has resulted in surgical procedures that, while invasive and manipulative, do not require incisions. Instead, the procedures are performed without an incision through various body openings. Those procedures, some of which include the "oscopy" procedures mentioned above, are also considered surgical procedures for purposes of the ASC provision, and several are included in the list of covered procedures.
The ASC list of covered surgical procedures is comprised of surgical procedures that CMS determines do not pose a significant safety risk and are not expected to require and overnight stay following the surgical procedure.
Surgical procedures are defined as Category I CPT codes within the surgical range of CPT codes, 10000 through 69999. Also considered to be included within that code range are Level II HCPCS and Category III CPT codes that crosswalk to or are clinically similar to the Category I CPT codes in the range.
The surgical codes that are included on the ASC list of covered surgical procedures are those that have been determined to pose no significant safety risk to Medicare beneficiaries when furnished in ASCs and that are not expected to require active medical monitoring at midnight of the day on which the surgical procedure is performed (overnight stay).
Procedures that are included on the inpatient list used under Medicare's hospital outpatient prospective payment system and procedures that can only be reported by using an unlisted Category I CPT code are deemed to pose significant safety risk to beneficiaries in ASCs and are not eligible for designation and coverage as covered surgical procedures.
Section 30 (Rate-Setting Policies)
Generally, there are two primary elements in the total cost of performing
a surgical procedure:
- The cost of the physician's professional services for performing the procedure; and,
- The cost of services furnished by the facility where the procedure is performed (e.g., surgical supplies and equipment and nursing services). For a discussion of the ASC payment methodology, see MLN Matters article SE0742 at http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0742.pdf on the CMS Web site.
Section 40.3. (Payment for Intraocular Lens (IOLs)
Beginning January 1, 2008, the Medicare payment for the IOL is included
in the Medicare payment for the associated surgical procedure.
Consequently, no separate payment for the IOL will be made, except
for a new technology IOL as discussed under the Medicare Claims
Processing Manual, Chapter 14, Section 40.3.1. If an ASC bills
for a new technology IOL that is provided in association with a
covered ASC procedure, the contractor will make a separate payment
adjustment of $50 for the new technology IOL. The payment for the
new technology IOL is subject to beneficiary coinsurance but is
not wage adjusted. The hard coded system logic that excludes the
$150 for IOLs for multiple surgery reduction will not apply effective
for dates of services on or after January 1, 2008.
Section 40.4 (Payment for Terminated Procedures)
Facilities use a 73 modifier to indicate that the procedure terminated
prior to induction of anesthesia.
Prior to January 1, 2008, carriers or A/B MACs deduct the allowance
for an unused IOL prior to calculating payment for a terminated IOL
insertion procedure.
Beginning January 1, 2008, payment for an IOL is included in the payment for the surgical procedure to implant the lens.
Beginning January 1, 2008, Medicare contractors will apply a 50 percent payment reduction for discontinued radiology procedures and other procedures that do not require anesthesia. Facilities use the -52 modifier to indicate the discontinuance of these applicable procedures.
Beginning January 1, 2008, ASC surgical services billed with the -52 or- 73 modifiers are not subject to the multiple procedure discount.
Section 40.5. (Payment for Multiple Procedures)
Each surgical procedure has its own CPT-4 code. When more
than one surgical procedure is performed in the same operative session,
special payment rules apply even if the services have the same CPT-4
code number.
When the ASC performs multiple surgical procedures in the same operative session that are subject to the multiple procedure discount, contractors base the ASC facility payment rate on 100% of the highest paid procedure, plus 50 percent of applicable wage adjusted rate(s) for the other ASC-covered surgical procedures subject to the multiple procedure discount that are furnished in the same session.
The multiple procedure payment reduction is the last pricing routine applied beginning January 1, 2008 to applicable ASC procedure codes. In determining the ranking of procedures for application of the multiple procedure reduction, contractors shall use the lower of the billed charge or the ASC payment amount. The ASC surgical services billed with modifier -73 and -52 will not be subjected to further pricing reductions (i.e., the multiple procedure price reduction rules will not apply). Payment for an ASC surgical procedure billed with modifier -74 may be subject to the multiple procedure discount if that surgical procedure is subject to the multiple procedure discount.
Section 40.6 (Payment for Extracorporeal Shock Wave Lithotripsy
(ESWL)
Beginning January 1, 2008, with the revised ASC payment
system, contractors may pay for any of the ESWL services that are
included on the ASC list of covered surgical procedures.
Section 40.7 (Offset for Payment for Pass-Through Devices
Beginning January 1, 2008)
Under the revised payment system, there can be situations where contractors
must reduce (cut back) the approved payment amount for specifically
identified procedures when provided in conjunction with a specific
pass-through device. This reduction would only be applicable when
services for specific pairs of codes are provided on the same day
by the same provider. Code pairs subject to this policy would be
updated quarterly. The CMS will inform Medicare contractors of the
code pairs and the percent reduction taken from the procedure payment
rate through a "look-up" table.
Section 40.8 (Payment When a Device is Furnished With No
Cost or With Full or Partial Credit Beginning January 1, 2008)
Contractors pay ASCs a reduced amount for certain specified procedures
when a device is furnished without cost or for which either a partial
or a full credit is received (e.g., device recall). For specified
procedure codes that include payment for a device, ASCs are required
to include an FB modifier on the procedure code when a device is
furnished without cost or for which full credit is received.
If the ASC receives a partial credit for the device, the ASC is
required to include the FC modifier on the procedure code. A single
procedure code should not be submitted with both a FB and a FC modifier.
The pricing determination related to the FB and FC modifiers is performed
prior to the application of the multiple procedure pricing reductions.
Section 40.9 (Payment for Presbyopia Correcting IOLs (P-C IOLs) and
Astigmatism Correcting IOLs (A-C IOLs)
CMS payment policies and recognition of P-C IOLs and A-C IOLs are
contained in Transmittal 636 (CR3927) and Transmittal 1228 (CR5527)
respectively. See http://cms.hhs.gov/center/asc.asp for
a current list of CMS recognized P-C IOL and A-C IOL lenses
Section 50 (ASC Procedures for Completing the Form CMS-1500)
The Place of Service (POS) code is 24 for procedures performed in
an ASC.
Prior to January 1, 2008, Type of Service (TOS) code is "F" (ASC Facility Usage for Surgical Services) is appropriate when modifier SG appears on an ASC claim. Otherwise TOS "2" (surgery) for professional services rendered in an ASC is appropriate.
Beginning January 1, 2008, ASCs no longer are required to include the SG modifier on facility claims in Medicare. Modifier – TC is required unless the code definition is for the technical component only.
Section 60 (Medicare Summary Notices (MSN), Claim Adjustment Reason Codes, Remittance Advice Remark Codes (RAs)
Section 60.1 (Applicable messages for NTIOLs)
Carriers or A/B MACs will return, as unprocessable, any claims for
NTIOLs containing Q1003 alone or with a code other than one of
the procedure codes listed in Section 40.5.2, Chapter 14, of the
Medicare Claims Processing Manual. They will use the following
messages for these returned claims:
- Claim Adjustment Reason Code 16 - Claim/service lacks information, which is needed for adjudication. Additional information is supplied using remittance advice remark codes whenever appropriate;
- RA Remark Code M67 - Missing/Incomplete/Invalid other procedure codes; and
- RA Remark Code MA130 - Your claim contains incomplete and/or invalid information, and no appeal rights are afforded because the claim is unprocessable. Please submit a new claim with the complete/correct information.
Carriers or A/B MACs will deny payment for Q1003 if services are furnished in a facility other than a Medicare-approved ASC and use the following messages when denying these claims:
- MSN 16.2 - This service cannot be paid when provided in this location/facility; and
- Claims Adjustment Reason Code 58 - Payment
adjusted because treatment was deemed by the payer to have been
rendered in an inappropriate or invalid place of service.
Carriers or A/B MAC will deny payment for Q1003 if billed by an entity other than a Medicare-approved ASC and use the following messages when denying these claims: - MSN 33.1 - The ambulatory surgical center must bill for this service; and
- Claim Adjustment Reason Code 170 - Payment is denied when performed/billed by this type of provider.
Carriers or A/B MACs shall deny payment for Q1003 if submitted for payment past the discontinued date (after the 5-year period, or after February 26, 2011) and use the following messages when denying these claims:
- MSN 21.11 - This service was not covered by Medicare at the time you received it; and
- Claim Adjustment Reason Code 27 - Expenses incurred after coverage terminated.
Section 60.2 (Applicable messages for ASC 2008 payment changes effective
January 1, 2008)
Contractors shall deny services not included on the ASC facility
payment files (ASCFS and ASC DRUG files) when billed by ASCs (specialty
49) for POS 24 using the following messages:
- Claim Adjustment Reason Code 8 - The procedure code is inconsistent with the provider type/specialty;
- RA Remark Code N95 - This provider type/provider specialty may not bill this service; and
- MSN 26.4 – This service is not covered when performed by this provider.
If there is no approved ASC surgical procedure on the same date for the billing ASC in history, contractors will return pass-through device claims/line items, brachytherapy claims/line items, drug code (including C9399) claims/line items, and any other ancillary service claims/line items such as radiology procedure claim/line items on the ASCFS list or ASC DRUG list as unprocessable using the following messages:
- Claim Adjustment Reason Code 16 - Claim/service lacks information, which is needed for adjudication. Additional information is supplied using remittance advice remark codes whenever appropriate;
- RA Remark Code MA 109 - Claim processed in accordance with ambulatory surgical guidelines; and.
- RA Remark Code M16 - Please see our Web site, mailings or bulletins for more details concerning this policy/procedure/decision (at contractor discretion).
Contractors shall deny all ancillary services (e.g., radiology technical component) on the ASCFS list billed by specialties other than specialty 49 provided in an ASC setting (POS 24) using the following messages:
- MSN 16.2 – This service cannot be paid when provided in this location/facility;
- Claim Adjustment Reason Code 171 - Payment is denied when performed/billed by this type of provider in this type of facility;
- RA Remark Code M97 - Not paid to practitioner when provided to patient in this place of service. Payment included in the reimbursement issued the facility; and
- RA Remark Code M16 - Please see our Web site, mailings or bulletins for more details concerning this policy/procedure/decision (at contractor discretion).
Contractors shall deny separately billed implantable devices using the following messages:
- MSN 16.32 - Medicare does not pay separately for this service;
- RA Remark Code M97 – Not paid to practitioner when provided to patient in this place of service. Payment included in the reimbursement issued the facility;
- RA Remark Codes M15 - Separately billed services/tests have been bundled as they are considered components of the same procedure. Separate payment is not allowed;
- MA 109 - Claim processed in accordance with ambulatory surgical guidelines; and
- M16 - Please see our Web site, mailings or bulletins for more details concerning this policy/procedure/decision (contractor discretion).
If there is a related, approved surgical procedure for the billing ASC for the same date of service, they will also include the following message:
- MSN 16.8 - Payment is included in another service
received on the same day.
Chapter 19 (Indian Health Services)
Section 40.2.1 (Provider Enrollment with FI or AB MAC -
Ambulatory Surgical Services)
For dates of service prior to January 1, 2008, IHS providers that
want to bill for surgeries on the ambulatory surgical center (ASC)
list and receive the ASC rate must contact their designated FI or
AB MAC. IHS providers are certified by one of several national accrediting
organizations recognized by the Centers for Medicare & Medicaid
Services (CMS) and meet the conditions for performing ASC procedures.
IHS hospital outpatient departments are not certified as separate ASC entities. The ASC indication merely means that CMS approved them to bill for ASC services and be paid based on the ASC rates for services on the ASC list. In order to bill for ASC services, the hospital outpatient department must meet the conditions of participation for hospitals defined in 42CFR482 located at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=2196cd71379f6eba74e7f54cfe19fc60&tpl=/ecfrbrowse/Title42/42cfr482_main_02.tpl on the Internet.
Authority for Medicare to pay IHS hospital outpatient departments using the freestanding ASC rates was incorporated into Public Health Service (PHS) regulations on December 27, 1989. The first IHS hospital requested and received approval from CMS to bill separately for ASC procedures at the appropriate ASC group payment amount for dates of service on or after October 1, 1987. Previously, the hospital was reimbursed for ASC procedures at the Office of Management and Budget (OMB) negotiated all-inclusive rate (AIR) for outpatient hospital services. The rationale for approving this request was that the hospital was already JCAHO certified; encompassing the ability to perform outpatient surgical procedures, and that acute care hospitals providing surgical inpatient or outpatient services can perform any surgical procedures within their capacity and capability.
Effective for dates of service on or after January 1, 2008, the FI or A/B MAC no longer processes claims for IHS ASCs. All IHS ASC providers, including hospital outpatient departments requesting payment based on freestanding ASC rates and ASCs affiliated with a hospital but operating as a distinct entity for the purpose of performing outpatient surgical services must enroll with and submit their claims to the designated carrier or A/B MAC.
Chapter 26 (Completing and Processing Form CMS-1500 Data
Set)
Section 10.7 (Type of Service (TOS))
Effective for services on or after January 1, 2008, the SG modifier
is no longer applicable for Medicare ASC services. ASC providers
will no longer be required to bill the SG modifier on Medicare ASC
facility claims.
Revisions to the Medicare Benefit Policy Manual
Changes to this manual are basically the same, as appropriate,
as those made to the Medicare Claims Processing Manual. The revised
portions of the Medicare Benefits Policy Manual are also
attached to CR5680 at http://www.cms.hhs.gov/Transmittals/downloads/R77BP.pdf on
the CMS Web site.
Additional Information
Should you have questions, please contact your carrier or A/B MAC
at their toll free number at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on
the CMS Web site.
The two transmittals related to CR5680 are at http://www.cms.hhs.gov/Transmittals/downloads/R1325CP.pdf and http://www.cms.hhs.gov/Transmittals/downloads/R77BP.pdf no the CMS Web site. Attached to these transmittals are the revised manual chapters discussed in this article. These transmittals are the official instructions issued to your Medicare contractor.
Also, the MLN Matters article providing an overview of the new ASC payment system is at http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0742.pdf on the CMS Web site.
Individuals Authorized Access to CMS Computer Services - Provider Community (IACS-PC): The First In A Series of Articles
News Flash – Medicare Remit Easy Print (MREP) – Still using Standard Paper Remittance Advices (SPRs)? Did you know that with the new MREP software that is available to you (for free!), you can view and print as many or as few claims as needed? With the MREP software, you can navigate and view an Electronic Remittance Advice (ERA) using your personal computer. This is especially helpful when you need to print only one claim from the Remittance Advice (RA) when forwarding a claim to a secondary payer. CMS developed the MREP software to enable you to read and print the HIPAA-compliant ERA, also known as Transaction 835 or "the 835." Contact your carrier, A/B MAC or DME MAC to find out more about MREP and/or for information on how to receive HIPAA compliant ERAs.
These articles will help providers to register for future access to CMS online computer services. This article contains:
- 10 questions and answers to get you started and
- Overview of the registration process for IACS-PC defined provider organization users.
Provider Types Affected
Physicians, providers, and suppliers who submit fee-for-service
claims to Medicare contractors (carriers, fiscal intermediaries (FIs),
Regional Home Health Intermediaries (RHHIs), and Medicare Administrative
Contractors (A/B MACs)).
Special Note: Durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers should not register for IACS -PC at this time. DMEPOS suppliers may want to review question # 10 below.
What Providers Need to Know
In the near future, the Centers for Medicare & Medicaid
Services (CMS) will be announcing new online enterprise applications
that will allow Medicare fee-for-service providers to access, update,
and submit information over the Internet. Details of these provider
applications will be announced as they become available.
Provider Action Needed
Even though these new internet applications are not yet
available, CMS recommends that providers take the time now to set
up their online account so they can access these applications as
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