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This page contains announcements that were formerly on the What's New from CMS for Jurisdiction 14 Medicare Administrative Contractor (MAC) RHHI page. These announcements cover a variety of topics that are important to the provider/supplier community.

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December

29 December 2010

22 December 2010

  • Revised: MM7234 – New HCPCS Q-codes for 2010-2011 Seasonal Influenza Vaccines
  • Revised: MM7079 – Annual Wellness Visit (AWV), Including Personalized Prevention Plan Services (PPPS)
  • MM7101 – Announcement of Medicare Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) Payment Rate Increases
  • SE1038 – Home Health Face-to-Face Encounter - A New Home Health Certification Requirement
  • Signature on Requisitions for Clinical Diagnostic Laboratory Tests
    JSM/TDL-11097

    In the November 29, 2010, Medicare Physician Fee Schedule final rule, the Centers for Medicare & Medicaid Services (CMS) finalized its proposed policy to require a physician’s or qualified nonphysician practitioner’s (NPP) signature on requisitions for clinical diagnostic laboratory tests paid under the clinical laboratory fee schedule effective January 1, 2011. A requisition is the actual paperwork, such as a form, which is provided to a clinical diagnostic laboratory that identifies the test or tests to be performed for a patient.
    Although many physicians, NPPs, and clinical diagnostic laboratories may be aware of, and are able to comply with, this policy, CMS is concerned that some physicians, NPPs, and clinical diagnostic laboratories are not aware of, or do not understand, this policy. As such, CMS will focus in the first quarter of next year on developing educational and outreach materials to educate those affected by this policy. As they become available, we will post this information on our Web site at http://www.cms.hhs.gov/ClinicalLabFeeSched and use the other channels we have to communicate with providers to ensure this information is widely distributed. Once our first quarter educational campaign is fully underway, CMS will expect requisitions to be signed.
  • Place of Service Indicator for HCPCS Codes G0339 and G0340
    JSM/TDL-11066

    The Pricing Indicator Code on the Alpha-Numeric HCPCS File has been changed from “00” to “13” for HCPCS codes G0339 and G0340. This change is effective for services furnished in CY 2006 – CY 2010.
    Place of Service Indicator for HCPCS Codes G0339 and G0340
    In calendar year (CY) 2006, the Status Code for Healthcare Common Procedure Coding System (HCPCS) codes G0339 (Image-guided robotic linear accelerator-based stereotactic radiosurgery, complete course of therapy in one session or first session of fractionated treatment) and G0340 (Image-guided robotic linear accelerator-based stereotactic radiosurgery, delivery including collimator changes and custom plugging, fractionated treatment, all lesions, per session, second through fifth sessions, maximum five sessions per course of treatment) changed in the Medicare Physician Fee Schedule (PFS) Relative Value File from “X” (Exclusion by law. These codes represent an item or service that is not within the definition of physicians’ services for physician fee schedule payment purposes. No relative value units (RVUs) are shown for these codes, and no payment may be made under the physician fee schedule. (Examples are ambulance services and clinical diagnostic laboratory services.)) to “C” (Carriers price the code. Carriers will establish RVUs and payment amounts for these services, generally on an individual case basis following review of documentation, such as an operative report.)
    While this change was accurately reflected in the annual published PFS Relative Value Files beginning in CY 2006, no corresponding change was made to the pricing indicator on the Alpha-Numeric HCPCS File. The Alpha-Numeric HCPCS File continued to show a HCPCS Pricing Indicator Code of “00” (Service not separately priced by part B) for HCPCS codes G0339 and G0340.
    Therefore, we are issuing this Joint Signature Memorandum/Technical Direction Letter (JSM/TDL) to update the Alpha-Numeric HCPCS File for CYs 2006-2010 to reflect a HCPCS Pricing Indicator Code of “13” (Price established by carriers).

16 December 2010

09 December 2010

02 December 2010

November

23 November 2010

18 November 2010

11 November 2010

04 November 2010

October

28 October 2010

21 October 2010

14 October 2010

07 October 2010

September

30 September 2010

23 September 2010

16 September 2010

02 September 2010

August

26 August 2010

19 August 2010

12 August 2010

5 August 2010

July

29 July 2010

22 July 2010

15 July 2010

08 July 2010

01 July 2010

June

24 June 2010

17 June 2010

14 June 2010

  • The 2010 Medicare Physician Fee Schedule
    CMS Message 201006-15


    The Continuing Extension Act of 2010, enacted on April 15, 2010, extended the zero percent (0%) update to the 2010 Medicare Physician Fee Schedule (MPFS) through May 31, 2010.  At this time, Congress is debating the elimination of the negative update that took effect June 1, 2010.  The Centers for Medicare & Medicaid Services (CMS) is hopeful that Congressional action will be taken within the next several days to avert the negative update.

    To avoid disruption in the delivery of health care services to beneficiaries and payment of claims for physicians, non-physician practitioners, and other providers paid under the MPFS, CMS had instructed its contractors on May 27th to hold claims for services paid under the MPFS for the first 10 business days of June (i.e., through June 14, 2010).  This hold only affects MPFS claims with dates of service of June 1, 2010, and later.

    Given the possibility of Congressional action in the very near future, CMS is now directing its contractors to continue holding June 1 and later claims through Thursday, June 17, lifting the hold on Friday, June 18. 

    This action will facilitate accurate claims processing at the outset and minimize the need for claims reprocessing if Congressional action changes the negative update.  It also should minimize the provider and beneficiary burdens and costs associated with reprocessing claims.

    We understand that the delayed processing of Medicare claims may present cash flow problems for some Medicare providers.  However, we expect that the delay, if any, beyond the normal processing period will be only a few days.  Be on the alert for more information regarding the 2010 Medicare Physician Fee Schedule Update.   

10 June 2010

3 June 2010

May

27 May 2010

  • MM6967 – July 2010 Integrated Outpatient Code Editor (I/OCE) Specifications Version 11.2
  • MM6823 – Pulmonary Rehabilitation (PR) Services
  • Revised: MM6786 – Screening for the Human Immunodeficiency Virus (HIV) Infection
  • Provisions of the Affordable Care Act & Supplemental Proposed Changes to the Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long Term Care Hospital Prospective Payment System & Supplemental Proposed Fiscal Year 2011 Rates
    CMS Message 201005-30

    CMS-1498-P2 which is titled "Medicare Program; Provisions of the Affordable Care Act and Supplemental Proposed Changes to the Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long Term Care Hospital Prospective Payment System and Supplemental Proposed Fiscal Year 2011 Rates" went on display at the Office of the Federal Register on May 21, 2010.
    This proposed rule is a supplement to the fiscal year (FY) 2011 hospital inpatient prospective payment systems (IPPS) and long-term care prospective payment system (LTCH PPS) proposed rule published in the May 4, 2010 Federal Register. This supplemental proposed rule would implement certain statutory provisions relating to Medicare payments to hospitals for inpatient services that are contained in the Patient Protection and Affordable Care Act (the Affordable Care Act) as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA) (collectively known as the Affordable Care Act). It would also specify statutorily required changes to the amounts and factors used to determine the rates for Medicare acute care hospital inpatient services for operating costs and capital related costs, and for long term care hospital costs.
    To view the display copy of the regulation, impact files, data files and tables, go to:  (http://www.cms.gov/AcuteInpatientPPS/IPPS2010/list.asp.
  • Payments Under the Skilled Nursing Facility Prospective Payment System (SNF PPS) For Fiscal Year (FY) 2011 – Update May 24, 2010
    CMS Message 201005-32

    ATTN:  Freestanding and Hospital-based SNFs and Rural Hospital Swing Beds
    Section 10325 of the Patient Protection and Affordable Care Act (ACA) includes a provision addressing Medicare payments for SNFs in FY 2011.   This section mandates a delay in the introduction of the Resource Utilization Groups, version 4 (RUG-IV) case mix classification system until FY 2012.  In addition, it requires that version 3.0 of the Minimum Data Set (MDS 3.0) Resident Assessment Instrument will be implemented as planned in FY 2011.  Finally, the section requires that certain specific components of RUG-IV, specifically, the concurrent therapy and look-back revisions, be applied in FY 2011.   While there is currently an existing grouper (the software program that uses assessment data to assign each SNF resident to the appropriate RUG) that utilizes the 53-group RUG-III system and the MDS 2.0, and a revised grouper that utilizes RUG-IV and the MDS 3.0, a grouper that incorporates the particular combination of features mandated by the statute does not currently exist.
    Accordingly, as we continue to build the payment infrastructure needed to incorporate the combination of features mandated by ACA, we will apply interim payment rates, effective October 1, 2010, that reflect not only the use of MDS 3.0, but also the new RUG-IV system in its entirety as finalized in the FY 2010 SNF PPS final rule (74 FR 40288, August 11, 2009).  Once the necessary infrastructure is in place, we will then retroactively adjust the rates to reflect a hybrid RUG-III (HR-III) system which incorporates RUG-IV’s specific revisions on concurrent therapy and the look-back period within the framework of the existing 53-group RUG-III system, along with the use of MDS 3.0. 
    This approach will allow CMS to make payments with the least disruption for providers and beneficiaries.   As we do every year, we will publish the specific payment rates for the upcoming fiscal year in the Federal Register, and provide additional guidance concerning implementation of the FY 2011 payments in the near future.  Finally, we note that there is legislation pending in Congress that would repeal section 10325 of the ACA, and thus eliminate the need to retroactively adjust payments.
  • Updated Banking Transition
    CMS Message 201005-31

    The CMS recently awarded new banking contracts to U.S. Bank and JP Morgan Chase.  Medicare providers do not have to take any action.  However, providers should be aware that the Medicare payments may be made by a different bank than in the past because of these new banking contractors.
    The following Medicare claims processing contractors will remain with JP Morgan Chase:  Cahaba Government Benefit Administrators, Pinnacle Business Solutions, First Coast Service Options, Palmetto GBA (except for A/B MAC Jurisdiction 1) and Wisconsin Physician Service.  Providers that bill to these contractors will not experience any change.
    The following Medicare claims processing contractors will transition to JP Morgan Chase on August 2, 2010: Palmetto A/B MAC Jurisdiction 1 and  Trailblazer.
    The following contractors will transition to U.S. Bank on August 2, 2010, Noridian Administrative Services, CIGNA Government Services, Highmark Medicare Services, National Government Services, and NHIC.
  • MM6809 –  Quarterly Healthcare Common Procedure Coding System (HCPCS) Code Changes – July 2010 Update
  • MM6972 –  Extension for the Two Percent and Three Percent Add-On for the Ground Ambulance, Air Ambulance in Rural Areas and "Super Rural" Add-0n through December 31, 2010
  • MM6850 –  Cardiac Rehabilitation and Intensive Cardiac Rehabilitation
  • Revised: MM6973 –  Revised Payment Files for the 2010 Medicare Physician Fee Schedule Database (MPFSDB) and Retroactive Provisions under the Patient Protection and Affordable Care Act (Pub. L. 111-148) (the Affordable Care Act)
  • MM6907 –  Internet Only Manual (IOM) Chapter 25 Revisions (Medicare Claims Processing Manual, Chapter 25 - Completing and Processing the Form CMS-1450 Data Set

20 May 2010

13 May 2010

06 May 2010

April

29 April 2010

  • Revised: MM6698 - Signature Guidelines for Medical Review Purposes
  • Patient Protection and Affordable Care Act - Provisions Impacting Institutional Providers
    CMS Message 201004-31
    (JSM/TDL-10242, JSM/TDL-10245, JSM/TDL -10247)

    On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA). PPACA Sections 3401 and 3137 contain a number of provisions affecting institutional providers. The 3401 sections discussed below are effective April 1, 2010, while Section 3137(a) has October 1, 2009, and April 1, 2010 effective dates. The Centers for Medicare & Medicaid Services is working to expeditiously implement these important provisions of PPACA. Providers will begin seeing payments under these provision in the late April/early May time frame. Be on the alert for more information about these provisions and their impact on past and future claims. What follows are brief descriptions of each provision:
    Inpatient Acute Hospitals (Section 3401(a))

    Section 3401(a) of PPACA imposes a 0.25 percentage point reduction to the Inpatient Prospective Payment System (IPPS) hospital's market basket for fiscal year (FY) 2010, effective for discharges on or after April 1, 2010. The reduction to the market basket will affect IPPS rates for discharges occurring on or after April 1, 2010, through September 30, 2010.

    Long-Term Care Hospitals (Section 3401(c))

    Section 3401(c) of PPACA imposes a 0.25 percentage point reduction to the Long Term Care Hospital's (LTCH) market basket for FY 2010, effective for discharges on or after April 1, 2010. The reduction to the market basket will affect LTCH rates for discharges occurring on or after April 1, 2010, through September 30, 2010.

    Inpatient Rehabilitation Facilities (Section 3401(d))

    Section 3401(d) of PPACA imposes a 0.25 percentage point reduction to the Inpatient Rehabilitation Facility market basket for FY 2010, effective for discharges on or after April 1, 2010. The reduction is also resulting in changes to the standard payment conversion factor, payment rates, and the outlier threshold amount.

    Extension of Section 508 Hospital Reclassifications (Sections 3137(a) and 10317)

    Sections 3137(a) and 10317 extend section 508 and special exception hospital reclassifications from October 1, 2009, through September 30, 2010. Effective April 1, 2010, section 3137(a) and 10317 also require removing section 508 and special exception wage data from the calculation of the reclassified wage index if doing so raises the reclassified wage index. All hospitals affected by sections 3137(a) and 10317 will be assigned an individual special wage index effective April 1, 2010. If the section 508 or special exception hospital's wage index applicable for the period beginning on October 1, 2009, and ending on March 31, 2010, is lower than for the period beginning on April 1, 2010, and ending on September 30, 2010, the hospital will be paid an additional amount that reflects the difference between the wage indices. The provision applies to both inpatient and outpatient hospital payments.

    Be on the alert for more information pertaining to the PPACA.

22 April 2010

15 April 2010

8 April 2010

  • Extension of Ambulance Add-Ons for Ambulance Services
    (JSM/TDL 10217) (CMS Message 201004-10)

    On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA). PPACA Sections 3105 and 10311 impact certain ambulance payment provisions.  It should be noted that PPACA Section 3105 establishes the implementation date as April 1, 2010.  PPACA Section 10311 revises Section 3105 and changes the implementation date retroactive to January 1, 2010. 
    The PPACA extends increases in the ambulance fee schedule amounts for covered ground ambulance transports which originated in rural areas by 3 percent and for covered ground ambulance transports which originated in urban areas by 2 percent retroactive to January 1, 2010, through December 31, 2010.  The new law similarly extends the provision for air ambulance services provided in any area that was designated as a rural area for purposes of making payments under the ambulance fee schedule for services furnished on December 31, 2006.  Finally, the PPACA extends retroactive to January 1, 2010, and through December 31, 2010, Section 414 of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 which established the super rural bonus.  
    The Centers for Medicare & Medicaid Services is working to expeditiously implement these three ambulance provisions of the PPACA.  Be on the alert for more information about these ambulance provisions and their impact on your past and future claims.  Further, be on the alert for more information pertaining to the Patient Protection and Affordable Care Act.

6 April 2010

  • Banking Transition
    (JSM/TDL 10162)

    The CMS recently awarded new banking contracts to U.S. Bank and JP Morgan Chase. Medicare providers do not have to take any action. However, providers should be aware that the Medicare payments may be made by a different bank than in the past because of these new banking contractors. The following Medicare claims processing contractors will remain with JP Morgan Chase: Cahaba Government Benefit Administrators, Pinnacle Business Solutions, First Coast Service Options, Palmetto GBA (except for A/B MAC Jurisdiction 1) and Wisconsin Physician Service. Providers that bill to these contractors will not experience any change.
    The following Medicare claims processing contractors will transition to JP Morgan Chase on June 1, 2010: Palmetto A/B MAC Jurisdiction 1 and Trailblazer. The following contractors will transition to U.S. Bank on June 1, 2010, CIGNA Government Services, Highmark Medicare Services, National Government Services, NHIC and Noridian Administrative Services.

1 April 2010

March

29 March 2010

  • Holding of April Claims for Services Paid Under the 2010 Medicare Physician Fee Schedule
    (CMS Message 201003-46)
    Information Regarding the Holding of April Claims for Services Paid Under the 2010 Medicare Physician Fee Schedule (3-26-2010)
    The Centers for Medicare & Medicaid Services (CMS) is working with Congress, health care providers, and the beneficiary community to avoid disruption in the delivery of health care services and payment of claims for physicians, non-physician practitioners, and other providers of services paid under the Medicare Physician Fee Schedule (MPFS). As you are aware, the Temporary Extension Act of 2010, enacted on March 2, 2010, extended the zero percent (0%) update to the 2010 MPFS through March 31, 2010.
    CMS believes Congress is working to avert the negative update that will take effect April 1. Consequently, CMS has instructed its contractors to hold claims containing services paid under the MPFS (including anesthesia services) for the first 10 business days of April. This hold will only affect claims with dates of service April 1, 2010, and forward. In addition, the hold should have minimum impact on provider cash flow because, under the current law, clean electronic claims are not paid any sooner than 14 calendar days (29 for paper claims) after the date of receipt.
    Be on the alert for more information about the 2010 Medicare Physician Fee Schedule Update.

25 March 2010

  • Reissued: Change Request 6712 - (CR6712) Medically Unlikely Edits. This CR provides updates and clarifications to MUE requirements established in 2006. For more information, the Centers for Medicare & Medicaid Services has issued the following transmittal at: http://www.cms.hhs.gov/transmittals/downloads/R617OTN.pdf

18 March 2010

  • April 2010 Integrated Outpatient Code Editor (I/OCE) Specifications Version 11.0 (CR6882)
  • Rescinded: Repeal of Section 20.10, Publication 100-03, National Coverage Determinations (NCD) Manual, Cardiac Rehabilitation Programs (CR6855)
  • Revised: Point of Origin for Admission or Visit Codes Update to the UB-04 (CMS-1450) Manual Code List (CR6801)
  • Medicare Home Health Claims Processing Issue Corrected
    (JSM/TDL 10181)

    The Centers for Medicare & Medicaid Services (CMS) identified a Medicare claims processing issue where home health adjustments and/or cancels that were performed for claims with a through date of January 1, 2010, or later were reflected as having an inaccurate reimbursement amount on the Home Health Payment Totals screen. This claims processing issue has been corrected and claims being held because of this issue were released on March 1, 2010. We apologize for any inconvenience you may experience related to this issue.
  • DO NOT ENFORCE SUPERVISION REQUIREMENTS FOR THERAPEUTIC OUTPATIENT SERVICES IN CRITICAL ACCESS HOSPITALS FOR 2010
    (JSM/TDL-10187)

    The Centers for Medicare & Medicaid Services (CMS) will instruct all of its Medicare contractors not to evaluate or enforce the supervision requirements for therapeutic services provided to outpatients in Critical Access Hospitals (CAHs) for the duration of calendar year (CY) 2010. CMS will revisit the issue of supervision for therapeutic services provided to hospital outpatients in CAHs through the annual rulemaking cycle for CY 2011. CMS continues to expect CAHs to fulfill all other Medicare program requirements when providing services to Medicare beneficiaries and when billing Medicare for those services. While CMS is instructing contractors not to enforce the supervision requirements in CAHs for CY 2010, we continue to emphasize quality and safety for services provided to all patients in CAHs.

11 March 2010

4 March 2010

  • Critical Access Hospitals Method II Providers Notification
    JSM/TDL 10161

    Please be advised that effective April 1, 2010, claims submitted by a Critical Access Hospitals (CAH) Method II provider containing unlisted Healthcare Common Procedure Coding System (HCPCS) Codes for professional services (Revenue Codes 96x, 97x, or 98x) will be returned. The CAH Method II provider will need to determine a more specific HCPCS Code for unlisted procedures rendered by a physician before resubmitting the claim. Providers unable to determine a more specific HCPCS Code can contact the American Medical Association to request a code be assigned for the associated procedure.

February

25 February 2010

  • Revised: Revision of Definition of Compendia as Authoritative Source for Use in the Determination of a Medically-Accepted Indication of Drugs/Biologicals Used Off-label in Anti-Cancer Chemotherapeutic Regimens (CR6806)
  • Medicare Inpatient Skilled Nursing Facility No Payment Claim’s Processing Issue (JSM/TDL 10150)
    The Centers for Medicare & Medicaid Services (CMS) has identified a Medicare inpatient skilled nursing facility (SNF) claims processing issue where SNF 210 and 180 no payment bill types with condition code 21 were incorrectly processed with reason code 19904 since April 1, 2009. Providers should not attempt to resubmit affected claims as their fiscal intermediary (FI) or Medicare administrative contractor (MAC) will be initiating adjustments with the sole purpose of correcting the reason code rejection. Providers should anticipate the initiation of these adjustments within the next 30 calendar days.
  • Reporting Inpatient Hospital Evaluation and Management (E/M) Services that Could be Described by Current Procedural Terminology (CPT) Consultation Codes
    (JSM/TDL-10152)
    This message is to clarify proper reporting in Calendar Year (CY) 2010 of initial E/M services provided by physicians (and other qualified nonphysicians when permitted) in the inpatient hospital setting that could be described by CPT Consultation Codes (99251-99255) that are no longer recognized for payment under the Medicare Physician Fee Schedule (MPFS). The Centers for Medicare & Medicaid Services (CMS) previously instructed physicians and other providers to use other applicable CPT E/M Codes to report the services that could be described by CPT Consultation Codes. The CMS also provided that, in the inpatient hospital setting, physicians (and qualified nonphysicians) who perform an initial E/M service may bill the initial hospital care CPT Codes (99221 – 99223). Since that instruction, CMS has received inquiries specifically as relates to reporting initial hospital care services for which the minimum key component work and/or medical necessity requirements for CPT Codes 99221–99233 are not documented. For instance, one element of inpatient consultation CPT Codes 99251 and 99252, respectively, require “a problem focused history” and “an expanded problem focused history.” In contrast, initial hospital care CPT Code 99221 requires “a detailed or comprehensive history.”

    First, CMS reminds providers that CPT Code 99221 may be reported for an E/M service if the requirements for billing that code, which are greater than CPT Consultation Codes 99251 and 99252, are met by the service furnished to the patient. The CMS has alerted Medicare Administrative Contractor Audit Staffs as well as Medicare Recovery Audit Contractors of its expectation that physicians may bill more E/M Codes for initial hospital care, in place of billing inpatient CPT Consultation Codes. The CMS has also alerted contractors to expect a different proportion of various initial hospital care CPT Codes under the new policy. The CMS expects its contractors to consider that these may be appropriate changes when making decisions about whether to pursue medical review and other types of claims review.

    Second, CMS notes that subsequent hospital care CPT Codes 99231 and 99232, respectively, require “a problem focused interval history” and “an expanded problem focused interval history” and could potentially meet the component work and medical necessity requirements to be reported for an E/M service that could be described by CPT Consultation Code 99251 or 99252. The CMS has instructed contractors to not find fault with providers who report a subsequent hospital care CPT Code, in cases where the medical record appropriately demonstrates that the work and medical necessity requirements are met for reporting a subsequent hospital care code (under the level selected), even though the reported code is for the provider's first E/M service to the inpatient during the hospital stay Finally, only in the case when an E/M service that could be described by CPT Code 99251 or 99252 is furnished and there is no other specific E/M code payable by Medicare that describes that service shall CPT Code 99499 (Unlisted evaluation and management service) be reported. Reporting 99499 requires submission of medical records and contractor manual medical review of the service prior to payment, and CMS expects reporting under these circumstances to be unusual.

    While CMS expects that the CPT Code reported accurately reflects the service provided, CMS has instructed contractors to not find fault with providers who report a subsequent hospital care CPT Code, in cases where the medical record appropriately demonstrates that the work and medical necessity requirements are met for reporting a subsequent hospital care code for an initial hospital E/M service.”

    “Reporting Hospice Services Provided by Physicians Under Part A that Could be Described by Current Procedural Terminology (CPT) Consultation Codes

    When hospices bill Part A for the services of physicians, they must use CPT Codes that are paid under the Medicare Physician Fee Schedule (MPFS). Since the CPT Consultation Codes are no longer recognized for payment under the MPFS, hospices shall follow the same guidelines for reporting E/M services as physicians billing Part B. Hospices shall use the most appropriate E/M Codes to bill for E/M services furnished by physicians that could be described by CPT Consultation Codes.”
  • Questions and Answers on Reporting Physician Consultation Services (SE1010)
  • Revised: Revisions to Consultation Services Payment Policy (CR6740)
  • Revised: Implementation of Home Health Agency Program Safeguard Provisions (CR6750) Note: This article was rescinded on May 5, 2010, as the related CR 6750 was rescinded on that date.

18 February 2010

  • Coding Patient Transfers under the Home Health Prospective Payment System (HH PPS) (CR6757)
  • Rescinded: Compliance Standards for Consignment Closets and Stock and Bill Arrangements (CR6528)
  • Revised: Dialysis Adequacy, Infection and Vascular Access Reporting (CR6782)
  • Instructions on How to Process Negative Claim Adjustment Reason Code (CARC) Adjustment Amounts when Certain CARCs Appear on Medicare Secondary Payer Claims (CR6736)
  • Point of Origin for Admission or Visit Codes Update to the UB-04 (CMS-1450) Manual Code List (CR6801)
  • Maintenance and Servicing Payments for Certain Oxygen Equipment after July 1, 2010 (CR6792)
  • Medicare Systems Edit Refinements Related to Hospice Services (CR6778)
  • Interim Instructions for Processing Claims and Recouping Overpayments for Claims Submitted Under the Guidelines Established in Change Request 5917 (CR6762)
  • Medicare Claims Crossover to Supplemental Payer Problem
    (JSM10139) (Message 201002-25)

    The Centers for Medicare & Medicaid Services (CMS) has identified a problem where claims were not automatically crossing over to supplemental payers even though the provider remittance advice indicated otherwise.  This problem began January 5, 2010.  Part A institutional claims and Part B professional claims, with the exception of supplier claims processed by Durable Medical Equipment Medicare Administrative Contractors (DME MACs), were impacted by this problem.  Claims processed by DME MACs were not impacted.  

    Part A Institutional Claims
    No action is required by Part A institutional providers.  As of February 2, 2010, CMS successfully implemented a systems fix to ensure that  all Part A institutional claims are now crossing over to supplemental payers as indicated on the remittance advice received by providers.  As part of the fix, CMS’ Medicare contractors were able to identify claims processed between January 5 and February 1, 2010, where the provider remittance advice indicated that the affected claims were crossed over to various supplemental payers but were not.   On February 2, 2010, the affected Medicare contractors began to send the affected claims to the Coordination of Benefits Contractor (COBC) to be crossed over to supplemental payers.  This effort is now largely completed.  Please allow until March 1, 2010, for supplemental payers to receive and process these claims before attempting to balance bill them for any remaining balances after Medicare.

    Part  B Professional Claims
    Action is required on behalf of Part B professional providers where a remittance advice with an issue date between January 5, 2010, and February 12, 2010, has two or more service lines for a beneficiary where both of the following apply:

    ·         One service line is 100 percent reimbursable (i.e., the approved amount and amount to be paid are equal,) AND   
    ·         One service line where part of or the entire Medicare approved amount is applied to the Part B deductible and/or carries co-insurance amounts. 

    CMS is not able to forward these beneficiary claims to supplemental payers even though the remittance advice may indicate otherwise.  Providers will need to identify these claims by reviewing their remittance advice with an issue date between January 5, 2010, and February 12, 2010, that contain the criteria noted above.  Once identified, providers will need to take action to balance bill the beneficiary’s supplemental payer.  As of February 12, 2010, this system problem was fixed and all claims are crossing over to supplemental payers as indicated on the provider remittance advice.  

    The CMS has already notified supplemental payers of these issues.  We regret any inconvenience you may experience related to this Medicare claim supplemental payer crossover problem.
  • Implementation of a New Skilled Nursing Facility (SNF) Consolidated Billing (CB) Edit for Facility Services Billed by Ambulatory Surgical Centers (ASCs) (CR6702)
  • Rescinded– Place of Service (POS) and Date of Service (DOS) Instructions for Interpretation of Diagnostic Tests (CR6375)
  • Medicare Non-Covered Claims with Professional Component Claims Process Issue
    (JSM10144)

    The Centers for Medicare & Medicaid Services (CMS) has identified a Medicare claims processing issue where non-covered claims submitted with a professional component are incorrectly receiving Reason Code 31387 preventing the claims from finalizing. Non-covered claims containing professional component receiving Reason Code 31387 are being held and will be released on or about September 6, 2010, once this claims processing system issue is fixed. We apologize for any inconvenience you may experience related to this issue.”
  • Medicare Mammography Services Claims Process Issue
    (JSM10143)

    The Centers for Medicare & Medicaid Services (CMS) has identified a Medicare claims processing issue where adjustments submitted against original bills containing mammography services are incorrectly receiving Reason Code 36440 preventing the claims from finalizing. Adjustments performed on claims containing mammography services receiving Reason Code 36440 are being held and will be released on approximately September 6, 2010, once this claims processing system issue is fixed. We apologize for any inconvenience you may experience related to this issue.”

11 February 2010

4 February 2010

2 February 2010

January

29 January 2010

  • Revised: Holding of Outpatient Prospective Payment System Claims with Healthcare Common Procedure Coding System Code Q0139
    (JSM/TDL 10126)
    Medicare Outpatient Prospective Payment System Claims Process Issue

    The Centers for Medicare & Medicaid Services (CMS) has identified a Medicare claims processing issue where claims billed with dates of service January 1, 2010, or later with Healthcare Common Procedure Coding System (HCPCS) Code Q0139 (Injection, Ferumoxytol, for treatment of iron deficiency anemia 1 mg (for ESRD on dialysis)) are being paid based on the billed amount instead of the Medicare fee schedule. Claims containing HCPCS Q0139 are being held and will be released on approximately March 1, 2010, once this claims processing system issue is fixed. Any claims paid in error will be adjusted. End Stage Renal Disease (ESRD) claims (72x types of bills) are not impacted by this hold. We apologize for any inconvenience you may experience related to this issue.

28 January 2010

25 January 2010

  • Expiration of Increased Medicare Payments for Ground Ambulance Services and Air Ambulance Payment Improvements Provisions (JSM10125)

    Section 146(a) of the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) provided for an increase in the ambulance fee schedule amounts for covered ground ambulance transport. For transports that originated in urban areas, the increase was two (2) percent. For transports that originated in rural areas, the increase was three (3) percent. The increases were applicable only for claims with dates of service July 1, 2008, through December 31, 2009.

    Further, Section 146(b)(1) of MIPPA amended the designation of rural areas for air ambulance services. The statute specified that any area that was designated as a rural area as of December 31, 2006, for purposes of making payments under the ambulance fee schedule for air ambulance services should continue to be treated as a rural area for purposes of making air ambulance service payments under the ambulance fee schedule. This statute was also applicable only for claims with dates of service July 1, 2008, through December 31, 2009.

    As such, as of January 1, 2010, for ground and air ambulance claims received with dates of service on this date and beyond, Medicare will no longer be paying ground and air ambulance service providers based on these two expired provisions.

21 January 2010

14 January 2010

7 January 2010

6 January 2010

December

30 December 2009

28 December 2009

  • Expiration of Moratorium that Allowed Independent Laboratories to Bill for the Technical Component of Physician Pathology Services Furnished to Hospital Patients and Expiration of Therapy Cap Exceptions
    (JSM/TDL-10110)


    1. Expiration of Moratorium that Allowed Independent Laboratories to Bill for the TC of Physician Pathology Services Furnished to Hospital Patients

    The Centers for Medicare & Medicaid Services (CMS) continues to work with Congress on significant legislation which affects the Medicare program. We believe this and other provisions may be extended as part of this legislation. We encourage you to monitor Congressional activity and stay apprised of the status of potential legislation. In the meantime, if such legislation is enacted, CMS will notify Medicare fee-for-service claims processing contractors to again process claims for those affected services. Providers may choose to hold their claims in the event legislation about this issue is enacted. However, current law mandates the following change:

    In the final physician fee schedule regulation published in the Federal Register on November 2, 1999, CMS stated that it would implement a policy to pay only the hospital for the technical component (TC) of physician pathology services furnished to hospital patients. At the request of the industry, to allow independent laboratories and hospitals sufficient time to negotiate arrangements, the implementation of this rule was administratively delayed. Subsequent legislation formalized a moratorium on the implementation of the rule.

    The most recent extension of the moratorium was established by the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA). Section 136 of the MIPPA expires on December 31, 2009, thus ending the moratorium. Therefore, independent laboratories may no longer bill Medicare for the TC of physician pathology services furnished to patients of a hospital, regardless of the beneficiary's hospitalization status (inpatient or outpatient) on the date that the service was performed. This prohibition is effective for claims with dates of service on and after January 1, 2010.

    We will continue to be in communication with you should there be further information regarding payment of claims impacted by the above guidance. In addition, be on the alert for more information about this and other legislative provisions which may affect you.”

    2. Expiration of Therapy Cap Exceptions Process

    The Centers for Medicare & Medicaid Services (CMS) continues to work with Congress on significant legislation which affects the Medicare program. We believe this and other provisions may be extended as part of this legislation. We encourage you to monitor Congressional activity and stay apprised of the status of potential legislation. In the meantime, if such legislation is enacted, CMS will notify Medicare fee-for-service claims processing contractors to again process claims for those affected services. Providers may choose to hold their claims in the event legislation about this issue is enacted. However, current law mandates the following change:

    The exceptions to outpatient therapy caps expire on December 31, 2009. Outpatient therapy service providers should not submit claims with the KX modifier for services furnished on or after January 1, 2010. The therapy caps are determined on a calendar year basis, so all patients will begin a new cap year on January 1, 2010. For physical therapy and speech language pathology services combined, the limit on incurred expenses is $1,860. For occupational therapy services, the limit is $1,860. Deductible and coinsurance amounts applied to therapy services count toward the amount accrued before a cap is reached.

    Note that patients who have reached their limit(s) on outpatient therapy services, other than those who reside in a Medicare-certified part of a skilled nursing facility, may obtain medically necessary therapy services that exceed the caps if the services are furnished and billed by the outpatient department of a hospital. In other settings, outpatient therapy services in excess of the caps are not covered, and the therapy provider may charge the beneficiary for those services. We will continue to be in communication with you should there be further information regarding payment of claims impacted by the above guidance. In addition, be on the alert for more information about this and other legislative provisions which may affect you.

24 December 2009

  • Extension of JSM-09326 - Mass-Adjusting Calendar Year (CY) 2006-2008 Outpatient Prospective Payment System (OPPS) Claims Paid to Rural Sole Community Hospitals (SCHs), including Essential Access Community Hospitals (EACHs), for Blood and Blood Products
    JSM/TDL-10105

    The Centers for Medicare & Medicaid Services (CMS) has identified a claims processing error affecting rural sole community hospitals (SCHs), including essential access community hospitals (EACHs), paid under the hospital outpatient prospective payment system (OPPS). Due to this error, rural SCH claims submitted for blood and blood products under the OPPS during 2006, 2007, and 2008 did not receive the rural SCH adjustment of 7.1 percent and, therefore, were underpaid. This claims processing problem was corrected retroactively on October 5, 2009, for blood and blood products provided in rural SCHs, including EACHs, during 2006, 2007, or 2008. Hospitals may, if they choose, collect the higher copayments from beneficiaries, and if unsuccessful, obtain bad-debt reimbursement from Medicare following CMS’ long-standing policies for bad-debt reimbursement. If hospitals choose not to seek beneficiary reimbursement for the higher copayments, they may report the foregone income as non-reimburseable bad debt. Adjustments are in the process of being made to claims paid in error, with all adjustments to be completed no later than May 3, 2010. We regret any inconvenience you have experienced related to this problem.

23 December 2009

17 December 2009

10 December 2009

7 December 2009

  • Re-Release of Fiscal Year 2010 Inpatient Prospective Payment System and Long Term Care Hospital Pricers
    JSM/TDL-10058

    The Centers for Medicare & Medicaid Services (CMS) has identified a claims processing error that incorrectly paid a new technology add-on payment for Spiration® IBV® claims that did not meet all conditions to qualify for the add-on payment for fiscal year 2010. This error has been corrected and contractors are adjusting claims that were inappropriately paid the add-on payment. We regret any inconvenience you may have experienced related to this problem.

3 December 2009

  • Use of the “CR” Modifier and the “DR” Condition Code During the H1N1 Influenza Pandemic Emergency
    JSM/TDL 10047

    For claims where an admission or decision to retain a patient is made to meet the demands of the H1N1 pandemic emergency, that decision is indicated on claims sent to Medicare by using either the “CR” modifier or the “DR” condition code. These codes are only to be utilized by individual facilities designated as Critical Access Hospitals (CAH), Inpatient Rehabilitation Facilities (IRF), and Long Term Care Hospitals (LTCH) that have been granted an 1135 waiver under the current 1135 waiver authority dated October 27, 2009. The instructions that follow refer to claims for services between the date the waiver was granted to the facility and the date the waiver expires, is withdrawn, or is no longer required for the facility.

    The CR (catastrophe/disaster related) Modifier
    • Used for Part B items and services only but may be used in either institutional or non-institutional billing.
    • Required when an item or service is impacted by an emergency or disaster and Medicare payment for such item or service is conditioned on the presence of a “formal waiver”
    • May be required when either the contractor or CMS determine that such use is needed to efficiently and effectively process claims or to otherwise administer the Medicare fee-for-service program.

    The DR (disaster related) Condition Code
    • Used for institutional billing only (UB04/CMS-1450 or its electronic equivalent)
    • Required when a service is affected by an emergency or disaster and Medicare payment for such service is conditioned on the presence of a “formal waiver”
    • May be required when either the contractor or CMS determine that it is needed to efficiently and effectively process claims or to otherwise administer the Medicare fee-for-service program.
    • Used at the claim level when all of the services/items billed on the claim are related to the emergency/disaster.

    For more information on 1135 waivers, providers are encouraged to listen to the encore presentation on “Information Discussion from Department of Health and Human Services on H1N1” that was held on November 10, 2009. The encore presentation is available until May 10, 2009. To access the Encore Feature, dial (800) 642-1687 and enter Conference ID: 3H1N1.

    To learn more about these new billing instructions as well as the H1N1 pandemic emergency:

  • Revised: Therapy Cap Values for Calendar Year (CY) 2010 (CR6660)

  • Annual Update of HCPCS Codes Used for Home Health (HH) Consolidated Billing Enforcement (CR6662)

  • Ambulance Inflation Factor (AIF) for Calendar Year (CY) 2010 (CR6631)

  • 2 December 2009

    • Adjustment of Inpatient Skilled Nursing Facility Medicare Advantage Claims that Were Rejected Incorrectly
      JSM/TDL 10060


      The Centers for Medicare & Medicaid Services (CMS) recently discovered that inpatient Skilled Nursing Facility (SNF) Medicare Advantage (MA) claims submitted with Condition Code 04 were incorrectly rejecting with Reason Code 19904. Analysis determined that this error began with the implementation of the July 2009 User Release which was installed into production on September 3, 2009.
      System changes will be implemented into the Fiscal Intermediary Shared System (FISS) with user Change Request (CR) FS5493R2, to allow inpatient SNF claims submitted with Condition Code 04 to adjudicate and systematically bypass Reason Code 19904. User CR FS5493R2 will be installed into production on December 7, 2009. Once this change has been installed contractors shall adjust claims to correct the beneficiary’s spell of illness that meet the following criteria:
      • Bill Type = Inpatient SNF;
      • Receipt Date >= 9/3/09;
      • Condition Code = 04;
      • Rejected with reason code 19904.
      The adjustments shall be initiated no more than 30 days from the implementation of User CR FS5493R2.

November

24 November 2009

19 November 2009

12 November 2009

5 November 2009

October

29 October 2009

22 October 2009

19 October 2009

  • Mass-Adjusting Calendar Year (CY) 2006-2008 Outpatient Prospective Payment System (OPPS) Claims Paid to Rural Sole Community Hospitals (SCHs), including Essential Access Community Hospitals (EACHs), for Blood and Blood Products JSM/TDL-09326

    The Centers for Medicare & Medicaid Services (CMS) has identified a claims processing error affecting rural sole community hospitals (SCHs), including essential access community hospitals (EACHs), paid under the hospital outpatient prospective payment system (OPPS). Due to this error, rural SCH claims submitted for blood and blood products under the OPPS during 2006, 2007, and 2008 did not receive the rural SCH adjustment of 7.1 percent and, therefore, were underpaid.

    This claims processing problem will be corrected retroactively on October 5, 2009, for blood and blood products provided in rural SCHs, including EACHs, during 2006, 2007, or 2008. Hospitals may, if they choose, collect the higher copayments from beneficiaries, and if unsuccessful, obtain bad-debt reimbursement from Medicare following CMS’s long-standing policies for bad debt reimbursement. If hospitals choose not to seek beneficiary reimbursement for the higher copayments, they may report the foregone income as non-reimbursable bad debt. At that time, adjustments will be made to claims paid in error with all adjustments completed no later than December 31, 2009 We regret the inconvenience you have experienced related to this problem.

15 October 2009

8 October 2009

1 October 2009

September

24 September 2009

17 September 2009

10 September 2009

3 September 2009

August

20 August 2009

13 August 2009

  • The Use of the CR Modifier and DR Condition Code on Disaster/Emergency-Related Claims (CR6451)

  • Revised:Appropriate Use of Modifier 50 and Add-On Codes for Facet Joint Injections Services (CR6518)

  • Program Instructions Designating the Competitive Bidding Areas and Product Categories Included in the Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) Competitive Bidding Program Round One Rebid in Calendar Year (CY) 2009 (CR6571)

  • Marketing the Upcoming Health Insurance Portability and Accountability Act Version 5010 Conference Call to Billing Software Vendors and Clearinghouses

    JSM/TDL-09385

    The Centers for Medicare & Medicaid Services (CMS) will present the second in a series of National Education Training Conference Calls focused on Medicare’s Fee-for-Service (FFS) implementation of Health Insurance Portability and Accountability Act (HIPAA) Version 5010. The training presentation, geared to clearinghouses and billing software vendors, will cover Medicare FFS error handling transactions (TA1, 999, and 277CA), planned use of each transaction and applicable rules and exceptions for the Medicare FFS program. A Question & Answer (Q&A) session will follow the presentation that will give participants an opportunity to ask questions of CMS’ subject matter experts.

    Due to the nature of the content, only clearinghouse and billing software vendor staff are encouraged to participate in this important CMS training conference call.

    You must register for this call in advance, in order to receive the call-in information.

    Please note if your organization is planning to participate in this training call as a group, only one person needs to register to receive the call-in information. This registration is solely to reserve a telephone line, NOT to allow participation.

    Date: August 26, 2009
    Conference Title: Version 5010: Medicare FFS Error Handling Transactions
    Time: 2:00 – 3:30 p.m. ET

    Registration will close at 2:00 p.m. ET on August 25, 2009, or when available space has been filled. No exceptions will be made, so please be sure to register prior to this time.

    1. To register for the call, participants need to go to http://www2.eventsvc.com/palmettogba/082609.
    2. Fill in all required data.
    3. Verify your time zone is displayed correctly the drop down box.
    4. Click "Register".
    5. You will be taken to the “Thank you for registering” page and will receive a confirmation e-mail shortly thereafter. Note: Please print and save this page, in the event that your server blocks the confirmation emails. If you do not receive the confirmation e-mail, please check your spam/junk mail filter as it may have been directed there.
    6. A few days prior to the call (not before August 24th), check the Educational Resources page on CMS’ 5010 Web page at http://www.cms.hhs.gov/Versions5010andD0/40_Educational_Resources.asp to obtain a copy of the presentation that will be used during the call.

6 August 2009

July

31 July 2009

30 July 2009

23 July 2009

16 July 2009

9 July 2009

2 July 2009

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03/10/2011