Knowledge Base - Full Library

MEDICARE ADMINISTRATIVE CONTRACTORS (MACS)

There were no new Targeted Probe and Educate (TPE) medical reviews affecting hospitals announced by the Medicare Administrative Contractors (MACs) recently. Novitas JH and JL did release some additional TPE results recently including results for Denosumab, IVIG, HBO, therapy services and DRG validation. Error rates for all of the Novitas reviews were low.

Providers should look for learning opportunities associated with the TPE program on their MACs’ websites or listservs. For example, the Novitas findings referenced above include reasons claims for these services were denied. MACs also sometimes offer educational webinars or teleconferences related to the TPE topics. Palmetto GBA is hosting a Part A Ask the Contractor Teleconference (ACT) on Wednesday, September 18, 2019, at 11 a.m. ET about DRG 682 – Renal Failure. For more information see this Palmetto link.

RECOVERY AUDITORS (RACS)

All Recovery Auditors added a complex review issue for Intravenous Immune Globulin for the Treatment of Autoimmune Blistering Diseases: Medical Necessity and Documentation Requirements. According to the Cotiviti website, “Medical documentation will be reviewed to determine if the use of intravenous immune globulin meets Medicare coverage criteria and is medically reasonable and necessary.” Cotiviti lists the issue twice but indicates both listings are for Region 2. This is likely a typographical error.

SUPPLEMENTAL MEDICAL REVIEW CONTRACTOR (SMRC)

Noridian, the current SMRC, added issues for outpatient hyperbaric oxygen therapy (HBO) and for spinal cord stimulators. They also added some issues for ambulance services. You can view all the current SRMC issues here.

OFFICE OF INSPECTOR GENERAL (OIG)

The August update of the OIG Work Plan included several issues relative to services that could be performed in and billed by hospitals.

• Review of the Medicare DRG Payment Window – “Outpatient services directly related to an inpatient admission are considered part of the inpatient payment and are not separately payable by Medicare.”
• Medicare Part B Services to Medicare Beneficiaries Residing in Nursing Homes During Non-Part A Stays – “An opportunity for fraudulent, excessive, or unnecessary Part B billing exists because NHs may not be aware of the services that the providers bill directly to Medicare, and because NHs provide access to many beneficiaries and their records.”
• Review of Medicare Facet Joint Procedures – “We will review whether payments made by Medicare for facet joint procedures billed by physicians complied with Federal requirements.”

CMS proposed significant changes to the current severity designation of diagnosis codes in the FY 2020 Inpatient Prospective Payment System (IPPS) Proposed Rule. Most significant were the proposed changes to current Major Comorbidities and Complications (MCCs) diagnosis codes.  

RealTime Medicare Data (RTMD) paid claims data helped to quantify the potential impact of the proposed MCC changes. Specifically, analysis of FY 2018 Medicare fee-for- service paid claims data for the state of Alabama provided answers to the following questions: 

• What are the Top 10 diagnosis codes proposed for a new severity designation from MCC to CC or Non-CC?
• What is the volume of claims and actual payment for claims that had been paid where the MS-DRG required an MCC and there was only one MCC coded, and
• What is the volume of claims and actual payment further drilled down by MCCs with a proposed change to CC and MCCs with a proposed change to Non-CC?

This first table highlights the top 10 MCCs proposed for a severity designation change to CC or Non-CC.

This next table compares all Alabama paid claims for FY 2018 to claims with MCCs proposed for severity designation change.

‍Finalized Severity Changes for FY 2020

In the Final Rule many “commenters expressed concern that the extensive changes proposed to the severity level designations…would no longer appropriately reflect resource use for patient care and could have a significant unintended or improper adverse financial impact.”

CMS listened and in general did not finalize the proposed changes. Changes that were made include the following:

• Table 6I.1 – Additions to MCC List: Five diagnosis codes were added to this list,
• Table 6I.2 – Deletions to the MCC List: No diagnosis codes were deleted for FY 2020,
• Table 6J.1 – Additions to the CC List: Seventy-five diagnosis codes were added to this list; and
• Table 6J.2 – Deletions to the CC List: Five diagnosis codes were removed from the CC List.

In addition to the above tables, the Complete MCC List (Table 6I) and the Complete CC List (Table 6J can be found on the CMS FY 2020 IPPS Final Rule Home Page. Also, click here for download from this article is a document highlighting the FY 2020 additions and deletions to the MCC and CC lists for FY 2020.

A recent story by National Public Radio (NPR) discussed the delay in the implementation of the law requiring physicians to consult clinical guidelines before ordering certain imaging tests. The story notes that critics believe the delay has resulted in unnecessary costs and radiation exposure. I am not agreeing or disagreeing with any of the concerns raised by the story, but I want to point out a few things I know based on my understanding of the new requirements and my experience in healthcare. First, not all physicians order unnecessary tests. The article quotes studies that have found widespread overuse, including one study that reported 26% of the CTs and MRIs they reviewed were inappropriate. However, this was at a large academic medical center, so hopefully most physicians use their training to appropriately order advanced imaging exams.

A fallacy in the story in my opinion is how easy the new process will be – “4 clicks on the computer – or less than a minute.” I am skeptical that the ordering physician’s process will be that easy and there are numerous requirements on the back end, i.e. the performing entity and the interpreting professional claim requirements. Beginning July 1, 2018 through December 31, 2019, providers could voluntarily participate in the program. January 1, 2020 through December 31, 2020 is the Educational and Operations Testing Period in which providers are encouraged to participate, but claims will not be denied. These voluntary and testing periods are beneficial to providers to work out the kinks in what is an anything-but-simple process.

On July 26, 2019, CMS released a transmittal that details the requirements for the Testing Period in 2020. The basic premise of the program - Appropriate Use Criteria (AUC) for Advanced Diagnostic Imaging is:

Step One – When an advanced imaging service is ordered for a Medicare beneficiary, the ordering professional must consult a qualified Clinical Decision Support Mechanism (CDSM), an interactive, electronic tool that assists practitioners in making the most appropriate treatment decision for a patient’s specific clinical condition. The CDSM will provide the ordering professional with a determination of whether the order adheres to AUC, does not adhere to AUC, or if there is no AUC applicable (for example, no AUC is available to address the patient’s clinical condition).

Step Two – The ordering physician must communicate the status and outcome of use of the CDSM to the furnishing entity and physician.

Step Three – The furnishing providers and practitioners must report on their Medicare claim, modifiers describing the CDSM status and decision, if applicable, and when appropriate, a HCPCS indicating which CDSM was used.

The AUC program applies to:

• Advance imaging services such as computed tomography (CT), Positron emission tomography (PET), Nuclear medicine (NM), and Magnetic resonance imaging (MRI). The specific CPT/HCPCS codes affected are listed in the transmittal.
• The following settings:
• Physician offices
• Hospital outpatient departments (including emergency departments)
• Ambulatory Surgical Centers (ASCs)
• Independent diagnostic testing facilities
• Services paid under the Medicare Physician Fee Schedule (MPFS), the Hospital Outpatient Prospective Payment System (OPPS), or the Ambulatory Surgical Center (ASC) fee schedule

CMS does allow exceptions to participation in the program for ordering professionals with a significant hardship (such as limited access to the internet, etc.), patients with an emergency medical condition, and inpatients paid under Medicare Part A. It is confusing to me why applicable settings include hospital emergency departments when patients with an emergency medical condition are exempt. I have submitted a question to CMS for clarification regarding this and will share through the Wednesday@One newsletter any information I receive.

The modifiers to be reported (MA-MH and QQ) describe whether a CDSM was consulted or not and if not, the reason, or if so, the outcome/decision. The modifier is to be appended to the advanced imaging line item code on the claim. If a modifier is reported that indicates a CDSM was consulted (ME, MF or MG), then the claim should additionally contain a G-code (on a separate claim line) to report which qualified CDSM was consulted. These are informational-only G-codes that will not result in any payment, similar to the codes previously required for Functional Limitation Reporting for therapy services. Providers will have to deal with the same issues of submitting a $0 or minimal charge for these codes. The transmittal includes descriptions of all the modifiers and G-codes.

The plan at this time is to fully implement the requirements of AUC effective January 1, 2021. Upon full implementation, claims for the affected imaging services will be denied if they do not contain information regarding the ordering professional’s consultation with CDSM, or exception to such consultation. The ultimate goal of the program is to identify professionals with outlier-ordering patterns and require those practitioners to obtain prior authorizations for these tests. That requirement will likely be several more years down the road.

Just thinking of the processes hospitals and radiologists will have to put into place to make this happen makes my head spin. And that is all after the process the ordering practitioner goes through – (no need to worry about that though as it is only 4 clicks on the computer). Now is the time, during this Testing phase, for hospitals to develop and implement the necessary processes for this program – how will you receive, document, and internally communicate the information from the ordering practitioner; how will the correct modifier get on the claim line item; and how will the appropriate G-code get added to the claim. And still to be worked out is how institutional providers will report line level ordering physician information on the institutional claim since that capability is not currently available.

Sometimes there are good reasons for delaying a well-intentioned idea.

On August 7, 2019, CMS released a Final Coverage Decision Memorandum concerning CAR-T Therapy for Cancers.  Per the memo, CMS covers autologous treatment for cancer with T-cells expressing at least one chimeric antigen receptor (CAR) when:

• Administered at healthcare facilities enrolled in the FDA risk evaluation and mitigation strategies (REMS), and
• Used for either an FDA-approved indication (according to the FDA-approved label for that product), or
• Used for other uses when the product has been FDA-approved and the use is supported in one or more CMS-approved compendia.

The policy also continues coverage for routine costs in clinical trials that use CAR T-cell therapy as an investigational agent that meet the requirements listed in NCD 310.1.

According to an FDA website “A Risk Evaluation and Mitigation Strategy (REMS) is a drug safety program that the U.S. Food and Drug Administration (FDA) can require for certain medications with serious safety concerns to help ensure the benefits of the medication outweigh its risks. … REMS are designed to help reduce the occurrence and/or severity of certain serious risks, by informing and/or supporting the execution of the safe use conditions described in the medication's FDA-approved prescribing information.”  Certain REMS may require providers to enroll in the REMS, complete training, document counseling of patients, enroll patients, perform monitoring, and/or document compliance with certain safe use conditions. The requirements for a specific drug can be found on the FDA website.

Remember that Decision Memos are not binding on contractors until they have been manualized as a National Coverage Determination (NCD).  Be on the lookout for a Medicare transmittal announcing the NCD and any associated claim instructions. The transmittal(s) will include effective and implementation dates for the new coverage rules.

Q:

Does Medicare cover HBO for arterial insufficiency?

A:

Yes and no – Medicare does not cover chronic arterial insufficiency, but does cover acute peripheral arterial insufficiency.  According to the HBO Local Coverage Determination (LCD) from First Coast (FC), the Medicare Administrative Contractor (MAC) for Jurisdiction N, “acute peripheral arterial insufficiency (APAI) is acute onset of ischemia of an extremity secondary to arterial embolus or thrombus.” HBO for APAI is to be used following a definitive surgical procedure for the condition, such as re-implantation, embolectomy, thrombectomy, decompression of a compartment syndrome or removal of the flow limiting condition of the limb. Immediate surgical intervention is necessary if the extremity is to be saved following APAI.

The FC LCD also states that, “HBO is indicated within the first 4-6 hours of the acute event, and only after documented restoration of the blood circulation.” A recent Palmetto HBO Training Module indicates that treatments for APAI may occur up to three times per day immediately after surgery before dropping to once daily within 24-48 hours.  The HBO reduces edema and enhances oxygen at the tissue level to counter reactive edema that often presents after surgical restoration of blood flow. This helps prevent or lessen the likelihood of secondary complications such as infection, non-healing wounds, fracture non-union, and necrosis with subsequent amputation.

Medicare medical review of HBO services is widespread:

• It is part of the OIG Work Plan.
• It is on the list of Targeted Probe and Educate (TPE) reviews for First Coast JN, Novitas JH and JL, Palmetto JM, and WPS J5 and J8.
• It is an approved and posted issue for complex review for all 4 Recovery Auditor regions. Details from the Cotiviti issue are “Medical records will be reviewed to determine if Hyperbaric Oxygen Therapy (HBOT) is medically necessary according to Medicare coverage indications.”
• It was one of the first issues reviewed by Strategic Health Solutions, the first CMS Supplemental Medical Review Contractor (SMRC) with an error rate of 58%.

In addition to First Coast’s LCD, there is a National Coverage Determination (NCD 20.29) and Novitas has a coding and billing article.

The Palmetto education module mentioned above includes the expected documentation for HBO for APAI

• Origin of the condition such as reconstruction/graft thrombosis, iatrogenic trauma, native thrombosis, embolism, or peripheral aneurysm with embolism or thrombosis;
• Diagnostic testing such as arteriogram, CT angiogram, and/or MRI angiogram; and
• Previous treatments such as anticoagulation and percutaneous aspiration or mechanical thromboembolectomy.

Also, there must be a detailed physician’s order for the HBO and a treatment plan with expected goals for HBO therapy.

Remember HBO treatment for chronic arterial insufficiency is not considered medically reasonable and necessary for coverage.

The Calendar Year (CY) 2020 Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Payment System Proposed Rule was finally released on July 29th. This week MMP highlights proposed changes to the Inpatient Only (IPO) List, a related 2-Midnight Rule Proposal and the ASC Covered Procedures List (CPL).  

Inpatient Only List

CMS utilizes the following specific criteria when determining whether or not a procedure should be removed from the IPO List and assigned to an Ambulatory Payment Category (APC) group for payment under the OPPS when provided in the hospital outpatient setting:

1. Most outpatient departments are equipped to provide the services to the Medicare population.
2. The simplest procedure described by the code may be performed in most outpatient departments.
3. The procedure is related to codes that we have already removed from the IPO list.
4. A determination is made that the procedure is being performed in numerous hospitals on an outpatient basis.
5. A determination is made that the procedure can be appropriately and safely performed in an ASC, and is on the list of approved ASC procedures or has been proposed by CMS for addition to the ASC list.

CMS does not require that all five criteria be met to remove a procedure from the IPO List.

CY 2020 Procedure Proposed for Removal

For several years now, CMS has discussed the removal of total hip arthroplasty (THA) as well as partial hip arthroplasty (PHA) from the IPO List. Both procedures were on the original IPO List in CY 2001.

In response to the CY 2018 Proposed Rule, several surgeons and other stakeholders believe that, “given thorough preoperative screening by medical teams with significant experience and expertise involving hip replacement procedures, the THA procedure could be provided on an outpatient basis for some Medicare beneficiaries.”

CMS stated in the CY 2018 OPPS/APC Proposed Rule that “Both PHA and THA need to be tailored to the individual patient’s needs. Patients with a relatively low anesthesia risk and without significant comorbidities who have family members at home who can assist them may likely be good candidates for an outpatient PHA or THA procedure…on the other hand, patients with multiple medical comorbidities, aside from their osteoarthritis, would more likely require inpatient hospitalization and possible postacute care in a skilled nursing facility or other facility.”

CMS believes that CPT code 27130 (Arthroplasty, acetabular and proximal femoral prosthetic replacement (total hip arthroplasty) with or without autograft or allograft) meets criterion 2 and 3 for removal from the IPO List and “believe that appropriately selected patients could have this procedure performed on an outpatient basis.” Therefore, CMS is proposing the following:

• Remove THA from the IPO List, and
• Assign the THA procedure (CPT code 27130) to C-APC with status indicator “J.”

Solicitation of Comments for Potential Removal of Procedures from IPO List

CMS has received several comments on additional codes believed to meet the criterion for removal from the IPO List. CMS is seeking comments on the removal of the following procedures from the IPO List.

• CPT 22633: Arthrodesis, combined posterior or posterolateral technique with posterior interbody technique including laminectomy and/or discectomy sufficient to prepare interspace (other than for decompression), single interspace and segment; lumbar
• CPT 22634: Arthrodesis, combined posterior or posterolateral technique with posterior interbody technique including laminectomy and/or discectomy sufficient to prepare interspace (other than for decompression), singe interspace and segment; lumbar; each additional interspace and segment
• CPT 23265: Laminectomy for excision or evacuation of intraspinal lesion other than neoplasm, extradural; cervical
• CPT 63266: Laminectomy for excision or evacuation of intraspinal lesion other than neoplasm, extradural; thoracic
• CPT 63267: Laminectomy for excision or evacuation of intraspinal lesion other than neoplasm, extradural; lumber
• CPT 63268: Laminectomy for excision or evacuation of intraspinal lesion other than neoplasm, extradural; sacral.

Short Inpatient Hospital Stays

It’s hard to believe come this October, it will have been six years since CMS finalized the Two-Midnight Rule clarifying when an inpatient admission is considered reasonable and necessary for purposes of Medicare Part A payment in the FY 2014 IPPS/LTCH PPS Final Rule.

This policy established a benchmark for when a patient is considered appropriate for inpatient hospital admission and payment. CMS also clarified that “when a beneficiary enters a hospital for a surgical procedure not designated as an inpatient-only (IPO) procedure as described in 42 CFR 419.22(n), a diagnostic test, or any other treatment, and the physician expects to keep the beneficiary in the hospital for only a limited period of time that does not cross 2 midnights, the services would be generally inappropriate under Medicare Part A.”

In the CY 2016 OPPS/ASC Final Rule, CMS revised the previous rare and unusual exceptions policy “and finalized a proposal to allow for case-by case exceptions to the 2-midnight benchmark, whereby Medicare Part A payment may be made for inpatient admissions where the admitting physician does not expect the patient to require hospital care spanning 2 midnights, if the documentation in the medical record supports the physician’s determination that the patient nonetheless requires inpatient hospital care.” The following criteria are relevant to making this determination:

• Complex medical factors such as history and comorbidities;
• The severity of signs and symptoms;
• Current medical needs; and
• The risk of an adverse event.

Proposed Change for Medical Review of Certain Inpatient Hospital Admissions under Medicare Part A for CY 2020 and Subsequent Years

The 2-Midnight benchmark is applicable once procedures have been removed from the IPO list. These surgical claims are also subject to initial medical reviews of claims for short-stay inpatient admissions conducted by the Beneficiary and Family-Centered Care Quality Improvement Organization (BFCC-QIO).

BFCC-QIO’s may “refer a provider to the Recovery Audit Contractors (RACs) for further medical review due to exhibiting persistent noncompliance with Medicare payment policies, including, but not limited to:

• Having high denial rates;
• Consistently failing to adhere to the 2-midnight rule; or
• Failing to improve their performance after QIO educational intervention.”

For CY 2020 and subsequent years, CMS is “proposing to establish a 1-year exemption from site-of-service claim denials, BFCC-QIO referrals to RACs, and RAC reviews for “patient status” (that is, site-of-service) for procedures that are removed from the IPO list under the OPPS beginning on January 1, 2020. We encourage BFCC-QIOs to review these cases for medical necessity in order to educate themselves and the provider community on appropriate documentation for Part A payment when the admitting physician determines that it is medically reasonable and necessary to conduct these procedures on an inpatient basis. We note that we will monitor changes in site- of-service to determine whether changes may be necessary to certain CMS Innovation Center models.”

As a provider, it is important to be mindful that the exemption is specific to site-of-service claim denials. This exemption does not include medical necessity based on a National or Local Coverage Determination meaning irrespective of site-of-service, a short stay claim can still be denied for lack of documentation supporting medical necessity of the procedure.

Ambulatory Surgical Center (ASC) – Proposals

In the CY 2019 OPPS Final Rule, CMS finalized the “proposal to define a surgical procedure under the ASC payment system as any procedure described within the range of Category I CPT codes that the CPT Editorial Panel of the American Medical Association (AMA) defines as “surgery” (CPT codes 10000 through 69999) (72 FR 42478), as well as procedures that are described by Level II HCPCS codes or by Category I CPT codes or by Category III CPT codes that directly crosswalk or are clinically similar to procedures in the CPT surgical range that we have determined are not expected to pose a significant risk to beneficiary safety when performed in an ASC, for which standard medical practice dictates that the beneficiary would not typically be expected to require an overnight stay following the procedure, and are separately paid under the OPPS.”

CMS conducted a review of HCPCS codes currently paid under the OPPS but are not included on the ASC CPL. Based on this review, the following table highlights the proposed procedures to be added to the ASC CPL.

Specific to the proposal to add Total Knee Arthroplasty (TKA) to the ASC CPL, CMS notes in the Proposed Rule that “we agree with commenters that there is a small subset of Medicare beneficiaries who may be suitable candidates to receive TKA procedures in an ASC setting base on their clinical characteristics. For example, based on Medicare Advantage encounter data, we estimate over 800 TKA procedure were performed in an ASC on Medicare Advantage enrollees in 2016. We believe that beneficiaries not enrolled in an MA plan should also have the option of choosing to receive the TKA procedure in an ASC setting based on their physicians’ determinations.”

Further, CMS notes “TKA procedures are still predominantly performed in the inpatient hospital setting in CY 2018 (82 percent of the time) based on professional claims data, and we are cognizant of the fact that the majority of beneficiaries may not be suitable candidates to receive TKA in an ASC setting. We believe that appropriate limits are necessary to ensure that Medicare Part B payment will only be made for TKA procedures performed in an ASC setting when the setting is clinically appropriate. Therefore, we are soliciting public comment on the appropriate approach to provide safeguards for Medicare beneficiaries who should not receive the TKA procedure in an ASC setting.”

CMS is accepting comments on the proposed rule no later than 5 p.m. EST on September 27, 2019.

You can read more about the Proposed Rule in a CMS Fact Sheet at: https://www.cms.gov/newsroom/fact-sheets/cy-2020-medicare-hospital-outpatient-prospective-payment-system-and-ambulatory-surgical-center

The Proposed Rule is scheduled to be published in the Federal Register on August 9, 2019. In the meantime you can access a pre-published copy on the CMS website at: https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/HospitalOutpatientPPS/Hospital-Outpatient-Regulations-and-Notices-Items/CMS-1717-P.html?DLPage=1&DLEntries=10&DLSort=2&DLSortDir=descending

Finally, you can keep reading the Wednesday@One as we will have more information on the proposed rule next week.

Q:

Is it still true that when a patient with a previous history of sick sinus syndrome (SSS), which is currently being controlled by a pacemaker, is admitted for an unrelated condition, only the presence of the pacemaker is assigned?  My understanding is that since the condition is controlled by the device, SSS would not be considered an active condition.

A:

No.  This is an old rule which was addressed in previous Coding Clinics 3rd Qtr. 2010 page 9-10 and 5th Issue 1993 page 12.   Coders are now instructed that it is appropriate to report a code for both the sick sinus syndrome and presence of a pacemaker.  This is according to updated guidelines found in Coding Clinic 1st Qtr. 2019 page 33 (effective with discharges from March 20, 2019 forward).  The SSS is still present and is a reportable chronic condition.  A pacemaker only controls the heart rate.  It does not cure the condition itself.

MEDICARE TRANSMITTALS – RECURRING UPDATES

 Quarterly Healthcare Common Procedure Coding System (HCPCS) Drug/Biological Code Changes – July 2019 Update

Update of the HCPCS code set for codes related to drugs and biologicals.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11296.pdf

Quarterly Update for Clinical Laboratory Fee Schedule and Laboratory Services Subject to Reasonable Charge Payment

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11280.pdf

July 2019 Integrated Outpatient Code Editor (I/OCE) Specifications Version 20.2

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11298.pdf

October 2019 Quarterly Average Sales Price (ASP) Medicare Part B Drug Pricing Files and Revisions to Prior Quarterly Pricing Files

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11343.pdf

Changes to the Laboratory National Coverage Determination (NCD) Edit Software for October 2019

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11344.pdf

Quarterly Update to the National Correct Coding Initiative (NCCI) Procedure-to-Procedure (PTP) Edits, Version 25.3 Effective October 1, 2019

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11357.pdf

 Notice of New Interest Rate for Medicare Overpayments and Underpayments -4th Qtr Notification for FY 2019

The Medicare contractors shall implement an interest rate of 10.625 percent effective July 17, 2019 for Medicare overpayments and underpayments.

https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/2019Downloads/R318FM.pdf

OTHER MEDICARE TRANSMITTALS

 Medicare Summary Notice (MSN) Changes to Assist Beneficiaries Enrolled in the Qualified Medicare Beneficiary (QMB) Program

Modifications to Medicare’s claims processing systems to ensure that the Medicare Summary Notice (MSN) appropriately differentiates between QMB claims that are paid and denied and to show accurate patient payment liability amounts for beneficiaries enrolled in QMB.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11230.pdf

New Waived Tests

New Clinical Laboratory Improvement Amendments of 1988 (CLIA) waived tests approved by the Food and Drug Administration (FDA). Since these tests are marketed immediately after approval, the Centers for Medicare & Medicaid Services (CMS) must notify the MACs of the new tests so that they can accurately process claims.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11354.pdf

Appropriate Use Criteria (AUC) for Advanced Diagnostic Imaging – Educational and Operations Testing Period - Claims Processing Requirements

Appropriate Use Criteria (AUC) related HCPCS modifiers on claims to be accepted January 1, 2020.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11268.pdf

MEDICARE SPECIAL EDITION ARTICLES

Activation of Systematic Validation Edits for OPPS Providers with Multiple Service Locations

Revised to provide an update on Round 3 testing and to announce a delay of full implementation until October 2019.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/Downloads/SE19007.pdf

Pre-Diabetes Services: Referring Patients to the Medicare Diabetes Prevention Program

Information on this new Medicare covered service.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/SE19001.pdf

Emergency Medical Treatment and Labor Act (EMTALA) and the Born-Alive Infant Protection Act

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/Downloads/SE19012.pdf

Medicare Plans to Modernize Payment Grouping and Code Editor Software

CMS is modernizing its grouping and code editor software. Medicare processes all Original Medicare institutional claims through one of three sub-systems within the Fiscal Intermediary Shared System (FISS):

• The Medicare Code Editor (MCE)
• The Inpatient Grouper (MS-DRG)
• The Integrated Outpatient Code Editor (IOCE).

These sub-systems are built with an antiquated programming language (Assembler) that is difficult to extend, maintain, support and test. Modernizing these programs will protect CMS from future quality and integration risks.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/SE19013.pdf

MEDICARE COVERAGE UPDATES

 Acupuncture Coverage for Chronic Low Back Pain

CMS proposes to cover acupuncture for chronic low back pain for Medicare beneficiaries enrolled in approved studies.

https://www.cms.gov/medicare-coverage-database/details/nca-tracking-sheet.aspx?NCAId=295

Update to Coverage of Intravenous Immune Globulin for Treatment of Primary Immune Deficiency Diseases in the Home

Updates the list of International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) codes for the coverage of IVIG for treatment of Primary Immune Deficiency Diseases (PIDD) in the home.

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/MM11295.pdf

MEDICARE EDUCATIONAL RESOURCES

Medicare Fast Facts

Medicare Fast Facts resources this month include:

• Cardiac Device Credits: Medicare Billing

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/Fast-Facts.html?DLSort=1&DLEntries=10&DLPage=1&DLSortDir=descending

Palmetto GBA Hyperbaric Oxygen Therapy Module

Explains HBO therapy, covered and non-covered conditions as indicated per NCD 20.29 for treatment, as well as documentation guidelines pertinent to establishing medical necessity when submitting claims to Medicare

https://www.palmettogba.com/internet/eLearn3.nsf/HyperbaricOxygenTherapy/story_html5.html

OTHER MEDICARE UPDATES

KEPRO Updates for Healthcare Providers

Since Beneficiary and Family Centered Care Quality Improvement Organizations (BFCC-QIOs) started transitioning into a new 5-year contract with the Centers for Medicare & Medicaid Services (CMS), KEPRO has been making necessary changes to help streamline processes. During the next few weeks, we will share periodic updates with you in a special bulletin.

https://www.keproqio.com/providers/transition/

Comprehensive Care for Joint Replacement Model

Jun 27, 2019 Announcement: Second annual evaluation report and associated materials posted.

https://innovation.cms.gov/initiatives/cjr

ESRD Treatment Choices (ETC) Model

Proposed required model aims to encourage greater use of home dialysis and kidney transplants for Medicare beneficiaries with end-stage renal disease (ESRD).

https://innovation.cms.gov/initiatives/esrd-treatment-choices-model

Executive Order on Improving Price and Quality Transparency in American Healthcare to Put Patients First

“Within 60 days of the date of this order, the Secretary of Health and Human Services shall propose a regulation, consistent with applicable law, to require hospitals to publicly post standard charge information…”

https://www.whitehouse.gov/presidential-actions/executive-order-improving-price-quality-transparency-american-healthcare-put-patients-first/

CMS Announces Extension of Enforcement Discretion Period for Laboratory Date of Service Exception Policy Under the Medicare Clinical Laboratory Fee Schedule Until January 2, 2020

During the enforcement discretion period, hospitals may continue to bill for advanced diagnostic laboratory tests (ADLTs) and molecular pathology tests that would otherwise be subject to the laboratory DOS exception.

https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/ClinicalLabFeeSched/Clinical-Lab-DOS-Policy.html (see Downloads section)

CY 2020 Home Health Prospective Payment System (HH PPS) Proposed Rule

Proposes routine updates to the home health payment rates for calendar year (CY) 2020, and also includes: a proposal to modify the payment regulations pertaining to the content of the home health plan of care; a proposal to allow therapist assistants to furnish maintenance therapy; and a proposal related to the split percentage payment approach under the Home Health Prospective Payment System (HH PPS).  Finally, this rule will include proposals related to the implementation of the permanent home infusion therapy benefit in 2021.

Rule: https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-14913.pdf

Monday, July 29, 2019, CMS released three important Medicare proposed payment rules for 2020:

• The OPPS and ASC Proposed Rule - https://www.cms.gov/newsroom/press-releases/cms-takes-bold-action-implement-key-elements-president-trumps-executive-order-empower-patients-price
• The MPFS Proposed Rule - https://www.cms.gov/newsroom/press-releases/trump-administrations-patients-over-paperwork-delivers-doctors
• The ESRD and DME Proposed Rule - https://www.cms.gov/newsroom/press-releases/new-cms-proposals-strengthen-medicare-unleash-innovation-and-promote-competition-provide-kidney

Press Release: https://www.cms.gov/newsroom/press-releases/trump-administration-announces-steps-strengthen-medicare-new-home-infusion-therapy-benefit-and-new

Fact Sheet: https://www.cms.gov/newsroom/fact-sheets/cms-proposes-calendar-year-2020-and-2021-new-home-infusion-therapy-benefit-and-payment-and-policy

I like people with a passion for life and enthusiasm for the things they do. It certainly makes life more enjoyable if you love what you are doing. However, it is important to balance enthusiasm with appropriate limits. I am enthusiastic about reading and I read for pleasure nightly before bedtime, but I have to cut myself off at some point to ensure I have time for a good night of sleep. Others may have to balance exercise or other activities with their physical limitations, especially when they are not as young as they once were. And it is good to love your job, but important to take time off too. Bottom line - it is good to have passion, but also good to know your limits.

Hopefully as healthcare workers, we have passion for our jobs. I understand that healthcare disciplines for rehabilitative therapy want to ensure their patients get the maximum benefit from the services Medicare covers. However, most Medicare rehabilitative services have duration limits.

Specifically:

• Cardiac rehabilitation (CR) program sessions are limited to a maximum of 2 1-hour sessions per day for up to 36 sessions over up to 36 weeks, with the option for an additional 36 sessions over an extended period of time if approved by the Medicare contractor.
• Pulmonary rehabilitation (PR) program sessions are limited to a maximum of 2 1-hour sessions per day for up to 36 sessions, with the option for an additional 36 sessions if medically necessary.
• There are physical therapy (PT), occupational therapy (OT), and speech language pathology (SLP) therapy thresholds (formerly therapy cap amounts) above which services are only covered if services beyond the threshold are medically necessary as justified by appropriate documentation in the medical record. For CY 2019 this therapy threshold amount is:
• $2,040 for PT and SLP services combined, and
• $2,040 for OT services.

The good news for enthusiastic rehabilitative therapists and providers is that Medicare does allow medically necessary additional services up to a defined point. This is where the KX modifier comes in.

For cardiac and pulmonary rehab, Medicare contractors shall accept the inclusion of the KX modifier on the claim lines as an attestation by the provider of the service that documentation is on file verifying that further treatment beyond the 36 sessions is medically necessary up to a total of 72 sessions for that beneficiary.

For PT, OT, and Speech therapy, claims with therapy services exceeding the threshold amounts must include the KX modifier as a confirmation that services are medically necessary as justified by appropriate documentation in the medical record.

This means that for CR, PR, PT, OT, and SLP services exceeding Medicare’s duration limits as described above, a KX modifier is required on the line item(s) in order for Medicare to make payment for the services. In reviewing Medicare remittances, I often see denials of these types of services with Claim Adjustment Reason Code (CARC) 119 - Benefit maximum for this time period or occurrence has been reached. Many of these denials could be avoided with the inclusion of the KX modifier. Providers should only use the KX modifier for rehabilitative services when it is appropriate – that is, the services are medically necessary and there is documentation in the medical record to support that. Properly applying the KX modifier requires that providers keep up with the number of sessions for CR and PR, and with the beneficiary’s therapy amounts for PT, OT, and SLP. The Medicare eligibility systems contain information on therapy spending to date as well as information on the number of PR and CR sessions billed to date.

Other things to remember about these duration limits - Cardiac Rehab is limited to 72 sessions for an episode of care. Within that episode, sessions beyond 72 will deny for payment even if the KX modifier is included. There is not a lifetime limit of 72 sessions for cardiac rehab; a patient qualifies for 36 (within 36 weeks) and up to 72 sessions after each qualifying cardiac episode. Pulmonary rehab is limited to a maximum of 72 sessions in a lifetime and PR sessions beyond 72 will deny for payment even if the KX modifier is included. Unlike the time limit of 36 sessions within 36 weeks for cardiac rehab, there is no stated time limit for providing the 36-72 sessions of pulmonary rehab.

There are no set dollar limits for PT, OT, and SLP therapy, other than the requirements for medical necessity and patient benefit. At some point, therapy treatment for a condition generally reaches a plateau where further therapy adds no benefit for the patient or simply becomes routine maintenance therapy that does not require the skills of a therapist and therefore does not meet the Medicare therapy benefit definition. Also note that PT and SLP services combined, and OT services are subject to a targeted medical review (MR) at a threshold amount of $3,000. Not all claims exceeding the MR threshold amount are subject to review as they once were, but only selected claims based on billing patterns.

The lesson for hospitals here is to proactively be aware of the session and dollar limits for rehabilitative services and appropriately use the KX modifier to ensure proper payment. It is also a good idea to monitor your claim denials, specifically looking for denials with CARC 119. Once denied, you would have to appeal the claim to receive payment, which may not be worth the time and effort. However, reviewing these denials will let you know if upfront systems are working. If not, you may want to make process changes to ensure appropriate reimbursement. No matter how much passion we have for healthcare, we still need to be paid to keep the doors open. 

Q:

Are there any guidelines for what is expected for an electronic signature for Medicare?

A:

National Government Services (NGS), the Medicare Administrative Contractor (MAC) for Jurisdictions 6 and K, recently published an article concerning electronic signatures. The article references section 3.3.2.4 of the Medicare Program Integrity Manual, that states, “For medical review purposes, Medicare requires that services provided/ordered/certified be authenticated by the persons responsible for the care of the beneficiary in accordance with Medicare’s policies.”

The article provides a list of examples of electronic signatures that would be acceptable. There are various ways to say the documentation is “approved,” “accepted,” or “verified” but the constant is that all electronic signatures must contain the provider’s name.

The article further states the following about sending your policy for electronic signatures.

“When you submit medical records to a Medicare contactor with an electronic signature, you must also include a copy of the electronic signature protocol/procedure. The protocol/procedure should describe the requirements that the physician uses his own ID and password to enter the system to sign the medical records. The Medicare contractor will keep a copy of the protocol/procedure on file for each provider for future documentation request, so only one copy will need to be submitted.”

The Program Integrity Manual does not contain this requirement so it may be specific to NGS. Check with your local MAC to determine if they require this also.

Also remember that Medicare reviewers will accept a signature log for initials or illegible signatures. For some types of documentation, they will accept an attestation of authorship if a signature is missing. However, this does not apply to orders – “If the signature is missing from an order, MACs, SMRC, and CERT shall disregard the order during the review of the claim (e.g., the reviewer will proceed as if the order was not received).”