News and Updates
January, 2010

James McNally, CPC
Third Party Payer Consultant

 

Update to Medicare “Claims Hold” for Services Paid Under the 2010 Medicare Physician Fee Schedule
CMS Revises Consultation Policy and Issues New In-Patient & Nursing Home “Admissions” Modifier to Mitigate Consultation Policy Change
Attention: Emblem Health Participants – Policy Requests
CMS Announces Delay in Denial Phase of Ordering/Referring Physician PECOS Requirement
Empire Blue Cross Blue Shield Now Offering Free FWA Training
Important Information about Accessing 2007 Re-Run and 2008 Physician Quality Reporting Initiative (PQRI) Feedback Reports
Final Measure Specifications for 2010 PQRI Released
CMS Releases Final Measure Specifications for 2010 E-Prescribing Incentive
2010 Medicare Deductible and Premiums
United Healthcare Announces Consultation Policy Update
Highmark Medicare Provides New PC-ACE Pro32 Electronic Mailing List
 

Update to Medicare “Claims Hold” for Services Paid Under the 2010 Medicare Physician Fee Schedule

As we have previously reported, CMS has instructed all Medicare Administrative Contractors (MACS) to hold Medicare claims for the first 10 business days of January (January 1 through January 15) for 2010 dates of service.  This should have minimum impact on your cash flow because, under the payment floor rules, clean electronic claims are not paid any sooner than 14 calendar days (29 days for paper claims) after the date of receipt anyway.  Meanwhile, all claims for services delivered on or before December 31, 2009, will be processed and paid under normal procedures.

After 10 business days, contractors will begin releasing held claims into processing under whatever fee schedule which implements current law.

Current law is that the fees will be recalculated using the 2009 Conversion Factor, since the President signed the Medicare freeze into law on December 21, 2009.  Therefore, claims released after January 15, 2010 will be paid using the 2009 Conversion Factor calculation methodology for dates of service January 1, 2010 through February 28, 2010.

BUT—This does not mean that for January 1-February 28 claims, you should bill using the old 2009 fee schedule!  Here’s why:  Only the conversion factor calculation was frozen.  There is no freeze on certain other changes, including the consultation policy change and increases in the practice expenses for certain services.  Therefore, the “old” 2009 fee schedules still have to be recalculated.  The Medicare Administrative Contractor (MAC) is expected to have the fee schedules revised and posted to their web sites no later than January 19, 2010.

We repeat: DO NOT bill using the old 2009 fee schedule.  That schedule does not reflect the updates in the practice expenses for 2010.  To the extent possible, it is recommended that you hold claims until (1) the revised fee schedules are posted, or (2) it becomes clearer whether or not any other legislation is going to be enacted, or (3) until your cash flow becomes problematic. 

Note too that holding your claims allows the MAC time to receive the new, updated payment files and perform necessary testing before they start paying claims at the new rates.   They really need this time.  As you know, Medicare pays the physicians the lesser of the actual charge on the claim form or the fee schedule amount—whichever is lower.  So if the contractors are NOT able to load the correct fees into their claims processing system and you submit a claim with a date of service in January 2010, the following is likely to occur:

  • Physicians who submit charges that are greater than the presently incorrect 2010 fee schedule amount will automatically have their claims reprocessed. 

  • Physicians who submit charges that are equal to or less than the presently incorrect 2010 fee schedule amount will need to request an adjustment.  (Submitted charges on claims cannot be altered without a request from the physician/physician.)

Again, it is best to hold your claims!

As more information becomes available, we will keep you posted.  Please understand that your patience has been very much appreciated as this barrage of information continues. As in past years, it will eventually settle down. 

For  guidance on this issue, contact us through the Third Party Insurance Help Program.

CMS Revises Consultation Policy and Issues New In-Patient & Nursing Home “Admissions” Modifier to Mitigate Consultation Policy Change

Effective for services furnished on or after January 1, 2010, instead of coding a consultation, physicians should code a patient evaluation and management visit, using an E/M code that represents where the visit occurs and identifies the complexity or code level of the visit performed. 

If a patient is referred to you for what would have been an office consultation and this is the first time you have seen the patient (a new patient), you may submit an Initial Visit.

Keep in mind, however, the parameters that classify a "new patient" to mean a patient who has not received any professional services from the physician within the previous 3 years. That is if the patient has been seen in an Initial Visit setting within the past 3 years, the visit must be coded as an established patient visit depending on the documentation.

Please note these important points:

  • Documentation: You should continue to follow appropriate documentation standards:  (1) Physicians making a referral and physicians accepting a referral should document the request to provide an evaluation of the patient.  (2) The physician who has accepted the referral should communicate the results of the evaluation to the requesting physician.

  • New Modifier for Inpatient/nursing home admissions:  As you know, in the past, only the admitting physician has reported initial hospital care codes (99221-99223) and specialists who saw the patient separately often billed inpatient consult codes.  But now, as consult codes will no longer be recognized, the following will apply.  If you are the “principal physician of record” (the physician who oversees the patient’s care, as opposed to other physicians who furnish specialty care), you should append modifier AI to the E/M code. For example, you should append modifier AI to the initial visit code when you first admit the patient to the hospital or nursing home.  If you are not the principal physician of record—e.g., if you are just providing specialty care once the patient has been admitted—do not use modifier AI when you perform your own initial evaluation on the patient.  Just bill the E/M code for the complexity level performed.

In summary, and in the inpatient hospital setting and nursing facility setting, any physician who performs an initial evaluation may bill an initial hospital care visit code (CPT code 99221 – 99223) or nursing facility care visit code (CPT 99304 – 99306), where appropriate.

Please be aware that organized medicine is still actively lobbying CMS to postpone this change; we will keep you apprised as the situation develops. For guidance on this issue, contact us through the Third Party Insurance Help program.

In addition, there is a detailed MedLearn Matters article on the CMS website at:

http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM6740.pdf

Attention: Emblem Health Participants – Policy Requests

Recent reports from the membership have indicated that requests for policy documents from Emblem Health are going unanswered.

Please keep in mind that most of their policy is on their web sites in the protected areas subject to User Name and Password access. In addition, and in order to request these documents, you must be a participant.

That being said, many members have indicated that this carrier is reluctant to provide the appropriate material to ensure that claims are coded correctly for proper payment.

It is recommended that if your office requires a policy document that is not available via their web site that a letter be sent to this carrier under Return Receipt Requested.

Insist that the policy be sent to you in writing as there have been reports that the Provider Relations staff is calling physicians and providing verbal policy clarifications ONLY. As you can surmise, a verbal confirmation from any third party insurer is not proof.

CMS Announces Delay in Denial Phase of Ordering/Referring Physician PECOS Requirement

As reported previously, Medicare was planning on implementing a policy requiring physicians who order or refer services to be enrolled in the Provider Enrollment, Chain and Ownership System (PECOS) database.

If they were not enrolled in PECOS, then the claims would deny starting January 2010.

However, the Center for Medicare and Medicaid Services (CMS) has announced that Phase 2 or the claim denial phase of this mandate is delayed until April 5, 2010.

Physicians will continue to receive “educational reminders” on this impending policy change until such time as it is fully implemented in April 2010.

In the meantime, physicians are still urged to check their status as it relates to this impending policy based on the following criteria.

  • If you are already enrolled in Medicare, make sure you have a current enrollment record.  You can find out if you have an enrollment record in PECOS by calling your designated A/B Medicare Administrative Contractor (MAC) or by going on-line, using Internet-based PECOS, to view your enrollment record.  PECOS is at the link here:

    https://pecos.cms.hhs.gov/pecos/login.do
     

  • If you are not enrolled in the Medicare program, or if you enrolled more than 6 years ago and have not submitted any updates or changes to your enrollment information in more than 6 years, you do not have an enrollment record in PECOS!

In order to continue to order or refer items or services for Medicare beneficiaries, you will have to submit an initial enrollment application.

You may do so either by (1) using Internet-based PECOS (which transmits your enrollment application to the Medicare carrier or A/B MAC via the Internet—be sure to mail the signed and dated Certification Statement to the carrier or A/B MAC immediately after submitting the application), or (2) filling out the appropriate paper Medicare provider enrollment application(s) (CMS-855I and CMS-855R, if appropriate) and mailing the application, along with any required additional supplemental documentation, to the local Medicare carrier or A/B MAC, who will enter your information into PECOS and process your enrollment application.

For guidance on this issue, contact us through the Third Party Insurance Help Program.

Empire Blue Cross Blue Shield Now Offering Free FWA Training

As reported previously, you may have received a letter from Empire Blue Cross Blue Shield (EBCBS) stating that panel physician’s “must” take a Fraud, Waste, and Abuse training (FWA) class at their own expense and complete this training by December 31, 2009 and annually thereafter.

By way of background, this is a CMS requirement that states that FWA Training is mandatory for those healthcare providers who have contracts with or participate with Medicare Advantage Plans or MAOs. Note that Empire is not the only carrier you’ll hear from on this issue; eventually you will probably receive similar letters from other MAOs (carriers that market Medicare Advantage Plans). This is a national effort, spurred by CMS.

The main concern with this mandate was the cost associated with taking this training as it was another out of pocket expense borne solely by the physician.

Empire Blue Cross Blue Shield is now offering this training free of charge and physicians are urged to take advantage of this by year end.

Go to the link here.

http://www.empireblue.com/home-providers.html

Then scroll down and under “Spotlight” click on the article entitled “REQUIRED ANNUAL TRAINING: Medicare Advantage and Part D Compliance Training for Providers”.

The download a copy of the Adobe file entitled “Downstate” or “Upstate” under Region and see the last paragraph in this document that shows you how to access the free training offered by EBCBS.

With that said the EBCBS package is not New Jersey specific but until such time as other MCOs in the state provide this information, the information in the article here should be sufficient for now.

United Healthcare (UHC) has a training package that is available from their web site as well and impacts many New Jersey plans. It can be accessed at the link here.

https://www.unitedhealthcareonline.com/ccmcontent/ProviderII/UHC/en-US/Assets/ProviderStaticFiles/ProviderStaticFilesPdf/Tools and Resources/Training & Education/Medicare_FraudWasteAbuse_Training.pdf

But, however you get the training, note that the plans that contact you must receive confirmation that training was completed by December 31, 2009.

For guidance on this issue, contact us through the Third Party Insurance Help Program.

Important Information about Accessing 2007 Re-Run and 2008 Physician Quality Reporting Initiative (PQRI) Feedback Reports

The Centers for Medicare & Medicaid Services (CMS) would like to remind Physician Quality Reporting Initiative (PQRI) participants that there is a “Verify Report Portlet” look-up tool available on the PQRI Portal for Eligible Professionals (EPs) to verify if a 2007 re-run and/or 2008 PQRI feedback report exists for your organization's Tax Identification Number (TIN) or National Provider Identifier (NPI).

For more information, go to the link here.

Highmark Medicare Services
https://www.qualitynet.org/portal/server.pt

Final Measure Specifications for 2010 PQRI Released

The Center for Medicare & Medicaid Services (CMS) has released information relative to a number of changes to the 2010 Physician Quality Reporting Initiative (PQRI). Physicians should be aware that:

  • Consultation codes are no longer applicable numerator codes, due to the fact that they will no longer be recognized by Medicare in 2010.

  • There are also two reporting options in 2010. Physicians can either report for the full year (Jan. 1 to Dec. 31) or a half year (July 1 to Dec. 31). If you report the half year, your incentive will only be calculated from revenues in that reporting timeframe.

To review the 2010 Quality Measures, go to the link here and then click on Measures/Codes on the left hand side menu:

CMS PQRI Page

CMS Releases Final Measure Specifications for 2010 E-Prescribing Incentive

Physicians will only have to report the measure 25 times for applicable patient encounters (E&M or eye visit codes) during the 12-month reporting period (Jan. 1 to Dec. 31).

There is also only one G-code to report that a physician is e-prescribing.

In 2010, use only G8553: At least one prescription created during the encounter was generated and transmitted electronically using a qualified eRx system.

AMA
http://www.ama-assn.org/ama/pub/eprescribing/home.shtml

2010 Medicare Deductible and Premiums

The Medicare Part B deductible increases from $135 to $155 on January 1, 2010. 

In addition, the 2010 Part B premium remains unchanged for most (approximately 73%) Medicare beneficiaries and will continue to be $96.40 a month. Approximately twenty seven percent (27%) of Medicare beneficiaries will see an increase to their premiums. They include:

1. New enrollees during the year
2. Beneficiaries subject to the income-related additional premium
3. Beneficiaries who do not have their Part B premiums withheld from social security benefit payments, including dual-eligible Medicare/ Medicaid beneficiaries

The increased premium for those who do not qualify for the “hold-harmless” provision will increase to $110.50, or greater for those with higher incomes. 

Medicare beneficiaries with taxable income greater than $85,000 for an individual or $170,000 for a couple will pay higher Medicare Part B premiums between $110.50 monthly to $353.60 monthly depending on income reported on their tax returns. 

United Healthcare Announces Consultation Policy Update

As reported previously, and effective January 1, 2010, the Centers for Medicare and Medicaid
Services (CMS) is eliminating the use of Evaluation and Management (E&M)
Consultation CPT Codes (99241-99255) for its Medicare providers and requiring them to bill the most appropriate office visit or hospital inpatient CPT codes (99201- 99215 and/or
99221-99239).

Many physicians were concerned that the managed care community would enact the same inequitable policies as the federal government.

However, United Healthcare has announced that there will be no change in reimbursement for
CPT codes 99241-99245 and 99251-99255 for their commercial plans at this time.

Physicians may continue to submit claims for these services, and will be reimbursed according to United Healthcare payment policies.

For United Healthcare Medicare Solutions, including Secure Horizons, AARP, Medicare Complete, Evercare, and AmeriChoice Medicare Advantage benefit plans, these plans will follow CMS regulations and implement the change, effective January 1, 2010.

The change also includes the revalued relative-value units (RVUs) for E&M CPT codes and a new coding edit, consistent with CMS, to deny the CPT consult code as a non-covered service.

For AmeriChoice Medicaid plans that follow Medicare rules for their fee schedules, AmeriChoice will be aligning with CMS rules and implement the change effective January 1, 2010.

For all other Medicaid states, AmeriChoice will follow the United Healthcare commercial position and continue to pay for the consult codes, until directed otherwise by a state to pursue other strategies.

Highmark Medicare Provides New PC-ACE Pro32 Electronic Mailing List

Highmark Medicare Services (HMS) has announced that all PC-ACE Pro32 upgrade notifications are going paperless!

All future PC-ACE Pro32 upgrade notifications will only be sent via e-mail and posted on the Highmark Medicare Services Web site: www.highmarkmedicareservices.com

The e-mail notifications will go to all customers on the new PC-ACE Pro32 electronic mailing list.

Beginning with the January 2010 upgrade, you will no longer receive upgrade notification letters. You must be signed up for the PC-ACE Pro32 electronic mailing list to receive the upgrade information via e-mail notification.

This is a new electronic mailing list. Signing up is necessary even if you are currently receiving some e-mail notifications from Highmark Medicare Services.

To subscribe, go to Highmark Medicare Services’ E-mail Lists at:

https://www.highmarkmedicareservices.com/mailinglists.html

Click the “Part A & B PC-ACE Pro32 Users” box, type your e-mail address in the required field and click “Subscribe.”

It is a CMS requirement that you to use the most current version of the software program and to eliminate the use of prior versions within 90 days of receipt of the upgrade notification.

Therefore, it is very important that you subscribe to the PC-ACE Pro32 mailing list as soon as possible.

To save time and resources, the Internet download is the recommended method of installing and upgrading the PC-ACE Pro32 software program. In order to reduce costs, HMS has asked that you contact them at 1-866-488-0546 if you are no longer using the PC-ACE Pro32 CD-ROM. Please sign up to join this new electronic mailing list today.

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