News and Updates
February, 2010

James McNally, CPC
Third Party Payer Consultant

 

Medicare Fees for January – February 2010 Posted to Highmark Medicare Services Web Site
Medicare Announces New Non-Covered Modifiers for ABN Usage
Physicians Get Direction on Earning EHR-Adoption Bonus
Reminder on Ordering/Referring Physician PECOS Mandate
 

Medicare Fees for January – February 2010 Posted to Highmark Medicare Services Web Site

The fees that are now posted on the Highmark Medicare Services (HMS) web site are the correct fees to use during January and February 2010.

These fees were 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 by HMS will be paid using these fees for dates of service January 1, 2010 through February 28, 2010.

They reflect the consultation policy change and other increases in the practice expenses for certain other services. In addition, this temporary calculation is based on the 2009 Conversion Factor and will be in play until February 28, 2010 or until Congress makes any additional changes.

To download a copy in PDF, Excel, or Text format, go to the link below and click on the appropriate links under “2010 January 1 - February 28 - New Jersey Fee Schedule”.

https://www.highmarkmedicareservices.com/partb/reimbursement/feedb-2010.html

Medicare Announces New Non-Covered Modifiers for ABN Usage

CMS has announced plans to update the ABN modifiers effective April 1, 2010.

Modifier GA should be used for items or services that may be denied as not reasonable or necessary and has been revised to read, “Waiver of liability statement issued as required by payer policy.” You’ll use this when a required ABN was issued as dictated by instructions in an LCD.

The Advanced Beneficiary Notice (ABN) and the GA modifier must be used each time a procedure or service is provided. An example would be when a test is performed more often than the Local Coverage Determination (LCD) policy allows or a diagnosis is not on a Covered Indications list for a given procedure.

Modifier GX — GX is a new modifier and has been created with the definition “Notice of Liability Issued, Voluntary under Payer Policy” which should be used to report when a voluntary ABN was issued for a service.

Modifier GX should be used when you expect that the item or service will be denied because it is program exclusion or does not meet the definition of any Medicare benefit such as refraction, cosmetic surgery, or a personal comfort item.

No Medicare ABN is needed. You add the GX modifier when submitting a claim at the patient’s request, since the patient needs the Medicare denial before submitting a claim to a secondary insurance.

You may use the –GX modifier to provide beneficiaries with voluntary notice of liability regarding services excluded from Medicare coverage by statute, and in these cases, you may report it on the same line as certain other liability-related modifiers. Please note that the –GX modifier must be submitted with non-covered charges only, and your FI or A/B MAC will deny the claim as a beneficiary liability.

Please note that you don’t have to issue an ABN and submit the claim to your carrier with a modifier appended for services that are statutorily non-covered or program exclusions such as refraction and routine exams under Medicare.

To read more, see the MLN Matters article at:

http://www.cms.hhs.gov/MLNMattersArticles/downloads/MM6563.pdf

Physicians Get Direction on Earning EHR-Adoption Bonus

The Department of Health and Human Services (HHS) recently released an interim and proposed rule on its electronic health record (EHR) incentive program, and the initial set of EHR technology standards and certification criteria. Beginning in 2011, physicians can earn up to $44,000 in incentives for demonstrating “meaningful use” of certified EHR systems as outlined at the link here.

See Table 1 – Page 12 - http://edocket.access.gpo.gov/2010/pdf/E9-31217.pdf

In order to receive the incentive, a provider has to demonstrate meaningful use of a certified EHR:

  • For a 90-day period sometime in the first payment year and

  • For an entire year in subsequent years.

Meaningful use will be defined in three stages through rulemaking: stage 1 starts in 2011, stage 2 in 2013 and stage 3 in 2015. Stages 2 and 3 will be defined in future CMS rulemaking. In order to qualify for the incentive during stage 1 (see link below), a provider’s certified EHR must

  • Have certain capabilities and

  • Perform given functions (when applicable) for a certain percentage of the time.

See Table 2 – Page 25 - http://edocket.access.gpo.gov/2010/pdf/E9-31217.pdf

Providers will have to attest that they use certified EHR technology to report on a core set of measures and a subset of clinical measures most appropriate to their specialty.

Those who do not adopt and become “meaningful users” by 2015 face financial penalties in 2016.

Reminder on Ordering/Referring Physician PECOS Mandate

Physicians are reminded that effective April 2010, the Ordering/Referring Physician PECOS mandate goes into effect and claims will begin to be denied as per the following scenarios.

  • During Phase 2, (April 5, 2010 and thereafter): If the billed item or service requires an ordering/referring provider and the ordering/referring provider is not in the claim, the claim will not be paid. It will be rejected. If the ordering/referring provider is on the claim, Medicare will verify that the ordering/referring provider is in PECOS and eligible to order and refer. If the ordering/referring provider is not in PECOS, the carrier or Part B MAC will search its claims system for the ordering/referring provider. If the ordering/referring provider is not in PECOS and is not in the claims system, the claim will not be paid. It will be rejected. If the ordering/referring provider is in PECOS or the claims system but is not of the specialty to order or refer, the claim will not be paid. It will be rejected.

  • In both phases, Medicare will verify the NPI and the name of the ordering/referring provider reported in the claim against PECOS or, if the ordering/referring provider is not in PECOS, against the claims system. In paper claims, be sure not to use periods or commas within the name of the ordering/referring provider. Hyphenated names are permissible.

  • Providers who order or refer may want to verify their enrollment in PECOS as Medicare may already have entered your enrollment information into PECOS if you made any changes to your enrollment information over the last 6 years. They may do so by accessing the Internet-based PECOS web site at:

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

If you have made NO changes to your enrollment information over the last 6 years, you may not be in the PECOS system but may want to set up a record on a going forward basis as any future changes can then be done on-line instead of through the cumbersome paper application process.
Before using Internet-based PECOS, providers should read the educational material about Internet-based PECOS that is available at the link here:

http://www.cms.hhs.gov/MedicareProviderSupEnroll/04_InternetbasedPECOS.asp

Once at that site, scroll to the downloads section of that page and click on the materials that apply to you and your practice.

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

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