News and Updates
May, 2010

James McNally, CPC
Third Party Payer Consultant

 

Congress Postpones Medicare Fee Reductions Yet Again
United Healthcare UCR Settlement Documents are on the Way
Health First to Cut Reimbursements Effective July 2010
Changes made to Timely Filing Requirements for Medicare Fee-For-Service Claims
PPACA Calls for Disclosures when Performing Certain Imaging Services for Medicare Patients
CMS Issues Alert on Identity Theft Warning
Empire Blue Cross Blue Shield Releases April 2010 Provider Newsletter-Changes to Consultation Billing and Other Topics Are Highlighted

Medicare Advantage Fraud, Waste, and Abuse (FWA) Training no longer Mandatory

Congress Postpones Medicare Fee Reductions Yet Again!
This Time until June 1, 2010

As reported previously, the 21.2 percent cut in Medicare fees has technically been in effect since April 1, 2010.

However, no payments were made at this drastically reduced rate as the Center for Medicare and Medicaid Services (CMS) had ordered their contractors to hold all claim payments until April 14, 2010.

In the meantime, Congress passed, and the President approved, an extension bill on the evening of April 15, 2010 that postpones these draconian cuts until June 1, 2010.

It is possible (but not likely) that some claims for physician services may have been processed on April 15, 2010 at rates reflecting the 21.2 percent cut. Highmark Medicare has stated that no claims were processed at the reduced rate.

However, CMS has reiterated that any such claims will be reprocessed and payment adjustments made without physicians having to take any additional action.

In any event, all claims that were held will be released for payment.

Please keep in mind that the statutory payment floors still apply and, therefore, clean electronic claims cannot be paid before 14 calendar days after the date they are received by Medicare contractors (29 calendar days for clean paper claims).

Physician practices should continue to submit claims using the Fee Schedules presently posted on the MAC web sites.

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

United Healthcare UCR Settlement Documents are on the Way

A record breaking settlement has been reached in organized medicine’s action against United Healthcare (UHC) and their use of artificially low payments via their UCR fee schedules in the payment for out of network services to physicians.

More than $350 million is available to compensate physicians and their patients for 15 years of artificially low payments for these out-of-network services.

The deadline for filing a claim to share in the settlement fund is October 5, 2010. The settlement claims administrator began mailing the settlement notice and claim forms to physicians on April 16, 2010.

Physicians should be on the lookout for a plain white mailer with “United Healthcare” written on the bottom and with the return address referencing the Settlement Claims Administrator: United Healthcare Class Action Litigation c/o Berdon Claims Administration LLC, P.O. Box 15000, Jericho, NY 11853-1001.

In order to assist you in this effort, the American Medical Association (AMA) is providing a new on-line resource that will help affected physicians with step-by-step guide to and help in determining eligibility, assembling documentation and filing a claim under the terms of the settlement.

Go to the link here and read more about what needs to be done in regard to this record-breaking settlement reached in the AMA’s legal victory against UnitedHealth Group—the nation's largest health insurer and parent company of UHC.

http://www.ama-assn.org/ama/pub/advocacy/current-topics-advocacy/private-sector-advocacy/health-insurer-settlements/unitedhealth-ucr-settlement.shtml

AMA physician members can also get personal assistance with filing a claim by going to the AMA Practice Management Center at the link here or by calling (800) 621-8335.

http://www.ama-assn.org/ama/pub/physician-resources/solutions-managing-your-practice/practice-management-center.shtml

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

Health First to Cut Reimbursements Effective July 2010

In what may be a trend in the industry in the coming months, Health First has announced a reimbursement cut in payments to physicians effective July 1, 2010.

A letter dated April 1, 2010 has been sent out announcing these cuts along with instructions on how to resign from the plan if the practice chooses to exercise their termination rights under their contract. The letter also follows the state law that requires that physicians be given 90 days notice of any adverse reimbursement change.

A sample of the planned fee cuts along with the procedure codes was sent along with this letter.

If you are no longer able to work within these payment constraints, your termination or resignation letter from Health First should be sent to the following address. You may also fax it to the number listed below.

Health First
Provider Services
PO Box 5168
New York NY 10274-5168
Fax: 1 646 313 4634

Changes made to Timely Filing Requirements for Medicare Fee-For-Service Claims

On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA), which amended the time period for filing Medicare fee-for-service (FFS) claims as one of many provisions aimed at curbing fraud, waste, and abuse in the Medicare program.

Under the new law, claims for services furnished on or after January 1, 2010, must be filed within one calendar year after the date of service.

In addition, the law mandates that claims for services furnished before January 1, 2010, must be filed no later than December 31, 2010. 

The following rules apply to claims with dates of service prior to January 1, 2010.

  • Claims with dates of service before October 1, 2009, must follow the pre-PPACA timely filing rules.

  • Claims with dates of service October 1, 2009, through December 31, 2009, must be submitted by December 31, 2010. 

The PPACA also permits the Secretary to make certain exceptions to the one-year filing deadline. 

However, at this time, no exceptions have been established.  However, proposals for exceptions will be specified in future proposed rulemaking.

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

PPACA Calls for Disclosures when Performing Certain Imaging Services for Medicare Patients

The Patient Protection and Affordable Care Act (PPACA) (H.R. 3590), recently signed by the President, contains a number of onerous requirements that impact medical practices that provide CT, MRI or PET to Medicare patients. This new policy is also known as the Medicare in-office ancillary exception regulation.

You must now provide the following disclosures to your Medicare patients:

  • Inform the patient in writing at the time of the referral that the individual may obtain the ordered services from a person other than the ordering physician or another physician in the group.

  • You are then required to provide the patient with a list of providers of the service who are located within the area in which the patient resides. The law, however, provides no guidance on what this list should look like or what must be included).

If you fail to provide the proper disclosure to the patient and to provide the list of alternative providers, the service is non-reimbursable and physicians who submit non-reimbursable claims have potential exposure under the federal False Claims Act.

CMS Issues Alert on Identity Theft Warning

AdvanceMed, the Program Safeguard Contractor for Part A Medicare in Ohio, Kentucky, and Minnesota and for Part B in Ohio and Kentucky, would like to share some important information related to provider identity theft. In October of 2008, a scheme was identified by Cahaba Government Benefit Administrators related to provider identity theft. Since that time, another scheme of the same type has recently been identified by Noridian Administrative Services in Minnesota.

The scheme works as follows: the provider who is the potential victim will receive a legitimate looking facsimile from their carrier’s provider enrollment department. The request is posted on counterfeit letterhead from the carrier. The letter states that the carrier is updating their provider enrollment file and demands a response from the physician within 48 hours or they will experience a disruption in their payments. The individuals involved in this scheme are not employed by the carriers.

Although this scheme has not been detected in the states of Ohio and Kentucky, AdvanceMed suspects that these identity theft perpetrators will repeat this scheme in our jurisdiction. Additionally, it has been found that several providers have had their identities stolen when they applied for fictitious jobs. Once an application is submitted by the provider, the perpetrators have everything required to start billing as the victimized provider.

AdvanceMed encourages the following steps to be taken in order to help in identity theft protection:

  • Shred all sensitive documents

  • Do criminal background checks when hiring new employees

  • Monitor any correspondence that leaves your office outbound for Medicare and other insurance companies

  • Protect your own information in the same way that you protect your patients’ information

  • If you receive a request from the carrier for a provider enrollment update via facsimile, call the carrier to confirm that it originated with them. Do not use the phone number listed on the facsimile transmittal

  • When applying for new positions, do extensive research about your potential employer before giving out personal information

  • Do not post your resume that includes identifying provider numbers on the Internet

  • Educate your staff members regarding the importance of protecting your provider information

If you suspect that you have been the victim of identity theft, contact the carrier immediately.

Visit the Web site http://www.ftc.gov/bcp/edu/microsites/idtheft/ published by the Federal Trade Commission for more information on identity theft.

Empire Blue Cross Blue Shield Releases April 2010 Provider Newsletter
Changes to Consultation Billing and Other Topics Are Highlighted

Empire Blue Cross Blue Shield (EBCBS) has released the April 2010 edition of their Provider Newsletter.

This issue contains important information on consultation billing for certain products, changes to their managed care referral form, and other topics that are important to your treatment of EBCBS subscribers.

To read more, go to:

http://www.empireblue.com/provider/noapplication/f5/s1/t2/pw_b144120.pdf?refer=ehpprovider

Medicare Advantage Fraud, Waste, and Abuse (FWA) Training no longer Mandatory

As reported previously and expected, the Center for Medicare and Medicaid Services (CMS) has published a rule about Medicare Advantage and Part D plans requiring that physicians take a formal course on an annual basis in Fraud, Waste and Abuse (FWA) training.

The rule explains that physicians and suppliers, by virtue of their being enrolled in the Medicare program do not need to obtain fraud, waste and abuse-compliance training from Medicare Advantage plans.

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

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