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Managed Care

American Medical Association's (AMA) releases annual National Health Insurer Report Card

One in five insurers process claim incorrectly. Read More>>

UnitedHealth Group UCR Settlement Claim Forms - Deadline Oct. 5, 2010
The American Medical Association Practice Management Center has launched a new online resource that will help physicians file claims in the record-breaking $350 million settlement.

Federation organizations are welcome to either link to the AMA’s Web site at www.ama-assn.org/go/ucrsettlement or co-brand the two key online resources, “UnitedHealth Group UCR Settlement: Frequently asked questions” and “Step-by-step guide to maximizing your recovery from the UnitedHealth Group UCR Settlement,” to share with their members. Please contact Cindy Penkala at cynthia.penkala@ama-assn.org if you are interested in co-branding these resources.

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ASC Payment

Surgical Groups Discuss ASC Update with CMS

ASC payments remain relatively unchanged next year, under the 2011 proposed payment rule for hospital outpatient departments and ASCs recently released by CMS. The Academy, along with the Outpatient Ophthalmic Surgery Society and other surgical groups, met with CMS officials who oversee the ASC payment system. The groups raised the concern that CMS’ failure to use the same update system for ASCs as is used for hospital outpatient departments has contributed to a growing gap in the level of payments between the two. Ignoring calls from both the Medicare Payment Advisory Commission and several members of Congress, CMS has indicated in its recently proposed 2011 payment rule that the agency will again use the Consumer Price Index for all Urban Consumers (CPI-U) next year to set ASC payments. The CPI-U is not a good measurement of costs or inflation for businesses because it excludes the cost of energy and technology – two areas that contribute significantly to the cost of running an ASC. CMS acknowledged in the meeting that it does have the discretion to use other measures, but said it has not found a system that was more suitable. Development of alternatives will be explored with the broader ASC community.

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Medicare Billing

Additional Standards for DME Providers Become Effective Sept. 27
Physicians who supply durable medical equipment (DME), including optical shops that provide post-cataract glasses, are required to meet new business standards beginning Sept. 27. Per the final rule providers must:

  • Meet applicable state licensing requirements. A DME supplier may hire a licensed W–2 employee on a part-time or full-time basis; CMS will permit contracting for licensed services as long as the state permits contracting for licensed services and the DME supplier complies with state licensure.
  • Maintain a minimum 200-square-foot space. Signs for the space must be visible at the main entrance of the facility, visible to the public and post business hours. CMS will establish a three-year phase-in period for DME suppliers who have signed leases to comply with the new facility requirements.
  • Notify the National Supplier Clearinghouse (NSC) within 30 days of changes to the business hours.
  • Allow CMS, the NSC, or agents of CMS or the NSC, to conduct on-site inspections to make sure suppliers are complying with requirements. If a visit is conducted and no one is present during posted business hours, the NSC will conduct an unannounced follow-up visit prior to denying or revoking billing privileges.
  • Maintain ordering and referring documentation for seven years, based on the date of service, not the date of payment.
  • Be open and available to the public a minimum of 30 hours per week.

CMS added an exception to this supplier standard for physicians and licensed non-physician practitioners who only furnish DME supplies to their own patients.

Working to Resolve Medicare Reimbursement Issue Caused by PECOS Enrollment Process
The Academy has learned that some ophthalmologists may have been deactivated from Medicare by their carrier for not being fully enrolled in the Provider Enrollment, Chain and Ownership System (PECOS) system. In June, CMS announced it would not implement changes that automatically reject Medicare claims based on orders, certifications and referrals made by providers who did not have their PECOS enrollment applications approved by July 6. CMS also agreed to employ a contingency plan for those working toward enrollment by the deadline, but who are not yet enrolled. The Academy is working to resolve the issue with CMS. In addition, the AMA website includes a section dedicated to Medicare enrollment issues. More details about PECOS are on the CMS website.

Health Care Reform Act Affects Medicare Filing Requirements
One of the lesser-known changes in the Patient Protection and Affordable Care Act has amended the time period for filing Medicare Part B claims. Claims for services furnished on or after Jan. 1 now must be filed within one calendar year of the date of service. Additionally, claims for services furnished this year must be filed no later than Dec. 31. Services provided from Oct. 1, 2009 to Dec. 31, 2009 must be filed by the end of this year or they will be denied. Claims from before October 2009 will follow the previous timeline that allowed a minimum of 15 months (sometimes up to 26 months) to submit claims. CMS indicates it will outline some exceptions to the filing deadlines in upcoming rulemaking.

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