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2012 Office of Inspector General (OIG) Work Plan Medicare Part B (continued) Print E-mail
Written by Benjamin L. Frosch   
Saturday, 21 January 2012 15:13

Sleep Testing
The OIG will take a closer look at the appropriateness of Medicare payments for sleep test procedures provided at sleep disorder clinics and determine whether they were in accordance with Medicare regulations and guidelines. A preliminary review by the OIG identified improper payments when certain modifiers codes are not reported with sleep test procedures. Therefore, the OIG will examine Medicare payments to physicians and Independent Diagnostic Testing Facilities (IDTF's) for sleep test procedures.

Outpatient Physical Therapy Services
The OIG will review outpatient physical therapy services provided by independent therapists to determine whether they were in compliance with Medicare reimbursement regulations. In the past, the OIG has identified claims for therapy services provided by independent physical therapists that were not, medically reasonable and necessary, or properly documented. They will focus on independent therapists who have a high utilization rate for outpatient physical therapy services because of their concern that they may not be medically reasonable and necessary.

Clinical Laboratories Services

The OIG will take a look at and review trends in laboratory utilization under Medicare, such as in the types of laboratory tests and the number of tests ordered. They will examine how physician specialty, diagnosis, and geographic differences in the practice of medicine affect physicians' laboratory test ordering. In 2008, Medicare paid about $7 billion for clinical laboratory services, which represents a 92 percent increase from 1998. It is believed that much of the growth in laboratory spending was the result of increased volume of ordered tests.

Physicians and Other Suppliers: High Cumulative Part B Payments
The OIG will be reviewing payment systems controls that identify high cumulative Medicare Part B payments to physicians and other providers. The OIG will evaluate whether payment system controls are in place to identify such payments and assess the effectiveness of those controls.

Medicare Part B services must be reasonable and necessary in accordance with the Social Security Act. A high cumulative payment is an unusually high payment made to an individual physician or provider, or on behalf of an individual beneficiary, over a specified period. The OIG is concerned that unusually high Medicare payments may indicate incorrect billing or fraud and abuse.

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Mr. Frosch is the President of Frosch Medical Consultants in Plantation, Florida.  He is a frequent contributor to FHIweekly and Specialty Focus. 
Last Updated on Saturday, 21 January 2012 16:08
 
ASK BEN: Medicare Q & A December 2011 Update Print E-mail
Written by Benjamin L. Frosch   
Monday, 02 January 2012 00:00

Q:  I recently completed my fellowship and will be setting up my own solo practice next month.  I wish to set up a P.A. (Professional Association) and am confused about which documents to submit.  Do I need to submit a separate CMS 855B to get a provider number for my P.A. and then obtain a personal number by completing a CMS 855I and CMS 855R reassigning my personal benefits to my P.A.  Are all of these documents necessary? 

New Physician
Orlando, FL  

A:  Since you are the sole owner and only member of your Professional Association (P.A.), you only need to complete the CMS 855I.  Pay particular attention to section 4 (A) which you would need to complete since you are the sole owner of a Professional Association and will bill Medicare through this business entity.   However, when you apply for your personal NPI, you should also apply for a NPI number pertaining to your Professional Association utilizing its tax ID number.  You will also have to submit a Medicare Participation Agreement and EFT 558 form for electronic funds transfer.  Please refer to Medicare Registration at www.floridamedicare.com for specific guidance.

Q:
    Our group practice received our Medicare number last year and was entered into the PECOS system. During that process, my partners and I also revalidated with Medicare Provider Enrollment. Is it true that we will have to revalidate again by 2013 and go through this entire painful process once more? Can we start the revalidation process now in order to get it over with?

Internal Medicine
Hollywood Florida

A:
  Its official, you must revalidate by 2013. Every provider who was enrolled in Medicare before March 25, 2011 must revalidate with Medicare in order to keep their billing privileges. However, you must wait for a letter from Medicare Provider Enrollment asking you to start your revalidation process. Your deadline for this is March 23 2013. If you do not make the deadline, your Medicare payments will be frozen until you are revalidated and updated in the Provider Enrollment Chain Ownership System (PECOS). You can revalidate utilizing the appropriate CMS855 forms or online through the PECOS website. It’s important to remember that revalidation means resubmitting your entire enrollment data and information including various supporting documents.

Q:
 I have a large geriatric practice and have started to perform more and more debridements. One of the reasons for this increase is that my nursing home patients have increased.   I am confused as to when I can and cannot bill a visit with these debridement codes. Any direction?

Geriatric Physician
Fort Lauderdale, FL

A:  Visits by the same physician on the same day as a minor surgery are included in the payment for the procedure unless a significant, separately identifiable service is also performed. As an example, a visit on the same day could be probably billed in addition to suturing a scalp wound if a full neurological examination is made for a patient with head trauma. You would attach a "25"modifer to your visit code which means it is a separately identified service.   Billing for a visit would not be appropriate if the physician only identified the need for the procedure and confirmed allergy and immunization status.

The initial consultation for evaluation of the problem by the physician to determine the need for surgery may be covered, but this policy only applies to major surgical procedures. The initial evaluation is always included in the allowance for a minor surgical procedure. Please refer to the CMS (Centers for Medicare and Medicaid) website for further instructions and a complete list of minor and major surgical procedures.

Mr. Frosch is the President of Frosch Medical Consultants, Inc. in Plantation, FL.                  

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Last Updated on Monday, 16 January 2012 13:09
 
ASK BEN: Medicare Q & A Fall 2011 Update (cont.) Print E-mail
Written by Benjamin L. Frosch   
Sunday, 13 November 2011 10:47

Q:
   Our practice does accept Medicare patients but we are not happy with Medicare's policies and payments in addition to all the trouble with denials, resubmission, etc. I would like to become a private practice that accepts no insurance whatsoever. I have heard that I cannot stop being a Medicare provider even if I opt out of Medicare. I could not have patients that hold a Medicare card as a private patient and charge my regular rate. Is it true?  

How can I have a practice that does not have to deal with health insurance companies or Medicare and where all patients would be self pay regardless of what insurance they may have? If the patients want to submit a claim to their insurance, that would be between them and their insurance company. In my view, we should be able to just hang a sign saying "We accept no insurance. Every patient is personally responsible for the payment of all charges which are due at the time of service". However, it seems impossible.

General Practice Medicine
Miami, FL

A: It is not impossible; however it may be difficult to find patients that agree to that financial arrangement. With respect to Medicare beneficiaries, if you decide to opt out of the Medicare program, you can charge Medicare patients whatever you wish. However, there are a variety of steps that must be taken to "opt out" and comply with Medicare regulations. For starters, in order for you to "opt out" you would need to complete and sign an "opt out affidavit" and submit it to Medicare Registration at First Coast Service Options, Inc. (FCSO). Thereafter, you would need to provide each of your Medicare patients with an "opt out contract" that specifies the conditions such as the fact that they are totally responsible for your fees and cannot even submit a claim to Medicare unassigned. There is a lot of detail to "opting out" of the Medicare program, please refer to www.floridamedicare.com for further information.

As far as private insured patients, you are not obligated to accept their insurance and you can charge them your regular rate at the time of service assuming you have no contractual obligations with any insurance company.

Mr. Frosch is the President of Frosch Medical Consultants, Inc. in Plantation, FL.

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Last Updated on Wednesday, 23 November 2011 13:03
 
Medicare Q & A: Summer 2011 Print E-mail
Written by Benjamin L. Frosch   
Wednesday, 03 August 2011 12:59

ASK BEN

Q.   We are a diagnostic center (Independent diagnostic testing facility) that has been in business for almost 5 years and will need to revalidate with Medicare provider enrollment in the near future. I heard that Medicare is now charging for revalidation. If this is true, what is the process for submitting payment and what is the cost?

Administrator, IDTF
Miami, FL

A. Effective Friday March 25, 2011, Medicare contractors will begin collecting application fees with certain providers/supplier enrollment applications (both paper and online applications). The application fee is currently $505 for calendar year 2011; however, this fee will vary from year-to-year based on adjustments made pursuant to the Consumer Price index for Urban Areas.

These application fees do not apply to physicians, non-physician practitioners, physician organizations, and non physician organizations. All institutional providers of medical or other items or services or suppliers must pay the application fee. All application fees must be submitted via paper check, until the Centers for Medicare & Medicaid Services (CMS) specifies a mechanism for submitting electronic funds at a future date.

Medicare provider enrollment will not be able to process any CMS applications without the proper application fee having been paid and credited to the United States treasury or an approved hardship exception. If the fee is not submitted, the application will be rejected or billing privileges revoked unless a hardship exception request is subsequently granted. Please refer to www.fcso.com for further information. 

Q:  I am a cardiologist that provides interpretation services to an Independent Diagnostic Testing Facility (IDTF).  Specifically, I provide the supervision and interpretation services on the diagnostic center's patients in addition to patients that I refer to the center.  They informed me that because I am their interpreting physician, the IDTF couldn't bill for the interpretation on my own patients.  I was advised that I must bill Medicare Part B directly for the interpretation provided at the diagnostic center on my own patients.  Are they accurate with this information?

Cardiologist
Palm Beach County, FL 

A:  According to the Florida Medicare Local Coverage Determination (LCD) policy on IDTF's, when the technical component of a test is performed by the IDTF and the interpreting practitioner is the practitioner who ordered the test, the IDTF cannot bill for the interpretation.   The interpreting practitioner must bill the interpretation since the IDTF cannot bill for the interpretation when the interpreting physician is the referring physician.    You can go to Medicare.FCSO.com  and refer to the LCD addressing IDTF's for further information.  

Q:  We are an Internal Medicine Practice that moved to a new office about two months ago.   We did the typical things that any business does when they move which includes completing and submitting forwarding address card to the postal service.  Since we moved to our new office, Medicare stopped submitting checks to us.  We called Medicare Customer Service and they advised us that since they were not notified of our new office, they would have to hold our checks until we complete and submit a variety of Medicare documents.  We called Customer Service numerous times and were given different instructions. Can you provide us with advice on how to receive our Medicare checks?  This is hurting our cash flow!

Internal Medicine
Gold Coast, FL

A:  When you relocate to a new office or add an additional location, you are obligated to notify Medicare Provider Enrollment within thirty days.  The US Postal Service will not forward Medicare checks even though you completed the forwarding address card.  The post office returns these checks to Medicare.  

What you need to do is complete a CMS 855B pertaining to this change of information and your new practice location and pay to address.  You also need to complete a CMS 588 EFT (Electronic Funds Transfer) form because Medicare will not mail you any more check after you are caught up.  Medicare now requires that payments be directly deposited into your group's bank account. 

Additionally, you may want to contact Customer Service to find out if you and/or any members of your group need to "revalidate" your PTAN numbers.  Once Medicare Provider Enrollment has processed all of the documents, you will receive all of your back payments in addition to receiving future payments, which will be directly deposited into the group's bank account.           
      
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 Mr. Frosch is the President of Frosch Medical Consultants, Inc. in Plantation, FL.

Last Updated on Sunday, 14 August 2011 16:57
 
Medicare Q & A: Spring 2011 Update Print E-mail
Written by Benjamin L. Frosch   
Saturday, 05 March 2011 16:00

Q:   We are a ten person group practice with four partners.  We are in the midst of moving and understand that we must submit a CMS 855B advising Florida Provider Enrollment of our new location.   Our question addresses the signature requirements in section 15.  It states that it needs to be signed by an authorized official, since there are four partners, can any us sign section 15 of the CMS 855B?

Administrator, Orlando

A:    For initial enrollment and revalidation, the certification statement (section 15) must be signed and dated (preferably in blue ink) by an authorized official.  An authorized official is an appointed official to whom the organization has granted legal authority to enroll it in the Medicare program, make changes or updates to the organization's status, and commit the organization to fully abide by the statues, regulations, and the program instructions of the Medicare program. 

            Assuming that all four of the partners are established authorized officials, any of the four can sign.  However, if you are not sure, you may want to check with Florida Medicare Provider Enrollment.  Although there are four partners in your entity, are all four partners enrolled and approved by Medicare as authorized officials? If you find out that there is only one individual partner recognized by Medicare as an authorized official, you may want to consider adding all the partners of the group as authorized officials.

 

Q: Up until a few weeks ago, I was an employee of a group.  I have decided to leave the group and start my own practice.  My problem is that I do not know my Medicare PTAN, and because of my adversarial departure from the group, they are taking the position that they do not have to give me my Medicare PTAN.  What would be the quickest way for me to obtain my Medicare provider number from Florida Medicare?

Cardiologist, Miami

 A:   The easiest way to obtain your Medicare provider number is if your former employer provides you with the Medicare approval letter which was issued when you joined their group.  That letter would have your Florida PTAN (provider number) and NPI.   Since it sounds like that is not going to happen, you need to send a written request to Medicare Provider Enrollment, PO Box 44021 Jacksonville, FL 32231-4021.  Put in the correspondence your request for the provider number, your legal business name, NPI number, telephone and fax number.  Additionally, since you have left the group it would behoove you to submit a CMS 855R (Reassignment of Benefits) deactivating your relationship with your former employer. 

 

Q:   The overwhelming majority of our patients are Medicare beneficiaries.  From time-to-time, we have Medicare patients that have other third party insurance and Medicare is their secondary.  My question is how is a Medicare payment determined?

Billing Manager

Gastroenterology Practice, Palm Beach

A:  The Medicare Secondary Payment (MSP) is determined by a series of calculations and comparisons. The primary insurer's claim processing details on their explanation of benefits (EOB) is needed to determine the secondary payment amount.   Three calculations are made per procedure; the lowest of the three is the secondary payment. 

1.) Determine what the Medicare primary payment would be.

  • Note the Medicare allowed amount for the procedure
  • If applicable subtract the Medicare deductible amount applied towards the procedure
  • Multiply the difference by the appropriate percentage:  62.5%, 80%, 85%, or 100% depending on the procedure code and/or provider

2.) Compare the Medicare allowed amount to the primary insurer's allowed amount, select the higher of the two

3.) Subtract the primary insurer's paid amount from the billed amount

 

Q:  I just opened up my own surgical practice and need some information from Medicare pertaining to global surgery days and the relative units (RVU) for a particular code. Can you direct me to that information?

Surgeon, Broward County           

A: The Centers for Medicare and Medicaid Services (CMS) make that information available on their website.  After you access their website, you need to find the "National Physician Fee Schedule Database Tool".  Click on that icon and you will find all the indicators which will have global surgery days including: pre-op, intra-operative, and post-op days.   You may also access that website by going to www.FCSO.com, which will direct you to that National Physician Fee Schedule database.

ABOUT THE AUTHOR:  Benjamin L. Frosch is the President of Frosch Medical Consultants, Inc. in Plantation, FL. 
If you have a question please click on the link to
ASK BEN
Last Updated on Sunday, 14 August 2011 16:58
 
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