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billing the dmercs and others for infusion pumps - ION Solutions

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BILLING THE DMERCS ANDOTHERS FOR INFUS<strong>ION</strong> PUMPSOr, Should I Bo<strong>the</strong>r?


DISCLAIMER This workshop <strong>and</strong> o<strong>the</strong>r material provided are designed toprovide accurate <strong>and</strong> authoritative in<strong>for</strong>mation. The authors,presenters <strong>and</strong> sponsors have made every reasonable ef<strong>for</strong>t toensure <strong>the</strong> accuracy of <strong>the</strong> in<strong>for</strong>mation provided in thisworkshop material. However, all appropriate sources should be verified <strong>for</strong> <strong>the</strong>correct ICD-9-CM Codes, ICD-10-CM Diagnosis Codes,CPT/HCPCS Codes <strong>and</strong> payer guidelines. The user isultimately responsible <strong>for</strong> correct coding <strong>and</strong> <strong>billing</strong>. The author <strong>and</strong> presenters are not liable <strong>and</strong> make noguarantee or warranty; ei<strong>the</strong>r expressed or implied, that <strong>the</strong>in<strong>for</strong>mation compiled or presented is error- free. All users needto verify in<strong>for</strong>mation with <strong>the</strong> Fiscal Intermediary, Carriers,o<strong>the</strong>r third party payers, <strong>and</strong> <strong>the</strong> various directives <strong>and</strong>memor<strong>and</strong>ums issued by CMS, DOJ, OIG <strong>and</strong> associated state<strong>and</strong> federal governmental agencies. The user assumes all risk <strong>and</strong> liability with <strong>the</strong> use <strong>and</strong>/ormisuse of this in<strong>for</strong>mation.


BUZZWORDSDIF-DME In<strong>for</strong>mation FormDME – Durable MedicalEquipmentDMERC – Durable MedicalEquipment Regional CarrierABN – Advanced BeneficiaryNoticeNONC – Notice of Non-CoverageNEMB – Notice ofExclusions From MedicareBenefitsADMC – AdvanceDetermination of MedicareCoverageDMEPOS – DME,Pros<strong>the</strong>tics, Orthotics, <strong>and</strong>SuppliesSADMERC – StatisticalAnalysis DME RegionalCarrierLMRP – Local Medical ReviewPolicy␣See LCDPEN (Therapy) – Parenteral,Enteral NutritionCMN – Certificate of MedicalNecessityNSC – National SupplierClearinghouseLCD – Local CoverageDecision␣See NCDNCD – National CoverageDecisionMUE – Medically Unlikely Edit


DEFINIT<strong>ION</strong> OF DME Supplier: Can be a number of entities, but in yourcase, it means a a physician or o<strong>the</strong>r practitioner, oran entity o<strong>the</strong>r than a provider that furnishes healthcare services under Medicare. DME: DME is covered under Part B as a medical oro<strong>the</strong>r health service (§1861(s)(6) of <strong>the</strong> Social SecurityAct [<strong>the</strong> Act]) <strong>and</strong> is equipment that:Can withst<strong>and</strong> repeated use;Is primarily <strong>and</strong> customarily used to serve a medicalpurpose;Generally is not useful to a person in <strong>the</strong> absence of anillness or injury; <strong>and</strong>Is appropriate <strong>for</strong> use in <strong>the</strong> home.All above requirements of <strong>the</strong> definition must be metbe<strong>for</strong>e an item can be considered to be durable medicalequipment


WHAT IS REIMBURSABLE DME? Payment may be made <strong>for</strong> <strong>the</strong> following: Items of DME that are reasonable <strong>and</strong> necessary Separate charges <strong>for</strong> repair, maintenance, <strong>and</strong>delivery, if <strong>the</strong> DME is owned by <strong>the</strong> patient. Separate charges <strong>for</strong> disposable supplies, if <strong>the</strong>y areessential <strong>for</strong> <strong>the</strong> effective use of medically necessaryDME. These must be customarily used with DME. DME must be used in patient’s residence o<strong>the</strong>rthan a health care institution. A physician’s detailed order or prescription,<strong>and</strong>/or certificate of medical necessity (ifrequired) are necessary.


HOW IS DME PAID? DMERCs pay claims like any o<strong>the</strong>r Medicarecontractor based on submission of claims by <strong>the</strong>supplier. DME has a fee schedule like physicians, labs, <strong>and</strong>o<strong>the</strong>r entities. It is updated annually <strong>and</strong> is availableon <strong>the</strong> CMS web site athttps://www.cms.gov/DMEPOSFeeSched/LSDMEPOSFEE/list.aspBy stateCeiling <strong>and</strong> Floor The DMEPOS fee schedule classifies fees byNewPurchase of used itemsPer month rental items


HOW IS DME CLASSIFIED? IN=Inexpensive/routinely purchased...DME; FS=Frequency Service...DME; CR=Capped Rental... DME; OX=Oxygen <strong>and</strong> Oxygen Equipment... OXY; OS=Ostomy, Tracheostomy <strong>and</strong> Urologicals..DME IN=Inexpensive/routinely purchased...DME; S/D= Surgical Dressings...S/D; Pros<strong>the</strong>tics <strong>and</strong> Orthotics...P/O; Supplies...DME; <strong>and</strong> TENS...DME,


PORTABLE PUMP RENTAL: CR 30.6 Capped Rental Items For <strong>the</strong>se items of DME, contractors pay <strong>the</strong> feeschedule amounts on a monthly rental basis not toexceed a period of continuous use of 15 months. In<strong>the</strong> tenth month of rental, <strong>the</strong> beneficiary is given apurchase option (see §30.5.2). If <strong>the</strong> purchase optionis exercised, contractors continue to pay rental feesnot to exceed a period of continuous use of 13 months<strong>and</strong> ownership of <strong>the</strong> equipment passes to <strong>the</strong>beneficiary. If <strong>the</strong> purchase option is not exercised,contractors continue to pay rental fees until <strong>the</strong> 15month cap is reached <strong>and</strong> ownership of <strong>the</strong>equipment remains with <strong>the</strong> supplier (see §30.5.4). In<strong>the</strong> case of electric wheelchairs only, <strong>the</strong> beneficiarymust be given a purchase option at <strong>the</strong> time <strong>the</strong>equipment is first provided (see §30.5.3).


PORTABLE PUMP: RENTAL PROVIS<strong>ION</strong>S Capped Rental Fee Variation For <strong>the</strong> first three rental months, <strong>the</strong> capped rentalfee schedule is calculated so as to limit <strong>the</strong> monthlyrental to 10 percent of <strong>the</strong> average of allowedpurchase prices on assigned claims <strong>for</strong> newequipment during a base period, updated to account<strong>for</strong> inflation. For each of <strong>the</strong> remaining months, <strong>the</strong>monthly rental is limited to 7.5 percent of <strong>the</strong>average allowed purchase price. After paying <strong>the</strong>rental fee schedule amount <strong>for</strong> 15 months, no fur<strong>the</strong>rpayment may be made except <strong>for</strong> <strong>the</strong> 6-monthmaintenance <strong>and</strong> servicing fee (see §40.2).


CERTIFICATE OF MEDICAL NECESSITY For certain items or services billed to <strong>the</strong> DMERegional Carrier (DMERC), <strong>the</strong> supplier must receivea signed Certificate of Medical Necessity (CMN) from<strong>the</strong> treating physician.CMNs are not required <strong>for</strong> <strong>the</strong> same items when billed byHHAs to RHHIs. Instead, <strong>the</strong> items must be included in<strong>the</strong> physician's signed orders on <strong>the</strong> home health plan ofcare. See <strong>the</strong> Medicare Program Integrity Manual, Chapter6.The FI will in<strong>for</strong>m o<strong>the</strong>r providers (see §01 <strong>for</strong> definition pfprovider) of documentation requirements.Contractors may ask <strong>for</strong> supporting documentation beyonda CMN. Refer to <strong>the</strong> local DMERC Web site described in§10 <strong>for</strong> downloadable copies of CMN <strong>for</strong>ms


OLD PUMP CMN—CMS FORM 851


BILLING FOR SUPPLIES AND DRUGS Suppliers <strong>and</strong> providers bill supplies that arenecessary <strong>for</strong> <strong>the</strong> effective use of DME, includingdrugs, with <strong>the</strong> appropriate HCPCS code identifying<strong>the</strong> supply. Suppliers <strong>and</strong> providers, o<strong>the</strong>r than HHAs, bill <strong>for</strong>drugs that are necessary <strong>for</strong> <strong>the</strong> effective use ofimplanted DME (HCPCS codes E0751, E0753, E0782,<strong>and</strong> E0783) to <strong>the</strong> local carrier. The DMERCs must:accept NDC codes <strong>for</strong> all drugs billed in <strong>the</strong> NCPDP<strong>for</strong>mat:accept NDC codes <strong>for</strong> oral anti-cancer drugs billed in ANSIX12N 837P, NCPDP <strong>and</strong> paper;accept HCPCS <strong>for</strong> all o<strong>the</strong>r drugs billed in ANSI X12N837P <strong>and</strong> paper;And return as unprocessable claims submitted with aninvalid NDC using Remittance Advice Remark Code N60.


SNF CONSOLIDATED BILLING The Social Security Act (§1861(n)) specifies that ahospital or a skilled nursing facility cannot be apatient’s home <strong>for</strong> purposes of <strong>the</strong> DME benefit. When DME is furnished <strong>for</strong> a patient in a SNF,<strong>the</strong> DME Carriers may not make separatepayment <strong>for</strong> DME, since DME is included in <strong>the</strong>payment that <strong>the</strong> SNF receives <strong>for</strong> <strong>the</strong> <strong>the</strong>covered stay itself.


WHO ARE THE DME MAC’S?WHY ARE THE SOOO DIFFERENT?


MAIN DME CONTRACTORS Durable Medical Medicare AdministrativeContractor (DME MAC) National Supplier Clearinghouse (NSC) Pricing, Analysis, <strong>and</strong> Coding (PDAC) Common Electronic Interchange (CEDI) Competitive Bid Implementation Contractor(CBIC)


DME MAC CONTRACTORS JURISDICT<strong>ION</strong> ANHIC JURISDICT<strong>ION</strong> BNational GovernmentServices (NGS) JURISDICT<strong>ION</strong> CCIGNA GovernmentServices JURISDICT<strong>ION</strong> DNoridian AdministrativeServices (NAS)


DME MAC Types of Claims DME Pros<strong>the</strong>tics Orthotics Supplies Process claims according to where <strong>the</strong> beneficiaryresides. Based on Social Security Administration address onfile.


NSC Supplier EnrollmentCMS 855-S application through PECOS or not.As of 3/25/2011, <strong>the</strong>re is a $500 per applying supplier.Changes to enrollment must go through NSC Medicare DMEPOS Supplier St<strong>and</strong>ards Verifies accreditation st<strong>and</strong>ardsExemption: Physicians <strong>and</strong> non-physician practitioners (asdefined in Section 1842(b)(18) of <strong>the</strong> Social Security Act) whenitems are furnished only to <strong>the</strong> physician or non-physicianpractitioner's own patients as part of his or her physicianservice. Verified Surety Bond requirementExemption: Physicians <strong>and</strong> non-physician practitioners (asdefined in Section 1842(b)(18) of <strong>the</strong> Social Security Act) whenitems are furnished only to <strong>the</strong> physician or non-physicianpractitioner's own patients as part of his or her physicianservice.


NSC Contact Infohttp://www.palmettogba.com/nsc 866-238-9652Medicare.NSC@palmettogba.com


PDAC Proper Use of HCPCS Assists CMS with DMEPOS fee schedules DMECS HCPCS in<strong>for</strong>mation Modifiers Fee Schedules DMEPOS Product Classifications Contact In<strong>for</strong>mation https://www.dmepdac.com/ 877-735-1326


CEDI Single front-end electronic solution CEDI works closely with DME MAC software vendors Billing services Clearinghouses Trading Partners Free software Contact in<strong>for</strong>mation http://www.ngscedi.com 866-311-9184 ngs.cedihelpdesk@wellpoint.com


GENERAL COVERAGEGUIDELINES


DME MAC COVERED DRUGS Epoetin alfa used in ESRD O<strong>the</strong>r drugs used in home dialysis Oral anti-cancer drugs Oral anti-emetics used in chemo<strong>the</strong>rapy Nebulizer drugs Immunosuppressive drugs used in transplant External <strong>infusion</strong> pump drugs


CAPPED RENTAL ITEMS(EXTERNAL INFUS<strong>ION</strong> PUMPS) Paid on a monthly rental basis 13 month period Supplier transfers title to <strong>the</strong> beneficiary, if <strong>the</strong>beneficiary wants <strong>the</strong> item Modifiers RR: Rental KH: Month 1 KI: Months 2-3 KJ: Months 4-13 EXAMPLE: Patient with a first month rental starting5/1/2011 would have a charge of: E0781-RR-KH charged 5/1/2011-6/1/2011


OTHER MODIFIERS JB: Administered subcutaneously Effective 1/1/2011 For all immune globulin <strong>and</strong> associated pump J1559, J1562. E0779 No modifier <strong>for</strong> o<strong>the</strong>r methods of administration ondrugs or pump—but <strong>the</strong>re are rental modifiers aspreviously described. Not medically necessary GA: Waiver of liability on file, supplier expects denial GZ: No ABN obtained, item expected to deny as notreasonable or necessary GY: Item or service statutorily excluded, e.g.disposable pump EY: No order on file, denies, should have an ABN


PARTIAL MONTH BILLING (MEDICARE)??? Effective <strong>for</strong> dates of service on or after April 1, 2002, a newmodifier has been established to indicate <strong>billing</strong> of durablemedical equipment <strong>for</strong> a partial month of service: KR Rentalitem - <strong>billing</strong> <strong>for</strong> partial month.Suppliers who wish to exercise <strong>the</strong> option of <strong>billing</strong> Medicare <strong>for</strong> apartial month(s) of rental on DME should use <strong>the</strong> KR modifier after<strong>the</strong> pricing modifier.Although suppliers are entitled to bill <strong>and</strong> receive a full month’sreimbursement <strong>for</strong> rented DME provided to qualifying beneficiaries,suppliers now have <strong>the</strong> option of <strong>billing</strong> <strong>for</strong> a partial month of service<strong>and</strong> receiving reimbursement on a prorated basis by using <strong>the</strong> KRmodifier. A supplier has <strong>the</strong> option to bill a partial month <strong>for</strong> suppliesor <strong>for</strong> equipment if <strong>the</strong> supplier wants to avoid causing an overlapclaim.Suppliers who elect to bill <strong>for</strong> partial months should enter <strong>the</strong> date ofservice <strong>the</strong> rental period begins in <strong>the</strong> “From” field <strong>and</strong> <strong>the</strong> endingrental date of service in <strong>the</strong> “To” field of <strong>the</strong> HCFA-1500 (12-90) claim<strong>for</strong>m <strong>for</strong> each partial month of <strong>billing</strong>. The modifier RR, indicatingrental, must also be appended to <strong>the</strong> claim line <strong>for</strong> <strong>the</strong> partial monthrental item(s). (Source: CIGNA Provider Bulletin 2002) Some payers (e.g. United) will pay ONLY a full month, evenwith this modifier.


DIF DOCUMENTAT<strong>ION</strong>Section 1833(e) of <strong>the</strong> Social Security Act precludes payment to anyprovider of services unless "<strong>the</strong>re has been furnished suchin<strong>for</strong>mation as may be necessary in order to determine <strong>the</strong> amountsdue such provider". It is expected that <strong>the</strong> patient's medical recordswill reflect <strong>the</strong> need <strong>for</strong> <strong>the</strong> care provided. The patient's medicalrecords include <strong>the</strong> physician's office records, hospital records,nursing home records, home health agency records, records fromo<strong>the</strong>r healthcare professionals <strong>and</strong> test reports.This documentation must be available upon request.An order <strong>for</strong> eachitem billed must be signed <strong>and</strong> dated by <strong>the</strong> treating physician, kepton file by <strong>the</strong> supplier, <strong>and</strong> made available upon request.Items billed be<strong>for</strong>e a signed <strong>and</strong> dated order has been received by <strong>the</strong>supplier must be submitted with an EY modifier added to eachaffected HCPCS code.A DME In<strong>for</strong>mation Form (DIF), which has been completed,signed, <strong>and</strong> dated by <strong>the</strong> supplier, must be kept on file by <strong>the</strong>supplier <strong>and</strong> made available upon request. The DIF <strong>for</strong>External Infusion Pumps is CMS Form 10125. The initialclaim must include an electronic copy of <strong>the</strong> DIF.


DIF DOCUMENTAT<strong>ION</strong> If a patient begins using an <strong>infusion</strong> <strong>for</strong> one drug<strong>and</strong> subsequently <strong>the</strong> drug is changed or ano<strong>the</strong>rdrug is added, a Revised DIF must be submitted<strong>for</strong> use of <strong>the</strong> pump with <strong>the</strong> new or additionaldrug. In <strong>the</strong> case of an additional drug, all drugs<strong>for</strong> which <strong>the</strong> pump is used should be included on<strong>the</strong> Revised DIF. A supplier that is unrelated to your practice maynot complete <strong>the</strong> DIF <strong>for</strong>m. It must be completedby a provider in your practice.


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791)I. Administration of deferoxamine <strong>for</strong> treatmentof chronic iron overload;II.III.IV.Administration of chemo <strong>for</strong> primaryhepatocellular carcinoma or colorectal cancerwhere <strong>the</strong> patient refuses surgical excision of<strong>the</strong> tumor;Administration of morphine used in <strong>the</strong>treatment of intractable cancer pain;Administration of continuous insulin in definedsituations (see your LCD <strong>for</strong> more in<strong>for</strong>mation);AND


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791)v. Administration of o<strong>the</strong>r drugs if EITHER of <strong>the</strong> followingcriteria are met:1 Criteria:a) Parenteral admin of <strong>the</strong> drug at home is reasonable <strong>and</strong> necessary;b) An <strong>infusion</strong> pump is necessary to safely administer <strong>the</strong> drug;c) The drug is infused <strong>for</strong> at least 8 hours because of improved clinicalefficacy;d) The treatment regimen is proven or generally accepted to havesignificant advantages over intermittent bolus administrationregiments or <strong>infusion</strong>s lasting less than 8 hours.2 Criteria 2:a) First 2 criteria in above ANDb) The drug is administered by intermittent <strong>infusion</strong> (each episode of<strong>infusion</strong> lasting less than 8 hours) which does not require <strong>the</strong> patientto return to <strong>the</strong> physician’s office prior to <strong>the</strong> beginning of each<strong>infusion</strong>c) Systemic toxicity or adverse events of <strong>the</strong> drug is unavoidablewithout infusing it at a strictly controlled rate as indicated in <strong>the</strong>PDR or U.S. P. D. I.


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791) Coverage <strong>for</strong> <strong>the</strong> administration of o<strong>the</strong>r drugs, basedon <strong>the</strong> criteria set in (1) or (2), using an external<strong>infusion</strong> pump is limited to <strong>the</strong> following situations: Administration of <strong>the</strong> anticancer chemo<strong>the</strong>rapy drugscladribine, fluorouracil, cytarabine, bleomycin, floxuridine,doxorubicin (non-liposomal), vincristine or vinblastine bycontinuous <strong>infusion</strong> over at least 8 hours when <strong>the</strong> regimen isproven or generally accepted to have significant advantagesover intermittent administration regimens. Administration of narcotic analgesics (except meperidine) inplace of morphine to a patient with intractable pain caused bycancer that has not responded to an adequate oral/transdermal<strong>the</strong>rapeutic regimen <strong>and</strong>/or cannot tolerate oral/transdermalnarcotic analgesics.Administration of <strong>the</strong> following antifungal or antiviral drugs:acyclovir, foscarnet, amphotericin B, <strong>and</strong> ganciclovir. Administration of parenteral inotropic <strong>the</strong>rapy, using <strong>the</strong> drugsdobutamine, milrinone <strong>and</strong>/or dopamine <strong>for</strong> patients withcongestive heart failure <strong>and</strong> depressed cardiac function if apatient meets all of specific criteria (See <strong>the</strong> LCD).


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791)Coverage <strong>for</strong> <strong>the</strong> administration of o<strong>the</strong>r drugs, based on <strong>the</strong> criteria set in(1) or (2), using an external <strong>infusion</strong> pump is limited to <strong>the</strong> followingsituations:Administration of epoprostenol (J1325) or treprostinil (J3285) <strong>for</strong> patients withpulmonary hypertension if <strong>the</strong>y meet specific disease criteria.Gallium nitrate (J1457) is covered <strong>for</strong> <strong>the</strong> treatment of symptomatic cancerrelatedhypercalcemia (ICD-9 275.42). In general, patients with serum calcium(corrected <strong>for</strong> albumin) less than 12 mg/dl would not be expected to besymptomatic.The recommended usage <strong>for</strong> gallium nitrate is daily <strong>for</strong> fiveconsecutive days. Use <strong>for</strong> more that 5 days will be denied as not reasonable <strong>and</strong>necessary.More than one course of treatment <strong>for</strong> <strong>the</strong> same episode ofhypercalcemia will be denied as not reasonable <strong>and</strong> necessary.Ziconotide (J2278) is covered <strong>for</strong> <strong>the</strong> management of severe chronic pain inpatients <strong>for</strong> whom intra<strong>the</strong>cal (IT or epidural) <strong>the</strong>rapy is warranted, <strong>and</strong> who areintolerant of or refractory to o<strong>the</strong>r treatment, such as systemic analgesics,adjunctive <strong>the</strong>rapies, or IT morphine.Subcutaneous immune globulin (J1559, J1561, J1562) is covered only if BOTHOF THESE ARE MET:The subcutaneous immune globulin preparation is a pooled plasma derivative which isapproved <strong>for</strong> <strong>the</strong> treatment of primary immune deficiency disease; <strong>and</strong> The patient has a diagnosis of primary immune deficiency disease (ICD-9 codes 279.04,279.05, 279.06, 279.12, 279.2).Coverage of subcutaneous immune globulin applies only tothose products that are specifically labeled as subcutaneous administration products.Intravenous immune globulin products are not covered under this LCD.Coverage of subcutaneous products is only <strong>for</strong> drugs that are labeled subcutaneous, not<strong>for</strong> IVIG. Only E0779 is covered under this situation.


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791) External <strong>infusion</strong> <strong>pumps</strong> <strong>and</strong> related drugs <strong>and</strong> supplieswill be denied as not reasonable <strong>and</strong> necessary when <strong>the</strong>criteria described by indication (I), (II), (III), (IV) or (V) arenot met. When an <strong>infusion</strong> pump is covered, <strong>the</strong> drug necessitating<strong>the</strong> use of <strong>the</strong> pump <strong>and</strong> necessary supplies are alsocovered. When a pump has been purchased by <strong>the</strong>Medicare program, o<strong>the</strong>r insurer, <strong>the</strong> patient, or <strong>the</strong> rentalcap has been reached, <strong>the</strong> drug necessitating <strong>the</strong> use of <strong>the</strong>pump <strong>and</strong> supplies are covered as long as <strong>the</strong> coveragecriteria <strong>for</strong> <strong>the</strong> pump are met. An external <strong>infusion</strong> pump <strong>and</strong> related drugs <strong>and</strong> supplieswill be denied as not reasonable <strong>and</strong> necessary in <strong>the</strong> homesetting <strong>for</strong> <strong>the</strong> treatment of thromb-oembolic disease <strong>and</strong>/orpulmonary embolism by heparin <strong>infusion</strong>. An <strong>infusion</strong> controller device (E1399) is not reasonable <strong>and</strong>necessary.


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791)An IV pole (E0776) is covered only when a stationary <strong>infusion</strong> pump (E0791) iscovered. It is considered not reasonable <strong>and</strong> necessary if it is billed with anambulatory <strong>infusion</strong> pump (E0779, E0780, E0781, E0784, or K0455).Supplies <strong>for</strong> <strong>the</strong> maintenance of a parenteral drug <strong>infusion</strong> ca<strong>the</strong>ter (A4221)are covered during <strong>the</strong> period of covered use of an <strong>infusion</strong> pump. They are alsocovered <strong>for</strong> <strong>the</strong> weeks in between covered <strong>infusion</strong> pump use, not to exceed 4weeks per episode.Supplies used with an external <strong>infusion</strong> pump, A4222 or K0552, are coveredduring <strong>the</strong> period of covered use of an <strong>infusion</strong> pump. Allowance is based on <strong>the</strong>number of cassettes or bags (A4222) prepared or syringes (K0552) used. Forintermittent <strong>infusion</strong>s, no more than one cassette or bag is covered <strong>for</strong> eachdose of drug.For continuous <strong>infusion</strong>, <strong>the</strong> concentration of <strong>the</strong> drug <strong>and</strong> <strong>the</strong> size of <strong>the</strong>cassette, bag, or syringe should be maximized to result in <strong>the</strong> fewest cassettes,bags, or syringes in keeping with good pharmacologic <strong>and</strong> medical practice.Drugs <strong>and</strong> supplies that are dispensed but not used <strong>for</strong> completely un<strong>for</strong>eseencircumstances (e.g., emergency admission to hospital, drug toxicity, etc.) arecovered. Suppliers are expected to anticipate changing needs <strong>for</strong> drugs (e.g.,planned hospital admissions, drug level testing with possible dosage change,etc.) in <strong>the</strong>ir drug <strong>and</strong> supply preparation <strong>and</strong> delivery schedule.


COVERAGE CONDIT<strong>ION</strong>S FOR EXTERNALPUMPS (E0779, E0780, E0781, AND E0791) Charges <strong>for</strong> drugs administered by a DME<strong>infusion</strong> pump may only be billed by <strong>the</strong> entitythat actually dispenses <strong>the</strong> drug to <strong>the</strong> Medicarebeneficiary <strong>and</strong> that entity must be permittedunder all applicable federal, state, <strong>and</strong> local laws<strong>and</strong> regulations to dispense drugs. Only entitieslicensed in <strong>the</strong> state where <strong>the</strong>y are physicallylocated may bill <strong>for</strong> <strong>infusion</strong> drugs. Drugs <strong>and</strong>related supplies <strong>and</strong> equipment billed by asupplier who does not meet <strong>the</strong>se criteria will bedenied as not reasonable <strong>and</strong> necessary.


CODING FOR PUMP INFUS<strong>ION</strong>SHCPCS & CPT


HCPCS HCPCS Modifiers EY – No physician or o<strong>the</strong>r health care providerorder <strong>for</strong> this item or service GA – Waiver of liability statement issued asrequired by payer policy, individual case GY - Item or service statutorily excluded ordoes not meet <strong>the</strong> definition of any Medicarebenefit GZ – Item or service expected to be denied asnot reasonable <strong>and</strong> necessary JB - Administered subcutaneously KX - Requirements specified in <strong>the</strong> medicalpolicy have been met


HCPCS CODES E0781: AMBULATORY INFUS<strong>ION</strong> PUMP,SINGLE OR MULTIPLE CHANNELS,ELECTRIC OR BATTERY OPERATED, WITHADMINISTRATIVE EQUIPMENT, WORN BYPATIENT A4221: SUPPLIES FOR MAINTENANCE OFDRUG INFUS<strong>ION</strong> CATHETER, PER WEEK(LIST DRUG SEPARATELY) A4222: INFUS<strong>ION</strong> SUPPLIES FOR EXTERNALDRUG INFUS<strong>ION</strong> PUMP, PER CASSETTE ORBAG (LIST DRUGS SEPARATELY)


DMERC FEE SCHEDULECode Description Floor CeilingE0781 Monthly Rental $236.16 $277.83A4221 Weekly Supplies $20.19 $23.75A4222 Cassettes $41.67 $49.02These charges vary by <strong>the</strong> average charge <strong>for</strong> your state.


CPT CODES FOR OFFICEBILLING (TO MAC OR CARRIER)


96416—INITIAT<strong>ION</strong> OF PROLONGEDINFUS<strong>ION</strong> Chemo<strong>the</strong>rapy administration, intravenous <strong>infusion</strong>technique; initiation of prolonged chemo<strong>the</strong>rapy<strong>infusion</strong> (more than 8 hours), requiring use of aportable or implantable pumpNotice initiationDoes not say INITIAL---but that is not <strong>the</strong> way it isinterpreted.Can be billed with 96413 if administered through separatelines. Use -59 The physician or supervised assistant prepares <strong>and</strong>administers a chemo<strong>the</strong>rapeutic medication to combatmalignant neoplasms or microorganisms. This codeapplies to initiating an <strong>infusion</strong> that will take morethan eight hours <strong>and</strong> requires using an implantedpump or a portable pump to infuse <strong>the</strong> medicationslowly through ca<strong>the</strong>ter tubing placed in a vein.


WHAT IS INITIAT<strong>ION</strong>? Q: Chemo<strong>the</strong>rapy coding <strong>for</strong> a patient that has a port-a-cathsubclavin <strong>and</strong> is sent home with a CADD pump to infuse over4 day period. Which CPT is correct: 96521 portable pump or96416 prolonged chemo <strong>infusion</strong>? A: If this is <strong>the</strong> first time <strong>the</strong> patient has been sent home with<strong>the</strong> CADD pump, it would be appropriate to bill 96416 <strong>for</strong> <strong>the</strong>initiation of prolonged chemo<strong>the</strong>rapy <strong>infusion</strong>, requiring use ofa portable or implantable pump. If <strong>the</strong> patient has beenconnected to <strong>the</strong> CADD pump <strong>and</strong> is simply coming back to getan additional dose of <strong>the</strong> drug, <strong>the</strong> correct code to use is96521. If <strong>the</strong> chemo<strong>the</strong>rapy is administered in anintermittent regimen <strong>and</strong> <strong>the</strong> patient is disconnectedfrom <strong>the</strong> pump, "each time a new course of <strong>the</strong>rapy isinitiated it would be appropriate to report code 96416",according to a CPT Assistant article from <strong>the</strong>September 2007 issue (Volume 17, Issue 9, pages 3-4). Source: ADVANCE <strong>for</strong> Coders, December, 2008


96521-REFILLING AND MAINTENANCE OF APORTABLE PUMP This code applies to maintaining or refillingportable <strong>pumps</strong> used <strong>for</strong> prolonged <strong>infusion</strong>s. There are many unbundling edits on this codeincluding: 96413 96409 96365 96372 And, of course, 96416


RVUS AND FEES FROM 2011 FEESCHEDULE (GPCI= 1)Code Descrip NF RVUs Fee96416 Initiation 4.75 $161.3996521 Maintenance/Refill3.92 $133.19


A WORD ABOUT PRIVATE PAYERS(May Be Easier; May Be Harder)


IMPORTANT TO KNOW ABOUT BENEFITS… Does <strong>the</strong> patient have a benefit <strong>for</strong> DME or HomeHealth Care? Can be covered under ei<strong>the</strong>r orboth <strong>for</strong> private payers… Does <strong>the</strong> payer need a referral, priorauthorization, <strong>and</strong>/or a CMN? Is <strong>the</strong> drug you are using covered under <strong>the</strong>payers policy <strong>for</strong> home <strong>infusion</strong>? Do <strong>the</strong>y have a preferred vendor <strong>and</strong> you are notit?


OTHER THINGS ABOUT PRIVATE PAYERS We checked Aetna, An<strong>the</strong>m, Carefirst <strong>and</strong>CIGNA. Their guidelines look very similar toMedicare’s. Some differences we noticed: Bill to one place instead of two. Some allow supplies that Medicare does not: J1642 Needles <strong>and</strong> syringes S-codes <strong>for</strong> home <strong>infusion</strong>s—hydration, etc. Check carefully with local instructions to see what<strong>the</strong>y allow <strong>for</strong>—you may be missing revenue. Do not use Medicare fee schedules as your charge.


COMPLIANCE ISSUESHow You Can Get In Trouble


COMPLIANCE ISSUES Billing <strong>for</strong> items or services not provided (duh) Billing <strong>for</strong> services that should have been deniedby <strong>the</strong> DME MAC Billing <strong>for</strong> services not ordered or not signedorders Billing <strong>for</strong> items after <strong>the</strong>y are no longermedically necessary Providing services that do not meet <strong>the</strong> DMEPOSst<strong>and</strong>ards <strong>for</strong> quality <strong>and</strong> efficacy Delivery of items or services prior to receiving aphysician order or CMN


COMPLIANCE ISSUES Co-location of items with <strong>the</strong> referral source(consignment closets)---this may be a future problem<strong>for</strong> folks who use DME vendors <strong>for</strong> <strong>pumps</strong>. THISRELAT<strong>ION</strong>SHIP IS PROBLEMATIC. Receiving services from a pump vendor whenreferring patients, i.e. help with CMN, etc. Not notifying <strong>the</strong> NSC about a change in yourpractice such as address, etc. Billing <strong>for</strong> <strong>pumps</strong> while a patient is in SNF with <strong>the</strong>wrong anniversary date. Self-referral like imaging? Offering patients choices? Overlapping rentals: double <strong>billing</strong> <strong>for</strong> Medicare.


RESPONDING TO REQUESTS (CIGNA)Below are important TIPS <strong>for</strong> h<strong>and</strong>ling <strong>the</strong> requests: Read each request letter carefully. Note <strong>the</strong> due date given in <strong>the</strong> letter. (Denials will often occur if a response is not receivedwithin <strong>the</strong> stated timeframe.) Note where to send your response <strong>and</strong> be sure to respondto <strong>the</strong> correct office. (Delays <strong>and</strong>possible denials will occur if you respond to <strong>the</strong> wrong office.) For prepayment claims, put <strong>the</strong> request letter on top of <strong>the</strong> documents you include in yourresponse. This helps ensure your documents are routed appropriately when received at <strong>the</strong>contractor. (Prepayment means <strong>the</strong> claim has not completed processing yet.) Respond only one time. Don’t send your response multiple times.Do not combine responses. If <strong>the</strong> request letter asks <strong>for</strong> documentation on just one claim, onlyinclude documentation <strong>for</strong> that claim in your response. Send all documents <strong>for</strong> your response at one time. Don’t send part now <strong>and</strong> part later. Do not file duplicate claims. Keep track when you have received a request <strong>for</strong> additionaldocumentation on a prepayment claim. Do not file ano<strong>the</strong>r claim <strong>for</strong> <strong>the</strong> same items justbecause you have not received a response as quickly as a claim where documentation was notrequested. Remember <strong>the</strong> contractors normally have longer time limits to review claims where additionaldocumentation was requested. Time limits will vary depending on <strong>the</strong> contractor, butgenerally <strong>the</strong> Centers <strong>for</strong> Medicare & Medicaid Services (CMS) allows at least 60 days <strong>for</strong>contractors to complete <strong>the</strong> reviews once <strong>the</strong> documentation/records are received. Each of <strong>the</strong>se contractors has a website, so in<strong>for</strong>mation is easily accessible about each one.Visit <strong>the</strong> CGS website at: http://www. cignagovernmentservices.com/jc/index.html under <strong>the</strong>Customer Service/Helpful Links section <strong>for</strong> links to <strong>the</strong> o<strong>the</strong>r contractors. Following is a link to a Medicare Claim Review Programs booklet from <strong>the</strong> Centers <strong>for</strong>Medicare & Medicaid Services (CMS) which may also provide helpful in<strong>for</strong>mation <strong>for</strong> you:http://www.cms.hhs. gov/MLNProducts/downloads/MCRP_Booklet.pdf.


CONCLUS<strong>ION</strong>S & REFERENCES


CONCLUS<strong>ION</strong>S DME <strong>billing</strong> is complex, but think about it step-bystepeach time <strong>the</strong> patient is hooked up:Do I need a DIF <strong>for</strong> this patient? Can’t place <strong>the</strong> pumpwithout this <strong>and</strong> an order.Where is <strong>the</strong> patient in <strong>the</strong>rapy? What month is it?What is <strong>the</strong>ir anniversary date? What have <strong>the</strong>yaccumulated in billable supplies? What should be billed?Is it time to start talking about purchase? Don’t <strong>for</strong>get to bill Part B! If you are not <strong>billing</strong> now, think about this:ComplianceRevenue source <strong>and</strong> drugs get paid more, even <strong>for</strong>Medicare!If you are dispensing, you should be doing this…


RESOURCES Medicare DME CENTRAL INFOhttps://www.cms.gov/center/dme.asp DMERC POLICY FOR INFUS<strong>ION</strong> PUMPShttps://www.noridianmedicare.com/dme/coverage/docs/lcds/current_lcds/external_<strong>infusion</strong>_<strong>pumps</strong>.htm NORIDIAN WEB SITE (GREAT INFO)https://www.cms.gov/center/dme.asp CMS WHITE PAPER ON INFUS<strong>ION</strong> PUMPShttps://www.noridianmedicare.com/dme/coverage/docs/lcds/current_articles/external_<strong>infusion</strong>_<strong>pumps</strong>.htm AETNA POLICY ON INFUS<strong>ION</strong> PUMPShttp://www.aetna.com/cpb/medical/data/100_199/0161.html


DME RESOURCES Durable Medical Equipment AdditionalMaterials␣ 42 CFR § 424.57 CfPs (Conditions <strong>for</strong> Payment) – DMEPOS CMS Publication 100-03 – MCPM – Chapter 20 PM B-03-020 – Jurisdictional Listing PM AB-03-100 – Quarterly Update DME Modifiers <strong>for</strong> ABNs PM AB-02-114 – DMEPOS Refunds – ABNs PM AB-02-168 – DMEPOS Refunds – ABNsCorrections PM B-03-003 – DMEPOS Refund Requirements PM B-01-64 – DMERC – ABNs <strong>for</strong> Upgrades PM B-01-68 – DME Upgrades

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