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© Copyright 2007 American Health Information Management Association. All rights reserved.

OPPS Update

Audio Seminar/Webinar January 25, 2007

Practical Tools for Seminar Learning

Disclaimer

AHIMA 2007 Audio Seminar Series CPT® Codes Copyright 2006 by AMA. All Rights Reserved

i

The American Health Information Management Association makes no representation or guarantee with respect to the contents herein and specifically disclaims any implied guarantee of suitability for any specific purpose. AHIMA has no liability or responsibility to any person or entity with respect to any loss or damage caused by the use of this audio seminar, including but not limited to any loss of revenue, interruption of service, loss of business, or indirect damages resulting from the use of this program. CPT® five digit codes, nomenclature, and other data are copyright 2006 American Medical Association. All Rights Reserved. No fee schedules, basic units, relative values or related listings are included in CPT. The AMA assumes no liability for the data contained herein. As a provider of continuing education, the American Health Information Management Association (AHIMA) must assure balance, independence, objectivity and scientific rigor in all of its endeavors. AHIMA is solely responsible for control of program objectives and content and the selection of presenters. All speakers and planning committee members are expected to disclose to the audience:

1) any significant financial interest or other relationships with the manufacturer(s) or provider(s) of any commercial product(s) or services(s) discussed in an educational presentation;

2) any significant financial interest or other relationship with any companies providing commercial support for the activity; and

3) if the presentation will include discussion of investigational or unlabeled uses of a product.

The intent of this requirement is not to prevent a speaker with commercial affiliations from presenting, but rather to provide the participants with information from which they may make their own judgments.

Faculty

AHIMA 2007 Audio Seminar Series ii

Arlene F. Baril, MS, RHIA

Ms. Baril is Vice President of HIM & Software Services for United Audit Systems, Inc. based in Cincinnati, OH. She resides in Dallas and has over 26 years of experience specializing in APC auditing and rebilling services, Charge Description Master Reviews, Inpatient DRG and Outpatient HIM Coding Assessments, Physician Practice coding, and HIM Operations. Prior to joining UASI, Arlene was Director of HIM & Coding services for Pyramid/The HealthCare Financial Group. Arlene has also worked for Coopers & Lybrand/PricewaterhouseCoopers, LLP as a Regional Manager in their Healthcare Regulatory Services Group based in Dallas, Texas. She had regional product-line responsibility for inpatient coding, outpatient coding, charge description master, SMART coding compliance product and HIM operations. She also co-managed the compliance services product line.

Ms. Baril has presented to many state HIM associations and for both the Healthcare Financial Management Association's and the American Health Information Management Association's national conferences. She has conducted APC seminars throughout the country. She serves on the editorial advisory board for Briefings on Coding Compliance and has authored articles on a variety of HIM and reimbursement topics.

Ms. Baril has worked as a supervisor and a manager of coding, assistant director of medical records, director of medical records, and claims representative for a fiscal intermediary in New York State. She possesses extensive knowledge of all aspects of coding and third party reimbursement issues.

Cheryl D’Amato, RHIT, CCS

Ms. D’Amato is the director of health information management for the facility division of the provider solutions group at Ingenix. Ms. D’Amato has over 20 years of experience in the healthcare industry, with expertise in implementing and managing utilization, quality assurance, and health information coding systems. She has been a frequent contributor and speaker for AHIMA continuing education programs.

Carole Gammarino, RHIT

Ms. Gammarino is a recruiting manager with Precyse Solutions, HIM Services. Ms. Gammarino is a frequent speaker and contributor to publications on APCs. She has over 10 years of experience in HIM, including extensive experience in Joint Commission preparation, tumor registry, medical staff coordinating services, unbilled accounts management, coding, and education and recruiting.

Table of Contents

AHIMA 2007 Audio Seminar Series

Disclaimer ..................................................................................................................... i Faculty .........................................................................................................................ii Overview of 2007 OPPS .................................................................................................. 1

Timeline for Updates .......................................................................................... 2 Payment Rates .................................................................................................. 2 Financial Updates ............................................................................................... 3 Outliers ............................................................................................................. 4 New Drug HCPCS Codes ..................................................................................... 4 HCPCS Codes..................................................................................................... 5 Category III Codes ............................................................................................. 5 Special Packaged CPT Codes ............................................................................... 6 2007 OPPS Status Indicators ............................................................................... 6

New Technology APCs .................................................................................................... 7 Stereotactic Radiosurgery.................................................................................... 8 MEG Services ..................................................................................................... 9 Breast Brachytherapy.........................................................................................10 Reassignment of Other New Technology APCs .....................................................11

APC Specific Policies Blood and Blood Products ..................................................................................12 Observation Services .........................................................................................12 Partial Hospitalization ........................................................................................13 Radiology Procedures ........................................................................................13 Nuclear Medicine Procedures ..............................................................................14 Complex Interstitial Radiation.............................................................................15 Proton Beam Therapy ........................................................................................16 Other Nuclear Medicine Procedures.....................................................................16 Cardiac and Vascular Procedures ........................................................................17 GI and GU Procedures .......................................................................................18 Ocular Procedures .............................................................................................19 Skin Procedures ................................................................................................20 Other Procedures ..............................................................................................21 Treatment of Fracture/Dislocation.......................................................................22 Medical Services................................................................................................23 Inpatient Only Procedures Moved to APCs ...........................................................24 Use of –CA Modifier ...........................................................................................25 Brachytherapy Sources ......................................................................................25

OPPS Payment Changes for Devices Treatment of Device Dependent APCs .................................................................27 Devices Billed without Procedure ........................................................................27 Devices that Require Procedure Code..................................................................28 Payment Policy..................................................................................................28 Use of FB Modifier .............................................................................................29 Table 21 Devices that Affect FB Modifier..............................................................29 Pass-Through Device Payment............................................................................30

OPPS Drug Payment Changes Drugs, Pharmaceuticals and Biologicals ...............................................................31 Pass-Throughs Expiring 12/31/06 .......................................................................31 With Pass-Through Status in 2007 ......................................................................32 Drugs with Status Change..................................................................................32 Payment – Non Pass-Through Status ..................................................................33 CY2007 Payment Policy – Radiopharmaceuticals ..................................................34 Other Policies – Radiopharmaceuticals.................................................................34 Drug Administration...........................................................................................35 APC Structure..............................................................................................36

Table of Contents

AHIMA 2007 Audio Seminar Series

Hospital Coding and Payment for Visits Clinic Visits .......................................................................................................39 Emergency Department .....................................................................................39 New ED “G” Codes.......................................................................................40 Critical Care Services .........................................................................................40 CY2008 Visit Payment........................................................................................41

Non Recurring Policy Changes CORF Changes ..................................................................................................43 AAA Screening Requirements .............................................................................44 Critical Access Hospital Changes .........................................................................44 ASC Changes in 2007.........................................................................................45

What is a MAC?? Medicare Administrative Contractor.....................................................................46

Quality Data Reporting Requirements under OPPS Quality Data......................................................................................................48 Additional Quality Measures ...............................................................................49

Appendix ..................................................................................................................52 CE Certificate Instructions

OPPS Update

AHIMA 2007 Audio Seminar Series 1 CPT® Codes Copyright 2006 by AMA. All Rights Reserved

Notes/Comments/Questions

Final Rule 2007 OPPS-Highlights

•1

Overview of 2007 OPPS Change

Financial UpdatesNew Technology APCsAPC Specific PoliciesOPPS Devices-Payment ChangesOPPS Drugs-Payment ChangesHospital Visit ChangesNon-Recurring Policy ChangesMACsQuality Reporting Requirements

•2

OPPS Update



Timeline of Updates

April 7, 2000, final rule established requirements for The Outpatient Prospective Payment System (OPPS)

The OPPS was first implemented for services provided on or after August 1, 2000.

Since that time a number of rule-making changes have occurred

Final rule published in the November 24, 2006 Federal Register outlines the OPPS changes for CY 2007

•3

Payment Rates

The individual APC’s RW (Relative Weight)

multiplied by the CF (Conversion Factor)

= the payment rate for that APC

(Note: CF is $61.468 for CY 2007)

•4

OPPS Update



Financial Updates

The projected increase in overall payments to hospitals under OPPS for 2007 is $32.5 billion. This is an average increase of 3% (market basket of 3.4%)Co-payment amounts for each APC may be found in Addendum A & B. For CY 2007, the OPPS payment rates for HCPCS codes G0105 and G0121 that describe screening colonoscopies will be set to equal the CY 2007 ASC rate of $446 for these services.

•5

Financial Updates

Transitional outpatient payment (TOPS) • DRA Section 5105 reinstituted the hold harmless

transitional outpatient payments (TOPs) for covered outpatient department services furnished on or after January 1, 2006, and before January 1, 2009. This change involves rural hospitals having 100 or fewer beds that are not SCHs.

• Children’s Hospitals and Cancer Centers will receive the transitional corridor payment permanently

Financial impact in CY 2007- 3.4% Overall• 2.9% large urban hospitals• 3.2% other urban hospitals• 2.7% rural hospitals• 7.1% rural sole community hospitals •6

OPPS Update



Financial Updates-Outliers

To be eligible in 2007, the cost of a service must be greater than 1.75 times the payment amount for the APC and greater than the APC payment amount plus the outlier thresholdThe outlier threshold is set at $1,825.00 for 2007For these services, CMS will pay 50% of the costs that exceed 1.75 times the APC payment rate.Multiplier remains the same (1.75) For CMHC’s the outlier payment is calculated at 50% of the amount by which the cost exceeds 3.4 times the APC payment rate.

•7

Table 5- New Drug HCPCS Codes

9230GInjection, abatacept, per 10 mg

C9230J0129

9229GInjection, ibandronate sodium, per 1 mg

C9229J1740

9228GInjection, tigecycline, per 1 mg

C9228J3343

9227GInjection, micafungin sodium, per 1 mg

C9227J2248

APCSIDescription

C Code Exp.

12/31/06

J Code Eff.

1/1/07

•8

OPPS Update



New HCPCS Codes

Found in Addendum B with comment indicator “NI”The status indicator and/or APC assignments for all HCPCS codes flagged with “NI” are subject to public commentCMS is creating two Level II HCPCS G-codes for implementation in CY 2007: • G0392 (Transluminal balloon angioplasty, percutaneous, hemodialysis

access fistula or graft; arterial) • G0393 (Transluminal balloon angioplasty, percutaneous, hemodialysis

access fistula or graft; venous).

CMS will provide payment for these G-codes at the same OPPS rates as for CPT codes 35475 (Transluminal balloon angioplasty, percutaneous; brachiocephalic trunk or branches, each vessel) and 35476 (Transluminal balloon angioplasty, percutaneous; venous) through APC 0081 (Non-Coronary Angioplasty or Atherectomy), with a CY 2007 final median cost of $2,450.64. CMS will also assign both G-codes to payment group 9 for ASC payment in CY 2007.

•9

Category III CPT Codes

AMA issues Category III codes in January and July of each yearJuly codes will become effective 1/1/07These will be released in the regular quarterly OPPS updatesMid-year Category III codes that go into effect on 1/1/07 are 0155T-0161T

•10

OPPS Update



Special Packaged CPT CodesTable 3 p.67996

$31.44S0624Irrigation of implanted access device

96523

$63.61X0443Pulse oximetry by continuous overnight monitoring

94762

$381.71S0668Venous sampling through cath; with or without angiography, radiological S&I

75893

$84.05S0389Sentinel node identification38792

$12.22T0035Arterial puncture; withdrawal of

blood for diagnosis36600

$31.44S0624Collect blood, venous access device 36540

Median APC $

Status Indicator

2007 APCDescriptor

CPT Code

•11

2007 OPPS Status Indicators(Complete List-Addendum D1)

•12

OPPS Update



New Technology APCs

•13

New Technology APCsNonmyocardial Positron Emission Tomography (PET) Scans• Positron emission tomography (PET) is a noninvasive diagnostic

imaging procedure that assesses the level of metabolic activity and perfusion in various organ systems of the human body.

• CMS will assign nonmyocardial PET scans, in particular, CPT codes 78608, 78811, 78812, and 78813, to new APC 0308 (Nonmyocardial PET Imaging).

PET/Computed Tomography (CT) Scans• CMS will assign PET/CT scans to New Technology APC 1511

(New Technology- Level XI ($900-$1000)) with a payment of $950 for CY 2007 to maintain the approximately $100 difference between payments for these services and nonmyocardial PET scans, which will be assigned to APC 0308 with a median cost of about $850 for CY 2007.

•14

OPPS Update



New Technology APCsStereotactic Radiosurgery (SRS) Treatment Delivery Services (APCs 0065, 0066, and 0067) • CMS will assign for CY 2007, HCPCS codes G0173 and G0339

to clinical APC 0067, with a median cost of $3,872.87, HCPCS code G0251 to clinical APC 0065, with a median cost of $1,241.89, and HCPCS code G0340 to clinical APC 0066 with a median cost of $2,629.53.

•15

New Technology-Stereotactic Radiosurgery

Stereotactic Radiosurgery (SRS) Treatment Delivery Services (APCs 0065, 0066, and 0067) CMS will assign for CY 2007• HCPCS codes G0173 and G0339 to clinical APC

0067, with a median cost of $3,872.87 • HCPCS code G0251 to clinical APC 0065, with a

median cost of $1,241.89 • HCPCS code G0340 to clinical APC 0066 with a

median cost of $2,629.53

•16

OPPS Update



New Technology-SRS Treatment Delivery Services

$2,629.53 0066 S Robt lin-radsurg fractx 2-5 G0340

$3,872.87 0067 S Robot lin-radsurg com, first G0339

$1,241.89 0065 S Linear acc based stereo radio G0251

$3,872.87 0067 S Linear acc stereo radsur com G0173

Final CY 2007

APC Median

Cost

Final CY

2007 APC

Final CY

2007 SI

Short Descriptor

HCPCS Code

•17

New Technology-MEG Services

Magnetoencephalography (MEG) Services (APCs 0038 and 0209) • Magnetoencephalography (MEG) is a

noninvasive diagnostic tool that assists surgeons in the pre-surgical period by measuring and mapping brain activity. It may be used for epilepsy and brain tumor patients.

• For CY 2007, CMS is assigning CPT code 95965 to APC 0038, with a final CY 2007 median cost of $3,270.35

• CPT codes 95966 and 95967 to APC 0209, with a final CY 2007 median cost of $687.26.

•18

OPPS Update



New Technology-MEG Services

$687.26 0209 S Meg, evoked, each additional 95967

$687.26 0209 S Meg, evoked, single 95966

$3,270.35 0038 S Meg, spontaneous 95965

CY 2007

Median Cost

CY2007 APC

CY 2007 SI

CY 2007 Descriptor

HCPCS Code

•19

Breast Brachytherapy

19296 (Placement of radiotherapy after-loading balloon catheter into the breast for interstitial radioelement application following partial mastectomy, includes imaging guidance; on date separate from partial mastectomy)19297 (Placement of radiotherapy after-loading balloon catheter into the breast for interstitial radioelement application following partial mastectomy, includes imaging guidance; concurrent with partial mastectomy)Reassign CPT codes 19296 and 19297 from New Technology APCs to clinical APC 0648, retitled ‘‘Level IV Breast Procedures,’’ with a final CY 2007 median cost of $3,130.45. CMS is also implementing appropriate procedure-to-device edits for both of these procedures. •20

OPPS Update



APC Reassignment of Other New Technology APCs (Table 10)

•21

APC Specific Policies

•22

OPPS Update



Blood and Blood Products

Payment for Blood and Blood Products For the CY 2007 OPPS, CMS is finalizing its proposal to establish payment rates for blood and blood products by using the same simulation methodology described in the November 15, 2004 final rule. However, for CY 2007 CMS is providing a payment transition for those blood products for which the difference between their CY 2006 adjusted median cost and their CY 2007 simulated median cost is greater than 25 percent. Specifically, CMS is setting the CY 2007 median costs upon which payments for blood and blood products are based at the higher of the CY 2007 unadjusted simulated median cost or 75 percent of the CY 2006 adjusted median cost on which the CY 2006 payment is based. This results in adjustment to the simulated median costs for CY 2007 for 7 of the 34 blood products. •23

Observation ServicesObservation services reported using HCPCS code G0378 (Hospital observation services, per hour) that are eligible for separate payment map to APC 0339 (Observation). The CY 2007 payment rate for APC 0339 is $442.81. For CY 2007, CMS will continue to apply the criteria for separate payment for observation services and the coding and payment methodology for observation services that were implemented in CY 2006, with one exception. • CMS is making final changes in APC assignments and payments for

clinic and emergency department visits. As part of those changes, low level clinic visits are being moved from APC 0600 (Low LevelClinic Visits) to APC 0604 (Level 1 Clinic Visits), with a final CY 2007 median cost of $50.37.

• Under the circumstances where direct admission to observation isseparately payable, CMS is finalizing its assignment of HCPCS code G0379 to APC 0604, consistent with its CY 2006 placement in the APC for Low Level Clinic Visits.

Diagnoses requirements are unchanged for 2007 •24

OPPS Update



Partial Hospitalization

Partial Hospitalization is paid on a per diem rate under APC 0033The final rate for CY2007 is $234.73The beneficiary co-pay is $46.95A PHP bill must still have at least 3 partial hospitalization HCPCS codes for each day of service, one of which must be a psychotherapy HCPCS code (except brief psychotherapy)

•25

Radiology ProceduresRadiology Procedures (APCs 0333, 0662, and Other Imaging APCs) • CMS is adopting its proposal to defer implementation of a

multiple imaging procedure payment reduction for CY 2007, without modification.

• CMS is finalizing its proposal for payment of APCs 0333 and 0662 based on their median costs established according to the standard OPPS methodology, without modification.

Computerized Reconstruction (APC 0417) • CMS proposed to assign HCPCS code G0288 (Reconstruction,

computed tomographic angiography of aorta for surgical planning for vascular surgery) to APC 0417 (Computerized Reconstruction) for CY 2007, with a proposed median cost of $192.34. CMS is finalizing its CY 2007 payment rate for APC 0417 based on a median cost of $197.95.

•26

OPPS Update



Radiology ProceduresCardiac Computed Tomography and Computed Tomographic Angiography (APCs 0282, 0376, 0377, and 0398) • CMS is finalizing its proposal without modification to assign

CPT codes 0144T through 0151T to APCs 0282, 0376, 0377, and 0398, all with status indicator code “S.”

Radiologic Evaluation of Central Venous Access Device (APC 0340)• CMS is maintaining the assignment of CPT code 36598 to APC

0340 for CY 2007 and will reevaluate that assignment when data become available.

•27

Nuclear Medicine Procedures

Myocardial Positron Emission Tomography (PET) Scans (APC 0307) • For CY 2007, CMS proposed to assign

CPT codes 78459, 78491, and 78492 to a single APC, specifically, APC 0307.

• CMS is finalizing the APC assignments for the myocardial PET procedures as shown in the following table without modification.

•28

OPPS Update



Nuclear Medicine Procedures

$726.98 $665.42 0307 S Heart image (PET), multiple

78492

$726.98 $1,014.61 0307 S Heart image (PET), single

78491

$726.98 $784.42 0307 S Heart muscle imaging (PET)

78459

CY 2007 Final APC

0307 Median

Cost

CY 2007 Median

Cost

CY 2007 APC

CY 2007

SI Short

Descriptor HCPCS Code

•29

Complex Interstitial Radiation Source Application (APC 651)

APC 0651 (Complex Interstitial Radiation Source Application), contains only one CPT code 77778 (Complex interstitial application of brachytherapy sources). According to CMS, the coding, APC assignment, median cost, and resulting payment rate for CPT code 77778 have not been stable since the inception of the OPPS, and that instability has been asource of concern to hospitals that furnish the service and to specialty societies. CMS proposed to use the median cost of $1,028.93, as derived from all single bills for APC 0651 to establish the median for the APC. CMS now says that the median cost for APC 0651 calculated using CY 2005 claims data as updated for this final rule is $1,029.47. Together with the median cost for APC 0163 of $2,134.32, and separate payment for each source applied, CMS says that the OPPS will make appropriate payment for brachytherapy services in CY 2007. •30

OPPS Update



Proton Beam TherapyAPCs 0664 and 0667

CMS proposed to pay for the following four CPT codes that describe proton beam therapy: • 77520 (Proton treatment delivery; simple, without compensation)• 77522 (Proton treatment delivery; simple, with compensation)• 77523 (Proton treatment delivery; intermediate)• 77525 (Proton treatment delivery; complex)

CMS proposed to assign the simple proton beam therapy procedures to APC 0664 (Level I Proton Beam Radiation Therapy), with a proposed median cost of $1,141, and the intermediate and complex proton beam therapy procedures to APC 0667 (Level II Proton Beam Radiation Therapy), with a proposed median cost of $1,365CMS is finalizing without modification its CY 2007 proposal to provide payment for proton beam therapy through APCs 0664 and 0667, with their payment rates based on the final APC median costs of $1,154 and $1,381, respectively.

•31

Other Nuclear Medicine ProceduresUrinary Bladder Residual Study (APC 0340) • CMS is finalizing its proposal to assign CPT code

78730 to APC 0340 for CY 2007, with a median cost of $37.29.

Hyperthermia Treatment (APC 0314) • CMS is finalizing the CY 2007 payment rate for

APC 0314 based on its median cost of $204, calculated using CY 2005 claims data as proposed.

Unlisted Procedure for Clinical Brachytherapy (APC 0312) • CMS is finalizing the CY 2007 proposal for the

assignment of CPT code 77799 to APC 0312, without modification.

•32

OPPS Update



Cardiac and Vascular Procedures

Electrophysiologic Recording/Mapping (APC 0087)• CMS proposed that CPT codes 93609, 93613, and 93631 remain

assigned to APC 0087 for CY 2007. CMS is adopting the CY 2007 proposal as final without modification.

Endovenous Laser Ablation Procedures (APC 0092)• CMS is finalizing its proposal to assign CPT codes 36478 and

36479 to APC 0092 for CY 2007.

•33

Cardiac and Vascular Procedures

Repair/Repositioning of Defibrillator Leads (APC 0106) • CMS is finalizing the CY 2007 proposal with modification to

reassign CPT codes 33218 and 33220 from APC 0106 to APC 0105.

• CMS is modifying the titles of these APCs to reflect their new composition. APC 0106 is retitled “Insertion/Replacement of Pacemaker Leads and/or Electrodes.”

• APC 0105 is retitled “Repair/Revision/Removal of Pacemakers, AICDs, or Vascular Devices.”

• The final median cost of APC 0106 is $3,596.87, and the final median cost of APC 0105 is $1,565.27.

Thrombectomy Procedures (APCs 0103 and 0653) • CMS is finalizing its proposal for the APC assignments of CPT

codes 37184, 37185, 37186, 37187, and 37188 with modification. All five procedures are assigned to APC 0088 for CY 2007. •34

OPPS Update



GI and GU Procedures

Insertion of Mesh or Other Prosthesis (APC 0195) • CMS proposed to reassign CPT code 57267 from APC code

0154 to APC 0195 (Level IX Female Reproductive Procedures), with status indicator “T” for CY 2007. The proposed median cost of APC 0195 was $1,777 for CY 2007.

• CMS is finalizing the proposal without modification.

•35

GI and GU ProceduresPercutaneous Renal Cryoablation (APC 0423) • CMS proposed to accept the APC Panel’s recommendation to

reassign CPT code 0135T from APC 0163 to APC 0423 for CY 2007. CMS says that it believes that assignment of CPT code 0135T to APC 0423 is clinically appropriate, and that the CY 2007 median cost of APC 0423 of $2,410 is reasonably close to the expectations regarding the resource requirements for the renal cryoablation procedure.

• CMS is reassigning CPT code 0135T to APC 0423, as proposed, without modification. However, the final APC 0423 median cost is $2,283.08.

Ultrasound Ablation of Uterine Fibroids with Magnetic Resonance Guidance (MRgFUS) (APCs 0195 and 0202) • CMS is finalizing the proposed CY 2007 APC assignments of

CPT codes 0071T and 0072T, without modification.

•36

OPPS Update



GI and GU ProceduresLaser Vaporization of Prostate (APC 0429)• CMS is finalizing the CY 2007 proposal to assign CPT code

52648 to APC 0429 for CY 2007. • The CY 2007 final median cost of APC 0429 is $2,633.85.

Gastrointestinal Procedures with Stents (APC 0384)• CMS is finalizing the CY 2007 proposal for APC 0384 without

modification.

• The final median cost for APC 0384 is $1,402.31.

Endoscopy with Thermal Energy to Sphincter (APC 0422)• CMS is finalizing the proposal for assignment of CPT code

43257 to APC 0422 for CY 2007, with a median cost of $1,573.89.

•37

Ocular ProceduresKeratoprosthesis (APC 0293)• CPT code 65770 is a surgical procedure for implantation of

a keratoprosthesis, an artificial cornea. • CMS proposed to create a new APC 0293 (Level V Anterior

Segment Eye Procedures) with a median cost of $3,127.51 and to move CPT code 65770 into that APC in order to more appropriately pay for the procedure and the related device.

• CMS is adopting its proposal without modification, with a median cost of $3,177.05 for CY 2007.

• CMS is also assigning a procedure-to-device edit for CPT code 65770 with APC 0293.

•38

OPPS Update



Ocular Procedures

Eye Procedures (APCs 0232, 0235, and 0241)• CMS is finalizing the CY 2007 proposal for APCs 0232,

0235, and 0241 without modification, with final median costs of $370.77, $240.36, and $1,543.32, respectively.

Amniotic Membrane for Ocular Surface Reconstruction• CMS is finalizing the proposed CY 2007 payment policies

without modification for HCPCS codes V2785 and V2790 as reflected in their assigned status indicators.

•39

Skin Procedures

Skin Replacement Surgery and Skin Substitutes (APC 0025) • For CY 2006, the American Medical Association (AMA)

made comprehensive changes, including code additions, deletions, and revisions, accompanied by new and revised introductory language, parenthetical notes, subheadings and cross-references, to the Integumentary, Repair (Closure) subsection of surgery in the CPT book to facilitate more accurate reporting of skin grafts, skin replacements, skin substitutes, and local wound care.

•40

OPPS Update



CY 2007 Skin Substitutes and Replacement Procedures

•41

Other Procedures continued

Complex Skin Repair (APC 0024)• In the CY 2007 OPPS proposed rule, CMS proposed to

assign CPT code 13151 (Repair, complex, eyelids, nose, ears and/or lip, 1.1 cm to 2.5 cm, to APC 0024 (Level I Skin Repair) with a payment rate of $91.86.

• CMS now says that CPT code 13151 would be more appropriately assigned to APC 0025 and is making that reassignment effective January 1, 2007.

Insertion of Posterior Spinous Process Distraction Device • CMS is accepting the APC Panel’s recommendation and

assigning CPT codes 0171T and 0172T to APC 0050 with status indicator “T” for CY 2007.

• These assignments are interim final, and, therefore, open to comment in this final rule with comment period

•42

OPPS Update



Treatment of Fracture/Dislocation (APCs 0062, 0063, and 0064)

APC 0046 is a large clinical APC to which many procedures related to the percutaneous or open treatment of fractures and dislocations are assigned for CY 2006. Most of the approximately100 procedures in the APC are relatively low volume, with even fewer single bills available for rate setting. CMS proposed to split APC 0046 into three new APCs: • APC 0062 (Level I Treatment Fracture/ Dislocation)• APC 0063 (Level II Treatment Fracture/Dislocation)• APC 0064 (Level III Treatment Fracture/Dislocation)

•43

Treatment of Fracture/Dislocation (APCs 0062, 0063, and 0064)

One code, CPT 27615 (Radical resection of tumor (e.g., malignantneoplasm), soft tissue of leg or ankle area), is not clinically coherent with the other procedures in APC 0046, and CMS proposed to reassign this procedure outside of the Fracture/Dislocation series to APC 0050 (Level II Musculoskeletal Procedures Except Hand and Foot) for CY 2007. CMS is finalizing its proposal without modification to reconfigure CY 2006 APC 0046 for fracture and dislocation procedures into three new APCs for CY 2007• APCs 0062, 0063, and 0064• reassign CPT code 27615 to APC 0050.

•44

OPPS Update



Medical Services

Medication Therapy Management Services• CMS is continuing to assign status indicator “B” to CPT

codes 0115T, 0116T, and 0117T for CY 2007 and is finalizing its proposed policy without modification.

Single Allergy Tests (APC 0381) • CMS proposed to continue differentiating single allergy

tests (“per test”) from multiple allergy tests (“per visit”) by assigning these services to two different APCs to provide accurate payments for these tests in CY 2007.

• The final CY 2007 APC 0381 median cost calculated based upon 382 single claims, using the methodology as proposed, is $16.43.

•45

Medical Services

Hyperbaric Oxygen Therapy (APC 0659)• CMS is finalizing its proposed methodology for estimating

a “per unit” median cost for HCPCS code C1300, assigned to APC 0659, without modification for CY 2007.

• The final median cost for APC 0659 is ($97.20 per unit).

Guidance for Chemodenervation (APC 0215) • CMS is finalizing its proposal to assign CPT codes 95873

and 95874 to APC 0215 for CY 2007, without modification.

Pathology Services (APC 0344)• CMS is finalizing the APC 0344 structure as proposed

without modification. The final CY 2007 median cost of APC 0344 is $48.44.

46

OPPS Update



Inpatient Only Procedures-Moved to APCs

T 0220 Sympathectomy, cervicothoracic 64804

T 0254 Elevation of depressed skull fracture; simple extradural 62000

T 0221 Creation of lesion by stereotactic method, including burr holes and localizing and recording techniques, single of multiple stages; globus pallidus or thalamus

61720

T 0256 Thymectomy, partial or total; transcervical approach 60520

T 0256 Parathyroidectomy or exploration of thyroid(s); re-exploration

60502

T 0202 Vaginal hysterectomy, for uterus greater than 250 grams; with repair of enterocele.

58294

T 0202 Vaginal hysterectomy, for uterus greater than 250 grams; with removal of tube(s) and/or ovary(s), with repair of enterocele

58292

T 0202 Vaginal hysterectomy, for uterus greater than 250 grams; with removal of tube(s) and/or ovary(s)

58291

•47

Inpatient Only Procedures-Moved to APCs

T 0202 Vaginal hysterectomy, for uterus greater than 250 grams 58290

T 0195 Vaginal hysterectomy, for uterus 250 grams or less; with repair of enterocele 58270

T 0195 Vaginal hysterectomy, for uterus 250 grams or less; with removal of tube(s), and/or ovary(s), with repair of enterocele

58263

T 0195 Vaginal hysterectomy, for uterus 250 grams or less; with removal of tube(s) and/or ovary(s) 58262

T 0195 Vaginal hysterectromy, for uterus 250 grams or less 58260

T 0195 Vaginoplasty for intersex state 57335

T 0195 Construction of artificial vagina; with graft 57292

T 0202 Colpopexy, vaginal; intra-peritoneal approach (uterosacral, levator myorrhaphy) 57283

T 0202 Colpopexy, vaginal; extra-peritoneal approach (sacrospinous, iliococcygeus) 57282

T 0049 Apply spine prosth device 22851

T 0254 Reconstruction by contouring of benign tumor of cranial bones, extracranial 21181

T 0016 Escharotomy; initial incision16035

•48

OPPS Update



Use of –CA modifier

Hospitals are instructed to continue reporting modifier –CA only under circumstances described in section VI of Transmittal A–02–129, which provided specific billing guidance for the use of modifier –CA. In addition, CMS will continue to make one payment under APC 0375 for the services that meet the specific conditions discussed in previous rules for using modifier –CA, based on calculation of the relative payment weight for APC 0375 as described above.The CY 2007 proposed APC 0375 median cost was $3,539, significantly increased from the $2,527 median cost in the CY 2006 proposed rule and the CY 2006 final median cost of $2,717.The CY 2007 final APC 0375 median cost is $3,549.

•49

Brachytherapy Sources 2007

•50

OPPS Update



Brachytherapy Sources 2007

•51

OPPS Payment Changes For Devices

•52

OPPS Update



Treatment of Device-Dependent APCs

CY 2007 Payment Policy • Device-dependent APCs are populated by HCPCS

codes that usually, but not always, require that a device be implanted or used to perform the procedure.

• CMS is finalizing its proposed payment policies for device-dependent APCs for CY 2007. The CY 2007 payment rates for device-dependent APCs are based on their median costs calculated from CY 2005 non-token claims that passed the device edits, without application of a maximum payment reduction floor in comparison with CY 2006 payment medians.

•53

Devices Billed Without ProcedureDevices Billed in the Absence of an Appropriate Procedure Code • CMS notes that it has identified circumstances in which

hospitals billed a device code but failed to also bill any procedure code with which the device could be used correctly.

• These errors in billing have led to the costs of the device being packaged with an incorrect procedure code and also have caused the hospital to be paid incorrectly for the service furnished if the device was appropriately reported.

CMS will implement edits effective with the January 2007 outpatient code editor (OCE). • The edits are posted on the OPPS Web site at:

http://www.cms.hhs.gov/HospitalOutpatientPPS/

•54

OPPS Update



Devices that Require Procedure Code

Pmkr, other than sing/dual C2621 Pmkr, single, non rate-resp C2620 Pmkr, dual, non rate-resp C2619 Lead, coronary venous C1900 Lead, pmkr/AICD combination C1899 Lead, pmkr, other than trans C1898 Lead, neurostim test kit C1897 Lead, AICD, non sing/dual C1896 Lead, AICD, endo dual coil C1895 AICD, other than sing/dual C1882 Generator, neuro rechg bat sys C1820 Pmkr, single, rate-resp C1786 Pmkr, dual, rate-resp C1785 Lead, pmkr, transvenous VDD C1779 Lead, neurostimulator C1778 Lead, AICD, endo single coil C1777 Generator, neuro non-recharg C1767 AICD, single chamber C1722 AICD, dual chamber C1721

Description Device

•55

Payment Policy - Replaced Devices with No Cost or Credit

CMS proposed, effective for services furnished on or after 1/01/07, to reduce the APC payment and beneficiary co-payment for selected APCs in cases in which an implanted device is replaced without cost to the hospital or with full credit for the removed device. CMS will limit the adjustment to identified APCs, but only when the purpose of the procedure is to replace a device that is reported by a HCPCS code that was furnished without cost or at full credit by the manufacturer. CMS proposed that the following 3 criteria must be met for an APC to be subject to the adjustment. • That all procedures assigned to the selected APCs must require

implantable devices that would be reported if device replacementprocedures were performed.

• That the required devices must be surgically inserted or implanted devices that remain in the patient’s body after the conclusion of the procedures, at least temporarily.

• That the offset percent for the APC (that is, the median cost of the APC without device costs divided by the median cost of the APC with devices) must be significant. For this purpose, CMS is defining a significant offset percent as exceeding 40 percent. •56

OPPS Update



Use of FB Modifier

Effective January 1, 2007, the definition of the FB modifier will read: ‘‘Item Provided Without Cost to Provider, Supplier, or Practitioner or credit received for replaced device (Examples, but not limited to: Covered under warranty, replaced due to defect, free sample).’’Hospitals will be instructed to append the modifier to the HCPCS code for the procedure in which the device was inserted on claims when the device that was replaced under warranty, recall or field action is one of the devices in Table 21. Claims containing the FB modifier will not be accepted unless the modifier is on a procedure code with status indicator ‘‘S,’’ ‘‘T,’’ ‘‘V’’ or ‘‘X.’’In cases in which the device being replaced is replaced without cost, the provider will report a token device charge. In cases in which the device being inserted is an upgrade (either of the same type of device or to a different type of device), the provider will report as the device charge the difference between its usual charge for the device being replaced and the credit for the replacement device. CMS will be able to identify whether the device was replaced without cost by the presence of the token charge. Where there is not a token charge for the device but there is an FB modifier on a HCPCS code, CMS will assume that an upgrade occurred.

•57

Table 21 Devices That Affect FB Modifier

•58

OPPS Update



Pass-Through Device Payment

Expiration of Transitional Pass-Through Payments for Certain Devices • For CY 2007, CMS proposed to continue to make payment under the pass-

through provisions for category C1820. This category would expire from pass-through payment after December 31, 2007.

• CMS is finalizing its proposal to expire category C1820, Generator, neurostimulator (implantable), with rechargeable battery and charging system, from pass-through payment after 12/31/07 without modification.

Provisions for Reducing Transitional Pass-Through Payments to Offset Costs Packaged into APC Groups • After the CY 2007 proposed OPPS rule was published and prior to the

publication of this final rule, CMS is announcing that it has established two new device categories for transitional pass-through payment.

• CMS has established device categories L8690 (Auditory osseointegrated device, external sound processor, replacement) and C1821 (Interspinous process distraction device (implantable)) for pass-through payment, effective 1/01/07.

• CMS says it cannot identify device-related costs in the procedural APCs that are expected to be billed with either of the new categories L8690 or C1821, that is, in APC 0256 or APC 0050, respectively. Therefore, the offset amount for CY 2007 is $0 for device categories L8690 and C1821. 59

OPPS Drug Payment Changes

•60

OPPS Update



OPPS Changes - Drugs, Pharmaceuticals and Biologicals

Transitional Pass-Through Payment for Additional Costs of Drugs and Biologicals • Section 1833(t)(6)(C)(i) of the Social Security Act specifies that the

duration of transitional pass-through payments for drugs and biologicals must be no less than 2 years and no longer than 3 years.

Drugs and Biologicals with Expiring Pass-Through Status in CY 2006 • CMS proposed to delete HCPCS code C9221 and instruct hospitals

to use HCPCS code J7344 (Nonmetabolic active tissue) for services furnished on or after January 1, 2007. CMS is finalizing the proposal without modification.

Since the publication of the proposed rule, CMS has determined that HCPCS code J7319 (Sodium hyaluronate injection) appropriately describes the product reported under HCPCS code C9220, and that HCPCS code J7346 (Injectable human tissue) appropriately describes the product reported under HCPCS code C9222. Therefore, CMS is deleting HCPCS codes C9220 and C9222, and instructing hospitals to use HCPCS codes J7319 and J7346, respectively, for services furnished on or after January 1, 2007. CMS is finalizing its proposal to discontinue pass-through status as of December 31, 2006, for the 12 drugs and biologicals shown in the table on the next slide.

•61

Pass-Throughs Expiring 12/31/06

•62

OPPS Update



Drugs/Biologicals with Pass-Through Status in 2007

•63

Drugs with Status Change

•64

OPPS Update



Payment -Non Pass-Through Status

Section 1833(t)(16)(B) of the Social Security Act requires that the threshold for establishing separate APCs for drugs and biologicals be set at $50 per administration for CYs 2005 and 2006. CMS proposed that for each year beginning with CY 2007, the agency would adjust the packaging threshold by the Producer Price Index (PPI) for prescription drugs, and the adjusted dollar amount would be rounded to the nearest $5 increment in order to determine the new threshold. The adjusted amount for CY 2007 was calculated to be $55.99, which CMS is rounding down to $55. Therefore, for CY 2007, CMS proposed to pay separately for drugs, biologicals, and radiopharmaceuticals whose per day cost exceeds $55 and packaging the costs of drugs, biologicals, and radiopharmaceuticals whose per day cost is less than or equal to $55 into the procedures with which they are billed. For CY 2007, CMS also proposed to continue the policy of exempting the oral and injectable 5HT3 anti-emetic products from the packaging rule, thereby making separate payment for all of the 5HT3 anti-emetic products (J1260, J1626, J2405, J2469, Q0166, Q0179, Q0180)CMS is finalizing its proposal to calculate an annual update to the OPPS packaging threshold using the proposed methodology without modification.

•65

Non Pass-ThroughNon Packaged Drugs - Payment

CMS is not finalizing its proposal to pay for drugs and biologicals at ASP+5 percent. Instead, after carefully considering all comments and the recommendations of the APC Panel, CMS will continue to pay for separately payable drugs, biologicals and their associated pharmacy handling in the hospital outpatient department for CY 2007 at a combined rate of ASP+6 percent. Medicare will temporarily allow a separate payment in CY 2007 for each day of intravenous immune globulin (IVIG) administration tophysicians and hospital outpatient departments that administer IVIG to Medicare beneficiaries. • This pre-administration-related service payment will continue to be billed

under the same HCPCS code as in 2006: G0332 (Pre-administration-related services for intravenous infusion of immunoglobulin, per infusion encounter).

• CMS will continue its CY 2006 placement of HCPCS code G0332 in New Technology APC 1502 (status indicator “S”) with a payment rate of $75 at this time.

• The payment for pre-administration-related services is in addition to the separate payments Medicare makes for the IVIG product itself and its administration. •66

OPPS Update



CY 2007 Payment Policy -Radiopharmaceuticals

Radiopharmaceuticals are classified under the OPPS as specified covered outpatient drugs (SCODs). Accordingly, payments for radiopharmaceuticals are to be made at average acquisition cost as determined by the Secretary and subject to any adjustment for overhead costs. Radiopharmaceuticals are also subject to the policies affecting all similarly classified OPPS drugs and biologicals, such as pass-through payments and packaging determinations. At this time, CMS says it believes that there is sufficient reason to extend the temporary policy of paying for radiopharmaceuticals at charges reduced to cost for one additional year as the best proxy for radiopharmaceutical acquisition and overhead costs, consistent with the August 2006 recommendation of the APC Panel. CMS is placing hospitals on notice to correct any charge issues in 2007. CMS says that it “expects that for the CY 2008 OPPS update, hospitals will have adapted to the CY 2006 coding changes and responded to our instructions to include their charges for radiopharmaceutical handling in their charges for the radiopharmaceutical products.” •67

Other Policies -RadiopharmaceuticalsCY 2007 Proposed and Final Payment Policy for Radiopharmaceuticals with HCPCS Codes, But without OPPS Hospital Claims Data

• For CY 2007, hospitals will receive payment for non pass-through radiopharmaceuticals without hospital claims data that have beenassigned HCPCS codes as of January 1, 2007, at the hospital’s charge for the radiopharmaceutical adjusted to cost, using the hospital’s overall cost-to-charge ratio.

• This methodology will provide payment for nonpass-through radiopharmaceuticals using the same payment methodology that CMShas finalized for pass-through radiopharmaceuticals

• CMS finalized its policy for drugs and biologicals that have HCPCS codes but do not have pass-through status, and those that do not have CY 2005 hospital claims data as follows:

• Items with a per administration cost of less than or equal to $55 will be packaged

• Items with an estimated per administration cost greater than $55 will receive separate payment.

•68

OPPS Update



Other Policies -RadiopharmaceuticalsCY 2007 Proposed and Final Payment Policy for Drugs and Biologicals with HCPCS Codes, But without OPPS Hospital Claims Data

• For CY 2007, CMS proposed to continue payment for new drugs and biologicals with HCPCS codes as of January 1, 2007, but without pass-through status, at a rate that is equivalent to the payment they would receive in the physician office setting, unless the drug or biological was also covered under the Part B drug CAP.

•69

Drug Administration -2007 Coding and Payment Changes

CMS will use only CPT codes for the reporting of drug administration services for the CY 2007 OPPS.

The following table lists drug administration HCPCS codes, associated status indicators, and CY 2007 APC assignments, where applicable, for CPT codes that will be newly recognized under the OPPS for reporting drug administration services provided in hospital outpatient departments on or after January 1, 2007.

C8957 is the only HCPCS code that is reportable in CY 2007 (prolonged infusion requiring the use of portable or implantable pump)

A transmittal detailing OPPS-specific guidance for hospital outpatient departments providing drug administration services will be released in 2007

•70

OPPS Update



S 0438 Chemotherapy administration, intravenous infusion technique; each additional sequential infusion (different substance/drug), up to 1 hour 96417

S 0438 Chemotherapy administration, intravenous infusion technique; each additional hour (List separately in addition to code for primary procedure) 96415

S 0441 Chemotherapy administration, intravenous infusion technique; up to 1 hour, single or initial substance/drug 96413

S 0439 Chemotherapy administration; intravenous, push technique, each additional substance/drug (List separately in addition to code for primary procedure) 96411

S 0439 Chemotherapy administration; intravenous, push technique, single or initial substance/drug 96409

S 0438 Therapeutic, prophylactic or diagnostic injection (specify substance or drug); each additional sequential intravenous push of a new substance/drug (List separately in addition to code for primary procedure) 90775

S 0438 Therapeutic, prophylactic or diagnostic injection (specify substance or drug); intravenous push, single or initial substance/drug 90774

N -Intravenous infusion, for therapy, prophylaxis, or diagnosis, (specify substance or drug); concurrent infusion (List separately in addition to code for primary procedure) 90768

S 0437 Intravenous infusion, for therapy, prophylaxis, or diagnosis, (specify substance or drug); additional sequential infusion, up to 1 hour (List separately in addition to code for primary procedure) 90767

S 0437 Intravenous infusion, for therapy, prophylaxis, or diagnosis, (specify substance or drug); each additional hour (List separately in addition to code for primary procedure)90766

S 0440 Intravenous infusion, for therapy, prophylaxis, or diagnosis, (specify substance or drug); initial, up to one hour 90765

S 0437 Intravenous Infusion, hydration; each additional hour (list separately in addition to code for primary procedure) 90761

S 0440 Intravenous Infusion, hydration; initial, up to one hour 90760

CY 07 SI

2007 APC 2007 Description

2007 CPT Code

•71

Antigen therapy services 95144

Immunotherapy injections 95117

Ther/proph/diag inj, sc/im 90772

Tx/proph/dg addl seq iv inf 90767

Ther/proph/dg iv inf, add-on 90766

Hydrate iv infusion, add-on 90761

Immunization admin 90471 $24.11 S 0437

Chemotherapy, unspecified 96549

Immunotherapy, one injection 95115

Ther/prop/diag inj/inf proc 90779

Immune admin oral/nasal addl 90474

Immune admin oral/nasal 90473

Immunization admin, each add 90472

$11.06 S 0436

Description CPT/HCPCS Code

Final CY 2007

APC Median

Cost

Final APC

Status Indicator

Final CY 2007

APC

CY 2007 Drug AdministrationAPC Structure

•72

OPPS Update




Chemotherapy injection 96542

Chemo ia infuse each addl hr 96423

Chemo iv infus each addl seq 96417

Chemo, iv infusion, addl hr 96415

Chemo intralesional over 7 96406

Chemo intralesional, up to 7 96405

Chemo hormon antineopl sq/im 96402

Chemo, anti-neopl, sq/im 96401

Ther/proph/diag inj add-on 90775

Ther/proph/diag inj, iv push 90774

Ther/proph/diag inj, ia 90773







Antigen therapy services 95145 $48.53 S 0438

•73

Refill/maint pump/resvr syst 96522

Refill/maint, portable pump 96521

Ther/proph/diag iv inf, init 90765

Hydration iv infusion, init 90760

$110.55 S 0440

Chemo, ia, push technique 96420

Chemo, iv push, addl drug 96411

Chemo, iv push, sngl drug 96409

$96.85 S 0439


•74

OPPS Update




Prolonged IV inf, req pump C8957

Chemotherapy, into CNS 96450

Chemotherapy, intracavitary 96445

Chemotherapy, intracavitary 96440

Chemotherapy, infusion method 96425

Chemo ia infusion up to 1 hr 96422

Chemo prolong infuse w/pump 96416

Chemo, iv infusion, 1 hr 96413

$151.86 S 0441

•75

Hospital Coding and Payment For Visits

•76

OPPS Update



Clinic Visits

A. Clinic Visits For clinic visits, CMS proposed five new codes, to replace hospitals’ reporting of the CPT clinic visit E/M codes for new and established patients and consultations. In response to the numerous comments related to creation of G-codes, CMS is postponing finalizing G-codes for clinic visits until national guidelines have been established. Providers should continue to use CPT codes to bill for clinic visits. The CPT codes for new and established visits and consultations will continue to be payable under the OPPS.

•77

Emergency Department VisitsB. Emergency Department Visits

To determine whether visits to emergency departments or facilities (referred to as Type B emergency departments) that incur EMTALA obligations but do not meet more prescriptive expectations that are consistent with the CPT definition of an emergency department (referred to as Type A emergency departments) have different resource costs than visits to either clinics or Type A emergencydepartments, CMS proposed to establish a set of five G-codes for use by all entities that meet the definition of a DED under the EMTALA regulations in Section 489.24 but that are not Type A emergency departments. For CY 2007, CMS is finalizing its proposal with modification. CMS will not adopt the G-codes in Type A emergency departments, but will adopt the G-codes for Type B emergency departments. A Type “A” emergency department is defined as a hospital-based facility or department that must be open 24 hours a day, 7 days a week and meet the EMTALA definition of DED (dedicated Emergency Department). A satellite facility or an area “carved out” of a facility ED that is not open 24/7 is billed as a Type B Emergency Visit. •78

OPPS Update



New ED “G” CodesType B Emergency Departments

The hospital emergency department visit provided in a Type B emergency department. (The ED must meet at least one of the following requirements) • It is licensed by the State in which it is located under applicable State

law as an emergency room or emergency department• It is held out to the public (by name, posted signs, advertising, or other

means) as a place that provides care for emergency medical conditions on an urgent basis without requiring a previously scheduled appointment

• During the calendar year immediately preceding the calendar year in which a determination under this section is being made, based on a representative sample of patient visits that occurred during that calendar year, it provides at least one-third of all of its outpatient visits for the treatment of emergency medical conditions on an urgent basis without requiring a previously scheduled appointment

The code ranges are: • G0380-Level 1 hospital type B ED visit • G0381-Level 2• G0382-Level 3• G0383-Level 4• G0384-Level 5 •79

Critical Care Services

CMS will continue to instruct providers to bill CPT codes 99291 and 99292 for critical care.

In addition, CMS is creating one new G-code, G0390 (Trauma response team activation associated with hospital critical care service), effective January 1, 2007, which is assigned to APC 0618 (Critical Care with Trauma Response), with a median cost of $491.66.

When critical care is provided without trauma activation, the hospital will bill CPT code 99291 (and 99292, if appropriate) as usual, and receive payment for APC 0617 (Critical Care), which has a median cost of $402.67, calculated from that subset of single claims for CPT code 99291 without revenue code 68x reported on the same day.

•80

OPPS Update



CY 2007 Visit Payment

Confirmatory consultation (Level I)99271

Office consultation (Level I) 99241

Assessment Other, CHF, Chest Pain, AsthmaG0264

Initial foot exam pt lops G0245

CA screen; pelvic/breast exam G0101

Office/outpatient visit, est (Level I) 99211

Office/outpatient visit, new (Level I) 99201

Eye exam established pat 92012

0604 Level 1 Hospital Clinic Visits

Short Descriptor HCPCS Code CY 2007 APC CY 2007 APC Title

•81


Initial preventive exam G0344

Follow-up evaluation of foot pt lop G0246

Initial care, normal newborn 99431

Confirmatory consultation (Level II) 99272

Confirmatory consultation (Level III) 99273

Office Consultation (Level II) 99242

Office consultation (Level III) 99243

Office/outpatient visit, est (Level II) 99212

Office/outpatient visit, new (Level II) 99202

Eye exam and treatment 92014

Eye exam, new patient 92002


•82

OPPS Update




Office consultation (Level IV) 99244

Confirmatory consultation (Level IV) 99274

Office/outpatient visit, est (Level IV) 99214

Office/outpatient visit, new (Level III) 99203

Eye exam, new patient 92004


•83


Emergency dept visit (Level V) 99285 0616 Emergency Visits

Level 5

Emergency dept visit (Level IV) 99284 0615 Emergency Visits

Level 4

Emergency dept visit (Level III) 99283 0614 Emergency Visits

Level 3

Emergency dept visit (Level II) 99282 0613 Emergency Visits

Level 2

Emergency dept visit (Level I) 99281 0609 Emergency Visits

Level 1

OPPS service, sched team conf G0175

Office/outpatient visit, new (Level V) 99205 0608

Level 5 Hospital Clinic Visits

Confirmatory consultation (Level V) 99275

Office consultation (Level V) 99245

Office/outpatient visit, est (Level V) 99215

Office/outpatient visit, new (Level IV) 99204


•84

OPPS Update



Non Recurring Policy Changes

•85

CORF ChangesNew HCPCS for AAA ScreeningRemoval of Comprehensive Outpatient Rehabilitation Facility (CORF)

Services from the List of Services Paid under the OPPS CMS is adopting as final, without modification, the technical change to regulation Section 419.21(d) to remove from the list of services paid under the OPPS certain services furnished by a CORF when they are provided outside the patient’s plan of care (for example, hepatitis B vaccine).

Proposed Assignment of New HCPCS Code for Payment of Ultrasound Screening for Abdominal Aortic Aneurysm (AAA) (Section 5112) DRA Section 5112 provides for coverage under Medicare Part B of ultrasound screening for abdominal aortic aneurysms (AAAs), effective for services furnished on or after January 1, 2007, subject to certain eligibility and other limitations. CMS is assigning code G0389 to APC 0266 with a median cost of $95.37 for CY 2007. Consistent with the statute, no Medicare beneficiary deductible will be applied to payment for this AAA screening service. •86

OPPS Update



AAA Screening RequirementsThe provision will apply to individuals (a) who receive a

• referral for such an ultrasound screening as a result of an initial preventive physical examination;

• who have not been previously furnished with an ultrasound screening under Medicare

• who have a family history of abdominal aortic aneurysm or• manifest risk factors included in a beneficiary category

recommended for screening (as determined by the United States Preventive Services Task Force).

Ultrasound screening for abdominal aortic aneurysm will be included in the initial preventive physical examination. Section 5112 also added ultrasound screening for abdominal aortic aneurysm to the list of services for which the beneficiary deductible does not apply.

•87

Critical Access Hospital Changes

Emergency Medical Screening in Critical Access Hospitals (CAHs) CMS proposed to revise the current CAH Conditions of Participation to align the emergency medical screening requirements in CAHs with those applicable to acute care hospitals. The proposed change would allow registered nurses, in addition to the personnel currently required to serve as qualified medical personnel to screen individuals who present to the CAH emergencyroom if the nature of the patient’s request is within the registered nurse’s scope of practice under State law and such screening is permitted by the CAH's bylaws. The proposed change would effectively eliminate the need for a doctor or mid-level practitioner to report to the emergency department to attend to a non-emergent request for medical care if a registered nurse is on site at the CAH and has made a determination that the care needed is of a non-emergent nature. CMS is adopting the proposed change to regulation Section 485.618(d), with minor change.

•88

OPPS Update



ASC Changes in 200711 Procedures Added to ASC List

1 Ligation of hemorrhoids 46946

1 Reposition gastrostomy tube 43761

3 AV fuse, upper arm, cephalic 36818

9 Percutaneous vertebroplasty, add’l 22522

9 Percutaneous vertebroplasty, lumb 22521

9 Percutaneous vertebroplasty, thor 22520

3 Treat cheek bone fracture 21356

9 Place breast cath for rad 19297

1 Repair wound/lesion add-on 13133



ASC Payment Short Descriptor CPT

•89

Additional ASC ProceduresAdded Since Proposed Rule

9 Acq canal dilat w retent 0177T

9 Aqu canal dilat w/o retent 0176T

9 AV fistula or graft venous G0393

9 AV fistula or graft arterial G0392

1 Brain surgery using computer 61795

7 Insert mesh/pelvic flr add-on 57267

3 Upper gi scope w/thrml txmnt 43257

1 Endobronchial us add-on 31620

1 Place breast clip, percut 19295


Payment Group Short descriptor HCPCS

•90

OPPS Update



What is a MAC????

•91

Medicare Administrative ContractorMMA Section 911 amended Title XVIII of the Social Security Act to add section 1874A, Contracts with Medicare Administrative Contractors (MACs). Section 1874A of the Act replaces the prior Medicare intermediary and carrier contracting authorities. Using competitive procedures, CMS will replace its current claims payment contractors (intermediaries and carriers) with new contract entities, MACs. MMA requires that CMS compete and transition all Medicare claims processing workloads to MACs by October 1, 2011. In 2006, there are 20 intermediaries and 18 carriers that process FFS claims. MACs will perform all core claims processing operations for bothMedicare Part A and Part B. The Part A and Part B MACs will operate in distinct, non overlapping geographic jurisdictions, which will form the basis of the Medicare claims processing operations. •92

OPPS Update



Medicare Administrative Contractor

Based on the authority provided in Sections 1874A(a) through (d) of the Social Security Act, CMS is establishing regulations pertaining to MACs in a new Subpart E of 42 CFR Part 421. CMS notes that each of the former “provider nomination”provisions is repealed As a general rule, Medicare providers and suppliers will be assigned to the MAC that is contracted to administer the types of services (benefits) billed by the provider or supplier withinthe geographic locale in which the provider or supplier is physically located or furnishes health care services. One significant exception to this general rule pertains to suppliersof durable medical equipment, prosthetics, orthotics, and supplies. CMS will continue to allow these suppliers to bill to the contractor assigned to the locale in which the beneficiary receiving the items or supplies resides.

•93

Medicare Administrative ContractorCMS is finalizing it proposed rules--• Providers will generally be assigned to the MAC with claims

processing jurisdiction over the geographic locale in which the provider is physically located.

• Large chain providers comprised of individual providers that were formerly permitted by CMS to “nominate” an intermediary, which the agency refers to as “qualified chain providers,” will be permitted to request opportunity to consolidate their Medicare billing activities to the MAC with jurisdiction over the geographic locale in which the chain’s home office is located.

• Qualified chain providers that were formerly granted single intermediary status do not need to re-request such privileges on behalf of the entire chain at this time.

• CMS may grant other exceptions to the general rule for assigningproviders to MACs, but only based on a finding that such an exception will support the implementation of the MACs or if CMS deems the exception to be in the compelling interest of the Medicare program. •94

OPPS Update



Quality Data Reporting Requirements under OPPS

•95

Quality Data Reporting In the CY 2007 OPPS proposed rule, CMS proposed to employ its “equitable adjustment authority” to adapt the quality improvement mechanism provided by the IPPS RHQDAPU program for use in the OPPS effective with 2007. Hospitals that are required to report quality data under the IPPS RHQDAPU program in order to receive IPPS FY 2007 update, and fail to meet the requirements for receiving the full FY 2007 IPPS payment update, would have received an update to the CY 2007 OPPS conversion factor that would have been reduced by 2.0 percentage points. CMS has now concluded that the most appropriate course at this point is to implement a separate OPPS quality update reporting program based on measures specifically developed to characterize the quality of hospital outpatient care. CMS says the process will require 2 years before quality measure data are available. Given concerns about increasing growth in OPPS spending without concern for the value of the services, CMS does not believe it would appropriate to delay focusing on the quality of hospital outpatient services beyond the minimum of 2 years required for the development and implementation of these measures. CMS also says it agrees with those who pointed out that implementation of the OPPS RHQDAPU program as proposed for CY 2007 would mean that hospitals could not have made decisions regarding their participation in IPPS quality reporting program with full knowledge of the effects of their participation on their OPPS update. •96

OPPS Update



Additional Quality Measures and Procedures for Hospital Reporting of Quality Data for the FY 2008

IPPS Annual Payment UpdateCMS is using this rulemaking in addition to the IPPS rulemaking to establish additional quality measures in order to give hospitals advance notice and lead time to learn about the collection requirements of the new measures before linking them to payment. In the CY 2007 OPPS proposed rule, CMS proposed to add the following categories to the FY 2008 IPPS RHQDAPU program measure set: • HCAHPS Survey – HCAHPS is also known as Hospital

CAHPS® or the CAHPS® Hospital Survey. •97

Any Questions???

Thank you for your participation!

Arlene Baril, MS, RHIA(972) 517-8558 voice/[email protected]

Cheryl D’Amato, RHIT, [email protected]

•98

OPPS Update



Audio Seminar Discussion

Following today’s live seminarAvailable to AHIMA members at

www.AHIMA.orgClick on Communities of Practice (CoP) – icon on top right

AHIMA Member ID number and password required – for members only

Join the Coding Community from your Personal PageUnder Community Discussions, choose the Audio Seminar Forum

You will be able to:• Discuss seminar topics • Network with other AHIMA members • Enhance your learning experience

AHIMA Audio Seminars

Visit our Web site http://campus.AHIMA.orgfor information on the 2007 seminar schedule. While online, you can also register for seminars or order CDs and pre-recorded Webcasts of past seminars.

OPPS Update



Upcoming Audio Seminars

Present on Admission Reporting • February 1, 2007

CPT: Surgery Coding Guidelines • February 8, 2007

Thank you for joining us today!Remember − sign on to the

AHIMA Audio Seminars Web site to complete your evaluation form

and receive your CE Certificate online at:

http://campus.ahima.org/audio/2007seminars.html

Each person seeking CE credit must complete the sign-in form and evaluation in order to view and

print their CE certificate

Certificates will be awarded for AHIMA and ANCC

Continuing Education Credit

Appendix

AHIMA 2007 Audio Seminar Series 52

CE Certificate Instructions

To receive your

AHIMA CE Certificate 2 AHIMA CEUs or 1.8 Nursing Contact Hours

Please go to the AHIMA Web site

http://campus.ahima.org/audio/2007seminars.html

click on “Sign-in” then “Complete Online Evaluation”

You will be automatically linked to the

CE certificate for this seminar after signing in and completing the evaluation.

You must complete the sign-in sheet and the seminar evaluation in order to validate your CE credit

OPPS Update - campus.ahima.orgcampus.ahima.org/audio/2007/RB012507.pdf · AHIMA 2007 Audio Seminar...

Documents

Transcript of OPPS Update - campus.ahima.orgcampus.ahima.org/audio/2007/RB012507.pdf · AHIMA 2007 Audio Seminar...