On November 2, 2010, the Centers for Medicare and Medicaid Services (CMS) posted a display copy of the final Medicare physician fee schedule (PFS) for 2011. The rule includes the standard annual fee schedule update, as well as implementation of provisions included in the Affordable Care Act (ACA). The provisions of the rule are effective January 1, 2011 unless stated otherwise.
On November 2, 2010, the Centers
for Medicare and Medicaid Services (CMS) posted a display copy of the final
Medicare physician fee schedule (PFS) for 2011. The final rule in its
entirety can be found at: http://www.ofr.gov/OFRUpload/OFRData/2010-27969_PI.pdf.
(Please note: Once this notice is published in the Federal Register on
11/29/10 the link will change). The rule includes the standard annual fee
schedule update, as well as implementation of provisions included in the
Affordable Care Act (ACA). The provisions of the rule are effective
January 1, 2011 unless stated otherwise.
Extension of Ambulance
Payment Add-Ons in Rural Areas
Between July 1, 2008 and January
1, 2010, the ambulance fee schedule amounts for ground ambulance services were
increased by 3 percent for ground ambulance transports originating in rural
areas, and by 2 percent for ground ambulance transports not originating in
rural areas. The ACA extended these payment add-ons for an additional
year, covering grand ambulance transports occurring on January 1, 2010 through
December 31, 2010. In the final rule, CMS revised the regulations to
support this statutory requirement. CMS noted that they are developing a
process to address retroactive claims adjustments for ambulance services that
were processed under pre-ACA rules. Once this process is developed, CMS will
provide instructions to contractors on how to provide retroactive payments.
The ACA amends the designation of
rural areas, such that any area designated as rural for purposes of making
payments under the ambulance fee schedule for air ambulance services as of
December 31, 2006 shall continue to be designated as rural through December 31,
2010. CMS revised the regulations to support this statutory requirement. Furthermore, as directed by the
ACA, CMS extended the payment increase of 22.6 percent, applied to ground
ambulance transports that originated in a "qualified rural area", through
December 31, 2010.
Ambulance Fee Schedule
Each year, the ambulance fee
schedule is required to be increased by the percentage increase of the
CPI-U. The updated fee schedule is referred to as the Ambulance Inflation
Factor (AIF). Starting in 2011, the ACA amends the AIF to be reduced each
year by the Multifactor Productivity (MFP) adjustment. This adjustment
may result in a percentage increase being less than zero, and could cause
payment rates for a year to be less than those of the preceding year. If
the CPI-U is less than zero for a given year, then the AIF will be held at zero
before the MFP adjustment is applied.
Reporting Units when
Billing for Ambulance Fractional Miles
For years, CMS lacked the
capability to process fractional unit amounts on claims. Therefore, they
applied a standard for ambulance mileage to be billed in whole number
increments. Ambulance providers and suppliers were directed to round-up
to the next whole number. In the proposed rule, CMS determined that
claims processing for ambulance mileage should be revised to reflect the
current functionality of their claims processing systems, which can now accept
fractional units on claims.
CMS finalized its proposal to
require that claims for mileage submitted on or after January 1, 2011 by
ambulance providers and suppliers, both ground and transport, be rounded up to
the nearest tenth of a mile, up to 100 miles. Mileage equal to or greater
than 100 miles must continue to be reported in whole numbers.
CMS received several comments
regarding the claim capability of Part A providers, specifically that they are
not able to submit fractional units. CMS acknowledged that the UB-04
form, used by Part A providers, is not capable of accepting fractional units at
this time, although a form change is scheduled for July 2011. Therefore,
CMS will delay the implementation date for Part A providers, who are permitted
to bill on Form UB-04, to August 1, 2011.
Air Ambulance Provision
CMS finalized its proposal to:
- Clarify
documentation required to establish eligibility to furnish services in the
Medicare program by including Federal Aviation Administration and Clinical
Laboratory Improvement Act certifications.
- Require
fixed-wing ambulance and HEMS operators to notify the designated Medicare
contractor for their State when FAA revokes or suspends any license or
certification.
- Allow
the provider or supplier to voluntarily terminate its Medicare billing
privileges by contacting the Medicare contractor within 30 days of the
revocation or suspension, thereby allowing it to avoid having action be
brought against the provider or supplier and permitting re-enrollment when
revocation or suspension is resolved.
CMS rejected comments to create
an accreditation process, stating they do not have the statutory authority to
establish an accreditation program for fixed-wing air ambulance operators and
air ambulance operators.