January 28, 2008

 

 
TOA President's Update
  

By John T. Gill, MD
President, Texas Orthopaedic Association

During the 2008 AAOS Annual Meeting in San Francisco, I will have the honor of taking over as Chairman of the Board of Councilors.  The current chairman is Matt Shapiro of Eugene, Oregon and following me will be Tom Barber of Oakland, California.  I will continue to serve on the AAOS Board of Directors for my third and final year.  Because you may

or may not know what the Board of Councilors is, I thought I would take this opportunity to shed some light.

The BOC is basically your house of representatives to the Academy, representing all 50 states, Puerto Rico and Canada.  Councilors are elected by their respective state orthopaedic societies.  Every state has at least one councilor and some have proportionally more, depending upon the number of orthopaedic surgeons in that state.  Terms are three years, with one renewal.  In all, there are 102 councilors, Texas has five. 

The BOC serves as an advisory body to the AAOS Board of Directors and a resource to AAOS committees. In addition, the BOC manages AAOS' relations with the state orthopaedic societies. This includes conducting a wide range of programs to strengthen and support the state societies organizationally.

The Board of Councilors meets three times a year; at the Annual meeting, in Washington DC in the spring, and again in the fall, which this year will be in Dallas.  Major activities at these meetings include:

  • making recommendations regarding resolutions and proposed bylaws changes from the AAOS fellowship;

  • exploring AAOS health policy, education, communication, research, membership and governance issues and formulating specific recommendations to the AAOS Board and other AAOS leadership bodies on these issues;

  • visiting Congressmen, Senators and other federal officials to promote the interests of orthopaedic surgeons and their patients (National Orthopaedic Leadership Conference); and

  • developing AAOS and state society leadership capabilities through skill building exercises and other educational programs.

The Board of Councilors is your link to the AAOS leadership and AAOS decision-making. We need your input. Please feel free to contact me, or your local Councilor with your comments and concerns, anytime.
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Educational Sessions on Workers Compensation Medical and Hospital Fee Guidelines Offered in San Antonio on Feb 7
 
  

The Texas Department of Insurance, Division of Workers' Compensation (TDI) will present two educational sessions, Newly Revised 2008 Hospital Fee Guidelines and Newly Revised 2008 Medical Fee Guidelines. These educational sessions are sponsored by the University of Texas at San Antonio (UTSA) Small Business Development Center on Thursday, February 7, 2008. The sessions will take place at the UTSA Downtown Campus, Durango Building, Southwest Room, 501 W. Durango Blvd. The

cost is $50 per person for each session. To register for the educational sessions, contact Laura Gilliland, University of Texas at San Antonio Small Business Development Center, by calling 210-458-2047 or emailing Laura.Gilliland@utsa.edu.

The complete news release concerning the educational sessions on workers' compensation medical and hospital fee guidelines offered in San Antonio on Feb 7, can be located by clicking here.

For more information on additional educational sessions on workers' compensation medical and hospital fee guidelines, please visit the TDI website by clicking here.
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Industry-Wide Enforcement of the NPI Compliance Date

The compliance date for the NPI for all HIPAA covered entities except small health plans was May 23, 2007. (Small health plans have until May 23, 2008 to comply.) In guidance provided on April 2, 2007, CMS announced that, through May 23, 2008, it would not impose penalties on covered entities that deploy contingency plans to facilitate the compliance of their trading partners. On May 24, 2008, CMS will lift its enforcement-leniency policy. Complaints will be investigated as they are

today, but penalties will be a legitimate resolution if the entity does not demonstrate compliance or corrective action. CMS will continue to employ a complaint-driven approach to enforcement. For example, if a complaint is received alleging a failure to comply with the NPI requirements, CMS will contact the entity to secure evidence of compliance and the contingency plan that had been in place. If violations are identified, enforcement actions will take place.

This notice does not prohibit covered entities from lifting contingency plans prior to May 24, 2008.

In sum, no later than May 24, 2008, all covered entities are expected to be using the NPI in a compliant manner, and all contingency plans should be lifted.

Important Information for Medicare Providers

 

Medicare’s Key Dates
There are two key dates remaining for 2008 in Medicare's NPI implementation plan.  There is also some confusion as to the difference between the implementation steps for March 1st and May 23rd.  The chart below indicates the implementation steps for each date; as well a new column to help further clarify the difference between these two dates.

 

Date Implementation Steps Key Point
March 1, 2008 Medicare FFS 837P and CMS-1500 claims must include an NPI in the primary provider fields on the claim (i.e., the billing, pay-to, and rendering provider fields).

You may continue to submit NPI/legacy pairs in these fields or submit only your NPI on the claim. You may not submit claims containing only a legacy identifier in the primary provider fields.

Failure to submit an NPI in the primary provider fields will result in your claim being rejected or returned as unprocessable.

Until further notice, you may continue to include legacy identifiers only for the secondary provider fields.
Claims with only legacy identifiers in the primary provider fields will be rejected.
May 23, 2008 In keeping with the Contingency Guidance issued on April 2, 2007, CMS will lift its NPI contingency plan, meaning that only the NPI will be accepted and sent on all HIPAA electronic transactions (837I, 837P, NCPDP, 276/277, 270/271 and 835), paper claims and SPR remittance advice. (Note that this date is one day earlier than that mandated by the National Enforcement Policy)

This also includes all secondary provider fields on the 837P and 837I. The reporting of legacy identifiers will result in the rejection of the transaction.

CMS will also stop sending legacy identifiers on COB crossover claims at this time.
If the claim contains a legacy identifier in any field, it will be rejected.

 
Only 4 Months Until May 23rd - Test NPI-only claims NOW
While Medicare is receiving well over 90% of claims containing an NPI in primary provider fields, there is a very small percent of claims submitted with NPI- only.  Until you submit claims with an NPI-only, you will not have a preview of what your experience will be on May 23rd.  The time for correcting problems, should there be any, is getting short.  CMS urges that ALL Medicare providers test NOW so that problems can be resolved prior to May 23rd. For example, if there is a problem that requires a change in your Medicare enrollment information, you will need to act immediately.


How to test - After Medicare providers have submitted claims containing both NPIs and legacy identifiers and those claims have been paid, Medicare urges these providers to send a small batch of claims now with only the NPI in the primary provider fields.  If the results are positive, begin increasing the number of claims in the batch.

(Reminder:  For institutional claims, the primary provider fields are the Billing and Pay-to Provider fields.  For professional claims, the primary provider fields are the Billing, Pay-to, and Rendering Provider fields.  If the Pay-to Provider is the same as the Billing Provider, the Pay-to Provider does not need to be identified.)

 

Remember, if you test and your claims are processed successfully, you can approach the May 23rd date with confidence. If you do not, you may face unanticipated cash flow problems.

 

Medicare DMEPOS Suppliers: If Your Claims Are Rejecting!
Medicare DMEPOS suppliers may be experiencing claims rejections if they did not obtain their NPIs properly, if they are not properly enrolled in Medicare, or both. For example, if a DMEPOS supplier who is a sole proprietorship enrolled with the National Supplier Clearinghouse (NSC) as an organization and furnished an Employer Identification Number (EIN) instead of a Social Security Number (SSN), but obtained a National Provider Identifier (NPI) as an Entity type 1 - Individual, the Medicare NPI Crosswalk will be unable to link that DMEPOS supplier's Medicare legacy identifier (the NSC number) to its NPI. This is because the NSC number and the NPI identify different entity types--one identifies an organization and the other an individual. When a linkage between a Medicare legacy identifier and an NPI used in a claim does not exist in the Medicare NPI Crosswalk, the claim will reject. DMEPOS suppliers should contact the DME MAC if they do not understand the error message they received.

If the rejection was due to the inability of the Medicare NPI Crosswalk to link the NPI to the NSC number, the DMEPOS supplier should check the NPPES record to ensure the appropriate Entity type (1 = Individual; or 2 = Organization) is reflected in that record. Individuals (including sole proprietorships) obtain NPIs as Entity type 1. Organizations obtain NPIs as Entity type 2. If the NPPES record shows the appropriate Entity type, the DMEPOS supplier should contact the NSC to ensure the enrollment record is correct. If the NPPES record does not show the appropriate Entity type, the DMEPOS supplier needs to take action to ensure the appropriate Entity type is selected. If assistance is necessary, the NPI Enumerator (1-800-465-3203) can explain to the DMEPOS supplier how this is done.

Once the NPPES record is correct, the DMEPOS supplier needs to ensure that it is properly enrolled in Medicare. The NSC, once contacted, will ask appropriate questions to determine if the DMEPOS supplier is, in fact, a sole proprietorship, and if so, properly reflected as such in the enrollment record. The NSC will assist the DMEPOS suppliers in correcting their enrollment records.

 

DMEPOS suppliers who are sole proprietorships should be aware of the following:

  • A DMEPOS supplier who is a sole proprietorship obtains an Entity type 1 (Individual) NPI.

  • When enrolling in Medicare (form CMS-855S) with the NSC, a DMEPOS supplier who is a sole proprietorship furnishes his/her SSN as the Taxpayer Identification Number (TIN).

  • The Legal Name of the sole proprietorship business is the sole proprietor’s name.

  • It is possible for the sole proprietorship to have a “doing business as” (dba) name. The dba name can be reported on the CMS-855S and in the NPI application (in the “Other Name” field). A dba name, however, is not a Legal Name.

  • It is possible that the sole proprietorship requested and received an Employer Identification Number (EIN) from the IRS if the sole proprietorship has employees. This EIN will protect the sole proprietor’s SSN from appearing in claims and on W-2s.

  • Medicare will treat the EIN as the TIN for purposes of claims processing, but the SSN must still be reported on the CMS-855S.

  • When Medicare reports tax information to the IRS for that EIN, the IRS will link that EIN to the sole proprietor’s SSN.

Additional Information on Reporting a National Provider Identifier (NPI) for Ordering/Referring and Attending/Operating/Other/Service facility for Medicare Claims

Click here for a recently released MLN Matters Article on the topic of reporting NPIs for order/referring and attending/operating/other/service facility for Medicare claims.

CMS to Host National NPI Roundtable on 2/6/2008


CMS will host a national NPI Roundtable on Wednesday, February 6th from 2:30 – 4PM ET. This call will focus on the status of the Medicare implementation and a related question and answer session. Registration details are available here on the CMS website.

WEDI to Host NPI Audiocast
The Workgroup for Electronic Data Interchange (WEDI) will host an audiocast to discuss NPI implementation from an industry-wide standpoint. The audiocast will be held on February 21, 2008. Click here for registration details. Please note there is a charge to participate in WEDI events.

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CMS Updates Reimbursement Schedules
 
  

The U.S. Centers for Medicare and Medicaid Services (CMS) has released updated Medicare physician fee schedules for the first half of 2008. The new formula reflects the 0.5 percent increase enacted by Congress in December to replace a scheduled 10.1 percent reduction in reimbursement. The formula will apply until July 1. Without Congressional action before July 1, physician reimbursements will be reduced according to the flawed sustainable growth rate (SGR) formula. Physicians have

until February 15 to make any changes to their participation status, with all changes being retroactive to January 1, 2008.

For more information please click here.
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