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Health Regulation & Reimbursement
Update for MAC J15
Richard Sukeena MS, MBA, FAACVPR
Kentucky Cardiovascular Rehabilitation Association
March 1, 2018
No Financial Disclosures
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Objectives
1. Provide an overview & communication from AACVPR MAC
Liaison Task Force
2. Provide an update on proposed cardiovascular & pulmonary
rehabilitation reimbursement for 2018
3. Review CMS audit questions & concerns for past and
present related reviews
4. What’s your BEST defense for an audit?
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AACVPR MAC Task Force & Resource Group
GRQ/AACVPR MAC Liaison Task Force –Resource Group Structure
AACVPR Task Force: To coordinate, establish, renew, or improve
communication with Medicare Administrative Contractors (MACs)
• MAC: J15 (Kentucky and Ohio) CIGNA (Nashville, TN.)
• Medical Directors: Drs. Berman & Sandler
• MAC Liaison Role & Contact: Task Force liaison to have “quick access”
to your MAC; this will provide consistent interaction with the MAC MD. If
questions and concerns that are not institution-specific are channeled
through this line of communication, dialogue and consistent responses
• MAC Resource Group: Each Task Force member has identified a
member of a small support group, titled “MAC Resource Group” or
MRG, to assist with this goal.
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MAC Communication & Updates
The AACVPR “What’s New in my MAC” web page is for AACVPR
members to access MAC regulations, articles, publications and up-to-date
MAC-specific information.
AACVPR Task Force Chair: Karen Lui
MAC Liaison for J15: Richard Sukeena
MAC Resource Group: Peggy Cox, Stephane Tucker & Tammy Garwick
[email protected] / [email protected]
Go to: AACVPR > Advocacy > What’s new in my MAC > Updates and link
to Cigna (CGS)
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Recent Updates
1. Physician Referral Orders for Cardiac, Pulmonary & Vascular:
On 1/2016, our MAC J15 agreed to allow advance practitioners (NP
PA) to refer patients to CR/PR! BUT
• Overturned - Coverage & Analysis Group (CAG) Office at CMS,
CR/PR services must be ordered and supervised by an MD or DO!
2. Use of NPP’s in cardiac and Pulmonary Rehabilitation Supervision
• Programs MUST have MD or DO immediately and physically
available
• No reference to distance, location and time to respond –Tracking
options
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Recent Updates
3. Payment for off-campus hospital departments will be based on the
Physician Fee Schedule (PFS) rather than the Hospital Outpatient
Prospective Payment System (OPPS), as CMS had proposed.
• This will have serious negative financial consequences for any future
CR/PR services considering an off-campus location.
• Reduced Reimbursement by about 30% estimated $15 per visit
• Only off-campus departments that were operational prior to passage of
the Bipartisan Budget Act of 2015 on 11-2-15 will be grandfathered and
allowed to continue with payment based on the OPPS.
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Recent Updates
4. Change in 2018 to Procedure Code for 6 MWT :
• For 2018, CMS has provided new codes (94617 and 94618) to better
differentiate between the various pulmonary-related tests
• 94618 – Pulmonary stress testing (e.g., 6-minute walk test), including
measurement of heart rate, oximetry and oxygen titration, when
performed (describes the typical simple pulmonary stress test)
• Performance of a 6MWT outside of pulmonary rehab or respiratory
services would be billed with 94618 (Not part of PR service), BUT
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Final Update
Thanks to our Kentucky Members Efforts (letter writing/e-mail)
By now you’ve seen that our bill got into the ACCESS Act (2/8/2018)
BUT, NOT effective until January, 2024. That was due to the CBO
score, so it had to be delayed to reduce cost. ( Typical move)
• Per Task force - We are working on the best strategy to move this
date up.
This technical correction would allow non-physician practitioners to
meet CMS direct supervision requirements of daily supervision for
cardiac rehabilitation (CR) and pulmonary rehabilitation (PR).
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March 5-6 2018 - DOTH This year, AACVPR’s message to our U.S. Congress is
two-fold:
YOU’RE GOING TO WANT TO BE PART OF THIS EVENT
• To offer a solution that would remove the financial barrier of
locating hospital cardiac and pulmonary rehabilitation (CR, PR)
programs to an off-campus location, thus improving access to CR
and PR services for our patients.
• To thank your US Congressional Members who sponsored the NPP
bill, making it possible for nonphysician practitioners to meet the
CMS definition of “direct physician supervision.” The effective date
for our bill is January 1, 2024.
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Supervised Exercise Therapy (SET) Peripheral Artery
Disease
CMS (NCD) for Supervised Exercise Therapy for SYMPTOMATIC PAD
(CAG-00449N). Effective: 5/25/2017 Eligible Criteria: intermittent
claudication
• Duration: Up to 36 sessions – for 12 weeks
• Session/Service: 30-60 minutes – Therapeutic exercise training for PAD
patients WITH INTERMITTENT CLAUDICATION (IC)
• Setting: Hospital based (OPPS) or physician office (Effects
reimbursement)**
• Staffing: Qualified personnel – trained in exercise therapy (competent)
• Supervision: “direct physician supervision” present & immediately
available (BLS/ACLS)
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(SET) Peripheral Artery Disease Requirements
• Physician referral for SET PAD (NP/PA may not refer patient)
• Prior to referral – patient must have a face-to-face visit with the
physician responsible for PAD treatment – patients must receive
information regarding cardiovascular disease and PAD risk factor
reduction (education, counseling, behavioral intervention & outcome
assessments).
• 2nd referral needed beyond 36 sessions over 12 weeks per MAC
• Documentation is key
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(SET) Peripheral Artery Coding/Billing/Reimbursement
• ICD-10: 173.9 unspecified, I70.211 (right), I70.212 (left) or I70.213
(bilateral) atherosclerosis of arteries of extremities with IC
• Reimbursement: Hospital based (on campus) $55.96 – unadjusted
copay amount $11.20
• The revenue code for this service is 943 & procedure code is CPT
93668 . One session per day is billable with no restriction or
requirement on the number of sessions per week.
• A PAD program that is established in an excepted (grandfathered) off-
campus location will use the modifier “PO.” A PAD program in an off-
campus location that is not excepted will need the modifier “PN.”
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CMS Update: February 2, 2018 Transmittal 204
Change Request 10295
• MACs have the discretion to cover SET beyond 36 sessions over
12 weeks and may cover an additional 36 sessions over an
extended period of time (use a KX modifier on the claim)
• Coverage has been extended up to 72 sessions. MACs will
deny/reject claim lines for SET exceeding 73 sessions
• I70.211 – right leg, I70.212 – left leg, I70.213 – bilateral legs,
I70.218 – other extremity, I70.311 – right leg, I70.312 – left leg,
I70.313 – bilateral legs, I70.318 – other extremity, I70.611 – right
leg, I70.612 – left leg, I70.613 – bilateral legs, I70.618 – other
extremity, I70.711 – right leg, I70.712 – left leg, I70.713 – bilateral
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SET PAD RESOURCES & CHARGES
Resources:
• 2016 AHA/ACC Guideline on the Management of Patients with
Lower Extremity Peripheral Artery Disease; Gerhard-Herman et
al.Circulation. 2017;135:e726–e779.
• AACVPR PAD Exercise Training Tool Kit. Programmatic
Implementation; on AACVPR website.
• Charges: what does it cost per session to deliver the service(pre
assessment/testing to post outcomes) monitor versus no monitor
• CHARGE PER SESSION: $85.00 to $225.00 per session ?
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Update on proposed Cardiovascular &
Pulmonary Rehabilitation reimbursement for
2018
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CMS Proposed (estimated) 2018 OPPS Payment
Rates
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Provider Based Departments (PBD) & Fee for Service
Per section “603 of the Bipartisan Budget Act of 2015”
Hospital PBD off campus could continue to bill for services under the
outpatient prospective payment system (OPPS), IF they are:
• grandfathered in (services offered prior to 11/2/15)
• Anytime changes the departments physical address
Payment (as of 1/1/2017) is based on Physician fee Schedule (PFS), not
OPPS
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Provider Based Departments (PBD) & Fee for Service
CMS definition of Campus (42 CFR 413.65)
Physical area immediately adjacent to provider’s main buildings….but
located with 250 yards of the main buildings, and any other areas
determined on an individual case basis, by CMS regional office, to be part of
the providers campus.
Consequences:
• Limited access for patients
• Inability to re-locate CRPRVR services
• Reduced reimbursement when it falls under PFS
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Cigna MAC J15 Pulmonary Rehabilitation
G0237 — Therapeutic procedures to increase strength or endurance of
respiratory muscles, face to face, one on one, each 15 minutes
(includes monitoring)
G0238 — Therapeutic procedures to improve respiratory function, other
than described by G0237, one on one, face to face, per 15 minutes
(includes monitoring)
G0239 — Therapeutic procedures to improve respiratory function or
increase strength or endurance of respiratory muscles, two or more
individuals (includes monitoring)
G0424 — Pulmonary Rehabilitation, including exercise (includes
monitoring), one hour, per session, up to two sessions per day
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Pulmonary Rehabilitation Charges & Reimbursement
Overview & History PR Charges
• 2010 CMS used HCPCs code G0424 for COPD covered diagnoses
• CMS uses Medicare claims data from 2011 to develop payment rates for
2013.
The goal/purpose: To increase reimbursement for G0424 COPD code!
• In early September – AACVPR sent out a letter outlining the need to
review each programs charge master related to COPD G0424 code
charge and the need to increase the charge based on the data outlined
Refer to the Pulmonary Rehabilitation Toolkit – AACVPR website under
Advocacy
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Check Charges? Are You Covering expenses?
Consider expenses associated with the complexity of patients with COPD
Checklist:
• Review your charge master (who determines the charge, how and how
often is it reviewed)?
• Consider the expenses associated with the following per session:
salary/wages/benefits (time unit), overhead, fixed expenses (rent,
depreciation), variable expenses (patient supplies, education materials)
Refer to the Pulmonary Rehabilitation Toolkit – AACVPR website under
Advocacy
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PR: Procedure Code G0424CMS Change Request 6823, May 7, 2010
Patient must have some exercise every session.
• Differs from CR regulation
• One session must be at least 31 minutes in duration.
• Two sessions must be at least 91 minutes in duration.
• KX modifier MUST be used for any PR sessions beyond 36 in
patient’s Medicare lifetime.
• This indicates to Medicare that additional documentation should be
requested to determine medical necessity
• PR services exceeding 72 session will be denied!
• No time limit to complete PR sessions
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Pulmonary Rehabilitation Charges & Reimbursement
PR Programs in KY (Specific programs with > 250 claims & Charges< $400)CMS Number Claims # Charges ($)
180130 1097 309180012 1145 184180040 865 255180009 526 128180088 694 212180036 819 187180038 700 209180011 399 95180035 317 186180017 318 73
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Average Claim Charges Frequency of Claims Providers
$300-349 1,097 1
$250-299 865 1
$200-249 1,394 2
$150-199 1,964 2
$100-149 1,671 1
<$99 472 2
Totals 1654 9
Review of Past & Present Audits of
Cardiac & Pulmonary Rehabilitation
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Past Reviews: Pulmonary Rehabilitation
CGS expects that the physician's prescription (part of
the ITP) for exercise will include:
• Mode of exercise (typically aerobic)
• Target intensity (e.g., a specified percentage of the maximum
predicted heart rate, or number of METs)
• Duration of each session (e.g., "20 minutes")
• Frequency (number of sessions per week)
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Past Reviews: Pulmonary Rehabilitation
• Identifiable timeline for the PR iITP
1st MD orders PR
2nd PR staff assists MD (referring or Medical Director) in the
development of initial ITP
3rd PR Medical Director signs iITP “prior to initiation of PR”
4th The patient is charged for the 1st session
• Can you charge/bill for group education using G0424
The patient must exercise at every session in order for that session to
be legitimately billable to Medicare.
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Pulmonary Rehabilitation (HCPCS Code G0424):
Complex Medical Review – Kentucky
Kentucky Service-Specific Complex Results:
Charges Claims
Reviewed $141,952.22 101
Denied $46,653.63 35
Charge Denial Rate 32.9%
The top denial reasons associated with this review:
1 or more of the following components were missing
• Physician-prescribed exercise
• Cardiac risk factor modification
• Psychosocial assessment
• Outcomes assessment
• An individualized treatment plan
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The top denial reasons
The top denial reasons associated with this review:
• Condition for coverage was NOT submitted or was NOT covered as
defined as GOLD classification II, III & IV
• ITP was NOT established, reviewed and signed at least every 30
days by a physician
• Requested records NOT submitted in the required timeframe of the
ADR
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Cardiac Rehabilitation (HCPCS Code 93798): Complex
Medical Review – Kentucky
Kentucky Service-Specific Complex Results: 2/2017Charges Claims
Reviewed $1,682,317.21 123
Denied $937,072.28 67
Charge Denial Rate 55.7%
The top denial reasons associated with this review:
1 or more of the following components were missing
• Physician-prescribed exercise
• Cardiac risk factor modification
• Psychosocial assessment
• Outcomes assessment
• An individualized treatment plan
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The top denial reasons
The top denial reasons associated with this review:
• Documentation did NOT support that the program was under the
direct supervision of a physician
• Missing or unlegable signature to support physician referral and
orders
• Unable to determine medical necessity
• Requested records NOT submitted in the required timeframe of the
ADR
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Cardiac Rehabilitation (HCPCS Code 93798): Complex
Medical Review – Kentucky and Ohio--
Kentucky Service-Specific Complex Edit Results: 8/2017
Charges Claims
Reviewed $3,837,754.27 398
Denied $1,732,392.50 226
Charge Denial Rate 45.1%
The top denial reasons associated with this review are:
• Physician-prescribed exercise
• Cardiac risk factor modification
• Psychosocial assessment
• Outcomes assessment
• An individualized treatment plan
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Follow-up to Audits
Cardiac Rehabilitation
2013 CGS has shown a denial rate 44% for 386 claims
2016 has shown a denial rate 39% for 96 claims
2017 has shown a denial rate 56% for 123 claims
Pulmonary Rehabilitation
April 2013 CGS has shown a denial rate 84% for 139 claims
October 2013 has shown a denial rate 56% for 133 claims
March 2014 has shown a denial rate 22% for 44 claims
• Claims can be overturned – address with your claims or compliance
office – can file an appeal
• Denials have been linked to MISINTERPRETATION
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Present Audit: Cardiac Rehabilitation
(HCPCS Code 93798)
Why & What to Expect:
• Up to 20-40 claims would be selected per round & Up to 3 rounds
can occur
• Targeted Probe -Based on past reviews and denial rates (< 30%)
Results Thus Far:
• Not adding the KX modifier for visits that are over the 36 visit limit
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What’s Your BEST Defense for an
Audit?
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General Recommendations
• Refer to the most recent Cigna regulations (MAC)
Cigna website or billing department
Cardiac Rehabilitation: Coverage and Documentation
Requirements (cgsmedicare.com)
• Identify a liaison within the billing or compliance department
(tracking audits, Cigna updates and ADRs)
• Highlight past denial information in the patients chart related to
coverage requirements, especially when sending large amounts of
documentation
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The Importance of DOCUMENTATION
• Make sure all the DETAILS tell the story from the physicians referral to
the discharge summary
• Clear & Concise Documentation is KEY
• Lack of medical necessity documentation is the culprit with most audits
Documentation is most frequently missing in the following areas:
• Physician Referral
• Missing documentation the required components (physician prescribed
exercise, risk factor modification, psychosocial assessment, outcomes
assessment, established ITP)
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The Importance of DOCUMENTATION
Continue Missing Documentation in the following areas:
• ITP reviewed, signed by a physician every 30 days – no signature
or unrecognizable
• Documentation for place of service (hospital based or non-hospital
based)
• Identify the supervising physician – Hospital based versus MOB?
• Goals and outcomes (for each required component)
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Good Offense is your BEST Defense
1. Process of continuous monitoring of regulation requirements
Do regulation requirements crosswalk to the patients chart, iITP, 30 ITP,
daily session reports and discharge summary
Create an internal checklist and audit process
Great QA indicator
2. Continuous education of frontline staff, charge entry and
coders
Update all frontline and ancillary staff on latest requirements, ICD-10
codes
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Good Offense is your BEST Defense
3. Manage the Request/ADR
Align with internal department processing the requests and track
(spreadsheet)
4. Manage the Appeal Cycle
Success and denial rates
Look at trends <30%
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THANK YOU
QUESTIONS
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