36. Special Treatment Programs
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1 Medi-Cal Handbook page General The Medi-Cal (MSTP) provide health care benefits to persons who are in need of: Dialysis, or Parenteral hyperalimentation (also known as total parenteral nutrition or TPN) There are two subprograms with different eligibility requirements and benefits: Medi-Cal Special Treatment Program ONLY recipients, and Medi-Cal Special Treatment Program SUPPLEMENT recipients. The MSTP - ONLY and MSTP - SUPPLEMENT programs provide medical cost relief for dialysis, TPN, and related services. Under the regular Medi-Cal program, the beneficiary must pay or obligate all their net non-exempt income in excess of the Maintenance Need to meet their share of cost. Under this program, the beneficiary is only required to pay a percentage of the cost of dialysis or TPN services after any other health coverage payment is subtracted from the cost of those services. There is no retroactive eligibility for these programs Referrals to VMC Because there are very few of these special cases, they are to be referred to VMC, attention to the SSPM, AFTER a determination of eligibility for regular Medi-Cal has been completed AND the applicant: Is otherwise eligible for Medi-Cal as MN/MI except for EXCESS PROPERTY, or Is EMPLOYED and has been determined eligible for Medi-Cal with a SHARE OF COST, or Update # Revised: 02/07/07
2 page 36-2 Medi-Cal Handbook Is in need of TPN, but has NO LINKAGE. (Is not linked to AFDC-MN or MI.) Note: Persons applying for MSTP for dialysis coverage must have linkage. All eligibility must be cleared by the referring EW. However, the case must remain in pending status until the VMC EW determines eligibility for these programs. The VMC EW will issue the appropriate Notice of Action (NOA) after eligibility for these programs has been determined Definitions This section defines certain terms used in these programs Medi-Cal Special Treatment Program ONLY Beneficiary A person who receives Medi-Cal benefits ONLY for a Special Treatment. S/he is not eligible for any other benefits from Medi-Cal Program Medi-Cal Special Treatment Program SUPPLEMENT Beneficiary A person who is eligible for ALL Medi-Cal benefits with a share of cost (SOC), and who also receives supplemental benefits under the Special Treatment Program. The MSTP -SUPPLEMENT covers certain dialysis/tpn services until the regular Medi-Cal SOC is met. At that time, all medical services, including dialysis and TPN, are covered under the regular Medi-Cal program Dialysis A mechanical procedure which substitutes for the normal function of the kidneys. It becomes necessary when a person s kidneys fail to perform. Types of dialysis include: Revised: 02/07/07 Update # 07-02
3 Medi-Cal Handbook page Full Care Dialysis which is provided in a dialysis clinic or a hospital outpatient clinic. Treatment is fully managed by staff. The patient does not manage his/her own care. 2. Self-Care Dialysis which takes place in a self-care dialysis unit of a dialysis clinic or hospital outpatient clinic. Treatment is managed by the patient. 3. Home Dialysis which takes place in the home using a home dialysis unit. The dialysis clinic or outpatient hospital clinic usually supervises the patient s home care and will provide needed supportive services (e.g. home dialysis aides) Parenteral Hyperalimentation AKA: Total Parenteral Nutrition, TPN, or Tube Feeding. TPN is a process whereby nutrient replacement is administered to a person through a catheter placed in the chest. The procedure is used for persons who are unable to eat or digest food Annual Net Worth A formula which combines the net market value of all nonexempt property and the anticipated gross income in the next 12 month period Percentage Obligation The portion of medical expenses which the beneficiary is responsible for paying. It is based on the Annual Net Worth. Update # Revised: 02/07/07
4 page 36-4 Medi-Cal Handbook 36.4 Eligibility Requirements Applicants/Beneficiaries must meet ALL of the following conditions: MSTP - ONLY (Dialysis or TPN) 1. In need of dialysis or TPN and related services. 2. NOT eligible for regular Medi-Cal due to excess property. 3. NOT currently eligible for Medicare if under age 65 (applies to Dialysis only). [Refer to Medicare Application Requirements, page 36-5.] 4. Meets standard Medi-Cal requirements for citizenship or legal immigration status, cooperation, and residency. 5. Dialysis: Medi-Cal linkage requirements apply. TPN: Medi-Cal linkage requirements do NOT apply. NOTE: OBRA immigrants are NOT eligible for the Medi-Cal. MSTP - SUPPLEMENT (Dialysis or TPN) 1. In need of dialysis or TPN and related services. 2. Receives home dialysis or self-care dialysis. 3. Employed or self-employed AND has gross monthly earnings which exceed the Maintenance Need for one person. 4. Eligible under the regular Medi-Cal MN or MI program with a share of cost 5. Meets standard Medi-Cal requirements for citizenship or legal immigration status, cooperation, and residency. NOTE: OBRA immigrants are NOT eligible for the Medi-Cal Reporting Responsibilities All MSTP clients must report any change in status that could affect their eligibility or their percentage obligation. These include, but are not limited to: Loss of employment, Revised: 02/07/07 Update # 07-02
5 Medi-Cal Handbook page 36-5 Increase/decrease in earnings, Change in marital status, Change in Other Health Coverage (OHC), or Change in property. Note: If a beneficiary loses MSTP-ONLY eligibility because he/she becomes eligible for regular Medi-Cal, eligibility for MSTP-SUPPLEMENT must be explored. If a beneficiary loses MSTP-SUPPLEMENT eligibility due to excess property, eligibility for MSTP-ONLY must be explored Medicare Application Requirements MSTP for Dialysis Coverage Applicants for Dialysis coverage under MSTP-ONLY or MSTP-SUPPLEMENT must apply for Medicare within 10 DAYS of signing the SAWS Verification or a current Social Security statement of Medicare status must be provided before MSTP for dialysis coverage is approved. 2. Failure to provide verification, without good cause, will result in the denial of the application. 3. To qualify for MSTP-ONLY, a person under 65 must NOT be eligible for Medicare. 4. Medicare eligibility does not affect the MSTP eligibility of persons over 65. MSTP for TPN Coverage Applicants for TPN coverage under MSTP-ONLY or MSTP-SUPPLEMENT must apply for Medicare within 60 DAYS of signing the SAWS Verification of the application for Medicare is NOT required prior to approval. 2. If receipt of Title II Disability benefits is verified, the applicant is NOT required to apply for Medicare because Medicare eligibility will begin automatically with the 25th month of receipt. Flag the case for when the 25th month will occur. Update # Revised: 02/07/07
6 page 36-6 Medi-Cal Handbook 3. Medicare eligibility does not affect MSTP eligibility for TPN services. Follow-Up on Medicare Applications Social Security usually notifies a client of the outcome of his/her Medicare application within three months of the date of application. Once notified, the client must report the outcome of the application within 10 days to his/her EW. 1. If notification is NOT received by the end of the third month, the EW must: Ask the client to follow-up with Social Security, OR Inquire directly to Social Security regarding the beneficiary s Medicare status via the Referral To/From Social Security" (SC 169). 2. If the client is NOT eligible for Medicare, but he/she is employed or is the spouse/dependent child of an employed person, the EW must: Ask the client to provide a "Quarters of Coverage" statement from Social Security. Use the information to estimate when the client will become eligible for Medicare. [Refer to Eligibility for the Medicare Dialysis Program, page 36-6.] Enter a case alert case for the estimated date of Medicare eligibility. Reevaluate MSTP eligibility in the month the beneficiary is expected to become eligible for Medicare. 3. If the client is eligible for Medicare, the EW must discontinue MSTP - ONLY for dialysis coverage, if the beneficiary is under 65. Eligibility for the Medicare Dialysis Program To be eligible for Medicare Dialysis program, a person must be suffering from chronic kidney failure, AND be: Fully insured under Social Security (has 40 calendar quarters of covered employment), OR Currently insured under Social Security (has 6 out of the past 13 calendar quarters of covered employment), OR Revised: 02/07/07 Update # 07-02
7 Medi-Cal Handbook page 36-7 The spouse, dependent child, former spouse, widow, etc. of an insured individual. There is a three month waiting period between the onset of chronic kidney failure and the beginning of Medicare coverage. The entire waiting period is waived if the individual enters self-care or home dialysis training during the waiting period. Things to Remember 1. A Dialysis-Only beneficiary who is under 65 loses Dialysis eligibility once Medicare eligibility is established. 2. Dialysis-Supplement eligibility does NOT end when Medicare eligibility is established. However, Medicare covers most of the dialysis costs from that point. 3. Medicare eligibility does not affect eligibility for MSTP for TPN services Aid Codes The following aid types are used for MSTP-Only and MSTP-Supplement. MSTP Program Aid Codes Dialysis 71 TPN Annual Net Worth [50825] Many persons who need one of the Special Treatment services would not normally qualify for Medi-Cal because they own large amounts of non-exempt property. Because of the high cost of special treatment services, the Medi-Cal program has developed a different method of calculating property reserves for this program. This requires special treatment beneficiaries to pay only a small percentage of the bill for these services. The percentage obligation is based on the Annual Net Worth. Update # Revised: 02/07/07
8 page Determination of Annual Net Worth Medi-Cal Handbook Annual Net Worth can be determined by completing Part III of the Medi-Cal - Percentage Obligation Computation (MC 176 D). The Annual Worth is a combination of: The Net Market Value of all nonexempt property, and The gross income expected to be received in a 12-month period. Whose Property/Income to Include The property and income of the following people must be included in the property and income determination: The beneficiary, AND The beneficiary s spouse, AND The beneficiary s parents, if the beneficiary is under 21, unmarried, and living with his/her parents. Excluded/Exempt Property Excluded and exempt property includes: 1. One automobile, if used for the transportation needs of the beneficiary or any member of the family. 2. The first $40,000 of the net market value (assessed value less encumbrances) of the home of any member stated above. Note: The principal residence is NOT exempt. 3. The first $1,000 paid for burial trusts and owned by any member stated above. 4. Wedding and engagement rings, heirlooms, clothing, household furnishings and equipment owned by any members stated above. 5. Equipment, inventory, licenses and materials owned by any member stated above which are necessary for employment, for self-support, or for an approved plan of rehabilitation or self-care necessary for employment, including motor vehicles. Revised: 02/07/07 Update # 07-02
9 Medi-Cal Handbook page Determination of Percentage Obligation [50827] 1. The percentage obligation is based on the Annual Net Worth (ANW). [Refer to Determination of Annual Net Worth, page 36-8.] NET WORTH Less Than $5,000 PERCENTAGE OBLIGATION None $5,000 - $250,000 MSTP-Only = 2% for each $5,000 of ANW MSTP-Supplement = 1% for each $5,000 of ANW More Than $250,000 Not Eligible for MSTP. 2. The percentage obligation is applied after all other sources of payment have been exhausted. If the patient has Medicare, private health insurance, or any other non-medi-cal coverage, that coverage must be billed first. The patient s percentage obligation applies to the balance remaining after payment by the other coverage Example: MSTP - Only A Family s Net Worth is $78,000. To determine the Total Percentage Obligation: 1. Divide $78,000 by $5,000 = Round 15.6 DOWN to Multiply 15 x percentage obligation (15 x 2% = 30%). Eligibility for the MSTP-Only program is being evaluated, therefore, a percentage obligation of 2% is required. The patient s ANW is $78,000. There are 15 sets of $5,000 in the ANW. 15 x 2% equals 30% (Total Percentage Obligation) The patient must pay 30% of each dialysis/tpn bill, after any insurance payments are received. Medi-Cal will pay the rest. Update # Revised: 02/07/07
10 page Medi-Cal Handbook Example: If the total medical bill is $100 and Medicare covers $80, the patient s percentage obligation is applied only to the remaining $20. The provider subtracts what the beneficiary owes from the $20 and bills Medi-Cal for the rest Share-of-Cost MSTP-Supplement Program [50831] Costs which are obligated by the beneficiary under the MSTP-Supplement Program are applied to the MFBU s SOC, permitting the beneficiary s entire family to be certified as eligible when the SOC is met. Example: A family of four applies for Medi-Cal and the MSTP-Supplement Program and is approved with a $100 SOC. The percentage obligation is 1%. The medical bill for dialysis from VMC for the month of May is $1,000. TOTAL BILL $1, for self-care dialysis clinic Medicare pays (80%) Blue Cross pays % obligation (120 x 1%) remainder of SOC $21.00 VMC bills Medi-Cal The other family members can receive Medi-Cal benefits when the SOC is met. The dialysis patient also receives Medi-Cal benefits, including full-care dialysis. Revised: 02/07/07 Update # 07-02
11 Medi-Cal Handbook page MC 176-D Instructions for Completion Determination of the Annual Net Worth (ANW) is done at each: New Application Restoration Reapplication Redetermination Change in net worth affecting the percentage obligation Part I: Identification The following information is entered in Part I of the MC 176 D: Name and Address, Case Name, MN/MI Medi-Cal ID Number and/or MSTP Medi-Cal ID Number, Date of Birth, Sex, Other Health Coverage code, Social Security Number, HIC or RR Number, Date of Eligibility, Redetermination Date (12 months from the beginning date of eligibility), Percentage Obligation, Program requested: Dialysis, TPN, Supplement Part II: Eligibility Requirements - Summary No entries are required. Part II summarizes the eligibility criteria for the MSTP programs. Review program criteria to determine which MSTP program the client is eligible for Part III: Annual Net Worth Computations Annual net worth is based on family income and property. Complete Section A (Real Property), Section B (Personal Property) and Section C (Income). Update # Revised: 02/07/07
12 page Percentage Obligation Determination Part III, Section D Medi-Cal Handbook MSTP beneficiaries with $5,000 or less of annual net worth have a zero percentage obligation. All other MSTP - Only beneficiaries have a two (2) percent obligation rate for each full $5,000 of annual net worth, including the first $5,000. All other MSTP - Supplement beneficiaries have a one (1) percent obligation rate for each $5,000 of annual net worth, including the first $5, Establishing a MEDS Record When eligibility has been established, the EW shall: 1. Complete an SC 1296 requesting MTO on-line action to: Establish a MEDS record using the appropriate aid code (71 or 73), Complete an EW 20 (Add) transaction to enter the percentage obligation, and Issue a Medi-Cal BIC, if not previously issued. 2. If the annual determination is done by using the MC 176-D, scan a copy into IDM Status Reports Completion of the Midyear status reports (MC 176S) is dependent on whether the client meets the exemption criteria or not. [Refer to Status Report Exemptions, page 18-1.] Recipients who fail to submit a timely or complete an MSR must be discontinued. Revised: 02/07/07 Update # 07-02
13 Medi-Cal Handbook page Annual Redetermination An annual redetermination is required Notice of Action The Notice of Action for this program is the MC 239-F. It is available in CalWIN. Update # Revised: 02/07/07
14 page Medi-Cal Handbook Revised: 02/07/07 Update # 07-02
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