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Medicare as a Second Language Policy & Practice Issues for CRNAs Lee S. Broadston President & CEO BCS,Incorporated Michigan Association of Nurse Anesthetists October 2007

Medicare as a Second Language Policy & Practice Issues for CRNAs Lee S. Broadston President & CEO BCS,Incorporated Michigan Association of Nurse Anesthetists October 2007 Medicare & CRNA Practice Medicare s s Impact Enrollment of CRNAs as Medicare Providers 855B Group - 65 pages 855I Individual - 29 pages 855R Reassignment / Established Provider s Effective Date Retroactive? CPT Procedure and Diagnosis Coding Who Does Your Coding? Degreed/Certified Medicare & CRNA Practice Medicare s s Impact Modifiers QZ, or QX, QS, and G8 QZ Non Medically Directed 100% of Fee Schedule QX Medically Directed 50% of Fee Schedule QS Monitored Anesthesia Care G8 Surgical Procedure Deep/Complex/Invasive GA ABN Advance Beneficiary Notification on file CMS 1500 Format 33 Total Elements National Standard Format NSF Electronic Claim Submission EDI

The Layers of Medicare Medicare s s Organization Carriers A private company that has a contract with Medicare to pay your Medicare Part B claims Blue Cross & Blue Shield of Florida Contractor - An entity that has an agreement with CMS to perform a project. Noridan Administrative Services CERT Operations Comp Error Rates 140,000 claims each year random post payment audits The Layers of Medicare Medicare s s Organization Regional Offices - 10 - work closely with Medicare contractors in their assigned geographical areas. CMS Centers for Medicare and Medicaid - Baltimore, MD NPI Enumerator NPI Applications and National Registry https://nppes.cms.hhs.gov/nppes Acronym Npez CRNAs and Medicare CRNAs are recognized - they or their employers should bill Medicare Part-B directly. (41 CFR 414.60) CRNAs are an additional REVENUE SOURCE Even today - New Term to many Failure to Bill Medicare Part B will result in reimbursement LOSSES

Medicare Payment Policy for CRNAs The Relative Value Anesthesia Charge Structure Two Primary Components Base Weight or Value Expressed in Units Time Value Expressed in 15 Minute Units Total Units X Conversion Factor QZ 10 units X $17.76 = $ 177.60 QX 10 units X 8.88 = $ 88.80 Medical Direction -QX Medical Direction When an anesthesiologist fulfills the following criteria for each case, Medical Direction of a CRNA takes place. These are payment requirements not quality of care standards. (63 FR 58843, 11/02/98) Medically Directed -QX CRNAs are entitled to 50% of the fee schedule for each case. MD/anesthesiologist entitled to 50% of the fee schedule for each case 1-4 concurrent cases. Up to a maximum of four concurrent cases. (42 CFR 415.110) Medical Direction Criteria (42 CFR 415.110) For each patient, to receive payment for medical direction the physician must: (i) Perform a pre-anesthetic examination and evaluation; (ii) Prescribe the anesthesia plan; (iii) Personally participate in the most demanding aspects of the anesthesia plan including, if applicable, induction and emergence;

Medical Direction Criteria (iv) Ensure that any procedures in the anesthesia plan that he or she does not perform are performed by a qualified individual as defined in operating instructions; (v) Monitor the course of anesthesia administration at frequent intervals; (vi) Remain physically present and available for immediate diagnosis and treatment of emergencies; and (vii) Provide indicated post-anesthesia care. Medical Direction Documentation Requirements Condition of Payment: The physician/anesthesiologist must document in the patient s medical record that he/she has met all 7 medical direction steps. (42 CFR 415.110) Medical Direction Vs. Medical Supervision Medical Direction Involvement in up to four concurrent cases meeting Medical Direction criteria. -QY or QK = 50% of the Fee Schedule Medical Supervision Involvement in more than four concurrent cases. -AD maximum of 4 units at 50% of Schedule

Medical Direction Diagrams 1:1 Ratio -QY 2:1 Ratio -QK Medical Direction Diagram 4:1 Ratio -QK Medical Supervision Diagram 5 + :1 Ratio AD Maximum of 4 units if present for induction at 50% of Fee Schedule.

MD CRNA Collaborative All CRNAs Non-Medically Directed Billed @ -QZ Billing for Anesthesiologist Assistants (AAs) AAs cannot bill Medicare directly. AAs cannot practice independently. For the anesthesiologist to bill for the AAs services the AA must work under the direct supervision of an anesthesiologist. (42 CFR 410.69) HIPAA Implementation Health Insurance Portability and Accountability Act of 1996 PL104-191 HIPAA Purpose and Key Terms Increase efficiency of the industry with administrative and financial data exchange Enhance security of patient information and provide confidentiality Eventually decrease industry transaction costs Key Terms Compliance Plan, Privacy Statement Business Associate Agreement, transaction code sets, privacy and compliance officers

HIPAA Implementation Health Insurance Portability and Accountability Act of 1996 PL104-191 Important HIPAA Information Privacy Compliance 04-14 14-2003 Privacy Statement for your patients Transaction Code Compliance 10-16 16-2003 CPT-4 Code uniformity Anesthesia Codes - Modifiers Security Compliance 04-21 21-20052005 Password Access to data Minimum need to know/access Security compliance accelerated by HIPAA Privacy Rule. HIPAA - National Provider Identification - NPI Purpose Streamline administrative procedures, credentialing, enrollment state to state and payer to payer Government and private payer community NPI - National Provider ID Deadline 05-2007 Contingency Plan in place until 05-2008 NPI s needed Provider POS Referring MD https://nppes.cms.hhs.gov NPI Legacy Tax ID - Crosswalk Issues Update FAILURE Proceed with extreme caution. Valuable Links for Additional Assistance Centers for Medicare and Medicaid-CMS http://www.cms.hhs.gov National Provider Identifier https:nppes.cms.hhs.gov Comprehensive Error Rate Testing Information http://www.cms.hhs.gov/mlnproducts/downloads/certfactsheetv1-3.pdf American Association of Nurse Anesthetists http://www.aana.com http://www.bcsconsult.com

Additional Assistance AANA Pamela M. Kirby, JD Healthcare Payment & Policy Analyst 202.484.8400 pkirby@aanadc.com Lee S. Broadston President, CEO Waconia, MN 888.278.4124 Handouts For Today s Session at Lee@BCSConsult.com BCSConsult.com