Region D DMERC Advisory Committee
Questions to CIGNA Medicare for
January 30, 2002 Meeting
Via Conference Call

CIGNA Customer Service
1. The DAC has identified a trend in a lack of timely follow-up by CIGNA Customer Service.
When providers call about a claim that has been denied in error and request research, CIGNA
Customer Service is always consistent about issuing a confirmation number. However,
providers are increasingly not receiving a response and upon further follow-up by the
providers are being told 1) confirmation # was never put in computer, 2) unsure of status and
will check with supervisor or other dept, or 3) the provider should just resubmit the claim as
CIGNA CS can’t tell what is going on or it will take too much time to fix. Attached are some
examples.
Answer: A pilot project was conducted during this past year in which we changed our
process to improve our response timeliness for follow-up work and callbacks. This process
assigned all follow-up and callbacks to designated staff to complete to ensure all callback
work was completed timely. However, after evaluating this process, we found that the
process had the opposite effect. In January, we reassigned this work back to the individual
CSR who handled the call. Our hope is that this approach will allow for the improvement
of responses and completion of the inquiry.
Medical Supplies
Providers have started receiving conditional payments for beneficiaries, which show an open
Home Health Agency (HHA) episode of care with a remark code of N88.
2. How will the DMERC determine if the beneficiary actually is under the care of a HHA in
order to identify which payments will be subject to future recoupment?
Answer: CWF has added editing that will identify paid claims that are within the home
health claim dates and will send a notice to the DMERC to recoup payment.
3. When will the DMERC begin making recoupments?
Answer: January 2002
4. If a conditional payment is later recouped, may the provider charge the beneficiary?
Answer: No, the denial states it is not a separately payable item. It is included in the home
health payment. The beneficiary’s MSN will indicate they are not responsible for the bill.
Any reimbursement will need to be coordinated with the home health agency.
Education / Communication
5. The E.A.S.I. (Educational Assistance Subject Index) guide is a very good training and
education tool. Currently it is only available for those whom attend educational seminars. Is
it possible for CIGNA to place this on their website?
Answer: The DMERC Web site is dedicated to furnishing suppliers general Medicare
program information, upcoming supplier education and training events, and other
announcements or messages necessitating immediate attention. We are constantly
reviewing opportunities to provide additional information on our site. Although an
opportunity does not exist for posting/maintaining the E.A.S.I. on our site at this time, we
will keep your request in mind.
6. In a post-payment audit, is an original physician's signature still required on the CMN or will
a faxed CMN be accepted?
Answer: The PIM Chapter 5 3.3.1 states – Acceptability of Faxed Orders and Facsimile or
Electronic Certificates of Medical Necessity – (Rev. 11, 09-18-01)
When reviewing claims and orders or auditing CMNs for DMEPOS, DMERCs may
encounter faxed, copied, or electronic orders and CMNs in supplier files. Generally,
DMERCs should accept these documents as fulfilling the requirements for these
documents.
The DMERCs retain the authority to request additional documentation to support the
claim. If a DMERC finds indications of potential fraud or misrepresentation of these
documents, or the claims submitted, they should refer the matter to the Benefit
Integrity unit for development."
The following instructions will appear in the next Region D DMERC Region D Supplier Manual
update:
The "original" CMN is considered the document with the signature and date of the
physician, nurse practitioner, physician assistant, or clinical nurse specialist. Under
routine circumstances, the DMERC considers the original document to be the two-sided,
hard-copy CMN, the faxed copy or an electronic transmission ("e-CMN") with an
electronically authenticated signature and date.
The DMERC retains the authority to verify the authenticity of the physician, nurse
practitioner, physician assistant or clinical nurse specialist's signature and date, in selected
cases. The DMERC may accomplish this authentication by requesting from the DMEPOS
supplier a copy of the document with the "pen and ink" signature. Alternatively, the
DMERC may request that the physician, nurse practitioner, physician assistant or clinical
nurse specialist personally review and attest to the authenticity of document in question. If
the DMERC is unable to verify that the item was ordered by the physician, nurse
practitioner, physician assistant or clinical nurse specialist or that the document was
falsified, the DMERC will consider the service not reasonable and necessary and initiate
denial of the claim.
Therefore for dates of service on or after 09/18/01 this would apply. For dates of service
prior to 09/18/01 suppliers need to follow the previous guidelines.
Home Medical Equipment (HME)
7. What can a provider do if a physician refuses to complete the certificate of medical necessity
(CMN) properly? Does the provider have processing rights for situations where a physician
not completing or returning a CMN in a timely manner causes a delay in payment? Would
CMS consider a new prescription process and help organize a provider group to examine
problems with CMN processing and developing an alternative to the present procedures?
Answer: Dr. Hoover has offered his services in the past to contact recalcitrant physicians
and will continue to correspond with physicians on behalf of the supplier community.
Suppliers should contact Dr. Hoover's administrative assistant, Catherine Marlin, for
details on this process.
Note: Recently suppliers have abused this service and asked that physicians be contacted
by Dr. Hoover in situations that did not merit Dr. Hoover's involvement. Suppliers must be
sure of their facts before asking for help. If Dr. Hoover continues to receive calls from
physicians complaining about suppliers harassing them about completion of CMNs for
which they are not responsible, he will discontinue this service.
On the issue of a provider group to examine the CMN process, CMS has already organized
a workgroup to evaluate the utility of the CMN and is conducting a study to collect
information.
8. What alternatives do we have when the DMERC makes a mistake in processing our claims
(acknowledges the mistake) but asks the provider to re-submit? If the DMERC
acknowledges the mistake, cannot they simply make an adjustment to the claim at that time?
If the DMERC makes a mistake they need to have the ability to correct it at the time of
identification and not have the supplier re-submit (or send to review) the claim. Please advise
why a resubmission or review is necessary in this situation.
Answer: When a mistake is made processing a DMERC claim we should make every
attempt to fix our mistake. This issue will be re-addressed with our customer service
representatives to eliminate any confusion on their part about when they can adjust a claim,
or when a review should be requested.
9. What is the process for determining replacement value on Capped rental equipment in terms
of whether or not it is more costly to repair or replace equipment?
Answer: In the MCM 2100.4.A it states: " A. Repairs.--Repairs to equipment which a
beneficiary is purchasing or already owns are covered when necessary to make the
equipment serviceable. If the expense for repairs exceeds the estimated expense of
purchasing or renting another item of equipment for the remaining period of medical need, no
payment can be made for the amount of the excess.
(See subsection C where claims for
repairs suggest malicious damage or culpable neglect
Information needed by CIGNA with the claim is:
1. breakdown of the estimated charges for the required repairs to make the equipment
serviceable
2. age of piece of equipment
3. statement explaining nature of damage, wear, etc.
We take into consideration the age of the equipment, which should not be less than the
useful lifetime of the equipment, and the breakdown of the repair charges necessary to
make the equipment serviceable. The repair estimates would be compared to the fee
schedule for the purchase of the piece of equipment being repaired. For capped rental, the
first month’s rental is equal to 1 tenth of the purchase amount. Therefore on codes where a
fee schedule is not established for the purchase amount, we would use ten times the rental
fee.
10. Why can't the provider manual be updated with the information from the DMERC Dialogues
on a regular basis? Why does the provider have to always refer back to the Dialogues for
policy changes/updates when the DMERC should update the manual so that the provider only
has one source, not 30 to check? For example, CPAP supplies have been covered separately
since 1994 when a CPAP became a capped rental, but the policy still states that they are
included in the rental. Additionally, the Dialogue was published in 1994, but the CPAP policy
page was revised in October 1995 - in this event which item would supersede?
This is very misleading and if a new supplier comes into the business and doesn't have a 1994
DMERC Dialogue (which is also not on the website), that supplier is at a distinct
disadvantage in billing the Medic
are program correctly.
Answer: CIGNA has and will continue to update the DMERC Region D Supplier Manual to
keep abreast of any changes. Policies will be updated, as necessary, to reflect changes, and
we will attempt to incorporate past changes with each revision. However, it is still the
supplier's obligation to obtain copies of the DMERC Region D Supplier Manual and
DMERC Dialogue and become familiar with their contents. Back issues of the DMERC
Dialogue
may be requested using the DMERC Region D Publication Order Form, which is
included in the DMERC Dialogues.
The CPAP policy will be updated to reflect that supplies can be reimbursed separately.
Respiratory
11. Could we get an update on the following:
_ Oxygen Re-testing
_ CPAP policy and type of documentation proposed.
Answer: Oxygen – We are still considering comments to the draft policy and discussing
options for the final policy with CMS.
CPAP – This should be published in the April 2002 DMERC Region D Supplier Manual
update with an effective date of July 1, 2002. The delay in the effective date is the
conversion of local codes to national codes as the result of HIPAA (i.e. ZX to KX). The
DMERCs are contemplating elimination of the CPAP CMN and replacement with KX.
Instructions will be forthcoming in the April 2002 DMERC Dialogue.
12. Can providers accept oxygen CMN's from physicians when there is a liter flow span
indicated, such as 2-4 LPM? If we are able to accept this CMN, which liter flow should be
used for electronic submission?
Answer: Yes, this is acceptable. When submitting the CMN electronically you should enter
the highest LPM. This alone would not determine payment at over 4LPM . The physician
would still need to answer question # 7 of the oxygen CMN in order for a determination for
additional payment of the higher liter flow over 4LPM.
13. When revising a "recert" oxygen (484.2) CMN, what dates need to be in section A? We have
been given two answers:
A) Enter initial date, recert date and revised date.
B) Enter initial date and revised date only. There is no need to also enter the recert date.
We have also been told that if all three dates are entered on the CMN (answer #1), the entire
CMN would be rejected and the claims would be denied for payment.
Answer: An electronic CMN cannot be transmitted with both a recertification date and a
revised date. If a recertification is due, then you would enter the initial date and the
recertification date. If a revision is needed later, then you would only enter the initial date
and the revised date.
14. The SADMERC has coded the Fisher &Paykel HC200 CPAP with heated humidifier as an
E0601 and an K0531. The K0531 is and inexpensive and routinely purchased item and the
E0601 is a capped rental. If the patient chooses rental on the E0601 at the 10th month, and
then we subsequently pick up the machine at a later date, how do we handle the issue of the
K0531? The DMERC considers the K0531 owned by the patient once it reaches 100% of the
purchase allowable price. Since the HC200 is all-inclusive, we cannot pick up one item
(E0601) and leave the other (K0531).
Answer; The Region D DMERC does not consider automatic ownership of an IRP
(inexpensive and routinely purchased) item once the purchase price has been met. The
ownership of item depends on the arrangement between the supplier and beneficiary. Once
the purchase price has been met Medicare does not allow further rental payments. If the
beneficiary elected rental of the K0531 and E0601 there will be no problem in picking up
the combination product if it is no longer medically necessary.
The New Supplier Standard #5 states that a supplier must give the beneficiary the option of
either purchasing or renting of IRP items, therefore, this needs to be taken into
consideration with the patients choice. Please refer to the DMERC Region D Supplier
Manual
, Chapter 2, page 3.
15. Is there a circumstance when oxygen usage would be approved if the qualifying oxygen
saturation or ABG is done in an acute state? If so, please provide examples.
Answer: Coverage Issues Manual §60-4 specifies that coverage of home oxygen is available
only for those patients with significant hypoxemia in the "chronic stable state" and
specifically excludes coverage when testing is "…during a period of acute illness…..".
16. We have many customers that are Medicare FFS and change to a local plan that is an HMO.
They stay with the HMO for approximately 3 months and then switch back to Medicare FFS
when they learn that their HMO only pays at 50% for DME. Many times these changed occur
without the provider being notified. The provider identifies the change when the claim is
denied. Will the patient need to be re-tested when returning to Medicare FFS? Medicare FFS
would already have oxygen CMN’s on file and the medical necessity has not changed.
Answer: No, the patient does not need to be retested upon returning to FFS Medicare. The
supplier should submit a new initial CMN and list the most recent blood gas test. The
supplier should also note in the HA0 record of an electronic claim or attached to a hard
copy claim that the beneficiary is coming back to FFS from an HMO plan.
The Oxygen local medical review policy (Chapter 9, OXY-page 3), which states a new initial
is not required in the above situation, will be revised to reflect these new instructions for
Medicare HMO beneficiaries.
Orthotics & Prosthetics
17. The CIGNA Medicare Summer 2001 DMERC Dialogue (July, Page 7) outlined the
DMEPOS Fee Schedule allowances for services on or after July 1, 2001 including increases
that would be applied January 1, 2002. The Fee Schedule allowance changes noted were as a
result of the BIPA of 2000 and the BBRA of 1999. For orthotics, there was an allowance
increase for orthotics and prosthetics of 3.7% plus a 2.6% temporary increase (July 1, 2001
through Dec. 31, 2001). In addition, a 1.0% increase was mandated for January 2002 for
O&P.
We believe that the 3.7% increase implemented in July 2001 was a result of BIPA 2000. The
2.6% temporary increase is believed to have been for the lost revenue in 2001 due to the
delay in the implementation of the cost index adjustment for 2001 (January 2001 through
June 30, 2001). A portion of the 2.6% temporary cost index adjustment in 2001 should have
been carried through into 2002 to maintain the status quo on a go forward basis. The 1.0%
increase provided for O & P for 2002 was already mandated as an increase for O & P over
and above any cost increase.
The 2002 Fee Schedule Allowances for orthotics and prosthetics are reduced by 1.6% from
December 31, 2001. Shouldn’t an adjustment from 2001 be carried forward into 2002 for
O&P? Please explain the basis for the 2.6% temporary July through Dec 2001 increase and
why a portion of that increase would not carry into 2002.
Answer: The exact wording in the law at section 426(b)(2) of BIPA 2000 is "for items
furnished on or after July 1, 2001, and before January 1, 2002, shall be the payment basis
that is determined under such section taking into account the amendments made by
subsection (a), increased by a transitional percentage allowance equal to 2.6 percent (to
account for the timing of implementation of the CPI update.)"
As the language specifies, the 2.6% only applies to items furnished 7/1/01 thru 12/31/01 and
does not carry over into 2002.
18. Diabetic Footwear Inserts
After receiving the allowable’s for the year 2002 that were released on the 28
th of December
2001on the DMERC website, we noticed that all allowable’s for A5500 – A5507 were not
listed as well as the new allowables for the new codes A5509, A5510, & A5511. CIGNA has
confirmed that A5509, A5510, and A5511 do no have allowables, and will be reimbursed
based upon "reasonable charges" using Gap Fill Methodology. Is this a temporary situation?
If so, when will allowables be available?
Answer: Refer to the DMERC Region D Supplier Manual, Chapter 12, for the elements
that go into calculating the reasonable charge allowable. The reimbursement is based on
the lower of the supplier customary, prevailing, IIC, national limitation or submitted
charge. Due to the variables in the calculation, a set fee is not available for publication.
Suppliers billing for these codes should request a copy of their profile. This type request
should be addressed to CIGNA DMERC Medicare, Correspondence, P.O. Box 690,
Nashville, TN 37202-0690.
Since reasonable charge uses actual claim history in its calculation, and there is no
claim history for new codes A5509 – A5511 at this time, the reasonable charge allowable
will have to be gap filled on an individual consideration as the claims are received. The
gap filling will be temporary. The reasonable charge allowable will be established in
2003, provided enough claim history is received to meet guidelines for the different
elements that go into the calculation. Codes A5509 – A5511 will be subject to the
national limitations, which is $33.00 each.
Do claims using A5509, A5510, or A5511 require additional documentation beyond
manufacturer model number to be paid promptly? If so, what information must be submitted?
Answer: Additional documentation is not required.
Do claims for A5509, A5510, and A5511 have to be submitted hard copy?
Answer: Claims do not have to be submitted in hard copy.
Since the GAP Fill Methodology "reasonable charge" calculation for A5509, A5510, and
A5511 are completed using CIGNA determinations of "comparable" products, will this
information be available under the Freedom of Information Act? If so, can CIGNA provide
the DAC with the reimbursement amounts for A5509, A5510, and A5511?
Answer: At this time we have no claim history or product information to use in the
comparison. For Freedom of Information request we would need exact cases for
evaluation of the products used under these codes. The only portion of the reasonable
charge calculation currently available for these codes is the national limitations ($33.00
each).
Are there any restrictions coverage using A5510 (compression molded insert) that have not
been published (i.e., total foot coverage)?
Answer: Yes, they will be published in April 2002. A5510 is non-covered since it does
not meet the definition of the benefit.
A5511 is a new code for a custom fabricated from patient model insert. Custom fabrication
reasonable charges can vary significantly based upon who does the casting and fabrication of
the inserts. How is reimbursement determined in these cases? How will certification affect
reimbursement for A5511?
Answer: At this time we have no claim history or product information to use in the
comparison. The only portion of the reasonable charge calculation currently available
for these codes is the national limitations ($33.00 each).
Suppliers have until April 1, 2002 to bill using A5502 (claims must be received by the
DMERC prior to April 1, 2002) for diabetic footwear inserts. What is the A5502 allowable
for 2002 for the claims that are received by the DMERC from January through March 2002
using the code A5502?
Answer: Refer to the DMERC Region D Supplier Manual, Chapter 12, for the elements
that go into calculating the reasonable charge allowable. The reimbursement is based on
the lower of the supplier customary, prevailing, IIC, national limitation or submitted
charge. Due to the variables in the calculation, a set fee is not available for publication.
Suppliers billing for these codes should request a copy of their profile. This type request
should be addressed to CIGNA DMERC Medicare, Correspondence, P.O. Box 690,
Nashville, TN 37202-0690.
19. Clinical studies have been done comparing the use of non-elastic removable compression
garments versus the Una Boot and other wrapping methods. In the vast majority of these
cases it was reported that not only had the ulcer healed quicker the cost per patient was
dramatically reduced. Swelling reduction was also noted to increase as well. This
conservative treatment modality is a proven method of the treatment of stasis ulcers and
lymphadema.
The health benefits of this removable non-elastic type compression are numerous as the skin
can be cleansed and topical ointments applied as well as the compression on the swollen limb
can be monitored and adjusted by the patient.
The financial benefits to Medicare are also numerous. The cost of applying one non-elastic
removable type compression garment versus the Una Boot is also substantial, as the nonelastic
compression garment is removable and infinitely adjustable. The need for physician
time and the materials as well are drastically reduced.
Early intervention with a conservative treatment modality of the non-elastic, removable type
compression garment can be a financial as well as a medical benefit to the patient and the
Medicare system. Future costs of treatment when intractable lymphadema, stasis ulcers,
dermatitis, hyperkeratosis, as well as the breakdown of the subdural fluids are substantial.
These costs can be mitigated and the patients overall health can improve, by the use of the
non-elastic removable compression therapy. The Circ-Aid is an example of this type of
conservative treatment modality.
Under a physician order non-elastic removable compression therapy would be a cost benefit
while improving the outcome of the numerous disorders of the extremities. Would this
therapy modality meet Medicare requirements for re-imbursement? Can the DMERC look
into including this therapy modality into the benefits system of Medicare?
Answer: Currently non-elastic removable compression therapies are not reimbursed by the
DMERCs. However, a recent benefit category determination on elastic compression
bandage systems may cause the DMERC medical directors to reconsider these items.
20. L4396 Plantarflexion AFO Code Revision
The draft code revisions for 2002 include adding a phrase to the L4396
"plantarflexion" AFO description "adjustable for fit." No one is familiar with the
term adjustable for fit. The interpretation could affect products that are currently
covered by this code. Please provide your definition of "adjustable for fit."
Answer: Final code descriptor verbiage is determined by the A-N Workgroup. The code
verbiage was modified to encompass AFO designs like the PRAFO modular AFO system,
which has an adjustable posterior upright reported to accommodate different anatomical
shapes and conditions (e.g., dorsiflexion, plantarflexion, varus and/or valgus anomalies).
Previously Submitted Question – October 2001
Question 7 related to Motility peg attachment to the ocular prosthesis in the fitting of porous
ocular implants. At the October 2001 meeting Dr. Hoover agreed to research the procedure
to
explore the possibility of a new procedure code. Please provide a status update on this
issue
Answer: The following is a copy of the e-mail Dr. Hoover sent back to John Kenney of the
O & P Team:
John:
It's on my list to discuss with Phil Danz. I've done some research and at this point I am
not convinced that the volume is such that there is a need for a new code or modifier.
Also, I'm not sure what area of the country this question came from (probably CA) but
around here and in other areas where I made contacts, there are often problems
demonstrated with pegging, esp. hydroxyapetite. Also, pegged implants often have
exceptional motility, often exhibiting unwanted characteristics.
I'm seeing more and more implants made of medpore instead of HA. My research found
that Porex (medpore), after adjusting the pore size similar to HA, achieves similar
vascularity times. Also, it has the advantage of not requiring to be wrapped in sclera
which reduces the cost. Finally, muscles can be attached to the medpore implant
directly.
Bottom line - many of the ophthmologists feel it's prudent to peg only the implants that
exhibit poor motility and avoid the potential problems associated with pegging (pyrogenic
granulomas, discomfort, motility issues, retention problems). I'm not convinced that the
volume is such that we need a new code.
Bob Hoover, MD
Rehab
21. We are unable to locate the requirements for replacing worn parts on wheelchairs in the
DMERC manual. However, a question answered in the DMERC Dialogue Spring 2001
reads, "A beneficiary has a wheelchair purchased by Medicare, do we need a new order for
each repair?" The answer reports that though a new order is NOT required for items lost or
stolen or irreparably damaged, a new order IS required when the item is being replaced
because it is irreparably worn or the patient’s condition has changed. This statement is
similar to the information from The Supplier Manual Chapter 3 page 3 (Miscellaneous Issues
About Orders). It is our understanding that this information relates to replacement of a whole
piece of equipment, wheelchair, walker, etc. Is the policy the same for repair parts for a piece
of equipment such as bearings, tires, etc?
Answer: DMERC Region D Supplier Manual Chapter 3, page 3, states that a new order
would be required for each item. Please refer to the question and the answer to #17 in
the Spring 2001 DMERC Dialogue.
The answer found in the DMERC Dialogue would seem to indicate that a new physician
"order" is required for each repair. Is this correct?
Answer: Yes, see answer above.
Must the order be obtained prior to doing the repair? Or is it acceptable if the order is
obtained prior to doing the billing. There are times when a repair is urgent and the doctor
may not be available.
Answer: Please refer to DMERC Region D Supplier Manual Chapter 3, page 1,
regarding dispensing orders. For any item to be covered by Medicare, the supplier
must have an order from the treating physician before dispensing the item to a
beneficiary.
22. Prior to the birth of the DMERC, there was a provision for "lifetime authorizations" for
beneficiaries that have permanent disabilities and chronic illnesses. Under this provision,
Medicare recognized beneficiaries with chronic illnesses and permanent disabilities and did
not require continual documentation to establish their medical necessity. Medical necessity
was defined by the diagnosis. If a C-3 quadriplegic had their power chair purchased by
Medicare, they would have a CMN on file. Under the current guidelines, when they wear
their tires out, a new CMN must be obtained. If the true purpose of the Medicare CMN were
to establish medical necessity, it seems redundant, burdensome, and unnecessary to obtain a
new CMN when the beneficiary’s tires wear out. The obvious point is that this beneficiary
will always require the use of a wheelchair for mobility because of their disability.
Question. Is there a reason the concept of "lifetime authorizations" can’t be revisited to
eliminate a huge amount of burdensome and unnecessary paperwork and a delay in service?
Answer: First of all, the statement that a new CMN would need to be obtained to
replace a tire is NOT correct. A dispensing order and a detailed written order would
be sufficient. Remember that a detailed written order can be used in lieu of a
dispensing order if obtained prior to dispensing the item.
Lifetime Authorizations: This change would likely take a legislative change and/or
manual instructions by CMS.
23. This question is pertinent to multiple HME services and goes beyond the scope of solely
being the concern of the Rehab A Team. Region D providers have been getting denials for
cap rental wheelchairs when the beneficiary has contacted CIGNA stating they have received
EOB’s for the cap rental item, yet they claim, the wheelchair was returned months prior.
CIGNA has taken the beneficiary’s statement as fact, without contacting the provider, and
denied subsequent claims for the cap rental item.
It appears the difficulty occurs when the beneficiary returns the wheelchair to a hospital,
nursing home or has donated the wheelchair to a service organization, but did not return the
chair to the provider. The provider has no idea the wheelchair is no longer medically
necessary, cannot identify the location of the wheelchair, and remains unaware of the
problem until they receive a denial from CIGNA. Only upon inquiring into the rational
behind CIGNA’s denial is the provider able to deduce the circumstances.
It would seem reasonable and prudent to require the beneficiary to produce documentation
validating their claim that the wheelchair was returned to the appropriate provider prior to
CIGNA denying the claim. This type of issue is very time burdensome to both CIGNA and
the provider, and a little responsibility on behalf of the beneficiary would seem warranted. In
these cases, the provider is most likely not going to retrieve the wheelchair nor will they be
compensated for the loss of time or product.
Your suggestions on how to resolve this repetitive complication are most appreciated.
Answer: The customer service representatives are instructed to ask the beneficiary for a
pick-up slip, if available, but the beneficiary is not required to provide documentation
when reporting equipment picked-up or returned. To help identify those situations
when equipment is not returned to the appropriate party, the customer service
representatives have received instructions to ask not only for the exact date of pick-up
and a pick-up slip, but also the name of the company that the equipment was returned
to. Regardless of what we do to detect if the equipment was returned to the right party,
Medicare would no longer be able to pay claims since it is no longer being used by the
beneficiary.
24. Inappropriate denials and inability to have denial codes changed: My business only accepts
Medicare assignment for custom mobility when accompanied by an authorization by Medi-
Cal. Due to different coverage criteria, there are a number of dual eligible beneficiaries that
qualify for equipment coverage under state guidelines, however they do not meet federal
guidelines. In circumstances where Medicare pays only a portion of the item or denies it
entirely, the state will pay for the item. In a number of instances, Medicare has denied
coverage using the following denial codes: "CO-16 Claim lacks information which is needed
for adjudication" or "CO-57 Claim/service denied/reduced because the payer deems the
information submitted does not support this level of service, this many services, this length of
service, or this dosage." The problem is that the state is unwilling to accept this denial code,
as it would appear the provider didn’t submit the required information. The reality is that no
matter what the provider submitted based upon the patient’s condition, it would not be a
Medicare benefit. When appealing these denials we are told that the denial cannot be
changed. A more appropriate denial would be for the carrier to deny the equipment due to
medical necessity. This allows the provider to bill other coverage. In the event the provider
wished to appeal the denial, additional information could be provided that would establish
medical necessity.
Question: Given the circumstances above, is there any reason a denial code cannot be
changed to a more appropriate denial? In the event this cannot be done, what can be done to
keep the provider from being placed in this "catch-22" situation.
Answer: A denial with a "CO-16 Claim lacks information which is needed for
adjudication" means that CIGNA has not received enough documentation to make a
coverage decision. Until we receive documentation to either pay or deny based on medical
need or Medicare coverage, we cannot change the denial code to accommodate coverage by
another entity. Suppliers must provide documentation to allow CIGNA to make that
determination.
A denial with a "CO-57 Claim/service denied/reduced because the payer deems the
information submitted does not support this level of service, this many services, this length
of service, or this dosage." is a medical necessity denial.
CIGNA wrote an article in the Winter 2000 DMERC Dialogue on page 2 titled, "Good
Denials" from Medicare. The staff at CIGNA Medicare often hear,"I need a ‘good’ denial
from Medicare" to get a claim paid by a secondary insurer. Unfortunately, for dual eligible
beneficiaries, CIGNA Medicare has little latitude when assigning a denial code to a claim.
Please refer to the above reference for more information.
Infusion Therapy and EDI/EMC A-Teams
Have no questions at this time.

Region D DMERC Advisory Committee
Questions to CIGNA Medicare
For Review at the October 30, 2002 Meeting
Georgia World Congress Center
Atlanta, GA

Final Q & A to DAC sent 10/24/02

ADMC Questions
Follow-up to Request for Input from Rehab A-Team
1. Once an affirmative confirmation on an ADMC claims has been rendered, the product has
been provided to the beneficiary, then the claim is submitted to CIGNA for reimbursement.
One problem has been denials due to the lack of product numbers on K0108 items. Some
manufacture
s do ue not use product numbers, order forms have been provided showing the
origin of the charge, yet those documents did not suffice.
Question : What does a provider do
when the manufacture does not utilize product numbers?
Answer : Please provide examples to Dolly.
The ADMC is a coverage determination only, it does not extend to the price that Medicare
will allow for the item(s). Payment amounts are determined upon receipt of the claim. Claims
must include the manufacturer name, model name/number, and suggested retail price of the
wheelchair base. Also, items billed with HCPCS K0108 must include a narrative description,
manufacturer name, model name/number, and the suggested retail price. Order forms/price
lists are accepted as sources in place of the above referenced material. When submitting an
order form/price list, clearly reference the description for each item with a direct reference to
the item on the order form/price list.
2. ADMC is a process, typically in which, the claim is laden with letters of justification,
CMN’s, documentation from Manufactures, retail price structure and other forms of
justification for the items being pursued. The volume of documentation required, limitation in
both code sets, and in the HAO field, many of these claims are being sent via mail and not
electronically transmitted. Currently these packets of data are submitted for the ADMC
process and then again when the claim is submitted for payment.
Question : Why is there not a way to assign a case number to these packets of data or other
means to control the documents at CIGNA and relieve the provider from submitting this data
twice? Secondly with the limitations in the code sets and HAO field what is being done to
improve the electronic transmission for these claims?
Answer : A case number is assigned for each ADMC. Since ADMC does not determine the
pricing of the items, it is the supplier’s responsibility when submitting a claim to give the
information needed to adjudicate it properly. There may be a way to do this. We will
consider your suggestions and work on a method to accommodate your proposal.
The HA0 record for claims submitted in the NSF format allows for 281 characters.
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The Health Insurance Portability and Accountability Act (HIPAA) law named the ANSI X12N
837v.4010 as the standard to be used for Professional claims. As you know, the entire health
care industry is moving to this format. This standard limits the number of characters that can
be submitted as free-form text to 80 characters at the line level, and 80 characters at the
claim level. This requirement is set by the ANSI X12N committee and not CIGNA Medicare,
CMS, or the Medicare program. These standards were developed by input from payors,
providers, suppliers and vendors and can only be changed by presenting a valid case to the
workgroup and committee responsible. Changes may be recommended through www.hipaadsmo.
com. Code sets which are named in law or the implementation guides are maintained
by specific organizations who are named in the implementation guides or in law. This is
another case where not all of the code sets are Medicare code sets, however they may be
required by the standard.
3. Dealers in Region D have reported difficulty with claims where a power tilt system is
provided after a manual recline system was previously provided. These claims are being
denied as same or similar. The medical necessities for the two systems differ significantly,
yet the two are viewed as the same.
Question : What might CIGNA suggest to these providers, to educate them on how CIGNA
views the difference in these two systems.
Answer: Suppliers should provide medical justification for the additional feature of tilt
versus recline only. In addition, there must be justification for the power versus manual
feature. CIGNA is aware that power tilt/recline combinations are not the same as manual
recline; however, without additional information to describe the medical necessity for the
addition of power and/or tilt (or the change in medical condition that requires upgrade to a
power tilt/recline system), same or similar denials are likely to occur.
4. We have noted instances where an item is approved on the ADMC, however, when the item
is billed, we receive a medical necessity denial. We have noted that a call to CIGNA usually
can correct the error. We feel that this should not be happening and takes up time for all
involved. Can closer communication be initiated between the ADMC and the billing
processes to avoid this type of denial?
Code K0016 was approved on initial ADMC but denied on claim with a PR-50 (Not
medically necessary).
Answer: Medical review is revising their process for entering ADMC CMN information into
the system to address this situation. Thank you for bringing it to our attention.
We have noted instances where the codes have been changed from those on the CMN or
additional codes have been added. Do we bill as changed or noted on the ADMC?
Code K0113 is addressed on CMN as a chest support. It is addressed on the ADMC as a
K0108.
ADMC request as noted on the CMN requests K0064 – flat free inserts. The ADMC
authorization is approving K0064 (correct code) and K0069 rear wheel assembly. The K0069
was not on the CMN. What does the notation of "correct code" refer to?
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Answer : When the code shown on the ADMC response letter is different than the code shown
on the CMN provided with the ADMC request, we intend that you use the code shown on the
ADMC request on the claim. You should also have the CMN revised accordingly. K0113 was
a code for a vest-type device that was worn by the patient and attached to the wheelchair; the
code is not valid for claims submitted to DMERC for dates of service 7/1/02 and after. The
shoulder harness device that was included in this ADMC is a wheelchair accessory that is
used to facilitate positioning for some patients who need assistance with trunk support.
Suppliers should contact the SADMERC for the correct code to use for the shoulder harness
device. The note (correct code) was included in the response for K0064 because we
sometimes see the wrong code used for flat-free inserts used with manual wheelchairs. In this
case, though, the supplier had used the correct code so the parenthetical comment was not
necessary. The K0069 was at one time a part of the ADMC response template and should
have been removed for this request, but was not. We have since revised the template so that
codes must be added, not deleted, which should hopefully prevent this problem from
occurring.
5. The Medicare manual (WCB-pg2) indicates, "a power wheelchair is covered if the patient’s
condition is such that the requirement for a power wheelchair is long term (at least 6
months)." Does this refer to the purchase only and shouldn’t short-term rental be allowed?
The following example sites an instance where the individual required 2 to 3 months use of a
power chair due to surgery. The claim was denied indicating that the need was not 6 months
or longer. This was taken to hearing with the same result.
Answer: Dr. Hoover will discuss with the other DMERC Medical Directors the policy
provision restricting need to a minimum of 6 months to allow a shorter period of need if the
chair will be rented.
HME A-Team
1. Transmittal AB-01-137 allows DME suppliers to verify Medicare eligibility over the
telephone. Since eligibility is available over the telephone, why cannot customer service also
provide eligibility information on same/similar equipment?
Answer: Medicare eligibility does not encompass same/similar equipment. The following is
the scope of information that may be released:
Medicare Part B eligibility date
Medicare Part B eligibility term date
Medicare HMO information
MSP information
a. Additionally, we have received information from our members that the DMERC CSRs
are also requesting the patient’s address, and or have been reluctant to provide
information when the supplier provides the required information. This has been addressed
for the individual supplier, but has training taken place to address the issue with the entire
CSR staff?
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Answer: The CSRs are instructed to validate the following information prior to releasing
beneficiary eligibility information to suppliers:
The supplier name
The supplier number
The beneficiary name
The beneficiary date of birth
The beneficiary HICN
The beneficiary gender
These must match exactly before eligibility information can be released.
2. Several suppliers are reporting receipt of documentation audits via facsimile from the CIGNA
Medicare Benefit Integrity Unit, without any communication received by mail or phone. The
requests have been for an average of 3-4 patients with DOS in 1995 through 1997. The letter
instructs the supplier to provide the documentation within 5 or 10 days. We find these
requests unusual on two points:
a. Why are the audits being faxed, not mailed to the supplier?
Answer: All requests for documentation are in writing .
b. The dates of service being requested are not recent thereby requiring most suppliers to
order the files from storage making the 5 or 10-day time limit impossible to meet. Would
it be possible to set standards for the number of days to return documentation, possibly
based on DOS?
Answer: If a provider/supplier has difficulty in meeting the time frame, they should
contact the requestor. Providers/suppliers are required to maintain documentation for
seven years and requests are not unusual.
3. Additionally a benefit integrity analyst told one of our members that Region D DMERC has
instructed them to survey or "audit" closed providers. In these instances they are to phone and
fax a closed provider. If no response to either the phone call or faxed document is received,
then an overpayment letter is generated - to which a response is not expected. This closed
provider is then sent to the Treasury department. The benefit analyst was unsure what
happens after that but believed the file to be closed; however that is not the case. The
Treasury department then generates an overpayment and interest accumulated letter and a
collection agency is retained to "go after" the supplier or the owner of that liability. Questions
concerning these audit practices follow:
a. As to the "search" for closed suppliers - it is a requirement of the NSC application
process for suppliers to disclose mergers, acquisitions, and closed practice locations -
where is the mandate to the DMERCs to audit closed suppliers?
Answer: Closed providers/suppliers are not selected for audit based on their status .
b. What procedures do you plan to implement to ensure that the correct contact information
is used when conducting an audit?
Answer: Contact information is obtained from the NSC. It is the provider/supplier's
responsibility to maintain current information with the NSC.
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4. What is the supplier’s responsibility in obtaining a CMN for a non-assigned claim? Please
explain.
Answer: Please refer to the DMERC Region D Supplier Manual in Chapter 3, page 1, under
Supplier Documentation. This information applies
to both assigned and non-assigned
claims
. It states " Before submitting a claim to the DMERC, the supplier must have on file a
dispensing order (verbal, faxed, original or electronic), the detailed written order (electronic,
faxed or original), the Certificate of Medical Necessity (CMN) (electronic, faxed or original,
if applicable), information from the treating physician concerning the patients diagnosis, and
any information required for the use of specific modifiers or attestation statements as defined
in certain DMERC local medical review policies (LMRPs).".
5. The Fall 2002 Supplier Manual update has deleted the repair policy. What will be the new
repair policy for patient owned equipment and when will it be effective?
Answer: The Repairs local medical review policy was retired and will be reissued at a future
date. No effective date has been set.
6. Written Orders Prior to delivery - now that faxed or electronically transmitted orders and
CMNs are accepted for both billing and auditing purposes; what form does the WOPD need
to be? Original or are faxes or electronically transmitted orders prior to delivery acceptable?
Answer: Written orders for those items that require a written order prior to delivery may take
the form of a photocopy, facsimile image, electronically maintained document or original
"pen and ink" document. The DMERC Region D Supplier Manual will be updated to reflect
the Program Memorandum from CMS outlining this change.
7. In the event that a Medicare beneficiary does not notify their supplier that they have become
Medicare eligible in a timely manner, is the supplier entitled to bill the Medicare beneficiary
privately for the dates of service they may not qualify for? For example:
A patient is on service renting oxygen equipment. The patient has private insurance as a
primary insurance company and NO test results were required to qualify for the private
insurance company to reimburse the provider. The beneficiary fails to notify the supplier
that they became Medicare eligible. The supplier is not able to obtain an ABN because
they were not notified of the Medicare eligibility date. Additionally, the supplier is not
able to obtain qualifying test results because they were not notified of the change in
benefits. Would the supplier be allowed to bill the patient privately for the full retail of
the oxygen rental until the patient is tested?
Answer: Duplicate question. This is addressed in Respiratory section . Please see answer
to question 14.
8. The Fall 2002 DMERC Dialogue, page five, article "ICD-9 codes will be date of service
driven" states:
Effective January 1, 2003, the annual ICD-9 updates will be date of service specific.
Providers and billing staff must bill claims using the diagnosis codes that are in effect at the
time the service is rendered.
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If a physician prescribed an item in 1998 using an ICD-9 code that was valid at the time, but will
become invalid (deleted) as of January 1, 2003 what steps must the provider take to bill with the
appropriate ICD-9 code for any date of service on or after January 1, 2003?
a. Is the provider required to obtain a revised prescription or CMN?
Answer: Pending CMS discussion.
b. Can the provider modify the ICD-9 code from the invalid to the valid replacement
code?
Answer: Pending CMS discussion .
c. Should ICD-9 codes be grand fathered on existing patients for the life of the CMN?
Answer: No, ICD-9 codes will not be grandfathered.
Follow-up Request for Same or Similar Issue
The process that our DMERC carrier, CIGNA Medicare has advised us on "same and similar"
denials is to forward to review a signed document by the beneficiary stating they have been asked
if they have ever had the requested equipment before and answered "NO", once going to review
the claim would be paid due to the fact we asked the question but they supplied the wrong answer
and we have no other means to find the correct answer-to make this process more efficient for all
parties, could there be a modifier places on the original claim submission (like done on many
other product and processes) stating we have this document on file which then would resolve one
of the "same and similar" issues upfront?
Answer: Doubtful that a new modifier would be created. In addition to asking the beneficiary,
suppliers also have the option of a 3-way call with the beneficiary (or the beneficiary’s
representative) and DMERC Customer Service.
Medical Supplies A-Team
9. The Fall 2002 DMERC Dialogue (pg7) and revised medical policy include specific
information required for coverage of diabetic supplies. The coverage requirements include
significant reference to the physician’s medical record. In that the policy states "physicians
are not required to fill out additional forms from suppliers or to provide additional
information to suppliers unless specifically requested of the supplier from the DMERC", we
believe suppliers will have difficulty determining if the physician's records include the
required information. Would you consider writing an educational article to physicians
regarding these requirements with a request to the Part B Carriers for inclusion in their next
bulletin? It would be helpful to clearly articulate the consequences to providers should the
physician sign a complete and valid order that does not have specific corresponding entries in
an additional separate format within the medical record.
Answer: Several bulletin articles have already been sent to the local carriers for publication,
most dealing with documentation. Another article is being prepared to specifically address
orders. Dr. Hoover will consider a separate article dealing with diabetic supplies and
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physician documentation responsibilities .
10. Carriers Manual Transmittal #1759 dated 7/24/02, states that DMERCs will process claims
that span two calendar years on a single claim line. Previously, providers were required to
split claims that spanned two calendar years into two claim lines. Will CIGNA be
implementing this change prior to year-end?
Answer: No. CIGNA Medicare will be implementing the changes outlined in Transmittal
1759 (Change Request 2063) with the January release. Claims for items that require span
dates that are received by the DMERC on or after January 1, 2003 that contain a span date
extending over two years will be processed on one claim line. Pricing and deductible
calculations for these claims will be based on the "from" date.
How is new information such as documentation requirements on POVs and/or the questions
and answers between CIGNA and the DAC communicated to Customer Service Agents?
Since this change, some providers have spoken with agents that are not aware of the change
in requirements.
Answer: Dr. Hoover addressed the CSRs in the August CSR meeting regarding the change in
POV documentation requirements. If there is a question that the DAC presents and CIGNA
deems it to be a global issue, then it will be communicated to the customer service area.
11. The Summer 2002 DMERC Dialogue includes an article on documentation requirements for
power-operated vehicles. The article states that the DMERC will focus additional
documentation requests, based on data analysis, on those claims where information indicates
that coverage criteria for a POV may not have been met. The article appears to relate
information contained in the Program Memorandum (PM) Transmittal #B-02-031 related to
POVs and power wheelchairs. Please clarify how these instructions might be applied to other
routine requests for additional information on items requiring a CMN (category 4 enteral
formulas for example). The PM states that collections of information must be approved
unless it fits within exceptions for audits and investigations. There are additional categories
or specific items, which the DMERC routinely requires documentation in addition to
information contained on the CMN. In those cases, is there also a potential conflict with the
Paperwork Reduction Act as cited in this PM?
Answer: Dr. Hoover will look at the example cited and discuss with the appropriate
personnel at CMS regarding implications with the PRA.
Orthotics & Prosthetics A-Team
12. Two procedure codes for an ocular prosthesis appear to be out of step with the current usual
and customary fees as defined by Medicare and what the actual cost is to a Medicare patient.
Physicians in region D commonly prescribe the two codes V2623 and V2627. Ocularists
rarely can take
(Biddle & Associates attachment pp1-13) assignment of benefits, as the fees
charged for these prostheses are usually 50% higher than what Medicare deems to be fair and
reasonable charge. The ocularists in region D commissioned a cost and benefits survey to be
handled by an outside and neutral survey company. The results of this survey were
outstanding in that the number of ocularists that can take assignment of benefits from a
patient hovered around 14%.
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The majority of ocularists had to charge a rate that was 50% higher than the amount allowed
by Medicare. This has the appearance of a situation where Medicare is out of step with the
market in setting up the Medicare allowable fee. It is apparent that steps need to be taken to
close this gap in the allowed amount and the usual and customary charge by the majority of
ocularists in region D to not place an undue burden on the Medicare recipient who is in need
of the services by ocularists to fabricate, fit and deliver an ocular prosthesis. What
information can we provide to the DMERC to get Medicare to readjust the fee schedule to
better the reimbursement rate to relieve this burden on the Medicare recipient. The results of
this survey are non participating this is evidenced by the small amount of respondents who
indicated that they were participating providers
(Region D participating and non
participating providers).
Question: What is your usual and customary fee for procedure #V2623 (fitting and
fabrication of a custom ocular prosthesis) versus a Medicare allowable fee?
See attachment No. 1
Answer: CIGNA is aware that the fees for ocular prosthetics codes are, in some cases,
significantly lower than the "usual and customary" fees charged by ocularists. Until inherent
reasonableness authority is restored to the DMERCs, there is no mechanism for adjustment
of the fee schedule for these procedure codes.
13. In the past the DAC O/P A-team has asked the status of credentialing/certification for the area
of Diabetic shoes fitters. Has there been any more information, thoughts or open lines for us
to communicate our position on this issue. In regards to this same matter, there has been some
speculation through out our industry that if the current phrase "other healthcare provider"
were to be interpreted not to include the current mix of providers, there may be a potential to
retroactively ask for revenue already paid, back from the provider. Though at this point only
speculation, any comments to help educate us, and what could we provide to the DMERC to
preclude this possibility.
Answer: The DAC O & P A-Team is welcome to send comments or thoughts through Dr.
Hoover on the issue of credentialing diabetic shoe fitters. From the perspective of Region D
medical review, the speculation that any changes in the interpretation of "other healthcare
provider" would be applied retroactively is unfounded. Unless Region D medical review is
instructed by CMS to the contrary, any changes to the current mix of providers would be
applied prospectively with adequate notice.
Previous Submitted Question
There is a continuing problem with the DMERC regarding the cleaning of an ocular prosthesis as
well as the reimbursement rates for procedure codes V2623 (custom acrylic ocular prosthesis)
and V2627 (custom sceral shell prosthesis). There is a lack of guidance from the DMERC
regarding the number of times per year that an ocular prosthesis can be cleaned and billed to
Medicare for appropriate re-imbursement. This has been an on going problem. What further
information is required that would solidify Medicare’s position on the cleaning of an ocular
prosthesis?
Answer: There is guidance on the polishing and resurfacing of an ocular prosthesis. The
allowance is once per year. Based on previous discussions, the DMERC Medical Directors will
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be revising the policy to allow this service twice per year. The policy revision is forthcoming,
probably in the spring 2003.
Respiratory A-Team
14. In the event that a Medicare beneficiary does not notify their supplier that they have become
Medicare eligible in a timely manner, is the supplier entitled to bill the Medicare beneficiary
privately for the dates of service they may not qualify for?
Example: A patient is on service renting oxygen equipment. The patient has private
insurance as primary coverage and no qualifying Saturation's or ABG’s were required for
payment. The beneficiary fails to notify the supplier that they became effective with
Medicare. The supplier is not able to obtain an ABN because they were not notified of the
Medicare effective date. Additionally, the supplier is not able to obtain qualifying test results
because they were not notified of the change in benefits.
Answer: It is the responsibility of the supplier to be aware of any changes in eligibility for
their customers/beneficiaries. Please refer to the DMERC Region D Supplier Manual,
Chapter 9, OXY, page 5 under Initial CMN is Required. It states, "With the first claim to the
DMERC for home oxygen (even if the patient was on oxygen prior to Medicare eligibility or
oxygen was initially covered by a Medicare HMO)."
When sending in the CMN the initial date would be the date of Medicare eligibility and the
test date on the CMN would be when a test was performed. Since Medicare coverage cannot
be allowed without qualifying test results the dates of service prior to the test date on the
CMN will be denied The denial message should be PRB17, which says "Payment adjusted
because this service was not prescribed by a physician, not prescribed prior to delivery, the
prescription is incomplete, or the prescription is not current."
15. Suppliers are continually receiving requests to provide Bi-Level (RAD) to patients with a
diagnosis of Morbid Obesity Hypoventilation Syndrome in which COPD is not a factor.
Morbid Obesity could fall under the Restrictive Thoracic Disease if we agree that obesity
contributes to a restrictive type lung disease causing eventual increased PaCo2 greater than
45 mmhg.
Example: Patient diagnosed with Obesity Hypoventilation Syndrome weighing 450 Lbs.,
Oxygen Saturation's in the 70's and a PaCo2 greater than 45 mmhg.
Question: Is there any hope for coverage from Medicare for this patient?
Answer: The issue of obesity and qualification for RAD was addressed in the Fall 2002
DMERC Dialogue (page 4).
Respiratory Assist Devices – Disease Classification
In the Local Medical Review Policy on Respiratory Assist Devices, the covered conditions
are divided into four categories. The first category is Restrictive Thoracic Disorders. This
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category includes patients with either neuromuscular disorders (e.g., ALS) or severe chest
wall deformities. It does not include patients with various interstitial lung diseases that often
lead to pulmonary fibrosis and are sometime referred to as restrictive lung diseases. RADs
are not part of the treatment for these conditions. Similarly, obesity is not included in the
Restrictive Thoracic Disorders category. Patients with severe obesity may qualify under
other categories such as the Obstructive or Central Sleep Apnea categories if a
polysomnogram and other tests, as detailed in the LMRP, indicate this is the appropriate
diagnosis.
Suppliers should refer to the LMRP on Respiratory Assist Devices for further details
concerning coverage, coding and documentation requirements for these devices.
16. If a patient has a CPAP machine that was purchased by a commercial insurance, do we still
need to have proof that they are still using the equipment before we can bill with the KX
modifier for supplies and repairs?
Answer: Yes.
Education /Communication A-Team
17. CMS has a Do Not Forward Initiative (DNF Initiative) in effect that requires the DMERCs
and the NSC to deactivate a company’s provider number if a single piece of mail, which is
posted, "Do Not Forward", is returned to the DMERC. Would you provide us with the steps
the DMERC takes when a DNF action is initiated to a Provider? Who in the DMERC is
responsible for the DNF Initiative processes? Does the DMERC know how many DNF
actions were caused by a mistake in mail delivery by the U.S. Postal Service?
Answer: The National Supplier Clearinghouse (NSC) is responsible for updating
addresses for all four DMERCs. CIGNA Medicare receives a daily update from the NSC.
This means that if an address has been updated between the time that a check or a
remittance is mailed and the mail is returned to the DMERC, the returned mail is
remailed to the new address. If the address has not changed, the supplier is flagged and
all subsequent payments are stopped until the address has been updated. The DMERC
does not do any follow-up investigation on the address.
The area with primary responsibility for the Do Not Forward process at CIGNA
Medicare is the Banking Operations team. Since the NSC maintains records for all four
DMERCs our customer service representatives have been trained to refer calls to them if
an address needs to be corrected.
There is really no efficient way of tracking if mail is returned because of a postal error.
All of those calls are referred to the Banking Operations Team since outside of the NSC
we have responsibility for setting or removing flags.
18. When an item reaches the 15 th month cap and then a free upgrade is provided (e.g. K0001
wheelchair is upgraded to a K0003 but there is no break in service or change in patient’s
condition) how do you bill? Would you bill the K0001 or the K0003? Would you use the MS
modifier and the upgrade modifier?
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Answer: . Suppliers should bill the claim with K0001MSGL. In addition, the following
information must be sent in the narrative for electronic claims or in field 19 of a paper claim:
Make and model of upgraded item
Why the item is an upgrade
When billing free upgrades, remember to only charge for the item ordered
19. Can a provider, who gathers ICD-9 and/or diagnosis information at intake, reiterate this to the
physician and place it on the Detailed Written Order?
Answer: Information provided by the physician to the supplier in the verbal order may be
restated and confirmed in the written order.
20. Is a supplier required to list the applicable HME billed items on the lifetime assignment of
benefits form? Is the provider also required to list the HIC#? If so, please provide the source
for these requirements.
Answer: If you are referring to the one-time authorization, please reference DMERC Region
D Supplier Manual in Chapter 6, page 12 for our suggested form. Before a supplier can use
signature on file (SOF) they need to follow these instructions. Non-assigned DME rentals
require a signature be obtained each month.
21. Request for clarification on a 3-month diabetic supply patient. If the patient gets their refill of
supplies a few days early, do you bill it when they received the goods as the DMERC
suggests? Are you risking a denial since supplies were already billed for that period? We
have heard that some DMERCs are allowing a 10-day grace period. What is the standard in
Region D?
Answer: For claims billed for blood glucose monitor supplies that are refilled early, the date
of service on the claim must be the same as the date the supplies were provided to the
beneficiary (e.g., beneficiary goes to drug store and buys supplies), or the date sent if the
supplies are mailed or shipped to the beneficiary; this is the same as for supplies that are not
refilled early. There is minimal risk that supplies will be denied due to early billing, since the
Region D DMERC takes the possibility of early delivery into consideration when reviewing
claims; the degree of risk would primarily depend upon the quantity billed and how many
days early they are billed. Region D does not use a standard grace period, but takes into
consideration the beneficiary's historical billing pattern, the number of days by which the
dates of service precede the usual billing date, and additional information provided by the
supplier. An explanation included with the claim in situations where a quantity that is greater
than usual is provided, and/or supplies are provided more than a few days early, should
mitigate any risk associated with this situation.
EDI/EMC A-Team
22. The HA0 record in the NSF format is 280 characters long. The corresponding NTE segments
in the 837P HIPAA claim transaction are 80 characters long. What should we do when we
have more than 80 characters of narrative information to send?
Answer: The ANSI X12N837 v.4010 transaction allows for 80 characters per claim in
addition to 80 characters per line. We recommend including as much general claim
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information at the claim level and any specific line information at each line. We have also
been encouraging suppliers to abbreviate. Refer to the Winter 98 edition of the EDI Edge for
some common wheelchair abbreviations. Please refer to your DMERC Region D Supplier
Manual and Region D DMERC Dialogues for specific policy information required in order to
submit your claim.
23. We need detailed information on the HIPAA reports package and have been told that it’s in
the EDI Manual. How can we get a copy of the new EDI Manual for HIPAA transactions?
Can we get it before starting to send electronic transactions?
Answer: The manual will be sent once the EDI Department receives your request to begin
testing. You can continue to submit NSF production claims while you test the ANSI format.
Effective November 1, 2002, an option will be added to the DMERC EDI Customer Profile
for electronic billers to request migration to the ANSI format. This form will be available on
our Web site. Another option to request migration is to contact our EDI department at
866.224.3094 (option 4). However, we encourage suppliers to utilize the customer profile.
This form can be either faxed or mailed to the EDI department.
24. Can we do more robust HIPAA claim testing than the required 10 test claims?
Answer: To make it easier to identify and correct any errors, we recommend you start with
10 claims. Further, we recommend you create 10 claims that encompass all types of claims
you would submit (ie, CMNs, MSP, Medigap, Legal Representative, narrative). Once you
complete testing and are activated, you can continue to submit claims to the test region.
25. For CMN 0102B, please provide the specific FRM01 value for each of the following:
o Ulcer #1 – Stage
o Ulcer #1 – Max. Length
o Ulcer #1 – Max. Width
o Ulcer #2 – Stage
o Ulcer #2 – Max. Length
o Ulcer #2 – Max. Width
o Ulcer #3 – Stage
o Ulcer #3– Max. Length
o Ulcer #3– Max. Width
Answer:
o Ulcer #1 – Stage 21A
o Ulcer #1 – Max. Length 21D
o Ulcer #1 – Max. Width 21G
o Ulcer #2 – Stage 21B
o Ulcer #2 – Max. Length 21E
o Ulcer #2 – Max. Width 21H
o Ulcer #3 – Stage 21C
o Ulcer #3– Max. Length 21F
o