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December 2009 Practice Update (part two)

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Medicare Changes Affecting Physician Payment Beginning January 1, 2010
There are several Medicare changes affecting physician payment beginning January 1, 2010. ASH wants to make sure you are aware of the following: elimination of consultation codes; freeze in Medicare physician fees through February 28, 2010; holding of claims processing through January 15, 2010; and a revised January 2010 ASP pricing file and crosswalk. Please read the items below for additional details.

CMS Eliminates Use of Consultation Codes: As of January 1, 2010, Providers Directed to Report Other Evaluation Management (E/M) Visit Codes
In the 2010 final Medicare Physician Fee Schedule (MPFS) the Centers for Medicare and Medicaid Services (CMS) announced that Medicare will no longer recognize consultation codes for Medicare Part B fee for service payment. CMS directs providers to report other evaluation management (E/M) codes in lieu of the consultation codes.

ASH and other specialty societies strongly opposed this policy change when it was originally proposed earlier this year. ASH argued that it devalued cognitive work performed by hematologists and other specialists. In addition, ASH and other medical societies worked with Senator Arlen Specter (D-PA) to try and insert language in the Senate health reform bill to reinstate consult codes. Unfortunately, this effort was not successful, and CMS has decided to stop making payments for consultation services starting January 1, 2010. The policy does not apply to Medicare Advantage or Medicaid.

All Consultation Codes Eliminated Except for Telehealth Services
As of January 1, 2010, Medicare will no longer recognize consultation codes, with the exception of telehealth services.

Providers should not report the following CPT codes on or after January 1, 2010:

  • Office consultation for new or established patient (99241, 99242, 99243, 99244, 99245)
  • Inpatient consultation for new or established patient (99251, 99252, 99253, 99254, 99255)

Providers can continue to code for:

  • Initial inpatient telehealth consultation (G0425, G0426, G0427)

Physicians who bill a consultation other than a telehealth consultation after January 1, 2010, will have the claim returned with a message indicating that Medicare uses another code for the service. The physician may not bill the patient for a non-covered service.

Medicare Directs Providers to Report E/M Visit Codes in Lieu of Consultation Codes
CMS directs providers to report evaluation and management (E/M) visit codes in lieu of consultation codes. CMS has not provided specific crosswalks from consultation codes to existing E/M codes. Providers should code a patient evaluation and management visit with E/M codes that represents where the visit occurs and identify the complexity of the visit performed.

Providers should report the following CPT codes for consultation services:

Hospital outpatient/office

In the office or other outpatient setting where an evaluation is performed, physicians should report new and established office/outpatient visit codes (CPT codes 99201-99215) depending on the complexity of the visit and whether the patient is a new or established patient to that physician.

Hospital inpatient and nursing facility setting

For the hospital inpatient and nursing facility setting, providers are directed to report initial hospital care visit codes (CPT codes 99221-99223) or nursing facility visit codes (CPT codes 99304-99306). The principal physician of record will append modifier "AI" Principal Physician of Record to the E/M code when billed. This modifier will identify the physician who oversees the patient's care from all other physicians who may be furnishing specialty care. Subsequent inpatient consults will be reported as subsequent visit codes (CPT codes 99231-99233).

Selecting Appropriate Codes

CMS is instructing physicians to select the code for the service based upon the content of the service. Medicare has noted that in order for physicians to bill the highest levels of visit codes, the services furnished must meet the definition of the code (e.g. to bill a Level 5 new patient visit, the history must meet CPT's definition of a comprehensive history). It is anticipated that the greatest confusion in this area will be with inpatient consultation services. While for outpatient/office consultation services providers will be going from five consultation codes to five E/M visit codes, in the inpatient setting providers are going from five consultation codes to three initial visit codes.

Prolonged Services

Prolonged visit codes are add-on codes billed with the primary evaluation and management (E/M) service. As an add-on code these codes cannot be reported independently, but must always be reported in addition to another E/M code. Prolonged visit codes are reported when treating patients whose symptoms are especially complex and concerning, and the provider is spending significantly more time with the patient. Prolonged visit codes 99354 and/or 99355 can be billed with the office or other outpatient setting E/M codes. Prolonged visit codes 99356 and/or 99357 are billed with the inpatient setting E/M codes.

Further Information

ASH has published an article further detailing how the new policy will affect hematologists.

CMS has released two articles to help educate providers about this new policy:

For specific coding questions not addressed by the educational materials listed above, ASH recommends that members and their staff contact their local Medicare carrier or MAC.

Medicare Physician Fee Freeze Through February 28, 2010
Congress has included a measure in the Department of Defense spending bill that will prevent the 21 percent scheduled Medicare physician fee cut from taking effect January 1, 2010, and freeze physician payments at their 2009 level through February 28, 2010. Although Congress and the Administration continue to pledge their commitment to replacing the current Medicare physician payment formula, it is not clear what will happen after February 28. To avert the 21 percent cut from going into effect, new legislation will have to be passed. ASH will continue to urge Congress to repeal the flawed formula used to establish physician payments and will keep you apprised of all developments.

CMS Will Hold Medicare Claims January 1 to January 15, 2010
CMS has instructed its contractors to hold claims containing services paid under the MPFS for the first 10 business days of January (January 1 through January 15) for 2010 dates of service. This should have minimal impact on provider cash flow because, under current law, clean electronic claims are not paid any sooner than 14 calendar days (29 days for paper claims) after the date of receipt. Meanwhile, all claims for services delivered on or before December 31, 2009, will be processed and paid under normal procedures.

CMS Posts January 2010 ASP Pricing
CMS has posted the revised January 2010 ASP pricing file and crosswalk. All are available for download.

Health Reform Update: Senate Plans to Pass Health Reform Bill Christmas Eve
As this issue of the Practice Update went to press, the Senate was preparing to vote on its version of health reform legislation, HR 3590, on Christmas Eve, and the bill is expected to pass by a party-line vote with all 60 members of the Democratic caucus supporting it and all Republicans opposing. Key to passage were negotiations resulting in the Manager’s Amendment, which provides several revisions that have convinced the last Democratic hold-outs to vote for the bill. The Manager’s Amendment includes several provisions of interest to hematologists, including an increase in bonus payments to primary care physicians and general surgeons in medically underserved areas while not cutting payments to non-primary care physicians. This is an issue that ASH worked hard on to prevent further cuts and protect access to specialists. Additional details of the House and Senate bills are available on the ASH Web site.

Assuming that the Senate bill is passed on Christmas Eve, the House-Senate conference will begin in January. It will require both Houses to reach compromise on the differences between the two bills.