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California HME Update

CMS Releases IFR-Mandated Rural Reimbursement Adjustments  

On Thursday, CMS published new adjusted rates for rural areas and non-contiguous states as mandated by the recently-released Interim Final Rule (IFR).  AAHomecare's analysis shows that they are consistent with the examples CMS published in their fact sheet on the IFR.

HCPCS
DESCRIPTION
JAN. 2018 RATE
IFR
ADJUSTMENT
%
CHANGE
E0277
LOW AIR LOSS MATRESS
$ 205.41
 $ 438.56
114%
E0601
CPAP
$ 43.95
 $ 73.87
68%
E1390
OXYGEN CONCENTRATOR
$ 77.16
 $ 121.46
57%
E2402
NPWT PUMP
$ 703.16
 $ 1,184.12
68%
K0003
MANUAL WHEELCHAIR
LIGHT WEIGHT
$ 36.73
 $ 66.62
81%


The rates take effect beginning June 1 and will run through December 31.  You can find the new rates here.

Medi-Cal Provider Updates
 
This first article indicates that Medi-Cal will follow changes adopted by Noridian for Medicare claims.

2. Modifiers Added or Revised for Select Oxygen System Codes

Effective for dates of service on or after April 1, 2018, modifiers for select oxygen system HCPCS codes have been added or revised as part of the HCPCS quarterly updates.

As presented in the following table, new modifiers QA, QB and QR have been added as approved modifiers, and the long descriptors for current modifiers QE, QF and QG have been revised:

Modifier
Description
QA
Prescribed amounts of stationary oxygen for daytime use while at rest and nighttime use differ and the average of the two amounts is less than one liter per minute (LPM)
QB
Prescribed amounts of stationary oxygen for daytime use while at rest and nighttime use differ and the average of the two amounts exceeds four LPM and portable oxygen is prescribed
QE
Prescribed amount of stationary oxygen while at rest is less than one LPM. The reimbursement amount is reduced by 50 percent
QF
Prescribed amount of stationary oxygen while at rest exceeds four LPM and portable oxygen is prescribed
QG
Prescribed amount of stationary oxygen while at rest is greater than four LPM
QR
Prescribed amounts of stationary oxygen for daytime use while at rest and nighttime use differ and the average of the two amounts exceeds four LPM

These modifiers are billable only with the following HCPCS codes:

HCPCS Code
Description
E0424
Stationary compressed gaseous oxygen system, rental; includes container, contents, regulator; flowmeter, humidifier, nebulizer, cannula or mask, and tubing
E0439
Stationary liquid oxygen system, rental; includes container, contents, regulator, flowmeter, humidifier, nebulizer, cannula or mask, & tubing
E1390
Oxygen concentrator, single delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate
E1391
Oxygen concentrator, dual delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate, each

No action is required of providers. Affected claims will be reprocessed via an Erroneous Payment Correction (EPC).



This article provides official notification on retroactive changes to some DME codes many related to wheelchairs and accessories. There were pricing changes on these codes implemented on 10/1/17 that CAMPS contacted DHCS about and to complain about the magnitude of the reductions. They were allegedly based upon Medicare rate changes but they did not seem to have any valid relationship to Medicare rates, fee schedule or CB. We were able to get some of the codes adjusted upward. The changes are retroactive to 10/1/17 and there will be an EPC to automatically reprocess the impacted claims.

3. Updated Reimbursement Rates for Select DME Codes

Effective retroactively for dates of service on or after October 1, 2017, the rental and/or purchase reimbursement rates for the following Durable Medical Equipment (DME) codes are updated:

E0140
E1020
E2228
K0044
K0070
E0149
E1028
E2368
K0045
K0071
E0197
E2206
E2369
K0046
K0072
E0955
E2220
E2370
K0047
K0073
E0967
E2221
E2375
K0050
K0077
E0985
E2222
K0042
K0051
K0098
E0995
E2224
K0043
K0052
 

An Erroneous Payment Correction (EPC) will be implemented to reprocess affected claims. No action is required of providers.

For more information, providers may refer to the Medi-Cal Rates page on the Medi-Cal website.





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