Healthy Indiana Plan Reimbursement Manual

Full text

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H P M a n a g e d C a r e U n i t

I N D I A N A H E A L T H C O V E R A G E P R O G R A M S

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Library Reference Number: PRHP10001

Document Management System Reference: Healthy Indiana Plan (HIP) Reimbursement Manual Address any comments concerning the contents of this manual to:

HP Managed Care Unit 950 North Meridian Street, Suite 1150

Indianapolis, IN 46204

© 2015 Hewlett-Packard Development Company, LP.

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Healthy Indiana Plan Reimbursement Manual

Revision History

Version Date Reason for Revisions Revisions Completed By

1.0 November 1, 2010 Initial Publication HP Publications

2.0 June 21, 2011 Semiannual Update HP Managed Care Unit and HP Publications

2.1 Policies and Procedures as of November 1, 2011

Published: December 22, 2011

Semiannual update HP Managed Care Unit and HP Publications

3.0 Policies and Procedures as of May 1, 2012

Published: September 6, 2012

Semiannual update HP Managed Care Unit and HP Publications

3.1 Policies and Procedures as of November 1, 2012

Published: February 25, 2013

Semiannual update HP Managed Care Unit and HP Publications

4.0 Policies and Procedures as of May 24, 2013

Published: July 11, 2013

Semiannual update HP Managed Care Unit and HP Publications

4.1 Policies and Procedures as of January 1, 2014

Published: February 20, 2014

Semiannual update HP Managed Care Unit and HP Publications

5.0 Policies and Procedures as of May 1, 2014

Published: June 10, 2014

Semiannual update HP Managed Care Unit and HP Publications

6.0 Policies and Procedures as of February 1, 2015

Published: June 4, 2015

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Healthy Indiana Plan Reimbursement Manual

Table of Contents

Revision History ... iii Table of Contents... v Section 1: Rules ... 1-1

Overview ... 1-1 Healthy Indiana Plan Reimbursement Rules ... 1-2 Healthy Indiana Plan Covered Benefits ... 1-2 Provider Reimbursement Guidelines ... 1-3

Section 2: Reimbursement Procedures ... 2-1

Overview ... 2-1 Acute Care Hospital Inpatient ... 2-1 Acute Care Hospital Outpatient ... 2-2 Ambulance – Independent and Provider Based ... 2-3 Air Ambulance Service Levels ... 2-3 Ground Ambulance Services ... 2-3 Anesthesia ... 2-4 Ambulatory Surgery Center ... 2-4 Assistant at Surgery (Physician)... 2-4 Blood ... 2-5 Cancer Hospital Inpatient Services... 2-5 Cancer Hospital Outpatient Services ... 2-5 Chiropractic Services... 2-5 Certified Registered Nurse Anesthetist ... 2-5 Clinical Nurse Specialist ... 2-6 Clinical Psychologist ... 2-6 Clinical Trial Services ... 2-6 Community Mental Health Center and CMHC-owned Critical Access

Hospital ... 2-6 Cosurgeon and Cosurgeons, Team Surgery ... 2-6 Critical Access Hospital ... 2-6 Consultation Codes ... 2-7 Dental ... 2-7 Diabetic Shoes ... 2-7 Drugs ... 2-7 Durable Medical Equipment ... 2-7 Emergency Room ... 2-8 Emergency Admission – Out of State, Out of Network, and Not an IHCP

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Table of Contents Healthy Indiana Plan Reimbursement Manual

vi Library Reference Number: PRHP10001

Nurse Practitioner ... 2-10 Physical Therapy, Occupational Therapy, and Speech Therapy ... 2-10 Physician – Medical Doctor (MD) and Doctor of Osteopathy (DO) ... 2-10 Physician Assistant ... 2-11 Physician Shortage Area ... 2-11 Pregnancy ... 2-11 Prosthetic Devices ... 2-11 Psychiatric Hospital – Inpatient and Outpatient ... 2-11 Radiology ... 2-11 Rehabilitation Hospital – Inpatient ... 2-12 Rehabilitation Hospital – Outpatient ... 2-12 Rural Health Clinic ... 2-12 Rural Health Clinic – Laboratory or Technical Component of Diagnostic

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Healthy Indiana Plan Reimbursement Manual

Section 1: Rules

Overview

The Healthy Indiana Plan (HIP) is a program that offers healthcare coverage to all eligible Indiana residents ages 19-64 with incomes up to and including 133% of the federal poverty level (FPL). The HIP program consists of multiple HIP plans that are funded with a $2,500 Personal Wellness and Responsibility (POWER) Account per member that is modeled after a Health Savings Account. There are two different funding mechanisms used to participate in HIP. A member may make POWER Account contributions and be enrolled in HIP Plus. If the member chooses not to make POWER Account contributions and earns less than 100% of the FPL, they may default into HIP Basic and make copayments for each service they receive at the point of service. The plans include HIP Plus, HIP Basic, and HIP State Plan. HIP Plus is the preferred plan because it offers the best value for members. • The HIP Plus plan uses monthly contributions, with a minimum contribution of $1 a month, that is

paid into a POWER Account for members to use. To determine the member’s monthly contribution their annual household income is multiplied by 2% and then divided by 12. There is a $100 maximum contribution per month. The State contributes the remainder of the POWER Account funding up to the deductible amount. HIP Plus also covers vision and dental services as well as enhanced pharmacy services.

• HIP Basic requires copayments at the point of service for any visit or service provided. These copayments generally range from $4 to $8 per service or visit. An inpatient stay requires a $75 copayment. The HIP Basic POWER Account is funded entirely by the State. HIP Basic does not cover vision and dental services and also has fewer pharmacy services.

• HIP State Plan is available for individuals who qualify as low-income parents and caretakers or low-income 19- and 20-year-olds, individuals receiving transitional medical assistance (TMA) as well as “medically frail” individuals (those with serious and complex medical, mental, or behavioral health conditions). These members receive access to the comprehensive Indiana Medicaid State Plan and include services such as nonemergency transportation. These individuals will use HIP Plus (POWER Account contributions) or HIP Basic (copayments) as the payment mechanism for access to coverage.

All HIP members are subject to a copayment if they use the emergency room (ER) inappropriately or when there is not a true emergency. This copayment is $8 for the first instance and $25 for every subsequent instance of nonemergency ER use.

Reimbursement for HIP continues to be at Medicare rates or 130% of the Medicaid rate if a Medicare rate does not exist. An exception is that facility charges for individuals that qualify as low-income parents and caretakers, and 19- and 20-year-old low-income dependents enrolled in HIP State Plan will be reimbursed at Medicaid rates. Facilities that offer payments to this group of members will receive supplemental payments from the Hospital Assessment Fee (HAF) funds. Physician rates arising out of inpatient facility based hospital services, however, will be paid at the standard HIP reimbursement rates.

This section provides the Indiana Administrative Code (IAC) HIP reimbursement rules, and the benefits covered in each HIP plan. The following citations reflect the Emergency Rule put in place on February 1, 2015, and will be updated upon the promulgation of the applicable IAC.

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Rules Healthy Indiana Plan Reimbursement Manual

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Healthy Indiana Plan Reimbursement Rules

Section 2: (kk) "Plan reimbursement rate" means the amount of reimbursement insurers pay to providers participating in the plan. This amount shall be:

(1) established by the secretary; and

(2) based on a Medicaid reimbursement formula that is:

(A) comparable to the federal Medicare reimbursement rate for the service provided; or (B) one hundred thirty percent (130%) of the Medicaid reimbursement rate for a service that does not have a Medicare reimbursement rate

Healthy Indiana Plan Covered Benefits

Section 22. (a) This Section outlines the benefits available to an individual enrolled in HIP Basic. The covered services provided under HIP Basic are in accordance with the essential health benefit requirements under 42 CFR 440.347 for alternative benefit plan. The HIP Basic plan includes the coverage criteria, limitations, and procedures specified in this regulation as well as the HIP Basic alternative benefit plan approved by the Centers for Medicare & Medicaid Services (CMS). (b) HIP Basic shall include covered services and benefits in each of the following categories:

(1) Ambulatory patient service. (2) Emergency services (3) Hospitalization (4) Maternity services

(5) Mental health and substance abuse services (6) Prescription drugs

(7) Rehabilitative and habilitative services and devices (8) Laboratory services

(9) Preventive care services

(10) Early and periodic screening, diagnostic, and treatment (EPSDT) services, as defined at 42 U.S.C. § 1396d(r), will be provided for nineteen (19) and twenty (20) year old HIP Basic members

(c) The following services are not covered under HIP Basic: (1) Services that are not medically necessary (2) Dental services

(3) Vision services

(4) Nonemergency transportation services

(5) Any other services not approved by the CMS in the HIP Basic alternative benefit plan Section 23. (a) This Section outlines the benefits available to an individual enrolled in HIP Plus. The covered services provided under HIP Plus are in accordance with the essential health benefit requirements under 42 CFR 440.347 for alternative benefit plan. The HIP Plus plan includes the coverage criteria, limitations, and procedures specified in this regulation as well as the HIP Plus alternative benefit plan approved by the CMS.

(b) HIP Plus shall include covered services and benefits in each of the following categories: (1) Ambulatory patient services

(2) Emergency services (3) Hospitalization (4) Maternity services

(5) Mental health and substance abuse services (6) Prescription drugs

(7) Rehabilitative and habilitative services and devices (8) Laboratory services

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Healthy Indiana Plan Reimbursement Manual Rules

(11) Dental services

(12) Early and periodic screening, diagnostic, and treatment (EPSDT) services, as defined in 42 U.S.C. § 1396d(r), for nineteen (19) and twenty (20) year old members

(c) The following services are not covered under HIP Plus: (1) Services that are not medically necessary (2) Nonemergency transportation services

(3) Any other services not approved by the CMS in the HIP Plus alternative benefit plan Section 24. (a) This Section outlines services available to a member enrolled in HIP State Plan. All covered services and benefits under HIP State Plan are subject to the coverage criteria, limitations, and procedures specified in this regulation as well as the benefits specified in the CMS approved Medicaid State Plan.

(b) HIP State Plan shall include covered services and benefits in the following categories that are equivalent to the Medicaid State Plan:

(1) Ambulatory patient services (2) Emergency services (3) Hospitalization (4) Maternity services

(5) Mental health and substance abuse services (6) Prescription drugs

(7) Rehabilitative and habilitative services and devices (8) Laboratory services

(9) Preventive care services (10) Vision services (11) Dental services

(12) Early and periodic screening, diagnostic, and treatment (EPSDT) services, as defined in 42 U.S.C. § 1396d(r), for nineteen (19) and twenty (20) year old members

(c) The following services are not covered under HIP State Plan: (1) Services that are not medically necessary

(2) Any other services not covered by the CMS-approved Medicaid State Plan

Provider Reimbursement Guidelines

Section 40. (a) Reimbursement matters including:

(1) the time limit for filing claims; and

(2) rates paid to providers contracting with insurers; are governed by the contract between the provider and the insurer.

(b) Reimbursement rates paid by insurers to providers without contracts who render services to plan members shall be at plan reimbursement rates governed by IC 12-15-44.2-14(a)(2).

(c) No provider retains any independent or duplicative right for reimbursement from the office in addition to or in lieu of reimbursement received from the insurer.

Section 41. (a) A provider shall be reimbursed for covered services as follows:

(1) Until the member's deductible is met, with POWER Account funds accessed through the member's POWER Account and paid by the insurer. If the member lacks sufficient POWER Account funds at the time of service, the insurer must pay for any portion of the plan reimbursement rate that cannot be paid with POWER Account funds but, shall reconcile these prepaid amounts as additional POWER Account funds are received from the member.

(2) For all covered preventive care services, which are not subject to the member's deductible, by the insurer.

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(b) Reimbursement is not available for services provided to individuals who are not enrolled in the plan on the date the service is provided except as provided under the following:

(1) To those individuals whose coverage dates back to the first of the month as outlined in Section 4 or 5 of this regulation.

(2) To an individual in accordance with Section 38(b) and 38(c) of this regulation (3) To a member described in Section 9(e) of this regulation who:

(A) did not gain coverage through presumptive eligibility as set forth at Section 16 of this regulation;

(B) received a covered service no later than ninety (90) days prior to the date he or she was determined eligible for the plan by the division; and

(C) had a claim submitted on his or her behalf by a provider seeking reimbursement for the service identified in subsection (B) within ninety (90) days after his or her receipt of a bill for such service.

(c) The plan reimbursement rate defined in Section 2(kk) of this regulation does not include: (1) critical access hospital payments;

(2) graduate medical education payments; or (3) disproportionate share hospital payments.

(d) Insurers shall reimburse federally qualified health centers (FQHCs) and rural health clinics (RHCs) for covered FQHC and RHC services at the Medicare all-inclusive rate for each visit, as established by the Medicare fiscal intermediary and according to Medicare policy. If the amount paid by insurers is less than the amount set forth in 42 U.S.C. § 1396a(bb), the office shall make a supplemental payment in accordance with 42 U.S.C. § 1396a(bb)(5).

Section 42. A provider must accept plan reimbursement as payment in full. A provider cannot collect from a member any portion of the provider's charge for a covered service that is not reimbursed by the insurer, with the exception of the following:

(1) Emergency room copayments authorized under this regulation

(2) Payments made with POWER Account funds before the deductible of the member's health plan is met

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Healthy Indiana Plan Reimbursement Manual

Section 2: Reimbursement Procedures

Overview

This section describes the procedures for reimbursing providers contracted by the plans to provide services to the Healthy Indiana Plan (HIP) members.

Acute Care Hospital Inpatient

Providers bill claims for the HIP program on the Centers for Medicare &Medicaid Services (CMS) 1450 form (UB-04). Use the Medicare Inpatient Prospective Payment System (IPPS) to calculate payment based on diagnosis-related groups (DRGs). The CMS Medicare Severity (MS) Grouper provides and edits DRGs. The CMS MS Grouper includes tables for all valid diagnoses, procedures, and DRGs. The CMS MS Grouper also includes clinical edits that identify inconsistencies after evaluating a patient’s principal diagnosis, any secondary diagnoses, surgical procedures, age, sex, and discharge status for possible errors. Disproportionate-share hospital (DSH), independent medical examination (IME), and new technology add-ons are excluded under HIP reimbursement. Payment includes the following:

• Base payment rate

− The base rate is divided into labor related and non-labor related.

 The labor-related share is adjusted by the wage index for the area where the hospital is located.

 The non-labor related share is adjusted by a cost-of-living adjustment factor. • Outlier amount

• Operating expense • Capital expense

Updates to the Inpatient Prospective Payment System (IPPS) Pricer occur four times each year during October, January, April, and July. Updates to the Grouper occur at a minimum in October of each year, and as needed, based on any changes proposed by the CMS during the year.

Plans apply Medicaid policy and reimburse for hospital services at the lower of the Medicaid billed amount or the Medicare-allowed rate.

Plans apply Medicaid policy and deny readmissions as appropriate. A readmission is defined as an admission within three days following a previous admission and discharge for the same or related condition.

The State follows Medicaid policy and mandates the 72-hour observation rule.

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Acute Care Hospital Outpatient

Reimburse outpatient services according to the Medicare Ambulatory Payment Classification (APC) system. Providers bill services on a UB-04 claim form and should follow the CMS billing practices for Medicare. Each line item on a claim is evaluated for payment or nonpayment using various criteria. The outcome of the evaluation results in a status indicator assigned to each line. These status indicators determine the applicable payment mechanism. Lines that are determined payable may be priced using multiple mechanisms.

Certain Current Procedural Terminology (CPT®1)/Healthcare Common Procedure Coding System

(HCPCS) codes are designated payable as an APC payment for which the billed code is mapped into a “grouping” of codes with similar costs. Components of the calculation include the following:

• Grouper that classifies CPT/HCPCS codes into appropriate APC categories • Medicare relative weights assigned to each APC category

• Current National Medicare rate file inclusive of the conversion factor (CF), hospital-specific components such as wage indices, and outpatient ratio of cost to charge (ORCC). A conversion factor is a dollar amount that serves as a nationally uniform base rate.

• Pricer mechanism that calculates the APC price (the conversion factor times weight), which is inclusive of packaged services

• Applicable pricer-determined outlier adjustment

• Lines that do not receive APC payments are paid under alternative methods

• Certain codes, such as laboratory, are paid using the appropriate Medicare Fee Schedule • Certain codes or lines that do not receive payment under the Medicare Outpatient Prospective

Payment System (OPPS) due to discontinued codes, codes not recognized by Medicare, and other Medicare outpatient payment guidelines

The following items are not included and are paid based on the Medicare Fee-Schedule and end-stage renal disease (ESRD) composite rate:

− Lab − Ambulance

− Durable medical equipment (DME) − Physical therapy (PT)

− Occupational therapy (OT) − Speech therapy (ST)

• As part of the APC-based OPPS nonpayment determination, Medicare applies packaging of services. The term “packaging” means that reimbursement for certain services or supplies is included in the payment for another procedure or service on the same claim. The list of packaged services is very extensive and includes but is not limited to the following:

− Inexpensive drugs − Medical/surgical supplies − Recovery room charges

1 CPT copyright 2014 American Medical Association. All rights reserved. CPT is a registered

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Healthy Indiana Plan Reimbursement Manual Reimbursement Procedures

The State follows Medicaid policy and allows the 72-hour observation rule.

The State follows Medicaid policy for 23-hour outpatient billing requirements. This applies to surgeries with less than a 23-hour hospital stay when Medicare does not allow the procedure as an outpatient but Medicaid instructs providers to bill surgeries with less than a 23-hour stay as outpatient. An example is ACDF surgery, which may require manual processing to pay at 130% of Medicaid rate. Certain procedures are reimbursed only when provided and billed on an inpatient basis. Surgical codes that are noncovered as outpatient procedures are published in the addendum of the OPPS guidance from the CMS.

Ambulance – Independent and Provider Based

Providers bill claims for ambulance services on a CMS-1500 form. Payment for ambulance services is based on the lesser of the actual charge or the applicable fee schedule amount. The fee schedule payment for ambulance services equals a base rate for the level of service, plus payment for mileage and the following applicable adjustment factors:

1. Money amount that serves as a nationally uniform base rate, or CF, for all ground ambulance services

2. Relative value unit (RVU) assigned to each type of ground ambulance service

3. Geographic adjustment factor (GAF) for each ambulance fee schedule locality area (geographic practice cost index [GPCI])

4. Nationally uniform loaded mileage rate

5. Additional amount for certain mileage for a rural point-of-pickup

Air Ambulance Service Levels

The base payment rate for the applicable type of air ambulance service is adjusted by the GAF and, when applicable, by the appropriate risk assessment factor (RAF) to determine the amount of payment. Air ambulance services have no CF or RVUs. This amount is compared to the actual charge. The lesser of the charge or the adjusted GAF rate amount is added to the payment rate per mile, multiplied by the number of miles that the beneficiary was transported. When applicable, the appropriate RAF is also applied to the air mileage rate as follows:

1. Nationally uniform base rate for fixed wing transportation and a nationally uniform base rate for rotary wing transportation

2. GAF for each ambulance fee schedule locality area (GPCI) 3. Nationally uniform loaded mileage rate for each type of air service

4. Rural adjustment to the base rate and mileage for services furnished for a rural point-of-pickup

Ground Ambulance Services

Conversion Factor

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Relative Value Units

RVUs set a numeric value for ambulance services relative to the value of a base level ambulance service. Because there are marked differences in the resources required to furnish the various levels of ground ambulance services, different levels of payment are appropriate for the unique levels of service. An RVU expresses the constant multiplier for a particular type of service (including, where

appropriate, an emergency response). An RVU of 1 is assigned to the basic life support (BLS) of ground service; higher RVU values are assigned to the other types of ground ambulance services that require more service than BLS.

Anesthesia

Providers bill claims for anesthesia on a CMS-1500 form. Payment is based on the lesser of the actual charge or the anesthesia fee amount for anesthesia services performed.

The fee amount is calculated based on whether the procedure is medically directed, or medically supervised, by a physician. The vendor pays the lesser of the actual charge or the anesthesia fee schedule amount. Providers must indicate the actual time of the service rendered, in minutes, in the Units field of the CMS-1500 claim form. Plans systematically convert minutes to units (one unit equals 15 minutes) and add the assigned base units in addition to units for modifying circumstances for a total unit value times the anesthesia conversion factor.

(Base Units + Time Units) x Anesthesia Conversion Factor = Anesthesia Reimbursement Rate

Physicians involved with two concurrent cases with residents can bill the actual time the physician is actually present with the resident during each of the two concurrent cases. If the physician medically supervises more than four concurrent anesthesia services, the reimbursement is the fee schedule amount on an anesthesia-specific CF and three base units.

Ambulatory Surgery Center

Providers bill claims for Ambulatory Surgery Centers (ASCs) on the UB-04 claim form. ASCs are reimbursed for covered surgical procedures. Medicare makes additional payments for covered ancillary services. Covered surgical procedures are published in the Addendum AA of the OPPS. Covered ancillary services are in the Addendum BB of the OPPS. Reimbursement rates are based upon local payer methodology.

Assistant at Surgery (Physician)

Reimburse surgery assistants providing services (other than assistant-at-surgery services) at 85% of the allowable Medicare physician fee schedule (MPFS) rate for the service.

If a physician furnished the assistant-at-surgery service, reimbursement is based at 85% of the MPFS allowed rate for the service.

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Healthy Indiana Plan Reimbursement Manual Reimbursement Procedures

Blood

Medicare does not currently provide separate payment for blood and blood products when used during an inpatient hospital stay. Reimbursement for blood and blood products is packaged into the single payment rate for the MS-DRG.

Hospital outpatient departments receive a separate APC payment for blood processing, in addition to the APC payment for the transfusion procedure.

Cancer Hospital Inpatient Services

Cancer hospitals subject to IPPS use the methodology described for acute care hospital inpatient services. For IPPS-exempt cancer hospitals, reimbursement is based on the lesser of their actual costs or their Tax Equity and Fiscal Responsibility Act (TEFRA) limited costs. Payments are adjusted depending on the difference between these two costs. Routine costs are reimbursed on a per diem amount. The hospital supplies a copy of the rate letter from the Medicare intermediary for the per diem amount.

Note: There are currently no cancer or exempt cancer hospitals in the state of

Indiana.

Cancer Hospital Outpatient Services

Reimburse outpatient hospital services according to Medicare APC payment methodology.

Chiropractic Services

Chiropractic services are not covered benefits under the HIP Basic or HIP Plus plans. Individuals who are pregnant or become pregnant are able to receive chiropractic services as a part of their maternity wrap-around coverage. Individuals enrolled in the HIP State Plan are eligible to receive chiropractic services, but are limited to 50 treatments per benefit period.

Covered services provided by a chiropractor operating within the scope of his or her practice should be billed as a covered service performed by any other provider type allowed by HIP legislation.

There are no benefits under HIP Basic or HIP Plus for the following CPT codes: • 98940 – Chiropractic manipulative treatment (CMT); spinal, one to two regions • 98941 – Spinal, three to four regions

• 98942 – Spinal, five regions

• 98943 – Extraspinal, one or more regions

Certified Registered Nurse Anesthetist

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1. The allowance for an anesthesia service furnished by a medically directed CRNA is based on a fixed percentage of the allowance recognized for the anesthesia service personally performed by the physician alone. If the service is not medically directed, the CRNA is reimbursed at 80% of the allowable charge. The CRNA is reimbursed at 50% of the allowable charge if medically directed. 2. The CF for an anesthesia service furnished by a CRNA not directed by a physician may not exceed

the CF for a service personally performed by a physician.

Clinical Nurse Specialist

The fee schedule for a clinical nurse specialist (CNS) is 85% of the MPFS with no patient copayments.

Clinical Psychologist

Reimbursement is based on the MPFS for covered services provided by a clinical psychologist. Reimburse for services rendered by midlevel practitioners at a reduced Medicare reimbursement percentage when providers submit charges with the appropriate modifier.

Clinical Trial Services

Clinical trial services are not a covered service under the HIP.

Community Mental Health Center and CMHC-owned Critical

Access Hospital

Reimburse community mental health centers (CMHCs) using the MPFS, the same as any other provider.

Reimburse partial hospitalization services furnished by CMHCs under the hospital prospective payment system.

Cosurgeon and Cosurgeons, Team Surgery

Reimburse each cosurgeon based on the lesser of the actual charges or 62.5% of the MPFS amount. For both surgeons to receive appropriate reimbursement, they must not be assisting each other, but performing distinct and separate parts of the same surgical procedure.

Critical Access Hospital

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Consultation Codes

The State follows Medicare disallowment of consultation codes. Other evaluation and management code reimbursements were increased when these codes were removed. This change was effective on the date the Medicare change became effective.

Dental

Dental services are covered under the HIP Plus and HIP State Plan coverages. HIP Basic does not include dental service coverage. Pregnant women who are in HIP Basic are eligible to receive dental services as a part of their maternity wrap-around services. In addition, 19- and 20-year-old members enrolled in HIP Basic receive dental services through EPSDT benefits.

Diabetic Shoes

Reimburse diabetic shoes (orthotics) according to the DME payment methodology. Providers must include a diagnosis code of diabetes on the claim form for reimbursement.

Drugs

Reimburse outpatient drugs and biologicals that are not included in an outpatient ambulatory payment classification (APC) at a payment rate based according to the CMS average sales price (ASP) fee schedule. Most drugs for patients in a prospective payment system (PPS) hospital are included in the DRG amount and are not billable. APC payments for outpatient services generally include payment for drugs except for certain new drugs.

When drugs are billed such that a separate reimbursement is expected, the provider should always include the National Drug Code (NDC) details. NDC reporting requirements apply. A diagnosis code and DRG, as applicable, is a required data field and must be included on all encounter claims. The contractor’s encounter claims must include the NDCs when an encounter involves products or services with NDCs, including medical and institutional claims where medications with NDCs are included and billed separately.

Durable Medical Equipment

Reimburse DME, prosthetics, orthotics, parenteral and enteral nutrition (PEN), and surgical dressings at the rate on the associated Medicare DME fee schedule.

Only reimburse monthly rentals up to the purchase price of the DME. Reimbursement is not allowed in excess of the purchase price, whether the charge is for rental or purchase.

Reimbursement is based on the Medicare Fee Schedule. If a Medicare rate is not found, the payment defaults to 130% of the Medicaid fee schedule. If a Medicare or Medicaid rate is not found,

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Emergency Room

Plans must cover all emergency room visits. Plans must cover medical screening examinations required under the Emergency Medical Treatment and Active Labor Act (EMTALA). Emergency room providers, including out-of-network emergency room providers, are reimbursed at the HIP rate, minus copayment (if applicable). If the out-of-network emergency room provider is not a participating Indiana Health Coverage Programs (IHCP) provider at the time service is rendered, the emergency room provider may request retroactive enrollment to be reimbursed by the HIP plan; otherwise, the member may be billed for the service.

Copayments for inappropriate usage of the emergency room (ER) apply to all HIP members regardless of plan unless they are pregnant women, Native Americans/Alaska Natives, or have reached their 5% cost-sharing maximum. There are two levels of copayments for inappropriate ER usage. The first occurrence of using the ER inappropriately results in an $8 copayment for the member. The second and any ongoing occurrence during the member’s 12-month benefit period will result in a $25

copayment being assessed. It is important for the facility to contact the MCE to determine which is the appropriate copayment to assess if it is an inappropriate usage of the ER.

It is possible the member is a part of a control group, established for gathering metrics, that has an $8 copayment regardless of the occurrences of inappropriate ER use.

Emergency Admission – Out of State, Out of Network, and Not

an IHCP Provider

If the out-of-network emergency room provider is not an IHCP participating provider at the time service is rendered, the emergency room provider must apply to the IHCP retroactive to the date of service before the plan can reimburse the provider. Applicable copayments apply.

End-Stage Renal Disease Facility

Reimburse facilities using the ESRD Pricer available at cms.gov. Services are paid on a per-treatment basis known as composite rate methodology; this includes geographic and patient case-mix

adjustments. Routine lab charges are included in the composite rate, and the facility pays the lab. Labs bill nonroutine charges directly and are reimbursed based on the Medicare fee schedule.

Federally Qualified Health Center – Independent and Provider

Based

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Healthy Indiana Plan Reimbursement Manual Reimbursement Procedures

Health Professional Shortage Area

No Health Professional Shortage Area (HPSA) payments are required for HIP.

Home Health Agencies – Independent and Provider Based

There is no Medicare rate for less than 60 days of care; therefore, if less than 60 days of care, MCEs pay 130% of the Medicaid rate. In addition to paying the home health claim rate, HIP pays occurrence code 61 and is reimbursed at 130% of the Medicaid rate. If 60 days of care or greater, MCE pay the Medicare rate.

Home Infusion

Reimbursement for home infusion is per the Medicare Durable Medical Equipment Prosthetic, Orthotic, and Supplies (DMEPOS) fee schedule for applicable services. Reimburse Part B covered drugs using the Medicare ASP fee schedule.

Hospice

Medicare requires all other providers bill the hospice for services, and the other providers receive their reimbursement from the hospice. Providers outside the hospice are no longer allowed to bill Medicare for services provided to the member. HIP pays 130% of the Medicaid rate.

Adult Presumptive Eligibility

Services rendered under Adult Presumptive Eligibility are reimbursed under the risk-based managed care (RBMC) delivery system by the MCE with which the member is enrolled. During the Adult Presumptive Eligibility period, providers must submit claims to the appropriate MCE using the member’s ‘600’ HPE identification number. Individuals who receive Adult Presumptive Eligibility will have copayments that mirror the amounts that must be paid when enrolled in HIP Basic. A copayment shall be applied for each service that the Adult Presumptive Eligibility recipient receives.

Hospital Transfer – Acute to Acute and Acute to Post

Providers bill hospital transfer services on a UB-04 claim form.

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Human Organ Transplant

Under Medicare, the actual organ transplant is reimbursed at the MS-DRG rate, but payment for organ acquisition costs is outside the DRG payment system. Under Medicare, costs are captured in the annual Medicare cost report and an annual settlement is made so that the reimbursement reflects the actual costs associated with acquiring each organ. A separate schedule is prepared and a separate calculation is performed for each type of organ.

Laboratory – Free-Standing and Hospital-Based

Providers bill services on a CMS-1500 or UB-04 claim form. When not part of an inpatient or outpatient APC, providers bill lab services on the CMS-1500 form and reimbursement is calculated using the CMS fee schedules. Hospital-based laboratories should be billing using the UB-04 claim form. All providers should consult the CMS laboratory reporting and billing requirements.

Reimburse lab services according to the CMS Medicare clinical lab fee schedules. If a Medicare rate is not found, payment is based on 130% of the Medicaid rate.

Long Term Care Hospital

Providers bill services on a UB-04 claim form. Reimbursement is according to the CMS Medicare Long Term Care Hospital (LTCH) PPS Pricer at cms.gov.

Nurse Practitioner

The fee schedule for a nurse practitioner (NP) is 85% of the MPFS with no patient copayments.

Physical Therapy, Occupational Therapy, and Speech Therapy

Reimburse physical therapy (PT), occupational therapy, (OT), and speech therapy (ST), including services provided by individual providers, approved clinics, rehabilitation agencies, comprehensive rehabilitation facilities, and home health providers using the applicable Medicare fee schedule rates. When providers bill for these therapies using the UB-04 form, they should follow the CMS reporting and billing guidelines.

Physician – Medical Doctor (MD) and Doctor of Osteopathy (DO)

Reimburse all professional services according to the allowable rates published in the MPFS. If there is not an allowable amount on the Medicare Fee Schedule, reimburse at 130% of the Medicaid fee schedule.

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Healthy Indiana Plan Reimbursement Manual Reimbursement Procedures

cannot be replicated effectively for Healthy Indiana Plan pricing; therefore, covered services under status code “C” is reimbursed at 130% of the Medicaid rate.

Physician Assistant

Reimburse physician assistant services at 85% of the MPFS, except for covered physician assistant (PA) at surgery services and services performed in a hospital.

Reimbursement for services performed in a hospital is limited to 75% of the Medicare fee schedule amount.

Physician Shortage Area

No physician shortage area (PSA) payments are required for HIP.

Pregnancy

Pregnancy and maternity services provided as a benefit under any HIP plan will be reimbursed at the same rates as those reimbursed in the Hoosier Healthwise program.

Prosthetic Devices

Reimburse for prosthetic devices at 100% of Medicare DMEPOS fee schedule.

Psychiatric Hospital – Inpatient and Outpatient

The Inpatient Psychiatric Facility Prospective Payment System (IPFPPS) is used for freestanding psychiatric hospitals and certified psychiatric units of general acute care hospitals. Calculate reimbursement using the Inpatient Psychiatric Facility Prospective Payment System (IPF) PPS Pricer

available at cms.gov.

Outpatient reimbursement is based on Medicare APC payment methodology.

Radiology

Reimburse radiology services, including outpatient radiology services, using the covered CPT code and rate published in the MPFS. If a Medicare rate is not found, reimbursement is based on 130% of the Medicaid fee schedule allowed amount.

Reimburse outpatient radiology services according to the APC rates for outpatient claims. Radiology furnished to skilled nursing facility (SNF) patients cannot be billed separately for the technical component – payment is included in the comprehensive per diem. When an outside entity performs a diagnostic test for an SNF patient, the outside entity must bill the SNF.

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2-12 Library Reference Number: PRHP10001

Rehabilitation Hospital – Inpatient

Calculate reimbursement based on the Inpatient Rehabilitation Facility PPS Pricer available at

cms.gov.

The Inpatient Rehabilitation Facility Prospective Payment System (IRFPPS) is used for freestanding rehabilitation hospitals and certified rehabilitation units of general acute care hospitals. Calculate reimbursement using the IRFP Pricer available at cms.gov.

Rehabilitation Hospital – Outpatient

Reimburse based on Medicare APC payment methodology. (See Acute Care Hospital Outpatient.)

Rural Health Clinic

Reimburse services using the Medicare reimbursement rates paid to non-FQHC/RHC providers. The FSSA will continue to provide wrap-around payments up to the Medicaid FQHC and RHC PPS rates as necessary, with year-end settlements based on claims data. Wrap-around payments and year-end settlement payments are based on claims paid during the period. For claims paid in a calendar year, any difference between the HIP insurer payment and payment under Medicaid PPS is accounted for in the HIP year-end settlement calculations.

Rural Health Clinic – Laboratory or Technical Component of

Diagnostic Tests Done in RHCs

Reimburse lab services according to the Medicare clinical lab fee schedule. If a Medicare rate is not found, base the payment on 130% of the Medicaid rate.

Skilled Nursing Facility – Individual and Provider-Based

Reimbursement of skilled nursing facility (SNF) inpatient services are based on the PPS methodology using the CMS SNF Pricer available at cms.gov. Resource Utilization Group (RUG) and health insurance prospective payment system (HIPPS) codes are used.

The HIP plans include 100 days of SNF coverage per benefit period.

Medicare requires a member to have a three-day qualifying inpatient hospital stay within 30 days prior to admission to an SNF. The beneficiary must require skilled nursing care for a condition treated during the qualifying stay, or for a condition that arose while the beneficiary was in the SNF. Medicare uses an inpatient stay as a qualifying event and HIP does not; therefore, HIP reimburses based on the following:

• Medically necessary

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Healthy Indiana Plan Reimbursement Manual Reimbursement Procedures

Surgical Dressings

The Medicare DMEPOS fee schedule applies to all surgical dressings except those applied incidentally to a physician’s professional services, those furnished by a home health agency (HHA), and those applied while a patient is being treated in an outpatient department or as an acute care inpatient.

Swing Bed

Reimburse for a swing bed the same as for any other SNF.

Unaccounted Services

For any services provided that are not listed in this manual, the provider shall be reimbursed at the Medicare rate applicable or 130% of the Medicaid rate for that service.

Vaccines

Reimburse vaccines according to the Medicare rate or 130% of the Medicaid rate.

Vision

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Healthy Indiana Plan Reimbursement Manual

Index

A

acute care hospital

inpatient ... 2-1 outpatient ... 2-2 acute to acute hospital transfer ... 2-10 acute to post hospital transfer ... 2-10 admission, emergency ... 2-9 air ambulance ... 2-3 ambulance air ... 2-3 ground ... 2-4 independent ... 2-3 provider based... 2-3 ambulatory surgery center ... 2-4 anesthesia ... 2-4 ASC ... 2-4 assistant at surgery, physician ... 2-5

B bed, swing ... 2-14 blood ... 2-5 C CAH ... 2-7 cancer hospital inpatient services... 2-5 outpatient services ... 2-5 certified registered nurse anesthetist ... 2-6 chiropractic services ... 2-5 clinical nurse specialist ... 2-6 clinical psychologist ... 2-6 clinical trial services ... 2-7 CMHC ... 2-7 CNS ... 2-6 codes, consultation ... 2-7 community mental health center ... 2-7 consultation codes... 2-7 cosurgeon ... 2-7 cosurgeon, team surgery... 2-7 critical access hospital... 2-7 CRNA ... 2-6 D devices, prosthetic ... 2-12 diabetic shoes ... 2-8 DME ... 2-8 DO ... 2-12 dressings, surgical ... 2-8, 2-14 drugs ... 2-8 durable medical equipment ... 2-8

E

ED ... 2-8 emergency admission ... 2-9 emergency room ... 2-8 end-stage renal disease facility ... 2-9 enteral nutrition ... 2-8 ER... 2-8 ESRD ... 2-9

F

federally qualified health center ... 2-9 FQHC ... 2-9

G

ground ambulance ... 2-4

H

health professional shortage area ... 2-10 home health agencies ... 2-10 home infusion... 2-10 hospice ... 2-10 hospital

acute care hospital

inpatient ... 2-1 outpatient ... 2-2 cancer

inpatient services... 2-5 outpatient ... 2-5 CMHC owned critical access ... 2-7 critical access... 2-7 laboratory ... 2-11 long term care ... 2-11 psychiatric inpatient ... 2-13 outpatient ... 2-13 rehabilitation inpatient ... 2-13 outpatient ... 2-13 transfer ... 2-10 HPSA ... 2-10 human organ transplant ... 2-11

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Index Healthy Indiana Plan Reimbursement Manual

I-2 Library Reference Number: PRHP10001

long term care hospital ... 2-11 LTCH ... 2-11

M

MD... 2-12

N

noncovered services ... 2-7, 2-12 not IHCP emergency admission ... 2-9 NP ... 2-11 nurse

certified registered nurse anesthetist ... 2-6 clinical nurse specialist... 2-6 nurse practitioner ... 2-11 nurse practitioner ... 2-11 O occupational therapy ... 2-11 organ transplant ... 2-11 orthotics ... 2-8 OT... 2-11 out of network emergency admission ... 2-9 out of state emergency admission ... 2-9

P PA ... 2-12 parenteral nutrition... 2-8 PEN ... 2-8 physical therapy ... 2-11 physician assistant at surgery ... 2-5 DO ... 2-12 MD ... 2-12 physician assistant ... 2-12 physician shortage area ... 2-12 pregnancy ... 2-12 prosthetic devices ... 2-12 prosthetics ... 2-8 PSA ... 2-12 psychiatric hospital inpatient ... 2-13 outpatient ... 2-13 psychologist, clinical ... 2-6 PT ... 2-11 R radiology ... 2-13 rehabilitation hospital inpatient ... 2-13 outpatient ... 2-13 RHC... 2-14 laboratory ... 2-14 technical component of diagnostic test .. 2-14

S

services, noncovered ... 2-7, 2-12 skilled nursing facility ... 2-14 SNF ... 2-14 speech therapy ... 2-11 ST ... 2-11 surgeon ... 2-7 surgical dressings ... 2-8, 2-14 swing bed ... 2-14 T

Figure

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