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DME MACs Release New Coding Guidelines for O&P Suppliers

The four Durable Medical Equipment Medicare Administrative Contractors (DME MAC), recently released a joint correct coding bulletin reminding DMEPOS suppliers that it is each supplier’s responsibility to select the proper HCPCS codes for billing.

To aid suppliers in their selection of the proper HCPCS code(s) the DME MACs provided the following tips:

  • Check the PDAC Product Classification Lists
  • Review DME MAC publications for coding bulletins and coding guidelines
  • Refer to the long code descriptor and select the code with the descriptor that most closely describes the item you are providing.
  • Most code narratives are written broadly to be all-inclusive. You may not find a specific code that perfectly matches a product. Use the code that most closely describes the item rather than a NOC (not otherwise classified) or miscellaneous code.
  • Review LCDs & Policy Articles for coding guidelines for additional information on the characteristics of products that meet a specific HCPCS code.
  • Don’t select a code based upon the fee schedule amount. HCPCS codes describe the product not the price.
  • Check with the PDAC. The PDAC may provide information, outside of a formal product review, that will assist you in code selection.

The bulletin also stressed that the DME MACs and the PDAC are the only entities that have the authority to assign HCPCS codes to specific products and if a supplier chooses to follow coding recommendations from outside sources; that these recommendations will have no “official standing”  during a possible claim review/audit.

AOPA is currently analyzing the joint bulletin and is working with the DME MACs to obtain some clarification and guidance on specific points raised in the bulletin. We will keep you posted of any new information.

Read the full bulletin.

Questions? Contact Devon Bernard at dbernard@AOPAnet.org or Joe McTernan at jmcternan@AOPAnet.org

RAC Audits Placed on Hiatus Again

The Centers for Medicare and Medicaid Services have notified the four existing RAC contractors that as a result of the upcoming award of new RAC contracts, current RAC audit activity will be placed on hiatus to allow the RACs to complete their open audits prior to the completion of their contracts.  CMS has provided the following dates to the RAC contractors regarding current audits.

  • May 16, 2016 – the last day that a Recovery Auditor could send Additional Documentation Request (ADR) letters or semi-automated notification letters.
  • July 29, 2016 – the last day that a Recovery Auditor may send notification of an improper payment to providers. This includes sending a review results letter or no findings letter, and/or providing a portal notification to each provider.
  • August 28, 2016 – Recovery Auditors will complete all discussion periods that are in process by this date. Recovery Auditors continue to be required to hold claims for 30 days, starting with the date of the improper payment notification (via letter or portal) to the provider, to allow for discussion period requests.
  • October 1, 2016 – the last day a Recovery Auditor may send claim adjustment files to the MACs.

While this is good news for O&P providers in the short term, it is not a signal that the RACs are going away any time soon.  It is simply a pause to allow for a smooth transition to new RAC contractors, including the single, national RAC contractor that will focus on claims for DMEPOS, Home Health, and Hospice services.  While this announcement may result in a temporary slowdown of RAC activity, it is important to remember that claims that are submitted today may be selected for audit by RAC contractors in the future.

Bureau of Labor and Statistics Releases CPI-U Update

On July 15, 2016, the Bureau of Labor and Statistics (BLS) released its latest update on the Consumer Pricing Index for Urban Areas (CPI-U).  From June 2015 through June 2016 the CPI-U increased by 1.0%.  This figure is relevant to O&P providers because it is used as the base for determining the adjustment for the 2017 Medicare DMEPOS fee schedule.  While the CPI-U increased by 1.0%, the Affordable Care Act, beginning in 2011, introduced a second factor that is used to determine the annual DMEPOS fee schedule, the Multi-Factor Productivity (MFP) Adjustment.  The MFP is not expected to be released until later in the year, usually in November.

The combination of the CPI-U increase or decrease and the MPF adjustment determines the annual update to the Medicare DMEPOS fee schedule.  What this means is that the CPI-U of 1.0% minus the yet to be determined MPF adjustment will result in the update to the DMEPOS fee schedule that will be implemented for Medicare claims with a date of service on or after January 1, 2017.  The MPF adjustment was -1.2% in 2011, 0.9% in 2012, 0.8% in 2013, 0.6% in 2014, and 0.5% in 2015.  While the MPF adjustment has been trending downward, there is no guarantee that it will continue to do so in 2016.

AOPA will monitor the BLS website for news regarding the MPF adjustment and will notify AOPA members as soon as it is released.

Questions regarding this issue may be directed to Joe McTernan at jmcternan@aopanet.org or Devon Bernard at dbernard@aopanet.org.

Tom Watson Named 2016 Lifetime Achievement Award Honoree

WASHINGTON, D.C. – The American Orthotic & Prosthetic Association (AOPA) will honor Thomas Watson, CP with the Lifetime Achievement Award at the 2016 AOPA National Assembly in Boston, MA. This award is bestowed on individuals who have made exceptional contributions to the orthotics and prosthetics profession.

James Campbell, PhD, CO, FAAOP, AOPA’s President explained: “The Lifetime Achievement Award is the highest honor in the O&P profession, and Tom Watson was a natural choice. He has run a successful business, while serving his community through his civic engagement. His many years of effective advocacy for the O&P community should be appreciated by all of us.”

Tom and his wife Barbara own Tom Watson’s Prosthetic & Orthotic Lab with locations in Owensboro and Evansville, Kentucky. He is a past president of AOPA and has served on AOPA’s Government Relations Committee. He works personally with the AOPA Veteran’s Affairs committee, the O&P PAC, and is a grass roots lobbyist who participates in the annual Policy Forum and educates local lawmakers on O&P all year round.

Tom is the former mayor of Owensboro, Kentucky, from 2005-2008 and is seeking re-election in 2016. He has served as past-chair of the Owensboro Chamber of Commerce, a board member of Industry, Inc., Owensboro Medical Health System, and board member of the Governor’s Workforce Investment Board. He is on the foundation board at the Owensboro Community and Technical College. He is a member of the American Academy of Orthotists and Prosthetists (AAOP), and is a facility surveyor for the American Board for Certification (ABC) for Facility Accreditation. In 2016, he earned the Hall of Achievement award from the Owensboro Public School System.

As an above knee amputee since he was injured in his teens, Tom has long supported programs for people with physical disabilities. He is affiliated with the Kentucky and Indiana Commission for Children with Special Health Care Needs, the Veteran’s Administration, and the Easter Seals Rehabilitation Center, with particular emphasis on pediatrics and developmental disabilities. He currently volunteers at the Daniel Pitino Shelter in Owensboro.

Tom and his wife Barbara have two sons and seven grandchildren.

Tom will be presented with the Lifetime Achievement Award at the 2016 AOPA National Assembly in Boston, MA, at the General Session on Saturday, September 10 at 7:30 am.

Questions? Please contact Lauren Anderson, AOPA’s Manager of Communications, Policy, and Strategic Initiatives at 571/431-0843 or landerson@aopanet.org.

AOPA Announces Ashlie White Joins as Manager of Projects

WASHINGTON, D.C. – The American Orthotic & Prosthetic Association (AOPA) has announced that Ashlie White, MA has joined the AOPA staff team as the Manager of Projects. The addition of Ms. White represents another proactive step that AOPA has taken to ensure the success of AOPA members and the O&P profession through projects and initiatives. Ms. White will be responsible for managing ongoing projects as part of AOPA’s Survival Imperatives, including AOPA’s Registry, Outcomes and Comparative/Cost Effectiveness programs, Mobility Saves & Communication, as well as recent additions to the AOPA portfolio addressing a Reimbursement Compendium and Membership Enhancement. She will also be assisting the AOPA Officers, AOPA Executive Director and a Prosthetics 2020 Expert Advisory Committee on the recent partnership with the RAND Corporation, commissioned to work advancing a comprehensive study to establish the value proposition for prosthetic services.

Executive Director Tom Fise remarked “Ashlie White is going to be a wonderful addition to AOPA, bringing her experience in a patient care facility and as a member of AOPA, on the state O&P association front, as well as her many talents and the work ethic that we have seen with her work with other O&P organizations.”

Ms. White has previously served as Director of Project Development and then Director of Operations at Beacon Prosthetics and Orthotics. She has also served as Director of Government Affairs for the North Carolina Orthotics and Prosthetics Trade Association (NCOPTA) and as a member of the Board of Directors for National Association for the Advancement of Orthotics and Prosthetics (NAAOP). She earned a Master’s degree in Journalism (Technology and Communication) and a BA in Journalism and Mass Communication at the University of North Carolina at Chapel Hill.

Questions? Please contact Lauren Anderson, AOPA’s Manager of Communications, Policy, and Strategic Initiatives at 571/431-0843 or landerson@aopanet.org

AOPA Offers 2 RAC Audit Webinars

AOPA has recently received reports of increased RAC activity (details here) and has scheduled several educational webinars to help you prepare. The first webinar will cover the basics of what the renewed RAC audits mean for O&P providers and how to be prepared to respond to an audit request when it is received. The second webinar will focus on the details of preparing your practice to do the things today that will protect you from RAC audits when they are received.

Understanding the Basics of RAC Audits and How to Prepare for Them; July 14th, 1:00 PM EDT, Free for AOPA Members.

Don’t Let the RACs Catch You Unprepared: Working Today to Protect Tomorrow; July 21st, 1:00 PM EDT, $99 Members; $199 Non-Members.

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