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Provider Notice: 05-207

Medlearn Matters Number: MM4194

Original Issue Date: December 30, 2005

FROM: Medicare Communications

SUBJECT: Fee Schedule Update for 2006 for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)

This bulletin should be shared with all health care practitioners and managerial members of the provider/supplier staff.  Additional copies may be downloaded from our website at www.highmarkmedicareservices.com

Coming in 2006! Beginning January 1, 2006, Medicare prescription drug coverage will be available to people with Medicare. Health care professionals can find information about this new coverage at www.cms.hhs.gov/medlearn/drugcoverage.asp, on the CMS website.

Announcing the new CMS web page dedicated to providing all the latest NPI news for Fee-For-Service (FFS) Medicare providers! Visit http://www.cms.hhs.gov/NationalProvIdentStand/ on the web! While this page is dedicated to the Medicare FFS community, it contains helpful information and links that may benefit all health care providers.

Reminder--Health care providers are required by law to apply for a National Provider Identifier (NPI).To apply online, visit: https://nppes.cms.hhs.gov

Related Change Request (CR) #: 4194
Related CR Release Date: December 2, 2005
Related CR Transmittal #: 770
Effective Date: January 1, 2006
Implementation Date: January 3, 2006

Providers Type Affected:

Physicians, suppliers, and providers billing Medicare carriers, including durable medical equipment regional carriers (DMERCs) and/or fiscal intermediaries (FIs), including regional home health intermediaries (RHHIs), for services paid under the DMEPOS Fee Schedule

Providers Action Needed:

This article is based on Change Request (CR) 4194, and it provides specific information regarding the annual update for the 2006 DMEPOS Fee Schedule.

Background:

The DMEPOS fee schedules are updated on a quarterly basis in order to:

  • Implement fee schedule amounts for new codes; and
  • Revise any fee schedule amounts for existing codes that were calculated in error.

Payment on a fee schedule basis is required for:

  • Durable Medical Equipment (DME), prosthetic devices, orthotics, prosthetics, and surgical dressings by the Social Security Act (Sections 1834(a)(h)(i)); and
  • Parenteral and Enteral Nutrition (PEN) by regulations contained in the Code of Federal Regulations (42 CFR 414.102).

Note: DMERCs will use the 2006 PEN fee schedule payment amounts to payclaims for items furnished from January 1, 2006 through December 31, 2006.

The 2006 DMEPOS Fee Schedule Update factors for Health Care Common Procedure Codes (HCPCS) items furnished from January 1, 2006, through December 31, 2006, and are as follows:

HCPCS Codes

Notes

A5120

Modifier AV is added for billing items furnished for facial prosthetics.

Modifier AU is added for billing items furnished for urological supplies.

L2005

Is being revised effective January 1, 2006, to ensure that the codes allowable amount is representative of a full knee, ankle, foot orthosis (KAFO), including the joint component.

L8609 and

L8685 through

L8689

Describe items that are subject to the fee schedule for prosthetics and orthotics (PO) and are being added to the HCPCS effective January 1, 2006. These codes fall under the jurisdiction of the local carriers rather than the DMERCs. The Centers for Medicare & Medicaid Services (CMS) will be calculating the fee schedule amounts for these items using the standard gapfilling process. The description for these codes can be obtained from the 2006 HCPCS file as soon as it becomes available at http://www.cms.hhs.gov/HCPCSReleaseCodeSets/ANHCPCS/list.asp#TopOfPage on the CMS web site.

The following codes are being deleted from the HCPCS, effective January 1, 2006, and are therefore being removed from the DMEPOS and PEN fee schedule files:

A4254

A4643 thru A4647

A5119

A5509

A5511

B4184

B4186

E0169

E0752

E0754 thru E0759

E0953

E0954

E0972

E0996

E1000

E1001

E1019

E1021

E1025 thru E1027

E1210 thru E1213

E1239

K0064

K0066

K0067

K0068

K0074

K0075

K0076

K0078

K0102

K0104

K0106

K0415

K0416

K0452

K0600

K0618 thru K0620

K0628 thru K0649

K0670

K0671

K0731

K0732

L0860

L1750

L3963

L8100

L8110

L8120

L8130

L8140

L8150

L8160

L8170

L8180

L8190

L8195

L8200

L8230

L8239

L8620

The HCPCS codes listed below are being added to the HCPCS on January 1, 2006:

A4218

A4233 thru A4236

A4363

A4411

A4412

A4604

A5120

A5512

A5513

A6457

A6513

A6530

A6531

A6532

A6533 thru A6544

A6549

A9275

A9281

A9282

B4185

E0170 thru E0172

E0485

E0486

E0641

E0642

E0705

E0762

E0764

E0911

E0912

E1392

E1812

E2207 thru E2210

E2211

E2212

E2212 thru E2226

E2371

E2372

L0491

L0492

L0621 thru L0640

L0859

L2034

L2387

L3671 thru L3673

L3702

L3763 thru L3766

L3905

L3913

L3919

L3921

L3933

L3935

L3961

L3967

L3971

L3973

L3975 thru L3978

L5703

L5858

L5971

L6621

L6677

L6883 thru L6885

L7400 thru L7405

L7600

L8609

L8623

L8624

L8680 thru L8689

The Medicare DMERCs will gap-fill base fee schedule amounts for each state in their region for the following new HCPCS codes that will be subject to the DMEPOS fee schedules in 2006:

HCPCS

Codes Notes

A4363, A4411, A4412

Ostomy, Tracheostomy, or Urological Supplies (OS)

A4233, A4234, A4235, A4236, A4604, E0485, E0486, E2216, E2217,E2218, E2222, E2223, E2225, E2226, E2371, E2372

Inexpensive or Routinely Purchased DME (IN)

E0170, E0171, E0911, E0912, E1812

Capped Rental DME (CR)

L0624, L0629, L0632, L0634, L2034, L2387, L3671, L3672, L3673, L3702, L3763, L3764, L3765, L3766, L3905, L3913, L3919, L3921, L3933, L3935, L3961, L3967, L3971, L3973, L3975, L3976, L3977, L3978, L5703, L5971, L6621, L6677, L6883, L6884, L6885, L7400, L7401, L7402, L7403, L7404, L7405

Prosthetics and Orthotics (PO)

A6513

Surgical Dressings (SD)

Suppliers should remember to add HCPCS modifier AV when billing code A5120 for facial prosthetic items only when furnished in conjunction with a facial prosthesis. Also, add modifier AU when billing code A5120 for urological items only when furnished in conjunction with urological supplies.

Implementation:

The implementation date for the instruction is January 3, 2006

Additional Information:

The official instruction issued to your carrier, intermediary, or DMERC regarding this change, can be found at http://www.cms.hhs.gov/transmittals/downloads/R770CP.pdf on the CMS web site.

Assistance:

If you have any questions regarding this bulletin, please contact the appropriate Customer Contact Center at:

Maryland Providers: 1-866-488-0545
Pennsylvania Providers: 1-800-560-6170

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