Medicare Program; Extension of Prior Authorization for Repetitive Scheduled Non-Emergent Ambulance Transports, 58400-58403 [2017-26759]
Download as PDF
ethrower on DSK3G9T082PROD with NOTICES
58400
Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices
margin requirements for derivatives that
reference SOFR and would help market
participants compare SOFR to existing
benchmarks. The Board recognizes that
market participants might benefit from
historical data. While longer histories of
comparable commercially produced
repo rates are publicly available, the
Board believes that a significantly
longer history of the Treasury repo rates
may not be possible due to limitations
on the availability of data. The Board
and FRBNY will work with BNYM and
DTCC to determine whether FRBNY can
publish additional historical data for the
Treasury repo rates.
Two commenters suggested that the
proposed threshold of ‘‘greater than one
basis point’’ for revising the proposed
rates was too sensitive. Another
commenter explained that its members
had not achieved consensus on the
threshold at which FRBNY should
revise errors, but the commenter
emphasized that FRBNY should
articulate a clear rationale for its
revision policy. The Board notes that,
because FRBNY will round the Treasury
repo rates to the nearest whole basis
point, the threshold is effectively two
basis points. The Board also notes that
this is the same threshold employed for
EFFR and OBFR, for which revisions are
very rare. The Federal Reserve will
periodically review the revision
threshold to ensure that revisions are
very rare and do not impose undue
operational costs on users of the
Treasury repo rates.
A commenter asked whether FRBNY
would publish the proposed rates if
relevant data sources were unavailable
and, if so, whether FRBNY would
correct such rates retroactively when
data becomes available. Another
commenter suggested that FRBNY
should provide more information
regarding the back-up repo market
survey it would conduct if standard data
sources are unavailable. As noted in the
Request for Information, in the event
that data sources are unavailable, the
Treasury repo rates would be calculated
based upon back-up repo market survey
data collected from FRBNY’s primary
dealer counterparties. FRBNY currently
collects repo data from primary dealers
each morning. Going forward, FRBNY
will also collect data each afternoon.
The afternoon survey will capture that
day’s activity by primary dealers and
will be available as a contingency data
source for the following morning’s
publication of the Treasury repo rates.
The survey will request aggregated
primary dealer activity in each of the
market segments captured in the
Treasury repo rates: Overnight tri-party
Treasury repo transactions, overnight
VerDate Sep<11>2014
20:03 Dec 11, 2017
Jkt 244001
Treasury repo transactions in the GCF
market, and FICC-cleared bilateral
Treasury repo transactions. For each of
these market segments, each dealer will
report its aggregate borrowing activity
(excluding, to the extent possible,
transactions between affiliated entities
and transactions in which the Federal
Reserve is a counterparty), along with
the weighted-average rate of its
borrowing. If FRBNY publishes
Treasury repo rates that use survey data
and subsequently receives updated data,
FRBNY would issue same-day revisions
at or around 2:30 p.m. ET if the use of
updated data would result in the
published rate changing by more than
one basis point.
Finally, two commenters asked that
FRBNY begin publishing the Treasury
repo rates as soon as possible. FRBNY
intends to begin publishing the Treasury
repo rates in the second quarter of 2018.
4. Governance
A commenter suggested that
governance arrangements for the
Treasury repo rates should align with
the Principles for Financial Benchmarks
published by the International
Organization of Securities Commissions
(IOSCO) in July 2013.12 FRBNY plans to
publish an IOSCO statement of
compliance covering the Treasury repo
rates in the first half of 2018.
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) (RFA) generally
requires an agency to perform an initial
and a final regulatory flexibility analysis
on the impact a rule is expected to have
on small entities. The RFA imposes
these requirements in situations where
an agency is required by law to publish
a general notice of proposed rulemaking
for any proposed rule. The production
of the rates does not create any
obligations or rights for any private
parties, including any small entities,
and so the Board was not required to
publish a notice of proposed
rulemaking. Accordingly, the RFA does
not apply and an initial and final
regulatory flexibility analysis is not
required.
The Board did not receive any
comments regarding the Paperwork
Reduction Act or the RFA.
By order of the Board of Governors of the
Federal Reserve System, December 7, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017–26761 Filed 12–11–17; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
III. Conclusion
[CMS–6063–N3]
After considering public comments,
the Board concludes that the public
would benefit if FRBNY publishes the
three Treasury repo rates as proposed,
with certain modifications described
above.
Medicare Program; Extension of Prior
Authorization for Repetitive Scheduled
Non-Emergent Ambulance Transports
IV. Administrative Law
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR part 1320, Appendix A.1), the
Board reviewed the Request for
Information and this final notice under
the authority delegated to the Board by
the Office of Management and Budget.
For purposes of calculating burden
under the Paperwork Reduction Act, a
‘‘collection of information’’ involves 10
or more respondents. As noted above,
the data to be used to produce the rates
will be obtained solely from (1) BNYM
with respect to tri-party GC repo data
and (2) DTCC Solutions with respect to
GCF repo data and DVP bilateral repo
data. Therefore, producing the rates will
not involve a collection of information
pursuant to the Paperwork Reduction
Act.
12 See https://www.iosco.org/library/pubdocs/pdf/
IOSCOPD415.pdf.
PO 00000
Frm 00023
Fmt 4703
Sfmt 4703
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Notice.
AGENCY:
This notice announces a 1year extension of the Medicare Prior
Authorization Model for Repetitive
Scheduled Non-Emergent Ambulance
Transport. The extension of this model
is applicable to the following states and
the District of Columbia: Delaware,
Maryland, New Jersey, North Carolina,
Pennsylvania, South Carolina, Virginia,
and West Virginia.
DATES: This extension began on
December 5, 2017 and ends on
December 1, 2018. However, prior
authorization is available upon
provider, supplier, or beneficiary
request for dates of service between
December 2, 2017 and December 4,
2017.
FOR FURTHER INFORMATION CONTACT:
Angela Gaston, (410) 786–7409.
Questions regarding the Medicare Prior
Authorization Model Extension for
Repetitive Scheduled Non-Emergent
SUMMARY:
E:\FR\FM\12DEN1.SGM
12DEN1
Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices
Ambulance Transport should be sent to
AmbulancePA@cms.hhs.gov.
SUPPLEMENTARY INFORMATION:
ethrower on DSK3G9T082PROD with NOTICES
I. Background
Medicare may cover ambulance
services, including air ambulance
(fixed-wing and rotary-wing) services, if
the ambulance service is furnished to a
beneficiary whose medical condition is
such that other means of transportation
are contraindicated. The beneficiary’s
condition must require both the
ambulance transportation itself and the
level of service provided in order for the
billed service to be considered
medically necessary.
Non-emergent transportation by
ambulance is appropriate if either the—
(1) beneficiary is bed-confined and it is
documented that the beneficiary’s
condition is such that other methods of
transportation are contraindicated; or (2)
beneficiary’s medical condition,
regardless of bed confinement, is such
that transportation by ambulance is
medically required. Thus, bed
confinement is not the sole criterion in
determining the medical necessity of
non-emergent ambulance transportation;
rather, it is one factor that is considered
in medical necessity determinations.1
A repetitive ambulance service is
defined as medically necessary
ambulance transportation that is
furnished in 3 or more round trips
during a 10-day period, or at least 1
round trip per week for at least 3
weeks.2 Repetitive ambulance services
are often needed by beneficiaries
receiving dialysis or cancer treatment.
Medicare may cover repetitive,
scheduled non-emergent transportation
by ambulance if the—(1) medical
necessity requirements described
previously are met; and (2) ambulance
provider/supplier, before furnishing the
service to the beneficiary, obtains a
written order from the beneficiary’s
attending physician certifying that the
medical necessity requirements are met
(see 42 CFR 410.40(d)(1) and (2)).3
In addition to the medical necessity
requirements, the service must meet all
other Medicare coverage and payment
requirements, including requirements
relating to the origin and destination of
the transportation, vehicle and staff, and
billing and reporting. Additional
information about Medicare coverage of
ambulance services can be found in 42
CFR 410.40, 410.41, and in the Medicare
1 42
CFR 410.40(d)(1).
2 Program Memorandum Intermediaries/Carriers,
Transmittal AB–03–106.
3 Per 42 CFR 410.40(d)(2), the physician’s order
must be dated no earlier than 60 days before the
date the service is furnished.
VerDate Sep<11>2014
20:03 Dec 11, 2017
Jkt 244001
Benefit Policy Manual (Pub. L. 100–02),
Chapter 10, at https://www.cms.gov/
Regulations-and-Guidance/Guidance/
Manuals/downloads/bp102c10.pdf.
According to a study published by the
Government Accountability Office in
October 2012, entitled ‘‘Costs and
Medicare Margins Varied Widely;
Transports of Beneficiaries Have
Increased,’’ 4 the number of basic life
support (BLS) non-emergent transports
for Medicare Fee-For-Service
beneficiaries increased by 59 percent
from 2004 to 2010. A similar finding
published by the Department of Health
and Human Services’ Office of Inspector
General in a 2006 study, entitled
‘‘Medicare Payments for Ambulance
Transports,’’ 5 indicated a 20 percent
nationwide improper payment rate for
non-emergent ambulance transport.
Likewise, in June 2013, the Medicare
Payment Advisory Commission
published a report 6 that included an
analysis of non-emergent ambulance
transports to dialysis facilities and
found that, during the 5-year period
between 2007 and 2011, the volume of
transports to and from a dialysis facility
increased 20 percent, more than twice
the rate of all other ambulance
transports combined.
Section 1115A of the Social Security
Act (the Act) authorizes the Secretary to
test innovative payment and service
delivery models to reduce program
expenditures, while preserving or
enhancing the quality of care furnished
to Medicare, Medicaid, and Children’s
Health Insurance Program beneficiaries.
Section 1115A(d)(1) of the Act
authorizes the Secretary to waive such
requirements of Titles XI and XVIII, as
well as sections 1902(a)(1), 1902(a)(13),
1903(m)(2)(A)(iii), and 1934 (other than
subsections (b)(1)(A) and (c)(5)) of the
Act as may be necessary solely for
purposes of carrying out section 1115A
of the Act with respect to testing models
described in section 1115A(b) of the
Act. Consistent with this standard, we
will continue to waive the same
provisions for the extension of this
model as have been waived for the
initial three years of the model.
Additionally, we have determined that
the implementation of this model does
not require the waiver of any fraud and
abuse law, including sections 1128A,
1128B, and 1877 of the Act. Thus
providers and suppliers affected by this
4 Government Accountability Office Cost and
Medicare Margins Varied Widely; Transports of
Beneficiaries Have Increased (October 2012).
5 Office of Inspector General Medicare Payment
for Ambulance Transport (January 2006).
6 Medicare Payment Advisory Commission, June
2013, pages 167–193.
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
58401
model must comply with all applicable
fraud and abuse laws.
In the November 14, 2014 Federal
Register (79 FR 68271), we published a
notice entitled ‘‘Medicare Program;
Prior Authorization of Repetitive
Scheduled Non-emergent Ambulance
Transports,’’ which announced the
implementation of a 3-year Medicare
Prior Authorization model that
established a process for requesting
prior authorization for repetitive,
scheduled non-emergent ambulance
transport rendered by ambulance
providers/suppliers garaged in 3 states
(New Jersey, Pennsylvania, and South
Carolina). These states were selected as
the initial states for the model because
of their high utilization and improper
payment rates for these services. The
model began on December 1, 2014, and
was originally scheduled to end in all 3
states on December 1, 2017.
In the October 23, 2015 Federal
Register (80 FR 64418), we published a
notice titled ‘‘Medicare Program;
Expansion of Prior Authorization of
Repetitive Scheduled Non-emergent
Ambulance Transports,’’ which
announced the inclusion of 6 additional
states (Delaware, the District of
Columbia, Maryland, North Carolina,
West Virginia, and Virginia) in the
Repetitive Scheduled Non-Emergent
Ambulance Transport Prior
Authorization model in accordance with
section 515(a) of the Medicare Access
and CHIP Reauthorization Act of 2015
(MACRA) (Pub. L. 114–10). These 6
states began participation on January 1,
2016, and the model was originally
scheduled to end in all nine model
states on December 1, 2017.
II. Provisions of the Notice
This notice announces that the
Medicare Prior Authorization Model for
Repetitive Scheduled Non-Emergent
Ambulance Transport is being extended
in the current model states of Delaware,
the District of Columbia, Maryland, New
Jersey, North Carolina, Pennsylvania,
South Carolina, Virginia, and West
Virginia, effective December 5, 2017, for
an additional year to allow for
additional evaluation of the model.
Repetitive, scheduled non-emergent
ambulance transport claims with dates
of service of December 2, 2017 through
December 4, 2017 will not be stopped
for prepayment review if prior
authorization is not requested before the
fourth round trip in a 30-day period;
however, providers, suppliers, and
beneficiaries may request prior
authorization for these dates of service.
The model will now end in all states on
December 1, 2018. Prior authorization
will not be available for repetitive
E:\FR\FM\12DEN1.SGM
12DEN1
ethrower on DSK3G9T082PROD with NOTICES
58402
Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices
scheduled non-emergent ambulance
transportation services furnished after
that date.
We will continue to test whether prior
authorization helps reduce
expenditures, while maintaining or
improving quality of care, using the
established prior authorization process
for repetitive, scheduled non-emergent
ambulance transport to reduce
utilization of services that do not
comply with Medicare policy.
We will continue to use this prior
authorization process to help ensure
that all relevant clinical or medical
documentation requirements are met
before services are furnished to
beneficiaries and before claims are
submitted for payment. This prior
authorization process further helps to
ensure that payment complies with
Medicare documentation, coverage,
payment, and coding rules.
The use of prior authorization does
not create new clinical documentation
requirements. Instead, it requires the
same information that is already
required to support Medicare payment,
just earlier in the process. Prior
authorization allows providers and
suppliers to address coverage issues
prior to furnishing services.
The prior authorization process under
this model will continue to apply in the
nine states listed previously for the
following codes for Medicare payment:
• A0426 Ambulance service,
advanced life support, non-emergency
transport, Level 1 (ALS1).
• A0428 Ambulance service, BLS,
non-emergency transport.
While prior authorization is not
needed for the mileage code, A0425, a
prior authorization decision for an
A0426 or A0428 code will automatically
include the associated mileage code.
We have conducted and will continue
to conduct outreach and education to
ambulance providers/suppliers, as well
as beneficiaries, through such methods
as updating the operational guide,
frequently asked questions (FAQs) on
our website, a physician letter
explaining the ambulance providers/
suppliers’ need for the proper
documentation, and educational events
and materials issued by the Medicare
Administrative Contractors (MACs). We
are also working to implement a new
process that will help identify alternate
transportation resources for
beneficiaries who receive nonaffirmative decisions. Additional
information about the implementation
of the prior authorization model is
available on the CMS website at https://
go.cms.gov/PAAmbulance.
Under this model, submitting a prior
authorization request is voluntary.
VerDate Sep<11>2014
20:03 Dec 11, 2017
Jkt 244001
However, an ambulance provider/
supplier or beneficiary is encouraged to
submit to the MAC a request for prior
authorization along with all relevant
documentation to support Medicare
coverage of a repetitive, scheduled nonemergent ambulance transport. If prior
authorization has not been requested by
the fourth round trip in a 30-day period,
the subsequent claims will be stopped
for prepayment review.
In order for a prior authorization
request to be provisionally affirmed, the
request for prior authorization must
meet all applicable rules and policies,
including any local coverage
determination (LCD) requirements for
ambulance transport claims. A
provisional affirmation is a preliminary
finding that a future claim submitted to
Medicare for the service likely meets
Medicare’s coverage, coding, and
payment requirements. After receipt of
all relevant documentation, the MACs
will make every effort to conduct a
review and postmark the notification of
their decision on a prior authorization
request within 10 business days for an
initial submission. Notification will be
provided to the ambulance provider/
supplier and to the beneficiary. If a
subsequent prior authorization request
is submitted after a non-affirmative
decision on an initial prior
authorization request, the MACs will
make every effort to conduct a review
and postmark the notification of their
decision on the resubmitted request
within 20 business days.
An ambulance provider/supplier or
beneficiary may request an expedited
review when the standard timeframe for
making a prior authorization decision
could jeopardize the life or health of the
beneficiary. If the MAC agrees that the
standard review timeframe would put
the beneficiary at risk, the MAC will
make reasonable efforts to communicate
a decision within 2 business days of
receipt of all applicable Medicarerequired documentation. As this model
is for non-emergent services only, we
expect requests for expedited reviews to
be extremely rare.
A provisional affirmative prior
authorization decision may affirm a
specified number of trips within a
specific amount of time. The prior
authorization decision, justified by the
beneficiary’s condition, may affirm up
to 40 round trips (which equates to 80
one-way trips) per prior authorization
request in a 60-day period.
Alternatively, a provisional affirmative
decision may affirm less than 40 round
trips in a 60-day period, or may affirm
a request that seeks to provide a
specified number of transports (40
round trips or less) in less than a 60-day
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
period. A provisional affirmative
decision can be for all or part of the
requested number of trips. Transports
exceeding 40 round trips (or 80 one-way
trips) in a 60-day period require an
additional prior authorization request.
The following describes examples of
various prior authorization scenarios:
• Scenario 1: When an ambulance
provider/supplier or beneficiary submits
a prior authorization request to the MAC
with appropriate documentation and all
relevant Medicare coverage and
documentation requirements are met for
the ambulance transport, the MAC will
send a provisional affirmative prior
authorization decision to the ambulance
provider/supplier and the beneficiary.
When the subsequent claim is submitted
to the MAC by the ambulance provider/
supplier, it is linked to the prior
authorization decision via the claims
processing system, and the claim will be
paid so long as all Medicare coding,
billing, and coverage requirements are
met. However, the claim could be
denied for technical reasons, such as the
claim was a duplicate claim or the claim
was for a deceased beneficiary. In
addition, a claim denial could occur
because certain documentation, such as
the trip record, needed in support of the
claim cannot be submitted with a prior
authorization request because it is not
available until after the service is
provided.
• Scenario 2: When an ambulance
provider/supplier or beneficiary submits
a prior authorization request, but all
relevant Medicare coverage
requirements are not met, the MAC will
send a non-affirmative prior
authorization decision to the ambulance
provider/supplier and to the beneficiary
advising them that Medicare will not
pay for the service. The provider/
supplier or beneficiary may then
resubmit the request with additional
documentation showing that Medicare
requirements have been met.
Alternatively, an ambulance provider/
supplier could furnish the service and
submit a claim with a non-affirmative
prior authorization tracking number, at
which point the MAC would deny the
claim. The ambulance provider/supplier
and the beneficiary would then have the
Medicare denial for secondary
insurance purposes and would have the
opportunity to submit an appeal of the
claim denial if they think Medicare
coverage was denied inappropriately.
• Scenario 3: When an ambulance
provider/supplier or beneficiary submits
a prior authorization request with
incomplete documentation, a detailed
decision letter will be sent to the
ambulance provider/supplier and to the
beneficiary, with an explanation of what
E:\FR\FM\12DEN1.SGM
12DEN1
ethrower on DSK3G9T082PROD with NOTICES
Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices
information is missing. The ambulance
provider/supplier or beneficiary can
rectify the error(s) and resubmit the
prior authorization request with
appropriate documentation.
• Scenario 4: If an ambulance
provider or supplier renders a service to
a beneficiary and does not request prior
authorization by the fourth round trip in
a 30-day period, and the claim is
submitted to the MAC for payment, then
the claim will be stopped for
prepayment review and documentation
will be requested.
++ If the claim is determined to be for
services that were not medically
necessary or for which there was
insufficient documentation, the claim
will be denied, and all current policies
and procedures regarding liability for
payment will apply. The ambulance
provider/supplier or the beneficiary, or
both, can appeal the claim denial if they
believe the denial was inappropriate.
++ If the claim is determined to be
payable, it will be paid.
Under the model, we will work to
limit any adverse impact on
beneficiaries and to educate
beneficiaries about the process. If a prior
authorization request is non-affirmed,
and the claim is still submitted by the
ambulance provider/supplier, the claim
will be denied, but beneficiaries will
continue to have all applicable
administrative appeal rights. We will
also work to implement a process that
will help identify alternate
transportation resources for
beneficiaries who receive nonaffirmative decisions.
Only one prior authorization request
per beneficiary per designated time
period can be provisionally affirmed. If
the initial ambulance provider/supplier
cannot complete the total number of
prior authorized transports (for
example, the initial ambulance
company closes or no longer services
that area), the initial request is
cancelled. In this situation, a
subsequent prior authorization request
may be submitted for the same
beneficiary and must include the
required documentation in the
submission. If multiple ambulance
providers/suppliers are providing
transports to the beneficiary during the
same or overlapping time period, the
prior authorization decision will only
cover the ambulance provider/supplier
indicated in the provisionally affirmed
prior authorization request. Any
ambulance provider/supplier submitting
claims for repetitive, scheduled nonemergent ambulance transports for
which no prior authorization request is
submitted by the fourth round trip in a
30-day period will be subject to 100
VerDate Sep<11>2014
20:03 Dec 11, 2017
Jkt 244001
percent prepayment medical review of
those claims.
Additional information is available on
the CMS website at https://go.cms.gov/
PAAmbulance.
III. Collection of Information
Requirements
Section 1115A(d)(3) of the Act states
that chapter 35 of title 44, United States
Code (the Paperwork Reduction Act of
1995), shall not apply to the testing and
evaluation of models or expansion of
such models under this section.
Consequently, this document need not
be reviewed by the Office of
Management and Budget under the
authority of the Paperwork Reduction
Act of 1995.
IV. Regulatory Impact Statement
This document announces a 1-year
extension of the Medicare Prior
Authorization Model for Repetitive
Scheduled Non-Emergent Ambulance
Transport. Therefore, there are no
regulatory impact implications
associated with this notice.
Authority: Section 1115A of the Social
Security Act.
Dated: November 16, 2017.
Seema Verma,
Administrator, Centers for Medicare &
Medicaid Services.
[FR Doc. 2017–26759 Filed 12–8–17; 4:15 pm]
BILLING CODE 4120–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2013–N–0523]
Agency Information Collection
Activities: Submission for Office of
Management and Budget Review;
Comment Request; Applications for
Food and Drug Administration
Approval To Market a New Drug
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice.
The Food and Drug
Administration (FDA) is announcing
that a proposed collection of
information has been submitted to the
Office of Management and Budget
(OMB) for review and clearance under
the Paperwork Reduction Act of 1995.
DATES: Fax written comments on the
collection of information by January 11,
2018.
ADDRESSES: To ensure that comments on
the information collection are received,
OMB recommends that written
SUMMARY:
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
58403
comments be faxed to the Office of
Information and Regulatory Affairs,
OMB, Attn: FDA Desk Officer, Fax:
202–395–7285, or emailed to oira_
submission@omb.eop.gov. All
comments should be identified with the
OMB control number 0910–0001. Also
include the FDA docket number found
in brackets in the heading of this
document.
FOR FURTHER INFORMATION CONTACT:
Domini Bean, Office of Operations,
Food and Drug Administration, Three
White Flint North, 10A–12M, 11601
Landsdown St., North Bethesda, MD
20852, 301–796–5733, PRAStaff@
fda.hhs.gov.
In
compliance with 44 U.S.C. 3507, FDA
has submitted the following proposed
collection of information to OMB for
review and clearance.
SUPPLEMENTARY INFORMATION:
Application for FDA Approval To
Market a New Drug
OMB Control Number 0910–0001—
Extension
Under section 505(a) of the Federal
Food, Drug, and Cosmetic Act (the
FD&C Act) (21 U.S.C. 355(a)), a new
drug may not be commercially marketed
in the United States, imported, or
exported from the United States, unless
an approval of an application filed with
FDA under section 505(b) or (j) of the
FD&C Act is effective with respect to
such drug. The Agency has codified
regulations regarding applications for
FDA approval to market a new drug
under 21 CFR part 314. This collection
of information supports the regulatory
requirements found in those regulations.
The collection of information is
necessary for FDA to make a scientific
and technical determination whether
the product is safe and effective for use,
and is summarized as follows:
Section 314.50(a) requires that an
application form (Form FDA 356h) be
submitted that includes information
about the applicant, the submission, and
a checklist of enclosures.
Section 314.50(b) requires that an
index be submitted with the archival
copy of the application and that it
reference certain sections of the
application.
Section 314.50(c) requires that a
summary of the application be
submitted that presents a good general
synopsis of all the technical sections
and other information in the
application.
Section 314.50(d) requires that the
new drug application (NDA) contain the
following technical sections about the
new drug: Chemistry, manufacturing,
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Notices]
[Pages 58400-58403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26759]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
[CMS-6063-N3]
Medicare Program; Extension of Prior Authorization for Repetitive
Scheduled Non-Emergent Ambulance Transports
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces a 1-year extension of the Medicare Prior
Authorization Model for Repetitive Scheduled Non-Emergent Ambulance
Transport. The extension of this model is applicable to the following
states and the District of Columbia: Delaware, Maryland, New Jersey,
North Carolina, Pennsylvania, South Carolina, Virginia, and West
Virginia.
DATES: This extension began on December 5, 2017 and ends on December 1,
2018. However, prior authorization is available upon provider,
supplier, or beneficiary request for dates of service between December
2, 2017 and December 4, 2017.
FOR FURTHER INFORMATION CONTACT: Angela Gaston, (410) 786-7409.
Questions regarding the Medicare Prior Authorization Model Extension
for Repetitive Scheduled Non-Emergent
[[Page 58401]]
Ambulance Transport should be sent to [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Medicare may cover ambulance services, including air ambulance
(fixed-wing and rotary-wing) services, if the ambulance service is
furnished to a beneficiary whose medical condition is such that other
means of transportation are contraindicated. The beneficiary's
condition must require both the ambulance transportation itself and the
level of service provided in order for the billed service to be
considered medically necessary.
Non-emergent transportation by ambulance is appropriate if either
the--(1) beneficiary is bed-confined and it is documented that the
beneficiary's condition is such that other methods of transportation
are contraindicated; or (2) beneficiary's medical condition, regardless
of bed confinement, is such that transportation by ambulance is
medically required. Thus, bed confinement is not the sole criterion in
determining the medical necessity of non-emergent ambulance
transportation; rather, it is one factor that is considered in medical
necessity determinations.\1\
---------------------------------------------------------------------------
\1\ 42 CFR 410.40(d)(1).
---------------------------------------------------------------------------
A repetitive ambulance service is defined as medically necessary
ambulance transportation that is furnished in 3 or more round trips
during a 10-day period, or at least 1 round trip per week for at least
3 weeks.\2\ Repetitive ambulance services are often needed by
beneficiaries receiving dialysis or cancer treatment.
---------------------------------------------------------------------------
\2\ Program Memorandum Intermediaries/Carriers, Transmittal AB-
03-106.
---------------------------------------------------------------------------
Medicare may cover repetitive, scheduled non-emergent
transportation by ambulance if the--(1) medical necessity requirements
described previously are met; and (2) ambulance provider/supplier,
before furnishing the service to the beneficiary, obtains a written
order from the beneficiary's attending physician certifying that the
medical necessity requirements are met (see 42 CFR 410.40(d)(1) and
(2)).\3\
---------------------------------------------------------------------------
\3\ Per 42 CFR 410.40(d)(2), the physician's order must be dated
no earlier than 60 days before the date the service is furnished.
---------------------------------------------------------------------------
In addition to the medical necessity requirements, the service must
meet all other Medicare coverage and payment requirements, including
requirements relating to the origin and destination of the
transportation, vehicle and staff, and billing and reporting.
Additional information about Medicare coverage of ambulance services
can be found in 42 CFR 410.40, 410.41, and in the Medicare Benefit
Policy Manual (Pub. L. 100-02), Chapter 10, at https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/downloads/bp102c10.pdf.
According to a study published by the Government Accountability
Office in October 2012, entitled ``Costs and Medicare Margins Varied
Widely; Transports of Beneficiaries Have Increased,'' \4\ the number of
basic life support (BLS) non-emergent transports for Medicare Fee-For-
Service beneficiaries increased by 59 percent from 2004 to 2010. A
similar finding published by the Department of Health and Human
Services' Office of Inspector General in a 2006 study, entitled
``Medicare Payments for Ambulance Transports,'' \5\ indicated a 20
percent nationwide improper payment rate for non-emergent ambulance
transport. Likewise, in June 2013, the Medicare Payment Advisory
Commission published a report \6\ that included an analysis of non-
emergent ambulance transports to dialysis facilities and found that,
during the 5-year period between 2007 and 2011, the volume of
transports to and from a dialysis facility increased 20 percent, more
than twice the rate of all other ambulance transports combined.
---------------------------------------------------------------------------
\4\ Government Accountability Office Cost and Medicare Margins
Varied Widely; Transports of Beneficiaries Have Increased (October
2012).
\5\ Office of Inspector General Medicare Payment for Ambulance
Transport (January 2006).
\6\ Medicare Payment Advisory Commission, June 2013, pages 167-
193.
---------------------------------------------------------------------------
Section 1115A of the Social Security Act (the Act) authorizes the
Secretary to test innovative payment and service delivery models to
reduce program expenditures, while preserving or enhancing the quality
of care furnished to Medicare, Medicaid, and Children's Health
Insurance Program beneficiaries. Section 1115A(d)(1) of the Act
authorizes the Secretary to waive such requirements of Titles XI and
XVIII, as well as sections 1902(a)(1), 1902(a)(13), 1903(m)(2)(A)(iii),
and 1934 (other than subsections (b)(1)(A) and (c)(5)) of the Act as
may be necessary solely for purposes of carrying out section 1115A of
the Act with respect to testing models described in section 1115A(b) of
the Act. Consistent with this standard, we will continue to waive the
same provisions for the extension of this model as have been waived for
the initial three years of the model. Additionally, we have determined
that the implementation of this model does not require the waiver of
any fraud and abuse law, including sections 1128A, 1128B, and 1877 of
the Act. Thus providers and suppliers affected by this model must
comply with all applicable fraud and abuse laws.
In the November 14, 2014 Federal Register (79 FR 68271), we
published a notice entitled ``Medicare Program; Prior Authorization of
Repetitive Scheduled Non-emergent Ambulance Transports,'' which
announced the implementation of a 3-year Medicare Prior Authorization
model that established a process for requesting prior authorization for
repetitive, scheduled non-emergent ambulance transport rendered by
ambulance providers/suppliers garaged in 3 states (New Jersey,
Pennsylvania, and South Carolina). These states were selected as the
initial states for the model because of their high utilization and
improper payment rates for these services. The model began on December
1, 2014, and was originally scheduled to end in all 3 states on
December 1, 2017.
In the October 23, 2015 Federal Register (80 FR 64418), we
published a notice titled ``Medicare Program; Expansion of Prior
Authorization of Repetitive Scheduled Non-emergent Ambulance
Transports,'' which announced the inclusion of 6 additional states
(Delaware, the District of Columbia, Maryland, North Carolina, West
Virginia, and Virginia) in the Repetitive Scheduled Non-Emergent
Ambulance Transport Prior Authorization model in accordance with
section 515(a) of the Medicare Access and CHIP Reauthorization Act of
2015 (MACRA) (Pub. L. 114-10). These 6 states began participation on
January 1, 2016, and the model was originally scheduled to end in all
nine model states on December 1, 2017.
II. Provisions of the Notice
This notice announces that the Medicare Prior Authorization Model
for Repetitive Scheduled Non-Emergent Ambulance Transport is being
extended in the current model states of Delaware, the District of
Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, South
Carolina, Virginia, and West Virginia, effective December 5, 2017, for
an additional year to allow for additional evaluation of the model.
Repetitive, scheduled non-emergent ambulance transport claims with
dates of service of December 2, 2017 through December 4, 2017 will not
be stopped for prepayment review if prior authorization is not
requested before the fourth round trip in a 30-day period; however,
providers, suppliers, and beneficiaries may request prior authorization
for these dates of service. The model will now end in all states on
December 1, 2018. Prior authorization will not be available for
repetitive
[[Page 58402]]
scheduled non-emergent ambulance transportation services furnished
after that date.
We will continue to test whether prior authorization helps reduce
expenditures, while maintaining or improving quality of care, using the
established prior authorization process for repetitive, scheduled non-
emergent ambulance transport to reduce utilization of services that do
not comply with Medicare policy.
We will continue to use this prior authorization process to help
ensure that all relevant clinical or medical documentation requirements
are met before services are furnished to beneficiaries and before
claims are submitted for payment. This prior authorization process
further helps to ensure that payment complies with Medicare
documentation, coverage, payment, and coding rules.
The use of prior authorization does not create new clinical
documentation requirements. Instead, it requires the same information
that is already required to support Medicare payment, just earlier in
the process. Prior authorization allows providers and suppliers to
address coverage issues prior to furnishing services.
The prior authorization process under this model will continue to
apply in the nine states listed previously for the following codes for
Medicare payment:
A0426 Ambulance service, advanced life support, non-
emergency transport, Level 1 (ALS1).
A0428 Ambulance service, BLS, non-emergency transport.
While prior authorization is not needed for the mileage code,
A0425, a prior authorization decision for an A0426 or A0428 code will
automatically include the associated mileage code.
We have conducted and will continue to conduct outreach and
education to ambulance providers/suppliers, as well as beneficiaries,
through such methods as updating the operational guide, frequently
asked questions (FAQs) on our website, a physician letter explaining
the ambulance providers/suppliers' need for the proper documentation,
and educational events and materials issued by the Medicare
Administrative Contractors (MACs). We are also working to implement a
new process that will help identify alternate transportation resources
for beneficiaries who receive non-affirmative decisions. Additional
information about the implementation of the prior authorization model
is available on the CMS website at https://go.cms.gov/PAAmbulance.
Under this model, submitting a prior authorization request is
voluntary. However, an ambulance provider/supplier or beneficiary is
encouraged to submit to the MAC a request for prior authorization along
with all relevant documentation to support Medicare coverage of a
repetitive, scheduled non-emergent ambulance transport. If prior
authorization has not been requested by the fourth round trip in a 30-
day period, the subsequent claims will be stopped for prepayment
review.
In order for a prior authorization request to be provisionally
affirmed, the request for prior authorization must meet all applicable
rules and policies, including any local coverage determination (LCD)
requirements for ambulance transport claims. A provisional affirmation
is a preliminary finding that a future claim submitted to Medicare for
the service likely meets Medicare's coverage, coding, and payment
requirements. After receipt of all relevant documentation, the MACs
will make every effort to conduct a review and postmark the
notification of their decision on a prior authorization request within
10 business days for an initial submission. Notification will be
provided to the ambulance provider/supplier and to the beneficiary. If
a subsequent prior authorization request is submitted after a non-
affirmative decision on an initial prior authorization request, the
MACs will make every effort to conduct a review and postmark the
notification of their decision on the resubmitted request within 20
business days.
An ambulance provider/supplier or beneficiary may request an
expedited review when the standard timeframe for making a prior
authorization decision could jeopardize the life or health of the
beneficiary. If the MAC agrees that the standard review timeframe would
put the beneficiary at risk, the MAC will make reasonable efforts to
communicate a decision within 2 business days of receipt of all
applicable Medicare-required documentation. As this model is for non-
emergent services only, we expect requests for expedited reviews to be
extremely rare.
A provisional affirmative prior authorization decision may affirm a
specified number of trips within a specific amount of time. The prior
authorization decision, justified by the beneficiary's condition, may
affirm up to 40 round trips (which equates to 80 one-way trips) per
prior authorization request in a 60-day period. Alternatively, a
provisional affirmative decision may affirm less than 40 round trips in
a 60-day period, or may affirm a request that seeks to provide a
specified number of transports (40 round trips or less) in less than a
60-day period. A provisional affirmative decision can be for all or
part of the requested number of trips. Transports exceeding 40 round
trips (or 80 one-way trips) in a 60-day period require an additional
prior authorization request.
The following describes examples of various prior authorization
scenarios:
Scenario 1: When an ambulance provider/supplier or
beneficiary submits a prior authorization request to the MAC with
appropriate documentation and all relevant Medicare coverage and
documentation requirements are met for the ambulance transport, the MAC
will send a provisional affirmative prior authorization decision to the
ambulance provider/supplier and the beneficiary. When the subsequent
claim is submitted to the MAC by the ambulance provider/supplier, it is
linked to the prior authorization decision via the claims processing
system, and the claim will be paid so long as all Medicare coding,
billing, and coverage requirements are met. However, the claim could be
denied for technical reasons, such as the claim was a duplicate claim
or the claim was for a deceased beneficiary. In addition, a claim
denial could occur because certain documentation, such as the trip
record, needed in support of the claim cannot be submitted with a prior
authorization request because it is not available until after the
service is provided.
Scenario 2: When an ambulance provider/supplier or
beneficiary submits a prior authorization request, but all relevant
Medicare coverage requirements are not met, the MAC will send a non-
affirmative prior authorization decision to the ambulance provider/
supplier and to the beneficiary advising them that Medicare will not
pay for the service. The provider/supplier or beneficiary may then
resubmit the request with additional documentation showing that
Medicare requirements have been met. Alternatively, an ambulance
provider/supplier could furnish the service and submit a claim with a
non-affirmative prior authorization tracking number, at which point the
MAC would deny the claim. The ambulance provider/supplier and the
beneficiary would then have the Medicare denial for secondary insurance
purposes and would have the opportunity to submit an appeal of the
claim denial if they think Medicare coverage was denied
inappropriately.
Scenario 3: When an ambulance provider/supplier or
beneficiary submits a prior authorization request with incomplete
documentation, a detailed decision letter will be sent to the ambulance
provider/supplier and to the beneficiary, with an explanation of what
[[Page 58403]]
information is missing. The ambulance provider/supplier or beneficiary
can rectify the error(s) and resubmit the prior authorization request
with appropriate documentation.
Scenario 4: If an ambulance provider or supplier renders a
service to a beneficiary and does not request prior authorization by
the fourth round trip in a 30-day period, and the claim is submitted to
the MAC for payment, then the claim will be stopped for prepayment
review and documentation will be requested.
++ If the claim is determined to be for services that were not
medically necessary or for which there was insufficient documentation,
the claim will be denied, and all current policies and procedures
regarding liability for payment will apply. The ambulance provider/
supplier or the beneficiary, or both, can appeal the claim denial if
they believe the denial was inappropriate.
++ If the claim is determined to be payable, it will be paid.
Under the model, we will work to limit any adverse impact on
beneficiaries and to educate beneficiaries about the process. If a
prior authorization request is non-affirmed, and the claim is still
submitted by the ambulance provider/supplier, the claim will be denied,
but beneficiaries will continue to have all applicable administrative
appeal rights. We will also work to implement a process that will help
identify alternate transportation resources for beneficiaries who
receive non-affirmative decisions.
Only one prior authorization request per beneficiary per designated
time period can be provisionally affirmed. If the initial ambulance
provider/supplier cannot complete the total number of prior authorized
transports (for example, the initial ambulance company closes or no
longer services that area), the initial request is cancelled. In this
situation, a subsequent prior authorization request may be submitted
for the same beneficiary and must include the required documentation in
the submission. If multiple ambulance providers/suppliers are providing
transports to the beneficiary during the same or overlapping time
period, the prior authorization decision will only cover the ambulance
provider/supplier indicated in the provisionally affirmed prior
authorization request. Any ambulance provider/supplier submitting
claims for repetitive, scheduled non-emergent ambulance transports for
which no prior authorization request is submitted by the fourth round
trip in a 30-day period will be subject to 100 percent prepayment
medical review of those claims.
Additional information is available on the CMS website at https://go.cms.gov/PAAmbulance.
III. Collection of Information Requirements
Section 1115A(d)(3) of the Act states that chapter 35 of title 44,
United States Code (the Paperwork Reduction Act of 1995), shall not
apply to the testing and evaluation of models or expansion of such
models under this section. Consequently, this document need not be
reviewed by the Office of Management and Budget under the authority of
the Paperwork Reduction Act of 1995.
IV. Regulatory Impact Statement
This document announces a 1-year extension of the Medicare Prior
Authorization Model for Repetitive Scheduled Non-Emergent Ambulance
Transport. Therefore, there are no regulatory impact implications
associated with this notice.
Authority: Section 1115A of the Social Security Act.
Dated: November 16, 2017.
Seema Verma,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2017-26759 Filed 12-8-17; 4:15 pm]
BILLING CODE 4120-01-P