Current through Register Vol. 35, No. 18, September 24, 2024
Providers must submit claims for reimbursement on the
CMS-1500, American dental association (ADA), or universal billing (UB) claim
form or their successor or their electronic equivalents, as appropriate to the
provider type and service.
A. A
provider is responsible for following coding manual guidelines and CMS national
correct coding initiatives, including not improperly unbundling or upcoding
services, not reporting services together inappropriately, and not reporting an
inappropriate number or quantity of the same service on a single day. Bilateral
procedures and incidental procedure are also subject to special billing payment
policies. The payment for some services includes payment for other services.
For example, payment for a surgical procedure may include hospital visits and
follow up care or supplies which are not paid separately.
B. General reimbursement:
(1) reimbursement to professional service
providers is made at the lesser of the following:
(a) the provider's billed charge;
or
(b) the MAD fee schedule for the
specific service or procedure;
(2) the billed charge must be the provider's
usual and customary charge for the service or procedure.
(3) "usual and customary" charge refers to
the amount that the provider charges the general public in the majority of
cases for a specific procedure or service.
C. Reimbursement limitations:
(1) Nurses: Reimbursement to CNPs and CNSs
who are in independent practice are limited to 90 percent of the MAD fee
schedule amount allowed for physicians providing the same service.
(2) Midwife services: Reimbursement for a
certified nurse midwife or a licensed midwife for maternity services is based
on one global fee which includes prenatal care, delivery, postnatal and
postpartum care. Services related to false labor are included as part of the
global fee. Certified nurse midwives are reimbursed at the rate paid to
physicians for furnishing similar services. Licensed midwives are reimbursed at
seventy-seven percent of the rate paid to physicians for furnishing the global
services and at one hundred percent of the rate paid to physicians for add-on
services. Other services are paid according to the MAD fee schedule.
(3) Surgery: Surgical assistants are
reimbursed at twenty percent of the allowed primary surgeon amount. Surgical
assistants are paid only when the surgical code allows for assistants as
determined by medicare, CMS, or MAD. Physician assistants (PA), pharmacist
clinicians, CNP's, midwives, and CNS's can only be paid as surgical assistants
when it is within the scope of their practice as determined by state statute
and their licensing boards.
(4)
Physician extenders: Physician assistants, pharmacist clinicians and other
providers not licensed for independent practice are not paid directly.
Reimbursement is made to the supervising provider or entity under which the
extender works.
(5) Hospital
settings: Reimbursement for services provided in hospital settings that are
ordinarily furnished in a provider's office is made at sixty percent of the fee
schedule allowed amount. MAD follows medicare principles in determining which
procedures and places of service are subject to this payment reduction. For
services not covered by medicare, the determination is made by MAD. For
facility-based providers, costs billed separately as a professional component
must be identified for exclusion from the facility cost report prior to cost
settlement or rebasing.
(6)
Dietician and nutrition services: For nutritional counseling services,
physicians, physician extenders and clinics must include the charges for
nutritional services in the office visit code when services are furnished by
physicians or physician extenders. The level of the office visit reflects the
length and complexity of the visit. For services furnished as part of prenatal
or postpartum care, nutritional counseling services are included in the
reimbursement fees for prenatal and postpartum care and are not reimbursed
separately. Nutritional assessment and counseling services can be billed as a
separate charge only when services are furnished to a MAP eligible recipient
under age 21 by licensed nutritionists or licensed dieticians who are employed
by eligible providers. Reimbursement is made to eligible providers and not
directly to the nutritionists or dieticians.
(7) Laboratory and diagnostic imaging
reimbursement limitations:
(a) Use of medicare
maximums: The MAD payment does not exceed the amount allowed by medicare for
any laboratory service. Medicare notifies MAD on an annual basis of its fee
schedule for clinical laboratory services. These new fees become the maximums
for reimbursement upon implementation by MAD.
(b) Referrals from providers: Physicians and
other private practitioners cannot bill for laboratory tests which are sent to
an outside laboratory or other facility. Payment for laboratory services cannot
be made directly to a practitioner unless the tests were performed in their own
office. Laboratories can bill for tests sent to other laboratories only if the
CLIA number of the other laboratory is identified on the claim form. State
facilities which contract for services with other state-operated laboratories,
such as the state health laboratory, can bill for those services providing the
amount billed for the service does not exceed the amount paid by the state
facility to the contractor.
(c)
Reimbursement for collection costs: MAD does not reimburse an independent
clinical laboratory separately for associated collection costs such as office
visits, home visits or nursing home visits.
(d) Services performed as profile or panel:
Individual lab procedures that are routinely considered to be included in a
profile or panel must be billed as a panel. MAD cannot be billed for individual
lab procedures that are considered included in a profile or panel.
(8) Radiology:
(a) Non-profit licensed diagnostic and
treatment centers and state facilities: Non-profit licensed diagnostic and
treatment centers which contract for radiological services can bill for
services provided that the charge does not exceed the amount paid to the
contractor by the licensed diagnostic and treatment center.
(b) Reimbursement for additional charges:
Reimbursement for performance of a radiology procedure is considered paid in
full when payment is made for the procedure. Additional services such as office
visits, home visits, and nursing home visits are not reimbursed
separately.
(c) Reimbursement for
inclusive procedures: Reimbursement for certain radiological procedures is
included in the reimbursement for other procedures. Reimbursement for the
lesser procedure is always considered to be included in the payment for the
more comprehensive procedure for a specified group.
(d) Reimbursement for the professional
component of a radiology service does not exceed forty percent of the amount
allowed for the complete procedure.
(i) A
professional component or interpretation is not payable to the same provider
who bills for the complete procedure.
(ii) A claim for "supervision and
interpretation only" is not payable in addition to a claim for the complete
procedure.
(9)
Telemedicine providers: Reimbursement for services at the originating-site
(where the MAP eligible recipient is located) and the distant-site (where the
provider is located) are made at the same amount as when the services provided
are furnished without the use of a telecommunication system. In addition,
reimbursement is made to the originating-site for an interactive telemedicine
system fee at the lesser of the provider's billed charge; or the maximum
allowed by MAD for the specific service or procedure.
D. Reimbursement for services furnished by
medical interns or residents: Reimbursement for services furnished by an intern
or a resident in a hospital with an approved teaching program or services
furnished in another hospital that participates in a teaching program is only
made through an institutional reimbursement process. Medical or surgical
services performed by an intern or a resident that are unrelated to educational
services, internship, or residency, are reimbursed according to the MAD fee
schedule for physician services when all of the following provisions are met:
(1) services are identifiable physician
services that are performed by the physician in person;
(2) services must contribute to the diagnosis
or treatment of the MAP eligible recipient's medical condition;
(3) an intern or resident is fully licensed
as a physician;
(4) services are
performed under the terms of a written contract or agreement and are separately
identified from services required as part of the training program;
and
(5) services are excluded from
outpatient hospital costs; when these criteria are met the services are
considered to have been furnished by the practitioner in their capacity as a
physician and not as an intern or resident.
E. Services of an assistant surgeon in an
approved teaching program:
(1) MAD does not
pay for the services of an assistant surgeon in a facility with approved
teaching program since the resident is available to perform services unless the
following exceptional medical circumstances exist:
(a) an assistant surgeon is needed due to
unusual medical circumstances;
(b)
the surgery is performed by a team of physicians during a complex procedure;
or
(c) the presence of, and active
care by, a physician of another specialty is necessary during the surgery due
to the MAP eligible recipient's medical condition.
(2) This reimbursement rule may not be
circumvented by private contractors or agreements entered into by a hospital
with a physician or a physician group.
F. Reimbursement for dental residents:
Reimbursement can be made for dental residents in an approved teaching program
when all the following conditions are met:
(1)
the resident is fully licensed as a dentist for independent practice;
(2) the costs of the dental residency program
is not included in the direct or graduate medical education payments to a
provider operating the teaching program; and
(3) only one dental claim is submitted for
the service; the supervising dentist and the rendering dentist will not be both
paid for the service or procedure.
G. Non-independent practitioners:
Reimbursement for services furnished by a physician assistant, a pharmacist
clinician, or another practitioner whose license is not for independent
practice, is made only to the billing supervising practitioner or entity rather
than directly to the supervised practitioner.
H. Surgical procedures: Reimbursement for
surgical procedures is subject to certain restrictions and limitations.
(1) When multiple procedures that add
significant time or complexity to care are furnished during the same operative
session, the major procedure is reimbursed at one hundred percent of the
allowable amount, the secondary procedure is reimbursed at fifty percent of the
allowable amount and any remaining procedures are reimbursed at twenty-five
percent of the allowable amount. Multiple procedures occurring in one incision
are reimbursed similarly. "Multiple surgery" is defined as multiple surgical
procedures billed by the same physician for the same MAP eligible recipient on
the same date of service.
(2)
Bilateral procedures that are furnished in the same operative session are
billed as one service with a modifier. Reimbursement for bilateral procedures
is one hundred fifty percent of the amount allowed for a unilateral
procedure.
(3) Surgeons are not
reimbursed for the performance of incidental procedures, such as incidental
appendectomies, incidental scar excisions, puncture of ovarian cysts, simple
lysis of adhesions, simple repair of hiatal hernias, or tubal ligations done in
conjunction with cesarean sections.
(4) Providers are not reimbursed for
performing complete physical examinations or histories during follow-up
treatment after a surgical procedure.
(5) Other health care related to a surgery is
considered to be reimbursed in the payment for the surgery and is not paid as a
separate cost. Surgical trays and local anesthesia are included in the
reimbursement for the surgical procedure.
(6) Under certain circumstances, the skills
of two surgeons, usually with different surgical specialties may be required in
the management of a specific surgical problem. The total allowed value of the
procedure is increased by twenty-five percent and each surgeon is paid fifty
percent of that amount.
I. Maternity services: Reimbursement for
maternity care is based on one global fee. Routine prenatal, delivery postnatal
and postpartum care are included in the global fee. Services related to false
labor and induced labor are also included in the global fee.
(1) If partial services are furnished by
multiple providers, such as prenatal care only, one or two trimesters of care
only, or delivery only, the procedure codes billed must reflect the actual
services performed. The date of services must be the last day services were
furnished for that specific procedure code.
(2) MAD pays based on a modifier for
high-risk pregnancies or for complicated pregnancies. The determination of high
risk is based on a claims review.
(3) If partial services are furnished by a
certified nurse midwife or licensed midwife, such as prenatal care only, one or
two trimesters of care only or delivery only, the procedure codes billed must
reflect the actual services performed. The date of service must be the last day
services were furnished for that specific code.
(4) If the services furnished include a
combination of services performed by a certified nurse midwife or licensed
midwife, and a physician in the same group practice, reimbursement for midwife
services is based on trimesters of service furnished by the certified nurse
midwife or licensed midwife.
(5)
MAD pays supply fees only when a MAP eligible recipient is accommodated for two
hours or more in the home or a birthing center prior to delivery. Payment for
use of a licensed birthing center includes supplies.
(6) MAD covers postnatal and postpartum care
by a certified nurse midwife or licensed midwife, as a separate service only
when the midwife does not perform the delivery.
(7) Reimbursement for a single vaginal
delivery assist is allowed when the assist service is furnished by licensed or
certified midwives who are MAD providers. The need for the assistance based on
the medical condition of the MAP eligible recipient must be
documented.
(8) Reimbursement for
cesarean sections and inductions is made only when the service is medically
necessary. These services are not covered as elective procedures.
(9) MAD covers laboratory and diagnostic
imaging services related to an essentially normal pregnancy. These services can
be billed separately.
(10)
Non/covered midwife services: Midwife services are subject to the limitation
and coverage restrictions which exist for other MAD services. MAD does not
cover the following specific services furnished by a midwife:
(a) oral medications or medications, such as
ointments, creams, suppositories, ophthalmic and otic preparations which can be
appropriately self/administered by the MAP eligible recipient;
(b) services furnished by an apprentice,
unless billed by the supervising midwife;
(c) an assistant at a home birth unless
necessary based on the medical condition of the MAP eligible recipient which
must be documented in the claim.
(11) Birthing options program (BOP): The BOP
is specifically for basic obstetric care for uncomplicated pregnancies and
childbirth, including immediate newborn care that is limited to stabilization
of the baby during this transition. The program does not cover full scope of
midwifery services nor replace pediatric care that should occur at a primary
care clinic.
(a) The BOP out-of-hospital birth
locations include a pregnant member's home or a licensed birth
center.
(b) A BOP participant may
elect to have a home birth or birth in a licensed birth center when she has BOP
services provided by an eligible midwife that enrolls as a BOP provider with
the Human Services Department/medical assistance division (HSD/MAD) and the New
Mexico Department of Health/maternal health division (NMDOH/MHC).
J. Services limited by
frequency:
(1) services furnished by another
provider: where coverage of services provided to MAP eligible recipient is
restricted or limited by frequency of services, procedures or materials, it is
a provider's responsibility to determine if a proposed service has already been
furnished by another provider, such that the MAP eligible recipient has
exhausted the benefit. Examples include but are not limited to dental services,
vision exams and eyeglasses.
(2)
direct MAP eligible recipient payment for services: a provider can make
arrangements for direct payment from a MAP eligible recipient or their
authorized representative for noncovered services. A MAP eligible recipient or
their authorized representative can only be billed for noncovered services if:
(a) a MAP eligible recipient or their
authorized representative is advised by a provider of the necessity of the
service and the reasons for the non-covered status;
(b) a MAP eligible recipient or their
authorized representative is given options to seek treatment at a later date or
from a different provider;
(c) a
MAP eligible recipient or their authorized representative agrees in writing to
be responsible for payment; and
(d)
the provider fully complies with the NMAC rules relating to billing and claims
filing limitations.
(3)
services considered part of the total treatment: a provider cannot bill
separately for the services considered included in the payment for the
examination, another service, or for routine post-operative or follow-up
care.
K. Anesthesia
services:
(1) Reimbursement for anesthesia
services is calculated using the MAD fee schedule anesthesia "base units" plus
units for time.
(a) Each anesthesia procedure
is assigned a specific number of relative value units which becomes the "base
unit" for the procedure. Units of time are also allowed for the procedure.
Reimbursement is calculated by multiplying the total number of units by the
conversion factor allowed for each unit.
(b) The reimbursement per anesthesia unit may
vary depending on who furnishes the service. Separate rates are established for
a physician anesthesiologist, a medically-directed certified registered nurse
anesthetist (CRNA), anesthesiologist assistant (AA) and a non-directed
CRNA.
(c) For anesthesia provided
directly by a physician anesthesiologist, CRNA, or an anesthesiologist
assistant, one time unit is allowed for each 15-minute period a MAP eligible
recipient is under anesthesia. For medical direction, one time unit is allowed
for each 15-minute period.
(2) Medical direction: Reimbursement is made
at fifty percent of the full anesthesia service amount for medical direction by
a physician anesthesiologist who is not the surgeon or assistant surgeon, for
directing an anesthesiology resident, a registered nurse anesthetist (CRNA) or
an anesthesiologist assistant (AA). Reimbursement is made at fifty percent of
the full anesthesia service amount for the anesthesia service provided by the
medically directed anesthesiology resident, CRNA or AA. Medical direction
occurs if the physician medically directs qualified practitioners in two,
three, or four concurrent cases and the physician performs the activities
described below. Concurrency is defined with regard to the maximum number of
procedures that the physician is medically directing within the context of a
single procedure and whether these other procedures overlap each other.
Concurrency is not dependent on each of the cases involving a MAP eligible
recipient. For example, if an anesthesiologist directs three concurrent
procedures, two of which involve non-MAP eligible recipients and the remaining
is a MAP eligible recipient, this represents three concurrent cases.
(a) Time units for medical direction are
allowed at one time unit for each 15-minute interval.
(b) Anesthesia claims are not payable if the
surgery is not a MAD benefit or if any required documentation was not
obtained.
(c) Medical direction is
a covered service only if the physician:
(i)
performs a pre-anesthesia examination and evaluation; and
(ii) prescribes the anesthesia plan;
and
(iii) personally participates
in the most demanding procedures of the anesthesia plan including induction and
emergence; and
(iv) ensures that
any procedures in the anesthesia plan that they do not perform are performed by
a qualified anesthetist; and
(v)
monitors the course of anesthesia administration at frequent intervals;
and
(vi) remains physically present
and available for immediate diagnosis and treatment of emergencies;
and
(vii) provides indicated
post-anesthesia care.
(d)
For medical direction, the physician must document in the medical record that
he performed the pre-anesthetic exam and evaluation, provided indicated
post-anesthesia care, was present during some portion of the anesthesia
monitoring, and was present during the most demanding procedures, including
induction and emergence, where indicated.
(e) A physician who is concurrently directing
the administration of anesthesia to not more than four surgical patients may
not ordinarily be involved in furnishing additional services to other patients.
Addressing an emergency of short duration in the immediate area, administering
an epidural or caudal anesthetic to ease labor pain, or periodic, rather than
continuous, monitoring of an obstetrical patient does not substantially
diminish the scope of control exercised by the physician in directing the
administration of anesthesia to surgical patients. Medical direction criteria
are met even though the physician responds to an emergency of short
duration.
(f) While directing
concurrent anesthesia procedures, a physician may receive patients entering the
operating suite for the next surgery, check or discharge patients in the
recovery room, or handle scheduling matters without affecting fee schedule
payment.
(g) If a physician leaves
the immediate area of the operating suite for other than short durations or
devotes extensive time to an emergency case or is otherwise not available to
respond to the immediate needs of the surgical patient, the physician's
services to the surgical patients are supervisory in nature. Medical direction
cannot be billed.
(3)
Monitored anesthesia care: Medically necessary monitored anesthesia care (MAC)
services are reimbursed at base units plus time units.
(a) "Monitored anesthesia care" is anesthesia
care that involves the intraoperative monitoring by a physician or qualified
practitioner under the medical direction of a physician, or of the MAP eligible
recipient's vital physiological signs in anticipation of the need for
administration of general anesthesia, or of the development of adverse
physiological MAP eligible recipient reaction to the surgical procedure and
includes:
(i) performance of a pre-anesthetic
examination and evaluation;
(ii)
prescription of the anesthesia care required;
(iii) continuous intraoperative monitoring by
a physician anesthesiologist or qualified certified registered nurse
anesthetist of the MAP eligible recipient's physiological signs;
(iv) administration of medication or other
pharmacologic therapy as can be required for the diagnosis and treatment of
emergencies; and
(v) provision of
indicated postoperative anesthesia care.
(b) For MAC, documentation must be available
to reflect pre- and post-anesthetic evaluations and intraoperative
monitoring.
(c) Medical direction
for monitored anesthesia is reimbursed if it meets the medical direction
requirements.
(4) Medical
supervision: If an anesthesiologist is medically directing more than four
CRNAs, the service must be billed as medically supervised rather than medically
directed anesthesia services. The MAD payment to the CRNA will be fifty percent
of the MAD allowable amount for the procedure. Payment to the anesthesiologist
will be based on three base units per procedure when the anesthesiologist is
involved in furnishing more than four procedures concurrently or is performing
other services while directing the concurrent procedure.
(5) Obstetric anesthesia: Reimbursement for
neuraxial labor anesthesia is paid using the base units plus one unit per hour
for neuraxial analgesia management including direct patient contact time
(insertion, management of adverse events, delivery, and removal).
(6) Unusual circumstances: When it is
medically necessary for both the CRNA and the anesthesiologist to be completely
and fully involved during a procedure, full payment for the services of each
provider is allowed. Documentation supporting the medical necessity for both
must be noted in the MAP eligible recipient's record.
(7) Pre-anesthetic exams and cancelled
surgery: A pre-anesthetic examination and evaluation of a MAP eligible
recipient who does not undergo surgery may also be considered for payment.
Payment is determined under the physician fee schedule for the medical or
surgical service.
(8) Performance
of standard procedures: If an anesthesiologist performs procedures which are
generally performed by other physicians without specific anesthesia training,
such as local anesthesia or an injection, the anesthesiologist is reimbursed
the fee schedule amount for performance of the procedure. Reimbursement is not
made for base units or units for time.
(9) Add-on codes for anesthesia: Add-on codes
for anesthesia involving burn excisions or debridement and obstetrical
anesthesia are paid in addition to the primary anesthesia code. Anesthesia
add-on codes are priced differently than multiple anesthesia codes. Only the
base unit of the add-on code will be allowed. All anesthesia time must be
reported with the primary anesthesia code. There is an exception for
obstetrical anesthesia. MAD requires for the obstetrical add-on codes, that the
anesthesia time be separately reported with each of the primary and the add-on
codes based on the amount of time appropriately associated with either code.
Both the base unit and the time units for the primary and the add-on
obstetrical anesthesia codes are recognized.
(10) Anesthesia services furnished by the
same physician providing the medical and surgical service:
(a) A physician who both performs and
provides moderate sedation for medical or surgical services will be paid for
the conscious sedation consistent with CPT guidelines; however, a physician who
performs and provides local or minimal sedation for these procedures cannot
bill and cannot be paid separately for the sedation services. The continuum of
complexity in anesthesia services (from least intense to most intense) ranges
from:
(i) local or topical anesthesia;
to
(ii) moderate (conscious)
sedation; to
(iii) regional
anesthesia; to
(iv) general
anesthesia.
(b) Moderate
sedation is a drug-induced depression of consciousness during which a MAP
eligible recipient responds purposefully to verbal commands, either alone or
accompanied by light tactile stimulation. It does not include minimal sedation,
deep sedation or monitored anesthesia care. If the physician performing the
procedure also provides moderate sedation for the procedure, payment may be
made for conscious sedation consistent with CPT guidelines. However, if the
physician performing the procedure provides local or minimal sedation for the
procedure, no separate payment is made for the local or minimal sedation
service.