Wyoming Administrative Code
Agency 048 - Health, Department of
Sub-Agency 0037 - Medicaid
Chapter 33 - REIMBURSEMENT OF OUTPATIENT HOSPITAL SERVICES
Section 33-5 - Medicaid Allowable Payment for Outpatient Hospital Services

Universal Citation: WY Code of Rules 33-5

Current through September 21, 2024

(a) Generally. Payment to facilities for outpatient hospital services shall be provided pursuant to 42 C.F.R. § 413.65. State-developed fee schedule rates for services described in this section shall be the same for public and private providers. The fee schedule and any periodic adjustments to the fee schedule shall be published at the Department's fiscal agent's website. Medicaid allowable payments for outpatient hospital services shall be made according to one of the following fee schedules depending on the type of service:

(i) Medicaid Ambulatory Payment Classification (APC) fee schedule. The APC fee schedule shall be based on services that are included and excluded in Medicare's outpatient prospective payment system pursuant to 42 C.F.R. §§ 419.21 and 419.22.
(A) Services included under the APC fee schedule:
(I) Significant outpatient procedures, e.g., a procedure or surgery provided to a patient that constitutes the primary reason for the visit to the hospital;

(II) Ancillary Services;

(III) Emergency Services;

(IV) Observation;

(V) Drugs;

(VI) Laboratory services not included in Medicare's clinical laboratory fee schedule;

(VII) Durable medical equipment, prosthetics and orthotics;

(VIII) Radiology; and

(IX) Vaccines and immunizations.

(B) Ambulatory Payment Classification relative weights. The Department shall use Medicare's APC relative weights.

(C) Wyoming-specific Medicaid conversion factors. The Department shall use a Wyoming-specific Medicaid conversion factor for each of the following three (3) hospital groups: children's hospitals, critical access hospitals, and general acute care hospitals as follows:
(I) For each group of hospitals, the Wyoming-specific Medicaid conversion factor shall be the result after dividing the estimated costs of APC-based services by the sum of the relative weights for the hospital group.
(1.) For each hospital, the calculated estimated cost-to-charge ratios shall be determined by dividing state fiscal year (SFY) 2005 estimated Medicaid costs by SFY 2005 Medicaid billed charges (paid claims).

(2.) The Department shall calculate estimated SFY 2005 Medicaid costs by multiplying SFY 2005 billed charges by hospital-specific outpatient hospital cost-to-charge ratios calculated from provider fiscal year end 2004 as-filed cost reports.

(II) For each group of hospitals, the Department shall calculate the conversion factor percentage of Medicare's final calendar year (CY) 2006 conversion factor as published in the Federal Register Vol. 70, No. 217 (November 10, 2005). The Department divided the Wyoming-specific Medicaid conversion factor by Medicare's final CY 2006 conversion factor as follows:
(1.) The Wyoming-specific Medicaid conversion factor for children's hospitals shall be one hundred seventy-one percent (171%) of Medicare's final CY 2006 conversion factor.

(2.) The Wyoming-specific Medicaid conversion factor for critical access hospitals shall be one hundred ninety-six percent (196%) of Medicare's final CY 2006 conversion factor.

(3.) The Wyoming-specific Medicaid conversion factor for general acute care hospitals shall be seventy-five percent (75%) of Medicare's final CY 2006 conversion factor.

(D) Fee schedule payment calculation. The fee schedule shall be established by multiplying the Wyoming-specific Medicaid conversion factor by the Medicare APC relative weight.

(E) Discounting. Payment amounts for certain multiple, bilateral or discontinued procedures, reimbursed using the Medicaid APC fee schedule, shall be discounted. The Department shall use the discount formulas that are included in Medicare's Integrated Outpatient Code Editor (I/OCE) with the exception of discount formula 8 (used for bilateral procedures). For discount formula 8, the Department shall use one hundred fifty percent (150%) rather than Medicare's two hundred percent (200%). Medicare outlines its discount formulas in the I/OCE Quarterly Transmittal, Appendix D, which is incorporated herein.

(F) Medicaid physician fee schedule. The Medicaid allowable payment shall be based on the reported procedure code and shall be the lesser of charges or the fee schedule amount. The following outpatient hospital services shall be reimbursed using the physician fee schedule:
(I) Physical, occupational, and speech therapy;

(II) Radiology, including mammography screening and diagnostic mammography; and

(III) Vaccines and immunization.

(G) Medicaid durable medical equipment, prosthetics and orthotics fee schedule. For those durable medical equipment, prosthetics and orthotics not included in the APC fee schedule, the Medicaid allowable payment shall be based on the reported procedure code and shall be the lesser of billed charges or the fee schedule amount.

(H) The Medicaid laboratory fee schedule. For those laboratory services not included in the APC fee schedule, the Medicaid allowable payment shall be based on the reported procedure code and shall be the lesser of billed charges or the fee schedule amount. The laboratory fee schedule is described in detail in State Plan Attachment 4.19 B, Policy and Methods of Establishing Payment Rate for Each Type of Care Provided, (3) Other Laboratory and X-ray Services.

(I) Percent of charges. The following services shall be reimbursed based on a percent of allowed charges. These services include the following:
(I) Transplants shall be reimbursed at fifty-five percent (55%) of billed charges, not to exceed the upper payment limits described in Section 1903(i) of the Social Security Act;

(II) Corneal tissue shall be reimbursed using the hospital-specific Medicaid cost-to-charge ratio calculated annually for inpatient level of care participating providers and may not exceed one hundred percent (100%). Non-participating hospitals shall be reimbursed using the average Medicaid cost-to-charge ratio for their provider type (children's hospital, critical access hospital and general acute care hospital);

(III) Medical devices that are paid transitional pass-through payments under Medicare's outpatient prospective payment system pursuant to Social Security Act § 1833(t)(6) shall be reimbursed using the hospital-specific Medicaid cost-to-charge ratios used in Section 5(a)(i)(C)(I) of this Chapter;

(IV) Dental shall be reimbursed using the hospital-specific Medicaid cost-to-charge ratios used in Section 5(a)(i)(C)(I) of this Chapter.

(ii) Qualified Rate Adjustment payments. The Department shall annually reimburse non-State government owned and operated hospitals that qualify for Qualified Rate Adjustment payments pursuant to State Plan Attachment 4.19B, Part 1, Addendum 1, by the end of the first quarter of each federal fiscal year.

(iii) Private Hospital Supplemental payments. The Department shall quarterly reimburse privately owned and operated hospitals that are providing services as of July 1 of each year and that qualify for a private hospital supplemental payment pursuant to State Plan Attachment 4.19B, Part 1, Addendum 2, by the end of each quarter. For each year, the first private hospital supplemental payment shall be made by December 31.

(b) Upper payment limits. The Medicaid payments shall not exceed Medicare upper payment limits according to 42 C.F.R. § 447.321. Reimbursement for laboratory services shall comply with federal upper limits for laboratory services pursuant to Section 1903(i) of the Social Security Act.

(c) Medicaid reimbursement shall not be available for services that are not medically necessary.

(d) Services that require prior authorization. The Department may designate outpatient hospital services that require prior authorization. In designating such services, the Department shall consider the cost of the service, the potential for over-utilization of the service, and the availability of lower cost alternatives. The Department shall disseminate a current list of services that require prior authorization to providers through manuals and bulletins. The failure to obtain prior authorization shall result in denial of Medicaid payment for the service.

(e) Claims for outpatient and inpatient hospital services. A claim seeking reimbursement for outpatient hospital services provided to a client within twenty-four (24) hours before the client received inpatient hospital services for the same or similar diagnosis shall be denied.

(f) Updates. The APC conversion factors and relative weights shall be reviewed annually. Considerations for update include adequate provider participation, beneficiary access, and the reduction of inequities in the system.

Disclaimer: These regulations may not be the most recent version. Wyoming may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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