Title: Medicare as a Second Language Policy
1Medicare as a Second Language Policy Payment
Issues for CRNAsPamela K. Blackwell,
JDAssociate Director Federal Regulatory
Payment Policy
0909/08
2Medicare as a Second Language
- What makes it like a Second Language?
- Acronyms (CMS, SGR, MEI, GPCI)
- Formulas
- Legal Language
- Process
- PATIENCE PRACTICE
3Who sets practice payment policies for CRNAs?
- AANA
- CMS (Medicare) - Centers for Medicare/Medicaid
Services, FDA, DEA, other federal agencies (e.g.
payment rules) - Congress
- State Government (e.g. licensure, certification)
- Joint Commission
- Healthcare Facilities Hospitals, Ambulatory
Surgical Centers (ASCs), Community Access
Hospitals (CAHs) (e.g. privileges)
4Where do CRNAs Practice
- Medicare CRNAs
- CRNAs predominate where there are more Medicare
beneficiaries. (GAO Rpt. 2007) - CRNAs predominate where the gap between Medicare
and private pays is less. (GAO Rpt. 2007) - CRNAs are sole anesthesia providers in most rural
hospitals. - CRNAs ensure rural hospitals can provide OB,
surgical, trauma stabilization and pain
management services. - CRNAs predominate in Veterans Hospitals and U.S.
Armed Forces. (440 CRNAs, Dept. of Veterans
Affairs)
5Medicare Facts for CRNAs
- CRNAs are recognized Medicare Part B
providers,1989 - Can bill Medicare directly for 100 of the
physician fee schedule amount, just as can
anesthesiologists - Medicare reimburses anesthesia professionals 2.4
billion/year, most of which is for anesthesia - 1.7 billion for anesthesiology
- 657 million for nurse anesthesia
- Up 25 from 2005 level of 1.9 million
- CMS, PFS Final Rule, 11/01/06
- Federal Funding, Education
- 3 million for nurse anesthesia education
programs - Billions for GME
- Congress considering cutting GME funding, so
CRNAs self-financing their education could be a
long-term advantage for the profession.
5
6Medicare Latte Factor
Have you had your latte today?
7Source CMS Actuary, National Healthcare
Expenditures Projections 2005-2015
8Medicare Latte Factor cont.
- Total US Healthcare Spent/year
2.17 trillion, 16 of GDP - Medicare Budget
- 19 of U.S. Budget
- 420 billion/year
- Total US Population 300 million
- 12 oz Starbucks Tall Latte 2.70/cup
9On average, every person in US contributes
1373/year to Medicare!
every person buying 508 lattes/year!
every person buying 1.3 lattes/day/everyday!
10Medicare Medicaid
Medicare and Medicaid
Every person spends 6.70 /day/everyday!
2458/year! 2004 5/day, 1725/year 733
more/year!
11Medicare Paperwork The Basics
- Enrollment of CRNAs as Medicare
- 855B Group - 65 pages
- 855I Individual - 29 pages
- CMS 1500 Form - 33 Total Elements
- CPT Procedure and Diagnosis Coding
- Who Does Your Coding? Degreed/Certified
12The Layers of Medicare
- Carriers/MACs (Medicare Administrative
Contractor) A private company that has a contract
with Medicare to pay your Medicare Part B claims,
4 MACs - Blue Cross Blue Shield of Florida
- Contractor - An entity that has an agreement with
CMS to perform a project. - Noridian Administrative Services
- Regional Offices - 10 - work closely with
Medicare contractors in their assigned
geographical areas. - CMS Centers for Medicare and Medicaid -
Baltimore, MD -
13Medicare Part A vs. Part B
- Medicare Part A - Conditions of Participation
- MD supervision of CRNAs
- Medicare Part B - Conditions of Payment
- Medical direction, payment rules
- Teaching payment rules
14Medicare Part A
- Requirements for hospitals to participate in
Medicare program. - CRNAs (42 CFR 482.52)
- Qualified anesthesia provider
- Must be supervised by an operating practitioner
or anesthesiologist who is immediately available
if needed - State Opt-out of MD supervision
- Can conduct pre-, intra-, and post-operative
anesthesia reports
15Medicare Part A cont.
- Qualified anesthesia providers MD/DO,
anesthesiologists, dentists, oral surgeons,
podiatrists, CRNAs, AAs - Immediately available physical presence
requirement - In the operative suite or labor delivery unit
- Ability to immediately conduct hands-on
intervention
16Medicare Part A cont.
- Immediately available does NOT mean
- X MD has to have specific anesthesia training
- X MD has to be specifically privileged to
supervise CRNAs - X Supervising practitioner has to be an
anesthesiologist - X Does not impose liability on surgeons who are
the supervising MD - MD/DO, dentist, oral surgeon, podiatrist can be
supervising practitioner.
17Medicare Part A cont.
- State Supervision Opt-out
- Governor sends letter to CMS stating it wants to
opt-out - Opting-out consistent w/ State law
- Confirms w/ State Boards of Medicine Nursing
- Opt-out effective once sent, Postcard
- 14 Opt-out states - Alaska, Idaho, Iowa, Kansas,
Minnesota, Montana, Nebraska, New Hampshire, New
Mexico, North Dakota, Oregon, South Dakota,
Washington, Wisconsin
18Medicare Part A cont.
- Medicare Interpretive Guidelines
- Interpret Medicare Part A, Cond of Participation
- Surveyors (Medicare, JCAHO, State Health Depts.)
use to accredit healthcare facilities - Clarify immediately available supervision
language - Physical presence req. problematic in rural
hospitals, esp. for OB services (epidurals) - AANA working to ensure guidelines consistent
- w/ Patient Access to quality care
- CRNA practice
19Medicare Part B
- Requirements to be paid for services.
- CRNAs are recognized - they or their employers
should bill Medicare Part-B directly. (41 CFR
414.60) - CRNAs are a REVENUE SOURCE Failure to Bill
Medicare Part B reimbursement LOSSES - Medicare Q modifiers - (QX, QZ) who provided
service
20Medicare Part B Anesthesia Payment Formula
(The Relative Value Anesthesia Charge Structure)
Three Primary Components
- Base Weight or Value of the procedure is
expressed in Units - Time Value is expressed in 15 Minute Units
- Anesthesia Conversion Factor (Jan-June08 CF
19.96)
21Anesthesia Payment Formula cont.
- Anesthesia Conversion Factor
- Anesthesia CF - Converts the value of provider
services into a dollar amount. Determines
Medicare payment for provider service in an area. - Jan-June 2008 19.96 (national average)
22Anesthesia Payment Formula
- Anesthesia Payment Formula
- Total units (Base/Value units Time units)
- X Conversion Factor (19.96)
- Medicare payment in
- Example
- QZ (Non-medically directed) anesthesia service
- 10 total units X 19.96 199.60
- QX (Medically directed)
- 10 total units X 9.98 99.80
23Medical Direction - QX
- Medical Direction When an anesthesiologist
fulfills the following criteria for each of up to
a maximum of 4 cases, Medical Direction of a CRNA
takes place. - These are payment requirements
- NOT quality of care standards. (63 FR 58843,
11/02/98) - Medically Directed - QX (QK, QY)
- CRNAs entitled to 50 of fee schedule for each
case. - Anesthesiologist entitled to 50 of fee schedule
for each case (42 CFR 415.110)
24Medical Direction Criteria
- (42 CFR 415.110)
- For each patient, to receive payment for medical
direction the physician must - (i) Perform a pre-anesthetic examination and
evaluation - (ii) Prescribe the anesthesia plan
- (iii) Personally participate in the most
demanding aspects of the anesthesia plan
including, if applicable, induction and
emergence
25Medical Direction Criteria
- (iv) Ensure that any procedures in the anesthesia
plan that he or she does not perform are
performed by a qualified individual as defined in
operating instructions - (v) Monitor the course of anesthesia
administration at frequent intervals - (vi) Remain physically present and available for
immediate diagnosis and treatment of emergencies
and - (vii) Provide indicated post-anesthesia care.
26Medical Direction Documentation Requirements
- Condition of Payment
- The anesthesiologist must document in the
patients medical record that he/she has met all
7 medical direction steps. (42 CFR 415.110) - Some insurers are moving away from paying for
medical direction, could be good for CRNAs. - Additional paperwork requirements
- Easier, and same cost to pay for a non-medically
directed or personally performed service
27Medical Direction Diagrams
11 Ratio -QY
21 Ratio -QK
MD
MD
50
50
50
50
50
50
50
50
50
50
CRNA
CRNA
CRNA
28Medical Direction Diagram
41 Ratio -QK
MD
50
50
50
50
50
50
CRNA
CRNA
50
50
CRNA
CRNA
4 cases 400
29Non-Medically Directed - QZ
- CRNA entitled to 100 of the fee schedule
CRNA
CRNA
CRNA
CRNA
MD
100
100
100
100
100
5 cases 500
30Supervision vs. Medical Direction
Supervision
Medical Direction
- Part B
- Individual practitioner payment
- Rules of payment
- NOT safety rules
- CRNAs do NOT have to be medically directed
to bill for services -
- Part A
- Hospital participation
- MD supervision required
- Unless, state has opted-out
CRNAs in all states can bill as NON-medically
directed.
31Billing for Anesthesiologist Assistants (AAs)
- AAs cannot practice independently.
- To bill for an AAs services the AA must work
under the direct supervision of an
anesthesiologist. (42 CFR 410.69)
32CRNA Medicare Billing Requirements
- Only a Certified nurse anesthetist can bill
Medicare directly. (140.1.2 of the Medicare
Claims Manual) - What does Medicare require to bill for services?
- Certification
- Recertification - Req. by AANA, assumed complete
by CMS - NPI (National Provider Identifier) Used to be
UPIN
33NPI
- Fall 2007 Medicare accepts only NPI
- NPI Benefits
- Each CRNA gets own NPI, linked to you forever
- Where CRNA practices, (facility, geographic
region) wont matter - Before Needed a different UPIN for every
facility, region where you practice, slows
reimbursement - Speeds up payment
34Graduate/Student Nurse Anesthetists
- Graduates/students nurse anesthetists are not
assets to employers until they can generate
revenue. - Graduate/student nurse anesthetists cannot bill
for his/her services. - Employers of graduate/student nurse anesthetists
cannot bill the graduate/students services. - Students/graduates should take certification exam
ASAP!
35Graduate/student billing cont.
- CRNA is eligible to bill upon the date of
certification. (Medicare Claims Manual, Ch. 12) - CRNAs can bill for services from official
certification date to receipt of NPI. - Check w/ carrier if can hold claims and file
claims when CRNA receives NPI or within one-year
prior to being certified. -
- For non-Medicare claims, payment rules may vary.
36Teaching Rules
37Rules for Teaching CRNAs
- A non-medically directed CRNA can bill Medicare
for teaching a SRNA. - If a non-medically directed CRNA is teaching one
SRNA The CRNA can bill for 100 of the service
if the CRNA remains continuously present for the
entire procedure.
38Rules for Teaching CRNAs cont.
- 2. If the non-medically directed CRNA is
teaching a SRNA in each of two rooms - The CRNA can bill for each of the two rooms.
- Payment formula Base units discontinuous time
multiplied by 19.96 (CF-anesthesia conversion
factor). - Discontinuous time (DCT) time in which the
CRNA was present with the SRNA in the room or
face to face with the patient. - CRNA can bill only for the time in the room
- CRNA must be present in each room for pre- and
post- anesthesia care.
39Rules for Teaching CRNAs cont.
- 3. If the CRNA is medically directed, and is
teaching an SRNA in each of two rooms, the
anesthesiologist receives 50 and the CRNA
receives 50 of the total fee (medical
direction).
40Teaching Rules Diagrams
Base Discont. Time (CF) /each case
1.1 Ratio
2.1 Ratio
CRNA
CRNA
50 or 100
DCT
DCT
0
0
0
SRNA
SRNA
SRNA
CRNAs are non-medically directed.
41Teaching Rules cont. Medical Direction
111 Ratio
421 Ratio
MD
MD
50
50
50
CRNA
CRNA
CRNA
50
50
50
SRNA
SRNA
SRNA
SRNA
SRNA
0
0
0
0
0
42Teaching Rules for Anesthesiologists
- If an anesthesiologist is teaching one resident
or one SRNA - The anesthesiologist can bill for 100 of the
service if he/she remains continuously personally
present for the entire procedure. - If anesthesiologist is not personally present w/
SRNA Anesthesiologist can bill for only 50 of
service.
43Teaching rules cont.
- 2. If anesthesiologist is teaching a SRNA in each
of two rooms - Anesthesiologist can bill 50 of each service
provided in each room - 3. If anesthesiologist teaching a SRNA in one
room and is supervising or medically directing a
resident, intern or CRNA in a second room - Anesthesiologist can bill 50 for SRNA service
44Teaching rules cont.
- 4. If the anesthesiologist is teaching a
resident in each of two rooms - Can bill for each of the two rooms.
- Payment formula Base units discontinuous time
multiplied by 19.96 (CF-anesthesia conversion
factor). - Discontinuous time (DCT) time in which
anesthesiologist was present with resident in the
room or face to face with the patient. - Anesthesiologist can bill only for the time in
the room - Anesthesiologist must be present in each room for
pre- and post- anesthesia care.
45Teaching Rules Diagrams cont.
1.1 Ratio
21 Ratio
MD
MD
50 or 100
50
50
0
0
0
SRNA
SRNA
SRNA
46Teaching Rules Diagrams cont.
21 Ratio
MD
50
50
0
0
50
OR
SRNA
Res.
CRNA
47Teaching Rules Diagrams cont.
Base Discont. Time (CF) /each case
1.1 Ratio
21 Ratio
MD
MD
50 or 100
DCT
DCT
0
0
0
Res.
Res.
Res.
48Teaching Rules Legislation
- H.R. 6331/Medicare Improvements for Patients
Providers Act of 2008 (MIPPA) - Reformed anesthesiologist teaching rules can
bill 100 of PFS when concurrently teaching 2
anesthesiology residents. - Reformed CRNA teaching rules Req. CMS to
establish teaching rules for CRNAs that are the
same as anesthesiologist rules. - Next Steps
- New Rules effective January 2010.
- AANA with active CRNA support must work with CMS
to establish equitable rules for CRNAs. - We Need Your Support!
4906/25/07
Anesthesia Teaching Rules Diagrams - CURRENT
DCT
DCT
Medical Direction
DCT
DCT
CRNA
MD
MD
NON-medically directed CRNA
50
CRNA
SNA
SNA
Res.
Res.
50
Discontinuous time (DCT) time w/ SNA (student
nurse anesthetist)/Res.(resident) or w/ the
patient, and is 50 payment.
SNA
SNA
100
100
MD
ASA Proposal
MD
50
50
Res.
Res.
SNA
SNA
5006/25/07
Anesthesia Teaching Rules Diagrams AANA PROPOSAL
Medical Direction
100
100
100
100
CRNA
MD
MD
NON-medically directed CRNA
50
50
CRNA
SNA
SNA
Res.
Res.
50
50
SNA
SNA
MD
100
100
SNA
SNA
51Inserting Lines
- Will Medicare pay CRNAs and anesthesiologists for
teaching SRNAs how to insert lines and provide
other medical and surgical services? - Other services may include insertion of Swan
Ganz catheters, central venous pressure lines,
pain management, emergency intubation, etc. - Answer It depends on the carrier.
- CMS said that there is no prohibition to being
paid to teach these services. HOWEVER, whether to
pay or not is up to your Medicare carrier.
52Iron Rules of Medicare
- Just because it has a code, doesn't mean it's
covered. -
- Just because it's covered, doesn't mean you can
bill for it. -
- Just because you can bill for it, doesn't mean
you'll get paid. -
- Just because you've been paid, doesn't mean you
get to keep the money. -
-
53Iron Rules of Medicare cont.
- There's always someone who gets the message and
ignores it. - Just because you been paid once, doesn't mean
you'll get paid again. -
- Just because you get paid in one state doesn't
mean you'll get paid in another -
- You'll never know all the rules.
-
- Not knowing the rules can land you in the
slammer.
54Why Congress the SGR are like aBride her
Wedding Budget
55Sustainable Growth Rate (SGR)
- Target Budget - Formula that sets a target for
federal healthcare spending - Updated every year to account for increase in
cost of healthcare goods services - Set by Congress, enforced by Medicare
- Every year, Congress goes over budget
56Increasing Costs to Medicare
- Medicare costs are increasing exponentially each
year - Sustainable Growth Rate (SGR) problem
- Does not accurately reflect cost of healthcare
services - Flat payment system - Does not reward for quality
or efficiency - SGR Cliff
- Each year Congress overrides SGR, smaller cut,
AANA others support - 18 month fix costs 9.4 billion
- Jan. 2010 Payment rates return to SGR rate,
minus amount spent SGR fr 2004-2009 - Result 10.6 Cut in Part B payments each year
for 10 years to make up for overspending in
2004-2009 - MedPAC, determined that Medicare provider
payments are adequate, appropriate access for
Medicare beneficiaries
56
57Re-Valuing of Anesthesia
- Some relief for anesthesia providers
- 2005 Medicare paid anesthesia 34 of private
payments/67 below private - CMS Nov. 27, 2007 Final Rule
- Successfully won 34 increase in value of
anesthesia 25 boost in the anesthesia CF - Medicare paying 20 more for anesthesia in 2008
than in 2007 though still less than private
payers.
57
58Presidential Congressional Elections
- Impact on National Healthcare System
- June 2008 - Congress and Administration delayed
fully addressing the SGR issue. - Prediction - Democrats retain Congress, not
enough in Senate to create working majority
needed to push legislation through. - Republicans Healthcare should be market driven.
- Provided by private insurance plans.
- Government should have only a peripheral role so
that market competition drives rates, quality and
efficiency improvements. - Democrats Expand healthcare coverage to more or
all Americans. - Struggle with how to make healthcare affordable
and accountable. - Concerned with cherry-picking of healthier
patients in a private payer driven market.
58
59Election impact cont.
- A reformed system must have incentives or
requirements for everyone to purchase coverage to
spread the risk pool. - Not everyone has to pay the same for coverage.
- Medicare does a good job of spreading the risk,
but is a poor price setter. - Any system-wide changes in the healthcare system
will not happen quickly and are likely to be
incremental in approach. - (Source Michael Hash, Tom
Scully, JD, Sara Rosenbaum, JD)
59
60Fab 5 Changes to Expect in Healthcare
- Digitize healthcare system to increase
efficiency, decrease redundancy and errors. - Requires nation-wide IT infrastructure.
- Create value-based purchasing incentives for
hospitals and providers (e.g. Physician Quality
Reporting Initiative PQRI) - The reward for performance may not be more money
- the reward could be not having your payments
cut. - Addressing chronic care management and
end-of-life costs, account for most healthcare
dollars. - Source Michael Hash, Principal, Health Policy
Alternatives Inc. (Fmr HCFA/CMS Secretary)
60
61Fab 5 cont.
- Conduct Comparative Effective Analysis
- More evidence-based medicine to better determine
who gets what services and payment amounts, - Best outcomes for the same or less cost.
- Move away from fee-for-service to bundled
payments to reduce cost. (CRNAs could risk losing
identity and negotiating leverage.) - Who pays for healthcare services and costs?
Taxpayers, government, insurers, patients,
providers, hospitals...etc.
61
62Success for CRNAs
CRNAs should be aware of policy and practice
management issues so they can apply the rules and
influence payment policies in their favor at
local/state/federal level.
62
63Part B Link to Medicare Premiums
- Payment formula links physician payment to
Medicare premiums. - If Medicare pays providers more, then Medicare
beneficiaries pay more. - 2005 Premium Cost 78/month
- 2006 Premium Cost 125/month
- Basic coverage (89) Drug benefit (36)
- 1500/year/Medicare beneficiary
64Pay for Performance
- Pay for Performance (P4P) Medicare Part B
payment based on quality of provider services. - 4 measures to evaluate provider performance
quality. - Process, Structural, Patient Experience Outcome
- Process practitioner providing care known to
improve outcomes. Specific steps providers take
to improve quality, steps well-trusted, based on
research.
65Pay for Performance measures cont.
- Structural - ensure providers are capable of
delivering quality care. Ex. Certification,
recertification, continuing education.
- Outcomes - how provider care actually affected
the patient. Capture info - on clinical effectiveness,
- safety.
- Patient experience care met goals of patient,
ensure patients involved in care and understand
their role.
66P4P measures cont.
- CMS P4P Programs
- Improve quality and efficiency, test Health IT
systems, get hospitals and individual
practitioners involved - Premier Hospital Quality Incentive Demonstration
- 8.85 million in awards to hospitals that showed
improvement just by reporting measures alone - Physician Quality Reporting Initiative (PQRI)
- Makes reporting measures mandatory
- Expands list of measures to report
67Physician Quality Reporting Initiative (PQRI)
- Providers who report measures 2009-2010 are
eligible for a 2.0 increase in payments. - CRNAs eligible to report
- 2009 PQRI CRNA-related Measures
- Timing, administration of antibiotic prophylaxis
in surgical patient - Prevention of Catheter Related Bloodstream
Infection (CRBSI) Catheter Insertion Protocol/Ma
ximum Sterile Barrier technique is followed - Preventive care and screening Body Mass Index
(BMI) - Documentation and verification of current
medications in the medical record - Patient co-development of treatment plan/plan of
care
68P4P measures cont.
- What if patient should not have antibiotic? Do
you get paid if you dont give the antibiotic? - Answer Yes, so long as you report.
- Binary reporting allows practitioner to decide
if antibiotic appropriate for each patient. - YES - you gave the antibiotic
- NO - you didnt give antibiotic, cite why not
appropriate in that case - Who determines anesthesia measures?
- CMS, AMA Consortium, National Quality Forum
(NQF), CDC, Private entities, AANA, ASA
69P4P Role of CRNAs AANA
- Participate in the development of anesthesia
measures that improve patient safety and quality
and that allow CRNAs to practice within their
full scope of practice. - Build relationships with CMS and other decision
makers - Participate in workgroups that develop measures
- Member - AMA Consortium, Anesthesiology Work
Group - Identify key AANA members, SRNAs/Education
programs to contribute expertise and research - Educate members on P4P initiatives
70Conditions of Participation - Updates
AANA Public Comments to CMS Practice
Improvements for CRNAs.
- Authentication of Verbal Orders
- Proposed rule CMS said verbal orders must be
authenticated by prescribing practitioners. - AANA Comment CRNAs give verbal orders, but do
not need prescriptive authority to give verbal
orders. CMS proposed rule would exclude CRNAs
from giving, authenticating verbal orders.
Authentication crucial for patient safety and
provider accountability. - CMS Response CMS agreed w/ AANA. CMS changed
language so verbal orders must be authenticated
by the ordering practitioner. CRNAs now
included. - (71 Fed.Reg. 68672, Nov. 27, 2006)
71CoP Updates cont.
- Securing Medications
- Proposed rule Controlled and Non-controlled
substances must be locked at all times. - AANA Comment Agreed that drugs should not be
accessible to those who would tamper, abuse or
distribute drugs, but locking non-controlled
substances at all times could jeopardize patient
safety. (i.e. preparation of anesthesia carts) - CMS Response Agreed w/ AANA.
- All drugs must be kept in a secure area, and
locked when appropriate. - Controlled substances locked at all times. Area
where actively providing patient care or
setting-up for patient considered a secure
area.
72CoP Updates cont.
- Post-Anesthesia Record
- Proposed Rule Post-anesthesia can be completed
by an individual qualified to administer
anesthesia w/in 48 hrs. after surgery. Does not
have to be the same person who provided
anesthesia. - AANA Comment AANA agreed with proposed rule.
Allows hospitals and anesthesia staff more
flexibility in completing patients records and is
consistent with rules for completing the
pre-anesthesia record. - CMS Response Agreed w/ AANA. Any individual
qualified to administer anesthesia can complete
the post-anesthesia record. - NOTE CRNAs and anesthesiologists as qualified
providers must play a real and active role in
completing entire anesthesia record/evaluation.
Students should not be completing record on their
own, students are not qualified providers.
73Where to go for HELP
- AANA DC- http//www.aana.com/
- Federal Medicare Legislative Regulatory Issues
- Member section, Government Relations, Federal
Issues - NEW! Medicare FAQs Answers to your most
frequently asked Medicare payment questions. - http//www.aana.com/federalfaqs.aspx
- Memos put complex rules in context
- Include diagrams links to official Medicare
documents - For use by you to advocate for your profession
with your hospital administrators, other
providers, insurers etc. - Email specific questions to info_at_aanadc.com
- CMS/ Medicare Website
- http//www.cms.hhs.gov/
- Carrier info, NPI, P4P programs, Forms, Physician
Fee Schedule, Payment rules
74- Thank You -
- AANA
- Pamela K. Blackwell, JD
- Associate Director
- Federal Regulatory Payment Policy
- Washington, DC