President Signs Stopgap Bill to Delay Medicare Physician Payment Cut

President Obama signed into law legislation that provides a stopgap, 31-day delay of the 21.2 percent Medicare physician pay cut that was scheduled to take effect on March 1. The Centers for Medicare & Medicaid Services subsequently advised providers that claims with dates of service March 1 and later, which were being held by Medicare contractors, will be released for processing and payment.

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Get Full Reimbursement for Anesthesia Teaching Cases

Use the AA and GC modifiers to claim 100% reimbursement for your teaching anesthesiologists for cases performed after Jan. 1, 2010. That’s the date teaching anesthesiologists become eligible to receive full payment under the Medicare physician fee schedule (PFS) for cases where they supervise or medically direct anesthesia residents.

You won’t see receive the additional reimbursement without proper modifier use.  Use modifier AA (anesthesia services performed personally by anesthesiologist) to get 100% reimbursement. Don’t use the QK modifier, which indicates medical direction and pays only 50% of the allowed charge. Additionally, modifier GC (service performed in part by a resident under the direction of a teaching physician) indicates the teaching anesthesiologist was present or immediately available during all critical portions of the anesthesia procedure (i.e., induction, emergence).

The ASA created a teaching tool to help coders properly bill in cases where a teaching anesthesiologist is directing a resident or student-registered nurse anesthetist (SRNA).  The following is a list of medical direction scenarios provided by the ASA, with proper modifier usage:

  • 1 MD + 1 Resident + medical direction of 1 CRNA in two separate concurrent cases = MD paid 100% of the allowed amount for the resident case (use the AA and GC modifiers) and 50% of the allowed amount for the CRNA case (with QK modifier). CRNA paid 50% of the allowed amount for his/her case (with QX modifier).
  • 1 MD + 2 SRNAs in two separate concurrent cases = MD paid 50% of the allowed amount for each case. Note: MDs cannot be involved in more than two concurrent SRNA cases without a CRNA also being involved. Both cases filed with modifier QK.
  • 1 MD medically directing 1 CRNA + 1 SRNA in two separate concurrent cases = MD paid 50% of the allowed amount for each case (bill with modifier QK); CRNA paid 50% of the allowed amount for his/her case (bill with modifier QX). No payment made for the SRNA service.
  • 1 non-medically directed CRNA + 1 SRNA = CRNA paid 100% of the allowed amount (use QZ modifier).Note:Modifier GC is only used in working with a resident.
  • 1 nonmedically directed CRNA + 2 SRNAs in separate concurrent cases = CRNA paid 100% of the allowed amount in each case (use QZ modifier).  The teaching CRNA must devote all his or her time to the two concurrent student nurse anesthetist cases.  To bill base units in each case, the teaching CRNA must be present with the student during the pre- and post-anesthesia care in each case.” 

Official resources:

For the CMS article describing the new rules for teaching anesthesiologists, go to: www.cms.hhs.gov/MLNMattersArticles/downloads/MM6706.pdf

For the ASA report describing different teaching anesthesiologist scenarios, go to: www.asahq.org/Washington/Payment%20Scenarios%20under%20Final%202010%20PFS.pdf

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HR 3961 SGR Fix; One Hurdle Down, Two Remaining

U.S. House of Representatives passes SGR fix

The U.S. House of Representatives on Thursday passed H.R. 3961, the “Medicare Physician Payment Reform Act of 2009” by a vote of 243-183. The legislation would permanently repeal the unworkable Sustainable Growth Rate formula (SGR) and create a path for future positive updates.  Without SGR reform this year, anesthesiologists and all other physicians face a 21 percent Medicare payment cut beginning Jan. 1, 2010, with additional cuts projected in future years.  H.R. 3961 would eliminate such SGR reductions to Medicare physician payments.  Instead, the bill would create a new physician payment formula with two buckets that would:

  • Allow the volume of most services to grow at the rate of GDP plus 1 percentage point per year
  • Allow the volume of primary and preventive care services to grow at GDP plus 2 percent per year

H.R. 3961 would also remove drugs and laboratory services not paid directly to practitioners from spending targets. For the bill to continue moving through the legislative process, it must receive consideration by the U.S. Senate.  Contact you Senators to make sure they know where you stand on this bill. Once the Senate has approved the bill it will then require a signature from the President.

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