Impact of Final Rule CY 2011, MPFS for Otolaryngology—Head and Neck Surgery
The Calendar Year (CY) 2011 final rule for the Medicare physician fee schedule (MPFS) was published in the November 29, 2010, issue of the Federal Register. The Academy strongly advocated (http://www.entnet.org/Practice/upload/AAO-HNS_Comment_Letter_NPRM_MPFS_Aug2010.pdf) for several policy changes which were accepted by the Centers for Medicare and Medicaid (CMS) and are effective January 1, 2011. They include: Separate payment for Canalith repositioning procedure; Physician work and Practice Expense (PE) for 3 new Nasal/sinus endoscopy codes procedure codes, and 1 stereotactic computer-assisted (navigational) procedure code; Continued use of the Physician Practice Information Survey (PPIS) data, which results in overall higher PE values and payment for office-based procedures; and Maintenance of the current work relative value units (wRVU) for Excision of parotid tumor or gland procedures (CPT codes 42415 and 42420). We asked CMS to take additional administrative actions to reduce the cost of eliminating the flawed sustainable growth rate (SGR). Although we urged CMS to restore the consultation codes, they denied this request because they did not believe there was enough evidence to prove any negative consequences of eliminating consults. We recommended that CMS withdraw the proposal to apply the multiple payment procedure reduction (MPPR) policy to therapy codes, but they did not accept our recommendation. A summary of these policies and other issues of importance are below. Stay tuned to the Academy’s website (http://www.entnet.org/Practice/members/Advocacy.cfm) and The News for the most up-to-date information regarding Congressional action on the SGR. Canalith repositioning Effective January 1, 2011, CMS will separately reimburse canalith repositioning (CPT 95992), at the American Medical Association Specialty Society Relative Value Scale Update Committee’s (AMA RUC) previously recommended wRVU of 0.75 and practice expense (PE) inputs. Because CPT 95992 can be furnished by physicians or therapists as therapy services under a therapy plan of care or by physicians as physicians’ services outside of a therapy plan of care, the agency will add CPT 95992 to the “sometimes therapy” list. Medicare will not reimburse audiologists for performing canalith repositioning because it is not a diagnostic test. Establishment of interim final RVUs for CY 2011 CMS accepted 71 percent of the 291 work RVU recommendations made by the AMA RUC, and provided alternative values for the remaining recommendations. Over the last several years, the acceptance rate of the AMA RUC recommendations has been higher, at 90 percent or greater. However, in response to concerns expressed by Congress, Medicare Payment Advisory Commission, and other stakeholders regarding the accurate valuation of services under the MPFS, CMS has intensified its scrutiny of the work valuations of new, revised, and potentially misvalued codes. The final RVUs for the new balloon dilation and stereotactic computer-assisted procedure codes are (CMS accepted the AMA RUC’s values for these codes): 31295 Nasal/sinus endoscopy, surgical; with dilation of maxillary sinus ostium (e.g., balloon dilation), transnasal or via canine fossa – work RVU 2.70 31296 with dilation of frontal sinus ostium (e.g., balloon dilation) – work RVU 3.29 31297 with dilation of sphenoid sinus ostium (e.g., balloon dilation) – work RVU 2.64 61782 Sterotactic computer-assisted (navigational) procedure: cranial, extradural (List separately in addition to code for primary procedure – work RVU 3.18; facility PE RVU 1.81) For additional information, see pages 41-43. Resource-based PE RVUs CY 2011 is the second year of a four-year transition to the PE RVUs calculated using the AMA’s Physician Practice Information Survey (PPIS) data. Therefore, the CY 2011 PE RVUs are a 50/50 blend of the previous PE RVUs from the Socioeconomic Monitoring System (SMS), supplemental survey data, and newer PPIS data. All new CPT codes will be paid based on the fully implemented PE RVUs in CY 2011. Also, existing CPT codes for which the global period has changed in CY 2011 will not be subject to the PPIS PE RVU transition. Equipment utilization rate CMS will apply a 75 percent utilization rate for expensive imaging equipment (i.e., equipment valued over $1 million) in a non-budget neutral process for CY 2011. These changes to the PE RVUs will not be transitioned over a period of years. (Note: the previous rate was 90%). Disclosure requirements for in-office ancillary services exception For advanced imaging service (only MRI, CT and PET services), CMS finalized that the referring physician must provide written disclosure to the presenting patient that he or she may obtain the service from another provider. CMS requires this notification to include a list of at least five suppliers within a 25-mile radius of the referring physician’s practice. CMS will not require patients to sign this disclosure statement but the referring provider must record proof of the patient’s acknowledgement of the disclosure in the medical record. Malpractice RVUs for new and revised services CMS will continue its current method of updating malpractice RVUs by determining the malpractice RVUs for new and revised codes through a direct crosswalk to a similar “source” code or a modified crosswalk to account for differences in work RVUs between the new or revised code and the source code. Electronic prescribing (eRX) For e-prescribers in 2011, the eRX incentive is 1 percent. Penalties begin in 2012 at 1 percent for eligible professionals who are not successful e-prescribers. 12-month maximum submission period for Medicare claims CMS will decrease the time threshold for providers to submit claims to Medicare from 18-27 months after the date of service (DOS) to 12 months. Providers will need to submit claims for services performed in the last three months of 2009 by December 31, 2010. For those services furnished on or after January 1, 2010, providers must submit the claims for these services before the end of one CY after the DOS. Expansion of the MPPR policy Imaging: CMS will apply the MPPR to the Technical Component (TC) of multiple imaging services (includes CT and CTA, MRI and MRA, and ultrasound) performed within a family of codes or across families. This will apply to the aforementioned services when performed on a patient in one session irrespective of modality and contiguity of the body parts. Therapy Services: CMS will reduce by 50 percent the Practice Expense (PE) component for subsequent “always therapy” services performed by the same provider on patients in a single day. (Medicare will fully reimburse the code with the highest RVU but will reduce the PE input for the subsequent codes by 50 percent.) To view the final rule, visit http://www.ofr.gov/OFRUpload/OFRData/2010-27969_PI.pdf. To view a more detailed summary of the final rule and its impact on otolaryngology—head and neck surgery, visit http://www.entnet.org/Practice/CY2011-MPFS.cfm.
The Calendar Year (CY) 2011 final rule for the Medicare physician fee schedule (MPFS) was published in the November 29, 2010, issue of the Federal Register.
The Academy strongly advocated (http://www.entnet.org/Practice/upload/AAO-HNS_Comment_Letter_NPRM_MPFS_Aug2010.pdf) for several policy changes which were accepted by the Centers for Medicare and Medicaid (CMS) and are effective January 1, 2011. They include:
- Separate payment for Canalith repositioning procedure;
- Physician work and Practice Expense (PE) for
- 3 new Nasal/sinus endoscopy codes procedure codes, and
- 1 stereotactic computer-assisted (navigational) procedure code;
- Continued use of the Physician Practice Information Survey (PPIS) data, which results in overall higher PE values and payment for office-based procedures; and
- Maintenance of the current work relative value units (wRVU) for Excision of parotid tumor or gland procedures (CPT codes 42415 and 42420).
We asked CMS to take additional administrative actions to reduce the cost of eliminating the flawed sustainable growth rate (SGR). Although we urged CMS to restore the consultation codes, they denied this request because they did not believe there was enough evidence to prove any negative consequences of eliminating consults. We recommended that CMS withdraw the proposal to apply the multiple payment procedure reduction (MPPR) policy to therapy codes, but they did not accept our recommendation.
A summary of these policies and other issues of importance are below. Stay tuned to the Academy’s website (http://www.entnet.org/Practice/members/Advocacy.cfm) and The News for the most up-to-date information regarding Congressional action on the SGR.
Canalith repositioning
Effective January 1, 2011, CMS will separately reimburse canalith repositioning (CPT 95992), at the American Medical Association Specialty Society Relative Value Scale Update Committee’s (AMA RUC) previously recommended wRVU of 0.75 and practice expense (PE) inputs. Because CPT 95992 can be furnished by physicians or therapists as therapy services under a therapy plan of care or by physicians as physicians’ services outside of a therapy plan of care, the agency will add CPT 95992 to the “sometimes therapy” list. Medicare will not reimburse audiologists for performing canalith repositioning because it is not a diagnostic test.
Establishment of interim final RVUs for CY 2011
CMS accepted 71 percent of the 291 work RVU recommendations made by the AMA RUC, and provided alternative values for the remaining recommendations. Over the last several years, the acceptance rate of the AMA RUC recommendations has been higher, at 90 percent or greater. However, in response to concerns expressed by Congress, Medicare Payment Advisory Commission, and other stakeholders regarding the accurate valuation of services under the MPFS, CMS has intensified its scrutiny of the work valuations of new, revised, and potentially misvalued codes. The final RVUs for the new balloon dilation and stereotactic computer-assisted procedure codes are (CMS accepted the AMA RUC’s values for these codes):
- 31295 Nasal/sinus endoscopy, surgical; with dilation of maxillary sinus ostium (e.g., balloon dilation), transnasal or via canine fossa – work RVU 2.70
- 31296 with dilation of frontal sinus ostium (e.g., balloon dilation) – work RVU 3.29
- 31297 with dilation of sphenoid sinus ostium (e.g., balloon dilation) – work RVU 2.64
- 61782 Sterotactic computer-assisted (navigational) procedure: cranial, extradural (List separately in addition to code for primary procedure – work RVU 3.18; facility PE RVU 1.81)
For additional information, see pages 41-43.
Resource-based PE RVUs
CY 2011 is the second year of a four-year transition to the PE RVUs calculated using the AMA’s Physician Practice Information Survey (PPIS) data. Therefore, the CY 2011 PE RVUs are a 50/50 blend of the previous PE RVUs from the Socioeconomic Monitoring System (SMS), supplemental survey data, and newer PPIS data. All new CPT codes will be paid based on the fully implemented PE RVUs in CY 2011. Also, existing CPT codes for which the global period has changed in CY 2011 will not be subject to the PPIS PE RVU transition.
Equipment utilization rate
CMS will apply a 75 percent utilization rate for expensive imaging equipment (i.e., equipment valued over $1 million) in a non-budget neutral process for CY 2011. These changes to the PE RVUs will not be transitioned over a period of years. (Note: the previous rate was 90%).
Disclosure requirements for in-office ancillary services exception
For advanced imaging service (only MRI, CT and PET services), CMS finalized that the referring physician must provide written disclosure to the presenting patient that he or she may obtain the service from another provider. CMS requires this notification to include a list of at least five suppliers within a 25-mile radius of the referring physician’s practice. CMS will not require patients to sign this disclosure statement but the referring provider must record proof of the patient’s acknowledgement of the disclosure in the medical record.
Malpractice RVUs for new and revised services
CMS will continue its current method of updating malpractice RVUs by determining the malpractice RVUs for new and revised codes through a direct crosswalk to a similar “source” code or a modified crosswalk to account for differences in work RVUs between the new or revised code and the source code.
Electronic prescribing (eRX)
For e-prescribers in 2011, the eRX incentive is 1 percent. Penalties begin in 2012 at 1 percent for eligible professionals who are not successful e-prescribers.
12-month maximum submission period for Medicare claims
CMS will decrease the time threshold for providers to submit claims to Medicare from 18-27 months after the date of service (DOS) to 12 months. Providers will need to submit claims for services performed in the last three months of 2009 by December 31, 2010. For those services furnished on or after January 1, 2010, providers must submit the claims for these services before the end of one CY after the DOS.
Expansion of the MPPR policy
Imaging: CMS will apply the MPPR to the Technical Component (TC) of multiple imaging services (includes CT and CTA, MRI and MRA, and ultrasound) performed within a family of codes or across families. This will apply to the aforementioned services when performed on a patient in one session irrespective of modality and contiguity of the body parts.
Therapy Services: CMS will reduce by 50 percent the Practice Expense (PE) component for subsequent “always therapy” services performed by the same provider on patients in a single day. (Medicare will fully reimburse the code with the highest RVU but will reduce the PE input for the subsequent codes by 50 percent.)
To view the final rule, visit http://www.ofr.gov/OFRUpload/OFRData/2010-27969_PI.pdf.
To view a more detailed summary of the final rule and its impact on otolaryngology—head and neck surgery, visit http://www.entnet.org/Practice/CY2011-MPFS.cfm.