Medicare and Medicaid Programs; Quarterly Listing of Program Issuances and Coverage DecisionsFourth Quarter 1994

Federal RegisterApr 6, 1995

Ask Donna

What actually matters in this document.

Text

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration

[BPO-130-N]

Medicare and Medicaid Programs; Quarterly Listing of Program

Issuances and Coverage Decisions--Fourth Quarter 1994

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice lists HCFA manual instructions, substantive and

interpretive regulations and other Federal Register notices, and

statements of policy that were published during October, November, and

December of 1994 that relate to the Medicare and Medicaid programs.

Section 1871(c) of the Social Security Act requires that we publish a

list of Medicare issuances in the Federal Register at least every 3

months. Although we are not mandated to do so by statute, for the sake

of completeness of the listing, we are including all Medicaid issuances

and Medicare and Medicaid substantive and interpretive regulations

(proposed and final) published during this timeframe. We are also

providing the content of revisions to the Medicare Coverage Issues

Manual published between October 1 and December 31, 1994. On August 21,

1989, we published the content of the Manual (54 FR 34555) and

indicated that we will publish [[Page 17539]] quarterly any updates.

Adding to this listing the complete text of the changes to the Medicare

Coverage Issues Manual allows us to fulfill this requirement in a

manner that facilitates identification of coverage and other changes in

our manuals.

FOR FURTHER INFORMATION CONTACT: Margaret Cotton, (410) 966-5255 (For

Medicare instruction information); Pat Prete, (410) 966-3246 (For

Medicaid instruction information); Michael Robinson, (410) 966-5633

(For all other information).

SUPPLEMENTARY INFORMATION:

I. Program Issuances

The Health Care Financing Administration (HCFA) is responsible for

administering the Medicare and Medicaid programs, which pay for health

care and related services for 38 million Medicare beneficiaries and 36

million Medicaid recipients. Administration of these programs involves

(1) Providing information to Medicare beneficiaries and Medicaid

recipients, health care providers, and the public; and (2) effective

communications with regional offices, State governments, State Medicaid

Agencies, State Survey Agencies, various providers of health care,

fiscal intermediaries and carriers who process claims and pay bills,

and others. To implement the various statutes on which the programs are

based, we issue regulations under authority granted the Secretary under

sections 1102, 1871, and 1902 and related provisions of the Social

Security Act (the Act) and also issue various manuals, memoranda, and

statements necessary to administer the programs efficiently.

Section 1871(c)(1) of the Act requires that we publish in the

Federal Register at least every 3 months a list of all Medicare manual

instructions, interpretive rules, statements of policy, and guidelines

of general applicability not issued as regulations. We published our

first notice June 9, 1988 (53 FR 21730). Although we are not mandated

to do so by statute, for the sake of completeness of the listing of

operational and policy statements, we are continuing our practice of

including Medicare substantive and interpretive regulations (proposed

and final) published during the 3-month timeframe. Since the

publication of our quarterly listing on June 12, 1992 (57 FR 24797), we

decided to add Medicaid issuances to our quarterly listings.

Accordingly, we are listing in this notice Medicaid issuances and

Medicaid substantive and interpretive regulations published from

October 1 through December 31, 1994.

II. Medicare Coverage Issues

We receive numerous inquiries from the general public about whether

specific items or services are covered under Medicare. Providers,

carriers, and intermediaries have copies of the Medicare Coverage

Issues Manual, which identifies those medical items, services,

technologies, or treatment procedures that can be paid for under

Medicare. On August 21, 1989, we published a notice in the Federal

Register (54 FR 34555) that contained all the Medicare coverage

decisions issued in that manual.

In that notice, we indicated that revisions to the Coverage Issues

Manual will be published at least quarterly in the Federal Register. We

also sometimes issue proposed or final national coverage decision

changes in separate Federal Register notices. Readers should find this

an easy way to identify both issuance changes to all our manuals and

the text of changes to the Coverage Issues Manual.

Revisions to the Coverage Issues Manual are not published on a

regular basis but on an as-needed basis. We publish revisions as a

result of technological changes, medical practice changes, responses to

inquiries we receive seeking clarifications, or the resolution of

coverage issues under Medicare. If no Coverage Issues Manual revisions

were published during a particular quarter, our listing will reflect

that fact.

Not all revisions to the Coverage Issues Manual contain major

changes. As with any instruction, sometimes minor clarifications or

revisions are made within the text. We have reprinted manual revisions

as transmitted to manual holders. The new text is shown in italics. We

will not reprint the table of contents, since the table of contents

serves primarily as a finding aid for the user of the manual and does

not identify items as covered or not.

III. How to Use the Addenda

This notice is organized so that a reader may review the subjects

of all manual issuances, memoranda, substantive and interpretive

regulations, or coverage decisions published during the timeframe to

determine whether any are of particular interest. We expect it to be

used in concert with previously published notices. Most notably, those

unfamiliar with a description of our Medicare manuals may wish to

review Table I of our first three notices (53 FR 21730, 53 FR 36891,

and 53 FR 50577) and the notice published March 31, 1993 (58 FR 16837),

and those desiring information on the Medicare Coverage Issues Manual

may wish to review the August 21, 1989 publication (54 FR 34555).

To aid the reader, we have organized and divided this current

listing into five addenda. Addendum I identifies updates that changed

the Coverage Issues Manual. We published notices in the Federal

Register that included the text of changes to the Coverage Issues

Manual. These updates, when added to material from the manual published

on August 21, 1989 constitute a complete manual as of December 31,

1994. Parties interested in obtaining a copy of the manual and

revisions should follow the instructions in section IV of this notice.

Addendum II identifies previous Federal Register documents that

contain a description of all previously published HCFA Medicare and

Medicaid manuals and memoranda.

Addendum III of this notice lists, for each of our manuals or

Program Memoranda, a HCFA transmittal number unique to that instruction

and its subject matter. A transmittal may consist of a single

instruction or many. Often it is necessary to use information in a

transmittal in conjunction with information currently in the manuals.

Addendum IV sets forth the revisions to the Medicare Coverage

Issues Manual that were published during the quarter covered by this

notice. For the revisions, we give a brief synopsis of the revisions as

they appear on the transmittal sheet, the manual section number, and

the title of the section. We present a complete copy of the revised

material, no matter how minor the revision, and identify the revisions

by printing in italics the text that was changed. If the transmittal

includes material unrelated to the revised section, for example, when

the addition of revised material causes other sections to be

repaginated, we do not reprint the unrelated material.

Addendum V lists all substantive and interpretive Medicare and

Medicaid regulations and general notices published in the Federal

Register during the quarter covered by this notice. For each item, we

list the date published, the Federal Register citation, the title of

the regulation, the parts of the Code of Federal Regulations (CFR)

which have changed (if applicable), the agency file code number, the

ending date of the comment period (if applicable), and the effective

date (if applicable). [[Page 17540]]

IV. How to Obtain Listed Material

A. Manuals

An individual or organization interested in routinely receiving any

manual and revisions to it may purchase a subscription to that manual.

Those wishing to subscribe should contact either the Government

Printing Office (GPO) or the National Technical Information Service

(NTIS) at the following addresses:

Superintendent of Documents, Government Printing Office, Attn: New

Order, P.O. Box 371954, Pittsburgh, PA 15250-7954, Telephone (202) 512-

1800, Fax number (202) 512-2250 (for credit card orders); or

National Technical Information Service, Department of Commerce, 5825

Port Royal Road, Springfield, VA 22161, Telephone (703) 487-4630.

In addition, individual manual transmittals and Program Memoranda

listed in this notice can be purchased from NTIS. Interested parties

should identify the transmittal(s) they want. GPO or NTIS can give

complete details on how to obtain the publications they sell.

B. Regulations and Notices

Regulations and notices are published in the daily Federal

Register. Interested individuals may purchase individual copies or

subscribe to the Federal Register by contacting the GPO at the address

indicated above. When ordering individual copies, it is necessary to

cite either the date of publication or the volume number and page

number.

C. Rulings

Rulings are published on an infrequent basis by HCFA. Interested

individuals can obtain copies from the nearest HCFA Regional Office or

review them at the nearest regional depository library. We also

sometimes publish Rulings in the Federal Register.

D. HCFA's Compact Disk-Read Only Memory (CD-ROM)

HCFA's laws, regulations, and manuals are now available on CD-ROM,

which may be purchased from GPO or NTIS on a subscription or single

copy basis. The Superintendent of Documents list ID is HCLRM, and the

stock number is 717-139-00000-3. The following material is contained on

the CD-ROM disk:

Titles XI, XVIII, and XIX of the Act.

HCFA-related regulations.

HCFA manuals and monthly revisions.

HCFA program memoranda.

The titles of the Compilation of the Social Security Laws are

current as of January 1, 1993. The remaining portions of CD-ROM are

updated on a monthly basis.

The CD-ROM disk does not contain Appendix M (Interpretative

Guidelines for Hospices). Copies of this appendix may be reviewed at a

Federal Depository Library (FDL).

Any cost report forms incorporated in the manuals are included on

the CD-ROM disk as LOTUS files. LOTUS software is needed to view the

reports once the files have been copied to a personal computer disk.

V. How to Review Listed Material

Transmittals or Program Memoranda can be reviewed at a local FDL.

Under the FDL program, government publications are sent to

approximately 1400 designated libraries throughout the United States.

Interested parties may examine the documents at any one of the FDLs.

Some may have arrangements to transfer material to a local library not

designated as an FDL. To locate the nearest FDL, individuals should

contact any library.

In addition, individuals may contact regional depository libraries,

which receive and retain at least one copy of most Federal government

publications, either in printed or microfilm form, for use by the

general public. These libraries provide reference services and

interlibrary loans; however, they are not sales outlets. Individuals

may obtain information about the location of the nearest regional

depository library from any library. Superintendent of Documents

numbers for each HCFA publication are shown in Addendum III, along with

the HCFA publication and transmittal numbers. To help FDLs locate the

instruction, use the Superintendent of Documents number, plus the HCFA

transmittal number. For example, to find the Carriers Manual, Part 2--

Program Administration (HCFA-Pub. 14-2) transmittal entitled ``Files

Maintenance Program General'', use the Superintendent of Documents No.

HE 22.8/6-2 and the HCFA transmittal number 127.

VI. General Information

It is possible that an interested party may have a specific

information need and not be able to determine from the listed

information whether the issuance or regulation would fulfill that need.

Consequently, we are providing information contact persons to answer

general questions concerning these items. Copies are not available

through the contact persons. Copies can be purchased or reviewed as

noted above.

Questions concerning Medicare items in Addenda III may be addressed

to Margaret Cotton, Issuances Staff, Bureau of Program Operations,

Health Care Financing Administration, Room 688 East High Rise, 6325

Security Blvd., Baltimore, MD 21207, Telephone (410) 966-5255.

Questions concerning Medicaid items in Addenda III may be addressed

to Pat Prete, Medicaid Bureau, Office of Medicaid Policy, Health Care

Financing Administration, Room 233 East High Rise, 6325 Security Blvd.,

Baltimore, MD 21207, Telephone (410) 966-3246.

Questions concerning all other information may be addressed to

Michael Robinson, Office of Regulations, Health Care Financing

Administration, Room 132 East High Rise, 6325 Security Blvd.,

Baltimore, MD 21207, Telephone (410) 966-5633.

(Catalog of Federal Domestic Assistance Program No. 93.773,

Medicare--Hospital Insurance, Program No. 93.774, Medicare--

Supplementary Medical Insurance Program, and Program No. 93.714,

Medical Assistance Program)

Dated: March 23, 1995.

Bruce C. Vladeck,

Administrator, Health Care Financing Administration.

Addendum I

This addendum lists the publication dates of the most recent

quarterly listing of program issuances and coverage decision updates to

the Coverage Issues Manual. For a complete listing, please refer to the

listing in the January 3, 1995 quarterly notice (60 FR 132).

March 17, 1994 (59 FR 12610)

August 5, 1994 (59 FR 40038)

November 14, 1994 (59 FR 56501)

January 3, 1995 (60 FR 132)

Addendum II--Description of Manuals, Memoranda, and HCFA Rulings

An extensive descriptive listing of Medicare manuals and memoranda

was published on June 9, 1988, at 53 FR 21730 and supplemented on

September 22, 1988, at 53 FR 36891 and December 16, 1988, at 53 FR

50577. Also, a complete description of the Medicare Coverage Issues

Manual was published on August 21, 1989, at 54 FR 34555. A brief

description of the various Medicaid manuals and memoranda that we

maintain was published on October 16, 1992, at 57 FR 47468.

[[Page 17541]]

Addendum III.--Medicare and Medicaid Manual Instructions

[October Through December 1994]

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Trans. No. Manual/Subject/Publication Number

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Intermediary Manual

Part 2--Audits, Reimbursement

Program Administration (HCFA-Pub. 13-2)

(Superintendent of Documents No. HE 22.8/6-1)

------------------------------------------------------------------------

400 <bull Files Maintenance Program--General.

e

Records Retention and Disposal Schedule.

Retention of Claims Files Materials.

Microfilming of Files Material.

Intermediary--Federal Records Center Relations.

Location of Federal Records Centers.

Procedures for Transfer of Material to Federal

Records Centers.

Requesting Forms for Transfer and Return of

Material from Federal Records Centers.

Report of Medicare Records--Form HCFA-2556.

Exhibits.

401 <bull Location of Federal Records Centers.

e

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Intermediary Manual

Part 3--Claims Process (HCFA-13-3)

(Superintendent of Documents No. HE 22.8/6)

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1636 <bull Responsibility for Medicare Secondary Payer

e Outreach Program.

Quarterly Supplement to Intermediary Workload

Report (Form HCFA-1566A) General.

Completing Quarterly Supplement to the Intermediary

Workload Report, HCFA-1566A, Pages 1 and 2.

Completing Quarterly Supplement to the Intermediary

Workload Report, HCFA-1566A, Page 3.

Completing Quarterly Periodic Interim Payment

Report, HCFA-1566C--General.

1637 <bull Reporting Outpatient Surgery and Other Services.

e

PPS Pricer Program.

Provider-Specific Data Record Layout and

Description.

1638 <bull Mammography Screening.

e

Mammography Quality Standards Act.

1639 <bull Disallowance Form Letters HCFA-1954 and HCFA-1955.

e

Explanation of Medicare Benefits Notice

Specifications.

1640 <bull General Effect of Liability Insurance on Medicare

e Payment.

Appeals Procedures for MSP Liability Overpayments.

1641 <bull Mammography Screening.

e

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Carriers Manual

Part 2--Program Administration (HCFA-14-2)

(Superintendent of Documents No. HE 22.8/6-2)

------------------------------------------------------------------------

127 <bull Files Maintenance Program--General.

e

Records Retention and Disposal Schedule.

Retention of Claims Files Materials.

Microfilming of Files Materials.

Report of Medicare Records--Form HCFA-2556.

Location of Federal Records Centers.

Procedures for Transfer of Material to Federal

Records Centers.

Requesting Forms for Transfer and Return of

Material from Federal Records Centers.

Exhibits.

128 <bull Location of Federal Records Centers.

e

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Carriers Manual

Part 4--Professional Relations (HCFA-Pub. 14-4)

(Superintendent of Documents No. HE 22.8/7-4)

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9 <bull Responsibility in the Medicare Secondary Payer

e Outreach Program.

10 <bull National Registry of Physicians/Health Care

e Practitioners/Group Practices-Medicare Provider

Identifier (UPIN).

Ongoing Data Collection On Physicians/Health Care

Practitioners/Group Applications.

Physicians/Health Care Practitioners/Group

Practices Record-Required Information and Format.

Maintaining Physicians/Health Care Practitioner/

Group Practice Membership.

Validation of Physicians/Health Care Practitioners/

Group Practices Credentials, Certifications,

Sanction and License Information for Prior

Practice.

<bull UPIN Cross Referral Requirement.

e

Maintenance of The Registry.

Update Records.

Rejections.

Exceptions.

Carrier Record Requirements.

UPIN Carrier Record Layout.

[[Page 17542]]

List of Medical School Codes.

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Carriers Manual

Part 3--Claims Process (HCFA-Pub. 14-3)

(Superintendent of Documents No. HE 22.8/7)

------------------------------------------------------------------------

1501 <bull Quarterly Supplements to the Carrier Performance

e Report (Forms HCFA-1565A, HCFA-1565B, HCFA-1565C,

and HCFA-1565D)--General.

Completing Form HCFA-1565A.

Completion of Items on Form HCFA-1565A.

Completing Medicare Fraud Unit Quarterly Workload

Status Report, HCFA-1565B--General.

Completing Form HCFA-1565C.

Completion of Items on Form HCFA-1565C.

Completing Comprehensive Limiting Charge Compliance

Program Quarterly Report HCFA-1565D--General.

Completing Medicare Fraud Unit Quarterly Status

Report, Form HCFA-1565B.

Completing Carrier Limiting Charge Compliance

Program Quarterly Report, Form HCFA-1565D.

1502 <bull Chiropractors.

e

Manual Manipulation.

Verification of Chiropractor's Qualifications.

1503 <bull Part B Provider Access to Limited Eligibility Data.

e

Eligibility Data Available.

Contractor Implementation.

Data Format.

Part B Eligibility Data Security Requirements.

HCFA Standard Part B Eligibility Data Security

Requirements.

HCFA Standard Part B Eligibility Inquiry Flat File

Specifications.

HCFA Standard Part B Eligibility Response Flat File

Specifications.

1504 <bull Type of Service.

e

1505 <bull Self-Administering of Drug or Biological.

e

1506 <bull List of Covered Surgical Procedures.

e

1507 <bull Rebundling of CPT-4 Codes.

e

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Program Memorandum

Intermediaries (HCFA-Pub. 60A)

(Superintendent of Documents No. HE 22.8/6-5)

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A-94-8 <bull Revised Wages Indexes for Ambulatory Surgical

e Centers--Pricer for 7.0 and 8.0.

A-94-9 <bull FY 1995 Prospective Payment System and Other Bill

e Processing Changes.

A-94-10 <bull Ambulatory Surgical Center--Pricer 9.0.

e

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Program Memorandum

Carriers (HCFA-Pub. 60B)

(Superintendent of Documents No. HE 22.8/6-5)

------------------------------------------------------------------------

B-94-6 <bull 1995 Physician, Practitioner and Supplier

e Participation Enrollment and Fee Schedule

Disclosure.

B-94-7 <bull 1995 Physician, Practitioner and Supplier

e Participation Enrollment and Fee Schedule

Disclosure.

B-94-8 <bull Split Billing for Professional and Technical

e Components of Services.

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Program Memorandum

Intermediaries/Carriers (HCFA-Pub. 60AB)

(Superintendent of Documents No. HE 22.8/6-5)

------------------------------------------------------------------------

AB-94-8 <bull Revised Codes for Part B Ground Ambulance Services.

e

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Program Memorandum

Medicaid State Agencies (HCFA-Pub. 17)

(Superintendent of Documents No. HE 22.8/6-5)

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94-8 <bull Title XIX, Social Security Act, Vaccines for

e Children Program.

94-9 <bull Title XIX, Social Security Act, Personal Care

e Services Provided in a Home or Other Location.

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Regional Office Manual

Standards and Certification (HCFA-Pub. 23-4)

(Superintendent of Documents No. HE 22.28/5:90-1)

------------------------------------------------------------------------

55 <bull Developing the Budget Approval.

e

Submittal of Budget Approval.

Distribution of Approved Funds.

Disbursement of Authorized Funds.

[[Page 17543]]

The Budget Call.

Monitoring State Agency Fiscal Budgets.

56 <bull Approval Procedures for Hospitals in the 50-99 Bed

e Category.

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Peer Review Organization Manual

(HCFA-Pub. 19)

(Superintendent of Documents No. HE 22.8/15)

------------------------------------------------------------------------

40 <bull Introduction.

e

MOA with State Agencies Responsible for Licensing/

Certification of Providers/Practitioners.

Model Memorandum of Agreement.

41 <bull Complaints to be Reviewed.

e

Disposition of Complaints.

Disclosing Information.

Monitoring Hospital-Issued Notices of Noncoverage.

Beneficiary Liability.

Model Hospital-Issued Notice of Noncoverage

Continued Stay--Swing Bed Only.

42 <bull DRG Validation Review.

e

43 <bull Training.

e

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Hospital Manual

(HCFA-Pub. 10)

(Superintendent of Documents No. HE 22.8/2)

------------------------------------------------------------------------

673 <bull Billing for Mammography Screening.

e

Mammography Quality Standards Act.

674 <bull Billing for Mammography Screening.

e

------------------------------------------------------------------------

Skilled Nursing Facility

(HCFA-Pub. 12)

(Superintendent of Documents No. HE 22.8/3)

------------------------------------------------------------------------

332 <bull Billing for Mammography Screening.

e

Mammography Quality Standards Act.

333 <bull Billing for Mammography Screening.

e

------------------------------------------------------------------------

State Medicaid Manual

Part 3--Eligibility (HCFA-Pub. 45-3)

(Superintendent of Documents No. HE 22.8/10)

------------------------------------------------------------------------

64 <bull Transfers of Assets for Less Than Fair Market

e Value.

Treatment of Trusts.

------------------------------------------------------------------------

State Medicaid Manual

Part 6--Payment for Services (HCFA-Pub. 45-6)

(Superintendent of Documents No. HE 22.8/10)

------------------------------------------------------------------------

26 <bull Listing of Multiple Source Drugs.

e

------------------------------------------------------------------------

State Medicaid Manual

Part 7--Quality Control (HCFA-Pub. 45-7)

(Superintendent of Documents No. HE 22.8/10)

------------------------------------------------------------------------

52 <bull Computations of Financial Eligibility.

e

Verification Guide--Coverage Code 02 for OASDI

Recipients.

Verification Guide--Coverage Code 01 or 03.

Verification Guide--Coverage Code 18 for QDWI

Individuals.

Verification Guide--Coverage Code 25 for

Individuals Whose Eligibility for Medicaid Has

Otherwise Ceased.

Verification Guide--Coverage Code 26 for

Individuals Whose Eligibility for Medicaid Has

Otherwise Ceased.

Verification Guide--Coverage Code 29 for

Individuals Receiving Home and Community-Based

Services and Other Waiver Services.

Verification Guide--Coverage Code 31.

Verification Guide--Coverage Code 40 for AFDC

Families.

------------------------------------------------------------------------

Coverage Issues Manual

(HCFA-Pub. 6)

(Superintendent of Documents No. HE 22.8/14)

------------------------------------------------------------------------

72 <bull Blood Transfusions.

e

[[Page 17544]]

73 <bull Hydrophilic Contact Lens for Corneal Bandage.

e

------------------------------------------------------------------------

Home Health Agency Manual

(HCFA-Pub. 11)

(Superintendent of Documents No. HE 22.8/5)

------------------------------------------------------------------------

273 <bull Home Health Certification and Plan of Care.

e

------------------------------------------------------------------------

State Operations Manual

Provider Certification (HCFA-Pub. 7)

(Superintendent of Documents No. HE 22.8/12)

------------------------------------------------------------------------

265 <bull Hospice Regulations and Non-Medicare Patients.

e

Operation of a Hospice Across State Lines.

Compliance with Advance Directives.

Hospice--Citations and Description.

Hospice Multiple Locations.

Election of Hospice Benefit by Resident of a

Skilled Nursing Facility, Nursing Facility,

Intermediate Care Facility for the Mentally

Retarded, or Non-Certified Facility.

Hospice Inpatient Services Furnished Directly or

Furnished Under Arrangements.

Hospice Home Visit Procedures.

Model Consent for Hospice Home Visit Form.

Hospice Survey and Deficiencies Report.

Interpretive Guidelines--Hospices.

------------------------------------------------------------------------

Rural Health Clinic and Federally

Qualified Health Centers Manual (HCFA-Pub. 27)

(Superintendent of Documents No. HE 22.8/19:985)

------------------------------------------------------------------------

16 <bull Billing for Mammography Screening by Rural Health

e Clinic and Federally Qualified Health Centers.

Mammography Qualified Standards Act.

17 <bull Billing for Mammography Screening by Rural Health

e Clinics and Federally Qualified Health Centers.

------------------------------------------------------------------------

Medicare/Medicaid

Sanction--Reinstatement Report

------------------------------------------------------------------------

94-13 <bull Report of Physician/Practitioners, Providers and/or

e Other Health Care Suppliers Excluded/Reinstated.

94-14 <bull Report of Physician/Practitioners, Providers and/or

e Other Health Care Suppliers Excluded/Reinstated.

------------------------------------------------------------------------

Addendum IV--Medicare Coverage Issues Manual

(For the reader's convenience, new material and changes to previously

published material are in italics. If any part of a sentence in the

manual instruction has changed, the entire line is shown in italics.

The transmittal includes material unrelated to revised sections. We are

not reprinting the unrelated material.)

Transmittal No. 72; section 45-27 Blood Transfusions NEW

INPLEMENTING INSTRUCTIONS--EFFECTIVE DATE: For services performed on or

after 12-08-94.

Section 45-27, Blood Transfusions.--This section has been added to

clarify the coverage and payment policies for blood transfusions.

45-27 BLOOD TRANSFUSIONS

Blood transfusions are used to restore blood volume after

hemorrhage, to improve the oxygen carrying capacity of blood in severe

anemia, and to combat shock in acute hemolytic anemia.

A. Definitions.--

1. Homologous Blood Transfusion.--Homologous blood transfusion is

the infusion of blood or blood components that have been collected from

the general public.

2. Autologous Blood Transfusion.--An autologous blood transfusion

is the precollection and subsequent infusion of a patient's own blood.

3. Donor Directed Blood Transfusion.--A donor directed blood

transfusion is the infusion of blood or blood components that have been

precollected from a specific individual(s) other than the patient and

subsequently infused into the specific patient for whom the blood is

designated. For example, patient B's brother predeposits his blood for

use by patient B during upcoming surgery.

4. Perioperative Blood Salvage.--Perioperative blood salvage is the

collection and reinfusion of blood lost during and immediately after

surgery.

B. Policy Governing Transfusions.--For Medicare coverage purposes,

it is important to distinguish between a transfusion itself and

preoperative blood services; e.g., collection, processing, storage.

Medically necessary transfusion of blood, regardless of the type, may

generally be a covered service under both Part A and Part B of

Medicare. Coverage does not make a distinction between the transfusion

of homologous, autologous, or donor-directed blood. With respect to the

coverage of the services associated with the preoperative collection,

processing, and storage of autologous and donor-directed blood, the

following policies apply.

1. Hospital Part A and B Coverage and Payment.--Under

Sec. 1862(a)(14) of the Act, nonphysician services furnished to

hospital patients are covered and paid for as hospital services. The

inclusion of services [[Page 17545]] provided to hospital patients by

an outside supplier as part of hospital services is referred to as

``bundling.'' In a situation where a hospital obtains either autologous

or donor-directed blood from an independent supplier, the supplier

collects, processes, and stores the blood and, typically, delivers it

to the hospital. The hospital is responsible for paying the supplier.

Part A payment, as specified in Sec. 1814(b) of the Act, and Part B

payment, as specified in Sec. 1833(a) of the Act, relate to reasonable

cost as defined in Sec. 1861(v) of the Act. Under this system, when a

hospital obtains autologous or donor-directed blood from an independent

blood bank, Medicare recognizes only a processing fee charged to the

hospital by the independent blood bank because the blood has been

replaced, albeit in advance. The processing fee is recorded by the

hospital in the blood storing, processing, and transfusion cost center.

This cost center also includes any costs the hospital itself incurs to

process and administer the blood after it has been procured. This

includes the cost of such activities as storing, type crossmatching,

and transfusing the blood, as well as the cost of spoiled or defective

blood. The hospital may generate a charge for these costs (except for

spoiled or defective blood) and, under cost reimbursement, Medicare

picks up its share of the costs through cost apportionment. As provided

in Sec. 1886 of the Act, under the prospective payment system (PPS),

the diagnosis related group (DRG) payment to the hospital includes all

covered blood and blood processing expenses, whether or not the blood

is eventually used.

In a situation where the hospital operates its own blood collection

activities, rather than using an independent blood supplier, the costs

incurred to collect autologous or donor-directed blood are recorded in

the whole blood and packed red blood cells cost center. Because the

blood has been replaced, Medicare does not recognize a charge for the

blood itself. Therefore, under cost reimbursement, these costs are

shared by all patients through cost apportionment. The costs incurred

by the hospital to store, process, and transfuse the blood, as well as

the cost of spoiled or defective blood, are recorded in the blood

storing, processing, and transfusion cost center. The hospital may

generate a charge for these costs (except for the cost of spoiled or

defective blood) and, under cost reimbursement, Medicare picks up its

share of these costs through cost apportionment. Under PPS, the DRG

payment is intended to pay for all covered blood and blood services,

whether or not the blood is eventually used.

Under its provider agreement, a hospital is required to furnish or

arrange for all covered services furnished to hospital patients.

Medicare payment is made to the hospital, under PPS or cost

reimbursement, for covered inpatient and outpatient services, and it is

intended to reflect payment for all costs of furnishing those services.

2. Nonhospital Part B Coverage.--Under Part B, to be eligible for

separate coverage, a service must fit the definition of one of the

services authorized by Sec. 1832 of the Act. These services are defined

in 42 CFR 410.10 and do not include a separate category for a

supplier's services associated with blood donation services, either

autologous or donor-directed. That is, the collection, processing, and

storage of blood for later transfusion into the beneficiary is not

recognized as a separate service under Part B. Therefore, there is no

avenue through which a blood supplier can receive direct payment under

Part B for blood donation services.

C. Perioperative Blood Salvage.--When the perioperative blood

salvage process is used in surgery on a hospital patient, payment made

to the hospital (under PPS or through cost reimbursement) for the

procedure in which that process is used is intended to encompass

payment for all costs relating to that process.

Transmittal No. 73; Section 45-7, Hydrophilic Contact Lens for

Corneal Bandage. CLARIFICATION--EFFECTIVE DATE: Not Applicable.

Section 45-7, Hydrophilic Contact Lens for Corneal Bandage.--This

section has been revised to explain how payment is provided for

hydrophilic contact lenses when they are furnished incident to a

physician's services. Payment for the lenses is bundled into the

payment for the physician service to which it is incident. If the

lenses are covered as other than incident to a physician's service,

they are not paid under the physicians' fee schedule and would be

covered prosthetic devices, which follow other payment provisions of

the Act.

45-7 HYDROPHILIC CONTACT LENS FOR CORNEAL BANDAGE

Some hydrophilic contact lenses are used as moist corneal bandages

for the treatment of acute or chronic corneal pathology, such as

bullous keratopathy, dry eyes, corneal ulcers and erosion, keratitis,

corneal edema, descemetocele, corneal ectasis, Mooren's ulcer, anterior

corneal dystrophy, neurotrophic keratoconjunctivitis, and for other

therapeutic reasons.

Payment may be made under Sec. 1861(s)(2) of the Act for a

hydrophilic contact lens approved by the Food and Drug Administration

(FDA) and used as a supply incident to a physician's service. Payment

for the lens is included in the payment for the physician's service to

which the lens is incident. Contractors are authorized to accept an FDA

letter of approval or other FDA published material as evidence of FDA

approval. (See Sec. 65-1 for coverage of a hydrophilic contact lens as

a prosthetic device.) See Intermediary Manual, Sec. 3112.4 and Carriers

Manual, Secs. 2050.1 and 15010.

Addendum V.--Regulation Documents Published in the Federal Register

--------------------------------------------------------------------------------------------------------------------------------------------------------

End of

Publication date FR page numbers CFR part File code* Regulation title comment Effective

period date

--------------------------------------------------------------------------------------------------------------------------------------------------------

10/03/94............ 50235-50240 ................ MB-084-NC Medicaid Program; Charges for Vaccine ........... 10/01/94

Administration Under the Vaccines for

Children (VFC) Program.

10/03/94............ 50246-50253 ................ ORD-068-N Medicare and Medicaid Programs; Small ........... 10/03/94

Business Innovation Research Grants for

Fiscal Year 1995.

10/07/94............ 51125-51130 403 OBS-001-FC Medicare Program; Information, Counseling, 12/06/94 10/07/94

and Assistance Grants Program.

[[Page 17546]]

10/13/94............ 51989 ................ MB-084-CN Medicaid Program; Charges for Vaccine 12/12/94 10/01/94

Administration Under the Vaccines for

Children (VFC) Program Correction.

10/14/94............ 52129-52132 418 BPD-820-N Hospice Services Under Medicare Program; 11/14/94 10/14/94

Intent To Form Negotiated Rulemaking

Committee.

10/19/94............ 52862 488 489 BPD-393-IFC Medicare Program; Participation in CHAMPUS 08/22/94 07/22/94

and CHAMPVA, Hospital Admissions for

Veterans, Discharge Rights Notice, and

Hospital Responsibility for Emergency

Care OFR Correction.

10/20/94............ 52968-52971 ................ HSQ-220-N CLIA Program; Approval of the American ........... 10/20/94

Society for Histocompatibility and

Immunogenetics for the Specialty of

Histocompatibility.

10/20/94............ 52971-52972 ................ OPL-002-N Medicare Program; Request for Nominations ........... 10/20/94

for Members for the Practicing Physicians

Advisory Council.

10/21/94............ 53187-53193 ................ BPO-124-PN Medicare Program; Data, Standards, and 12/20/94 ...........

Methodology Used to Establish Fiscal Year

1995 Budgets for Fiscal Intermediaries

and Carriers.

11/10/94............ 56116-56252 401 431 435 HSQ-156-F Medicare and Medicaid Programs, Survey, ........... 07/01/95

440 441 442 Certification and Enforcement of Skilled

447 483 488 Nursing Facilities and Nursing Facilities.

489 498

11/14/94............ 56501-56510 ................ BPO-127-N Medicare and Medicaid Programs; Quarterly ........... 11/14/94

Listing of Program Issuances and Covered

Decisions-Second Quarter 1994.

11/16/94............ 59241-61629 ................ BPO-128-N Medicare and Medicaid Programs; Delay in ........... 11/16/94

Implementation of the Medicare-Medicaid

Coverage Data Bank Requirements.

11/17/94............ 59624 ................ MB-060-P Medicaid Program; Inpatient Psychiatric 01/17/94 ...........

Services for Individuals Under Age 21.

11/21/94............ 59933-59943 417 OMC-008-F Medicare Program; Appeal Rights and ........... 12/21/94

Procedures for Beneficiaries Enrolled in

Prepaid Health Care Plans.

11/22/94............ 60109-60156 205 MB-092-P Aid to Families With Dependent Children; 01/23/95 ...........

National Voter Registration Act of 1993;

Implementation.

11/23/94............ 60365 ................ OPL-003-N Medicare Program; Meeting of the ........... 11/23/94

Practicing Physicians Advisory Council.

12/01/94............ 61629-61628 ................ OACT-046-N Medicare Program; Part A Premium for 1995 ........... 01/01/95

for the Uninsured Aged and for Certain

Disabled Individuals Who Have Exhausted

Other Entitlement.

12/01/94............ 61629-61633 ................ OACT-047-N Medicare Program; Monthly Actuarial Rates ........... 01/01/95

and Monthly Supplementary Medical

Insurance Premium Rates Beginning January

1, 1995.

12/01/94............ 61628-61633 ................ OACT-048-N Medicare Program; Inpatient Hospital ........... 01/01/95

Deductible and Hospital and Extended Care

Services Coinsurance Amounts for 1995.

[[Page 17547]]

12/06/94............ 62606-62609 493 HSQ-217-FC Medicare, Medicaid and CLIA Programs; 02/06/95 12/06/94

Extension of Certain Effective Dates for

Clinical Laboratory Requirements and

Personnel Requirements for Cytologists.

12/08/94............ 63410-63635 410 414 BPD-789-FC Medicare Program; Refinements to 02/06/95 01/01/95

Geographic Adjustment Factor Values,

Revisions to Payment Policies,

Adjustments to the Relative Value Units

(RVUs) Under The Physician Fee Schedule

for Calender Year 1995, and the 5-Year

Refinement of RVUs.

12/08/94............ 63638-63646 ................ BPD-807-FN Physician Fee Schedule Update for Calendar ........... 01/01/95

Year 1995 and Physician Volume

Performance Standard Rates of Increase

for Federal Fiscal Year 1995.

12/13/94............ 64141-64153 405 482 BPD-421-F Medicare and Medicaid Programs; Revisions ........... 01/12/95

to Conditions of Participation for

Hospitals.

12/13/94............ 64153-64156 412 413 BPD-802-CN Medicare Program; Changes to the Hospital ........... 10/01/94

Inpatient Prospective Systems and Fiscal

Year 1995 Rates; Correction.

12/20/94............ 64482-65498 409 413 418 BPD-469-F Medicare Program; Medicare Coverage of ........... 02/21/95

484 Home Health Services, Medicare Conditions

of Participation, and Home Health Aide

Supervision.

12/23/94............ 66314-66316 ................ HSQ-221-N Medicare, Medicaid, and CLIA Programs; ........... 12/29/94

Clinical Laboratory Improvement

Amendments of 1988 Continuance of

Exemption of Laboratories Licensed by the

State of Washington.

12/29/94............ 67264-67265 ................ BPD-822-N Medicare Program; Hospice Wage Index...... ........... 12/29/94

12/29/94............ 67265 ................ BPD-823-N Medicare Program; Hospice Wage Index...... ........... 12/29/94

--------------------------------------------------------------------------------------------------------------------------------------------------------

*GN--General Notice; PN--Proposed Notice; FN--Final Notice; P--Notice of Proposed Rulemaking (NPRM); F--Final Rule; FC--Final Rule with Comment Period;

CN--Correction Notice; SN--Suspension Notice; WN--Withdrawal Notice; NR--Notice of HCFA Ruling.

[FR Doc. 95-8398 Filed 4-5-95; 8:45 am]

BILLING CODE 4120-01-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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