JAN 3, 2013 5:26pm ET

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CMS Explains Some Medicare Changes in Fiscal Cliff Law

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“CMS is currently revising the 2013 Medicare Ambulance Fee Schedule (MAFS) to reflect the new law’s requirements.  In order to allow sufficient time to develop, test, and implement the revised MAFS, Medicare claims administration contractors may hold MAFS claims with January 2013 dates of service for up to 10 business days (i.e., through January 15, 2013).  We expect these claims to be released into processing no later than January 16, 2013.  The claim hold should have minimal impact on supplier cash flow because, under current law, clean electronic claims are not paid sooner than 14 calendar days (29 for paper claims) after the date of receipt.  Claims with dates of service prior to January 1, 2013, are unaffected. 

“Suppliers of ambulance services affected by these provisions may continue billing as usual.

Section 605 - Extension of Medicare Inpatient Hospital Payment Adjustment for Low-Volume Hospitals - The Affordable Care Act allowed qualifying low-volume hospitals to receive add-on payments based on the number of Medicare discharges.  To qualify, the hospital must have less than 1,600 Medicare discharges and be 15 miles or greater from the nearest like hospital.  This provision extends the payment adjustment through September 30, 2013, retroactive to October 1, 2012.  Be on the alert for further information about implementation of this provision.

Section 606 - Extension of the Medicare-Dependent Hospital (MDH) Program - The MDH program provides enhanced payment to support small rural hospitals for which Medicare patients make up a significant percentage of inpatient days or discharges.  This provision extends the MDH program until October 1, 2013, and is retroactive to October 1, 2012.  Be on the alert for further information about implementation of this provision.”

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