(a)Applicability of this rule is as follows: (1)This section applies to facility services provided on or after September 1, 2008 by an ambulatory surgical center (ASC), other than professional medical services. (2)This section does not apply to: (A)professional medical services billed by a health care provider not employed by the ASC, except for a surgical implant provider as described in this section; or (B)medical services provided through a workers' compensation health care network certified pursuant to Insurance Code Chapter 1305, except as provided in Insurance Code Chapter 1305. [(2)This section applies to facility services provided by an ASC on or after September 1, 2004. The provisions of subsection (e)(2), (3), and (4), and subsection (f) of this section apply to facility services provided by an ASC on or after April 1, 2005. This section shall not apply to facility services provided by an ASC on or after September 1, 2008.] [(3)Specific provisions contained in the Texas Workers' Compensation Act (Act) or Texas Department of Insurance, Division of Workers' Compensation (Division) rules, including this rule, shall take precedence over any conflicting provision adopted or utilized by the Centers for Medicare and Medicaid Services (CMS) in administering the Medicare program. Exceptions to Medicare payment policies for medical necessity may be provided by Division rule. Independent Review Organization (IRO) decisions regarding medical necessity are made on a case-by-case basis. The Division will monitor IRO decisions to determine whether Division rulemaking action would be appropriate.] [(4)Except as provided in subsection (b) of this section, whenever a component of the Medicare program is revised and effective, use of the revised component shall be required for compliance with Division rules, decisions and orders for services rendered on or after the effective date of the revised component.] (b)Definitions for words and terms, when used in this section, shall have the following meanings, unless clearly indicated otherwise. (1)"Ambulatory Surgical Center" means a health care facility appropriately licensed by the Texas Department of State Health Services. (2)"ASC device portion" means the portion of the ASC payment rate that represents the cost of the implantable device, and is calculated by applying the Centers for Medicare and Medicaid Services (CMS) Outpatient Prospective Payment System (OPPS) device offset percentage to the OPPS payment rate. (3)"ASC service portion" means the Medicare ASC payment rate less the device portion. (4)"Device intensive procedure" means an ASC covered surgical procedure that has been designated by CMS as device intensive in TABLE 56-ASC COVERED SURGICAL PROCEDURES DESIGNATED AS DEVICE INTENSIVE FOR CY 2008 or its successor. (5)"Implantable" means an object or device that is surgically: (A)implanted, (B)embedded, (C)inserted, (D)or otherwise applied, and (E)related equipment necessary to operate, program, and recharge the implantable. (6)"Medicare payment policy" means reimbursement methodologies, models, and values or weights including its coding, billing, and reporting payment policies as set forth in the Centers for Medicare and Medicaid Services (CMS) payment policies specific to Medicare. (7)"Surgical implant provider" means a person that arranges for the provision of implantable devices to a health care facility and that then seeks reimbursement for the implantable devices provided directly from an insurance carrier. (c)A surgical implant provider is subject to Chapter 133 of this title and is considered a health care provider for purposes of this section and the sections in Chapter 133. (d)[(b)] For coding, billing, and reporting, of facility services covered in this rule, Texas workers' compensation system participants shall apply the Medicare payment [ program coding, billing, and reporting] policies in effect on the date a service is provided with any additions or exceptions specified in this section, including the following paragraphs. [For reimbursement of facility services covered in this rule, Texas workers' compensation system participants shall apply the reimbursement provisions of this section and the Medicare program reimbursement methodologies, models, and values or weights that were in effect on the earlier of the date a service is provided or December 31, 2007.] (1)Specific provisions contained in the Labor Code or the Texas Department of Insurance, Division of Workers' Compensation (Division) rules, including this chapter, shall take precedence over any conflicting provision adopted or utilized by the CMS in administering the Medicare program. (2)Independent Review Organization decisions regarding medical necessity made in accordance with Labor Code §413.031 and §133.308 of this title (relating to MDR by Independent Review Organizations), which are made on a case-by-case basis, take precedence in that case only, over any Division rules and Medicare payment policies. (3)Whenever a component of the Medicare program is revised and effective, use of the revised component shall be required for compliance with Division rules, decisions, and orders for services rendered on and after the effective date, or after the effective date or the adoption date of the revised Medicare component, whichever is later. [(c)To determine the maximum allowable reimbursement (MAR) for a particular service, system participants shall apply the Medicare payment policies for these services and the Medicare ASC reimbursement amount multiplied by 213.3%.] [(d)In all cases, reimbursement shall be the lesser of the:] [(1)MAR amount regardless of billed amount; or] [(2)facility's and payer's workers' compensation negotiated and/or contracted amount that applies to the billed service(s).] (e)Regardless of billed amount, reimbursement shall be: (1)the amount for the service that is included in a specific fee schedule set in a contract that complies with the requirements of Labor Code §413.011; or (2)if no contracted fee schedule exists that complies with Labor Code §413.011, the maximum allowable reimbursement (MAR) amount under subsection (f) of this section, including any reimbursement for implantables. (3)If no contracted fee schedule exists that complies with Labor Code §413.011, and an amount cannot be determined by application of the formula to calculate the MAR as outlined in subsection (f) of this section, reimbursement shall be determined in accordance with §134.1 of this title (relating to Medical Reimbursement). [(e)Exceptions and modifications to the Medicare payment policies are as follows:] [(1)Whenever Medicare requires a payment policy change to be retroactive, that change shall only apply to services provided on or after the date of that change.] [(2)In addition to the ASC List of Medicare Approved Procedures, the following procedures will be reimbursed when provided in an ASC at the reimbursement rate provided by this section as if they were on that list (using the same Medicare group assignment values):] [(A)11750 - Group 1] [(B)11760 - Group 1] [(C)20552 - Group 1] [(D)20526 - Group 1] [(E)27599 - Group 1] [(F)29873 - Group 3] [(G)29999 - Group 4] [(H)63030 - Group 6] [(I)64405 - Group 1] [(J)64999 - Group 1] [(3)If a service is not included on the ASC List of Medicare Approved Procedures or listed in subsection (e)(2) of this section, the insurance carrier (carrier), health care provider, and ASC may agree to an ASC setting as follows:] [(A)The agreement may occur before, during, or after preauthorization.] [(i)A preauthorization request may be submitted for an ASC setting only if an agreement has already been reached and a copy of the signed agreement is filed as a part of the preauthorization request.] [(ii)A preauthorization request or approval for a non-ASC facility setting may be revised to an ASC setting by written agreement of the carrier and the health care provider during or after preauthorization.] [(B)The agreement between the carrier and the ASC must be in writing, in clearly stated terms, and include:] [(i)the reimbursement amount;] [(ii)any other provisions of the agreement; and] [(iii)names, titles and signatures of both parties with dates.] [(C)Copies of the agreement are to be kept by both parties.] [(D)Upon request of the Division, the agreement information shall be submitted in the form and manner prescribed by the Division.] [(4)The carrier shall reimburse all surgically implanted, inserted, or otherwise applied devices at the lesser of the manufacturer's invoice amount or the net amount (exclusive of rebates and discounts) actually paid for such device to the manufacturer by the ASC. Provider billing shall include a certification that the amount sought represents its actual cost (net amount, exclusive of rebates and discounts). That certification shall include the following sentence: "I hereby certify under penalty of law that the following is the true and correct actual cost to the best of my knowledge."] (f)The reimbursement calculation used for establishing the MAR shall be the Medicare ASC reimbursement amount determined by applying the most recently adopted and effective Medicare Payment System Policies for Services Furnished in Ambulatory Surgical Centers and Outpatient Prospective Payment System reimbursement formula and factors as published annually in the Federal Register. Reimbursement shall be based on the fully implemented payment amount as in ADDENDUM AA, ASC COVERED SURGICAL PROCEDURES FOR CY 2008, published in the November 27, 2007 publication of the Federal Register, or its successor. The following minimal modifications apply: (1)Reimbursement for non-device intensive procedures shall be: (A)The Medicare ASC facility reimbursement amount multiplied by 235 percent; or (B)if an ASC facility or surgical implant provider requests separate reimbursement for an implantable, reimbursement for the non-device intensive procedure shall be the sum of: (i)the lesser of the manufacturer's invoice amount or the net amount (exclusive of rebates and discounts) plus 10 percent or $1,000 per billed item add-on, whichever is less, but not to exceed $2,000 in add-on's per admission; and (ii)the Medicare ASC facility reimbursement amount multiplied by 153 percent. (2)Reimbursement for device intensive procedures shall be: (A)the sum of: (i)the ASC device portion; and (ii)the ASC service portion multiplied by 235 percent; or (B)If an ASC facility or surgical implant provider requests separate reimbursement for an implantable, reimbursement for the device intensive procedure shall be the sum of: (i)the lesser of the manufacturer's invoice amount or the net amount (exclusive of rebates and discounts) plus 10 percent or $1,000 per billed item add-on, whichever is less, but not to exceed $2,000 in add-on's per admission; and (ii)the ASC service portion multiplied by 235 percent. [(f)A carrier may use the audit process under §133.230 of this title (relating to Insurance Carrier Audit of a Medical Bill) to seek verification that the amount certified under subsection (e)(4) of this section properly reflects the actual cost standard contained in that subsection. Such verification may also take place in the Medical Dispute Resolution process under §133.307 of this title (relating to MDR of Fee Dispute), if that process is properly requested.] (g)A facility, or surgical implant provider with written agreement of the facility, may request separate reimbursement for an implantable. (1)The facility or surgical implant provider requesting reimbursement for the implantable shall: (A)bill for the implantable on the Medicare-specific billing form for ASCs; (B)attach a copy of the manufacturer's invoice, or vendor's invoice to the ASC facility or surgical implant provider; and (C)include with the billing a certification that the amount billed represents the actual cost (net amount, exclusive of rebates and discounts) for the implantable. The certification shall include the following sentence: "I hereby certify under penalty of law that the following is the true and correct actual cost to the best of my knowledge," and shall be signed by an authorized representative of the facility or surgical implant provider who has personal knowledge of the cost of the implantable and any rebates or discounts to which the facility or surgical implant provider may be entitled. (2)An insurance carrier may use the audit process under §133.230 of this title (relating to Insurance Carrier Audit of a Medical Bill) to seek verification that the amount certified under paragraph (1) of this subsection properly reflects the requirements of this subsection. Such verification may also take place in the Medical Dispute Resolution process under §133.307 of this title (relating to MDR of Fee Dispute), if that process is properly requested, notwithstanding §133.307(d)(2)(B) of this title. (3)Nothing in this rule precludes an ASC or insurance carrier from utilizing a surgical implant provider to arrange for the provision of implantable devices. Implantables provided by a surgical implant provider shall be reimbursed according to this subsection. (h)For medical services provided in an ASC, but not addressed in the Medicare payment policies as outlined in subsection (f) of this section, and for which Medicare reimburses using other Medicare fee schedules, reimbursement shall be made using the applicable Division Fee Guideline in effect for that service on the date the service was provided. (i)If Medicare prohibits a service from being performed in an ASC setting, the insurance carrier, health care provider, and ASC may agree, on a voluntary basis, to an ASC setting as follows: (1)The agreement may occur before, or during, preauthorization. (2)A preauthorization request may be submitted for an ASC facility setting only if an agreement has already been reached and a copy of the signed agreement is filed as a part of the preauthorization request. (3)The agreement between the insurance carrier and the ASC must be in writing, in clearly stated terms, and include: (A)the reimbursement amount; (B)any other provisions of the agreement; and (C)names, titles and signatures of both parties with dates. (4)Copies of the agreement are to be kept by both parties. This agreement does not constitute a voluntary network established in accordance with Labor Code §413.011(d-1). (5)Upon request of the Division, the agreement information shall be submitted in the form and manner prescribed by the Division. (j)[(g)] Where any terms or parts of this section or its application to any person or circumstance are determined by a court of competent jurisdiction to be invalid, the invalidity does not affect other provisions or applications of this section that can be given effect without the invalidated provision or application.
This agency hereby certifies that the proposal has
been reviewed by legal counsel
and found to be within the agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State on May 30, 2008
TRD-200802809 Norma Garcia
General Counsel
Texas Department of Insurance, Division of Workers' Compensation
Earliest possible date of adoption: July 13, 2008
For further information, please call: (512) 804-4715
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