1. October 2008 Medical Equipment Updates Presented by EDS Provider Field Consultants

2. MEDICAL EQUIPMENT UPDATES 2/ OCTOBER 2008 Agenda Date of Service Provider Code Sets Provider Licensure Rental vs. Purchase Capped Rental Repair and Replacement Mail Order Incontinence, Ostomy, and Urological Supplies Billing Guidelines Common Denials Spend-down Helpful Tools Questions Welcome and Announcements

3. MEDICAL EQUIPMENT UPDATES 3/ OCTOBER 2008 Session Objectives Following this session, providers will be able to: –Understand Provider Licensure Requirements –Understand Rental vs. Purchase –Follow Capped Rental Policy –Understand Repair and Replacement Guidelines –Understand the Changes to the Mail Order Supply of Incontinence, Ostomy, and Urological Supplies –Understand Billing Guidelines –Understand Rolling Calendar Year –Understand DME Dates of Service –Resolve Common Denials –Understand Spend-down

4. MEDICAL EQUIPMENT UPDATES 4/ OCTOBER 2008 Date of Service The date of service is the date the equipment is delivered, not ordered For the IHCP to reimburse for medical equipment, the member must be eligible on the date of service (date of delivery) Reminder

5. MEDICAL EQUIPMENT UPDATES 5/ OCTOBER 2008 Provider Code Sets The IHCP established code sets to ensure appropriate reimbursement for medical equipment codes Providers must ensure that they are enrolled as the correct provider type and specialty The durable medical equipment (DME) provider type is 25 and the following are provider specialties: –251 – Home medical equipment provider –250 – DME/Medical supply dealer Effective August 1, 2006

6. MEDICAL EQUIPMENT UPDATES 6/ OCTOBER 2008 Provider Licensure Versus Non-Licensure Effective August 1, 2006, to bill for home medical equipment (HME), providers must have a valid HME license from the Indiana Board of Pharmacy on file Providers must also be enrolled as an HME provider to receive reimbursement for HME services

7. MEDICAL EQUIPMENT UPDATES 7/ OCTOBER 2008 Rental vs. Purchase The decision to rent or purchase equipment is based on the least expensive option available for the anticipated period of need Items purchased with IHCP funds become property of the Office of Medicaid Policy and Planning (OMPP) Members may contact the local Division of Family Resources for information on returning purchased equipment which is no longer needed

8. MEDICAL EQUIPMENT UPDATES 8/ OCTOBER 2008 Capped Rental Certain procedure codes are limited to 15 months of continuous rental Continuous rental is defined as rental without interruption for a period of more than 60 days –A change in provider does not cause an interruption in the rental period A complete list of procedure codes for capped rental can be found in the Indiana Health Coverage Programs Provider Manual, Chapter 8 The provider must service the item at no cost to the IHCP

9. MEDICAL EQUIPMENT UPDATES 9/ OCTOBER 2008 Capped Rental Centers for Medicare and Medicaid Services (CMS) changed the capped rental policy for DME The new policy states that the capped rental period is 13 months –After 13 months, the member owns the DME Medicare will pay for reasonable and necessary maintenance and service of the DME item –This policy change applies to DME items in which the first month of rental is on or after January 1, 2006 At this time, Medical Policy has not been directed to make changes to the IHCP’s capped rental policy

10. MEDICAL EQUIPMENT UPDATES 10/ OCTOBER 2008 Capped Rental Claims Submitted for Capped Rental Items The allowed charge is the lower of the 1993 Medicare rental fee schedule amount or the actual submitted charge The IHCP pays claims until the number of rental payments made reaches the capped rental number of 15 months The IHCP evaluates requests for approval of capped rental items – When the equipment reaches capped rental, it is evaluated for documentation of long-term need – In long-term needed situations, a decision may be made to purchase the item

11. MEDICAL EQUIPMENT UPDATES 11/ OCTOBER 2008 Repair and Replacement Repair of purchased equipment may require prior authorization based on the Healthcare Common Procedure Coding System (HCPCS) codes The IHCP does not pay for repair of equipment still under warranty The IHCP does not authorize payment for repair necessitated by member misuse or abuse, whether intentional or unintentional The rental provider is responsible for repairs to rental equipment

12. MEDICAL EQUIPMENT UPDATES 12/ OCTOBER 2008 Repair and Replacement The IHCP does not cover payment for maintenance charges of properly functioning equipment The IHCP does not authorize replacement of medical equipment more than once every five years per member – More frequent replacement is allowed only if there is a change in the member’s medical needs that is documented in writing and significant enough to warrant a different type of equipment such request require PA A long-term care (LTC) facility’s per diem rate includes repair costs for equipment

13. MEDICAL EQUIPMENT UPDATES 13/ OCTOBER 2008 Mail Order Incontinence, Ostomy, and Urological Supplies Contracted Vendors Effective February 1, 2008, the OMPP contracted with three vendors to provide incontinence, ostomy, and urological supplies to fee-for-service members The three contracted vendors are: – Binson’s Home Health Care Center 1-888-217-9610 www.binsons.com – Healthcare Products Delivery, Inc (HPD) 1-800-291-8011 www.hpdinc.net – J & B Medical 1-866-674-5850 www.jandbmedical.com

14. MEDICAL EQUIPMENT UPDATES 14/ OCTOBER 2008 Members must obtain supplies via mail order –The contracted vendor may make other arrangements in emergency situations The contracted vendors began providing services February 1, 2008, with full implementation completed on June 1, 2008 A full listing of codes affected by this change is available in BT200823 Mail Order Incontinence, Ostomy, and Urological Supplies

15. MEDICAL EQUIPMENT UPDATES 15/ OCTOBER 2008 Mail Order Incontinence, Ostomy, and Urological Supplies The following programs and claim types are not affected by the contract: –590 Program –Medical Review Team (MRT) –First Steps –Pre-Admission Screening and Resident Review (PASRR) –Long Term Care (LTC) –Waiver –Medicare crossover claims –Third-party commercial claims Risk-based managed care (RBMC) members are excluded –Supplies for these members are billed to the appropriate managed care organization (MCO) Program Exclusions

16. MEDICAL EQUIPMENT UPDATES 16/ OCTOBER 2008 Nursing Assessment A needs assessment is part of the initial enrollment process Members receive a telephone call from a staff nurse or a questionnaire by mail The questionnaire gives the vendor additional information regarding the member’s supply needs Mail Order Incontinence, Ostomy and Urological Supplies

17. MEDICAL EQUIPMENT UPDATES 17/ OCTOBER 2008 Billing Guidelines On December 1, 2004, the IHCP began accepting Medicare crossover claims for diabetic test strip procedure codes with dates of service that span 90 days Providers may submit claims electronically using Web interChange Diabetic Test Strips

18. MEDICAL EQUIPMENT UPDATES 18/ OCTOBER 2008 Billing Guidelines Humidifiers The IHCP covers a non-heated (E0561) or a heated (E0562) humidifier for use with a non-invasive respiratory assistive device (RAD)(E0470 and E0471) or a continuous positive airway pressure (CPAP) (E0601), when ordered in writing by a physician, based on medical necessity, and subject to prior authorization Humidifiers E0561 and E0562, for use with a RAD or a CPAP, are considered for coverage only when physician documentation supports the medical necessity of the humidifier Documentation must support the member’s need for the service

19. MEDICAL EQUIPMENT UPDATES 19/ OCTOBER 2008 Billing Guidelines CPAP Medicaid requires 30 episodes of apnea to qualify for a CPAP machine –Each apnea episode must last a minimum of 10 seconds during the six-to-seven-hour polysomnogram A diagnosis of obstructive sleep apnea is required

20. MEDICAL EQUIPMENT UPDATES 20/ OCTOBER 2008 Billing Guidelines Providers must bill A4927 per box – This code is limited to five boxes per month The IHCP does not separately reimburse for gloves for IHCP members who are residents of a nursing facility or receiving end- stage renal disease dialysis services See IHCP provider bulletin BT200031 and banner page BR200139 for more billing information for sterile or non-sterile gloves Gloves

21. MEDICAL EQUIPMENT UPDATES 21/ OCTOBER 2008 Billing Guidelines The following codes have been added to the bypass table, with an effective date of 9/29/2006: – E0240, bath/shower chair – E0247, transfer bench – E0248, transfer bench – E0445, oximeter device Procedures are not covered by Medicare, and do not need to be billed to Medicare first Codes Added to Bypass Table

22. MEDICAL EQUIPMENT UPDATES 22/ OCTOBER 2008 Billing Guidelines HCPCS codes A4217 and A4218 are not covered and are non-reimbursable – Both codes are end-dated due to coverage only under the National Drug Codes (NDCs) A4214, Sterile saline and water; A4319, Sterile water irrigation solution; and A4323, Sterile saline irrigation solution should be billed by pharmacy providers using the appropriate NDC Refer to IHCP provider bulletin BT200401 Sterile Saline and Water

23. MEDICAL EQUIPMENT UPDATES 23/ OCTOBER 2008 Billing Guidelines Provider Bulletin 200832 references Medicaid coverage for: K codes for power mobility devices E codes for basic equipment Coverage criteria Prior Authorization Requirements The codes have an effective date of January 1, 2007 Power Wheelchair Codes

24. MEDICAL EQUIPMENT UPDATES 24/ OCTOBER 2008 Billing Guidelines Is not: –Based on a 12-month calendar year –Based on a fiscal year –Renewable on January 1 of each year Is: –Based on the first date that services are rendered by a particular provider –Renewable one unit at a time beginning 365 days after the date that services are rendered by a particular provider Rolling 12-Month Period

25. MEDICAL EQUIPMENT UPDATES 25/ OCTOBER 2008 Edit 6000 – Manual Pricing Required –Invoice requirements Date Billed amount per unit (for example, box, case, and so forth) Calories (enteral feeding) Procedure code Member name Member ID number Itemization of repairs –Bulk Invoices – illustrate calculations specific to the member Common Denials Billing Guidelines

26. MEDICAL EQUIPMENT UPDATES 26/ OCTOBER 2008 Edit 4021 – Procedure Code Vs Program Indicator –Procedure code is not covered for the dates of service for the program billed –Please verify and resubmit Billing Guidelines Common Denials

27. MEDICAL EQUIPMENT UPDATES 27/ OCTOBER 2008 Edit 0593 – Medicare Denied Detail –At least one detail submitted contains Medicare COB data resulting in a review of all detail COB data –Please review to ensure COB data for detail in question does not contain all zeros or is missing Edit 4033 - Invalid Procedure Code Modifier Combination –The modifier used is not compatible with the procedure code billed –Please verify and resubmit Billing Guidelines Common Denials

28. MEDICAL EQUIPMENT UPDATES 28/ OCTOBER 2008 Edit 1012 - Rendering Provider Specialty Not Eligible To Render This Procedure Code –This provider type/provider specialty may not bill this service Audit 6065 - DME Total Rental Amount Not To Exceed Fee For Purchase –This item has been rented up to the Medicaid maximum allowed charge for purchase Billing Guidelines Common Denials

29. MEDICAL EQUIPMENT UPDATES 29/ OCTOBER 2008 Billing the Member The following circumstances are the only situations in which an IHCP provider may bill a member: –The service rendered is determined to be non-covered by the IHCP –The member has exceeded the program limitations for a particular service; for example, the services were denied prior authorization (PA) –Before receiving the service, the member must understand that the service is not covered under the IHCP, and the member is responsible for the charges associated with the service Documentation must be maintained in the provider’s record that the member voluntarily chose to receive a service that was not covered by IHCP

30. MEDICAL EQUIPMENT UPDATES 30/ OCTOBER 2008 Spend-down Update Policy Effective January 1, 2006 For dates of service January 1, 2006, and after, no Form 8A is required Members are eligible for benefits on the first day of the month Spend-down credits against the billed amount on the claim State mandated co-pays credit spend-down Providers may not refuse service to a member because the spend-down may not be met

31. MEDICAL EQUIPMENT UPDATES 31/ OCTOBER 2008 EDS mails spend-down summary notices on the second business day of the month following the month when services were billed Members are not required to pay spend- down until they receive their summary notices Spend-down amounts show on an adjudicated claim under ARC code 178 and the State-mandated co-pay appears under ARC 3 – The amount in ARC 3 is the amount the member owes to the provider Providers must adhere to standard office protocol for members who are unable to pay Spend-down Update Policy Effective January 1, 2006

32. MEDICAL EQUIPMENT UPDATES 32/ OCTOBER 2008 Helpful Tools Web interChange Available at www.indianamedicaid.com www.indianamedicaid.com Claim submission directly to EDS Web access to claim and member information Secure data transmission Available 24 hours per day Free interChange Home Indiana Medicaid Check Inquiry Claim Inquiry Claim Submission Eligibility Inquiry PA Inquiry PA Submission Provider Profile Help FAQ How to Obtain an ID Contact Us Logon Logoff Change Password

33. MEDICAL EQUIPMENT UPDATES 33/ OCTOBER 2008 Helpful Tools Avenues of Resolution IHCP Web site at www.indianamedicaid.com www.indianamedicaid.com IHCP Provider Manual (Web, CD-ROM, or paper) Customer Assistance –1-800-577-1278, or –(317) 655-3240 in the Indianapolis local area Written Correspondence –P.O. Box 7263 Indianapolis, IN 46207-7263 Provider Relations Field Consultant –View a current territory map and contact information online at HCP Web site at www.indianamedicaid.com www.indianamedicaid.com

34. MEDICAL EQUIPMENT UPDATES 34/ OCTOBER 2008 Questions

35. MEDICAL EQUIPMENT UPDATES 35/ OCTOBER 2008 EDS and the EDS logo are registered trademarks of Hewlett-Packard Development Company, LP. HP is an equal opportunity employer and values the diversity of its people. © 2008 Hewlett-Packard Development Company, LP. EDS 950 N. Meridian St., Suite 1150 Indianapolis, IN 46204