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Medicare Information Resource Part A
MIR-2006-6AB, June 2006

MLN Matters. . .Information for Medicare Providers
(Issued by the Centers for Medicare & Medicaid Services)

Additional $50 Payment for New Technology Intraocular Lenses (NTIOLs) Furnished in Ambulatory Surgical Centers (ASCs)

Provider Types Affected
Approved Ambulatory Surgical Centers (ASC) that bill Medicare for the insertion of new technology intraocular lenses (NTIOLs)

Provider Action Needed

Impact to You
Effective for dates of service on and after February 27, 2006, through February 26, 2011, Medicare will pay you an additional $50 for NTIOL Category 3 (Reduced Spherical Aberration); Advanced Medical Optics (AMO) Tecnis® IOL model numbers Z9000, Z9001, and ZA9003.

What You Need to Know
Your carrier will pay you an additional $50 for the insertion of NTIOL Category 3; Advanced Medical Optics (AMO) Tecnis® IOL, model numbers Z9000, Z9001, and ZA9003 (characteristic: improved contrast sensitivity); effective for claims with dates of services on and after February 27, 2006, through February 26, 2011, when billed using HCPCS code Q1003 along with HCPCS codes 66982, 66983, 66984, 66985, or 66986.

What You Need to Do
Make sure that your billing staffs are aware of this additional NTIOL payment and the required Health Care Common Procedure Coding System (HCPCS) code.

Background
Section 1833(i)(2)(A)(iii) of the Social Security Act (the Act) requires that the Centers for Medicare & Medicaid Services (CMS) establish a process for designating particular intraocular lenses (IOLs) as “new technology,” and therefore eligible for additional payment. A final rule, published in the Federal Register on June 16, 1999, established the process for adjusting payment amounts for NTIOLS that ASCs furnish; a flat rate payment adjustment of $50; and a five-year payment adjustment period beginning when CMS recognizes the first of a new IOL subset or class.

CR4361, from which this article is taken, announces the approval of NTIOL Category 3 (as defined in Federal Register Notice, 71 FR 4586, dated January 27, 2006), which applies to Advanced Medical Optics (AMO), Tecnis® IOL model numbers Z9000, Z9001, and ZA9003 (characteristic: improved contrast sensitivity). This category and the associated $50 NTIOL Medicare payment adjustment will expire on February 26, 2011.

The payment adjustment is allowed when Medicare-approved ASCs (place of service 24) insert this IOL and submit HCPCS code Q1003 (created for this purpose) on the same claim as the surgical insertion procedure (HCPCS codes 66982, 66983, 66984, 66985, or 66986). HCPCS code Q1003 is already established and listed in the HCPCS file, and the Medicare Claims Processing Manual, Chapter 14, Sections 10.2 & 40.3, has been updated to reflect this change.

Please be aware that carriers will deny payment for Q1003 when submitted by ASCs not approved by Medicare. If denied, the carrier will use appropriate messages such as MSN# 16.2 (This service cannot be paid when provided in this location/facility) and Claims Adjustment Reason Code #58 (Payment adjusted because treatment was deemed by the payer to have been rendered in an inappropriate or invalid place of service).

Carriers will return as unprocessable claims for NTIOLs with Q1003 alone or with a code other than 66982, 66983, 66984, 66985, or 66986. When such claims are returned, claim adjustment reason code 16 (Claim/service lacks information needed for adjudication. Additional information is supplied using remittance advice codes whenever appropriate) will be used. The remittance advice remark code of M67 (Missing/Incomplete/Invalid other procedure codes) and remark code MA130 (Your claim contains incomplete and/or invalid information, and no appeal rights are afforded because the claim is unprocessable. Please submit a new claim with the complete/correct information) will be used as appropriate.

Further, payment will be denied if submitted for services rendered after the discontinued date (February 26, 2011). If denied, they will use messages such as: MSN # 21.11 (This service was not covered by Medicare at the time you received it) and Claims Adjustment Reason Code # 27 (Expenses incurred after coverage terminated).

Additional Information
You can find more information about approval of the $50 additional payment for NTIOL Category 3 by reviewing CR4361, which is available at http://www.cms.hhs.gov/Transmittals/downloads/R914CP.pdf External pdf file on the CMS Web site. The revised Medicare Claims Processing Manual, Chapter 14 (Ambulatory Surgical Centers), Sections 10.2 (10.2 - Ambulatory Surgical Center Services on ASC List) and 40.3 – (Payment for Intraocular Lens (IOL)) are attached to CR4361.

If you have any questions, please contact your carrier at their toll-free number, which may be found at

http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.pdf External pdf file  .

Disclaimer
This article was prepared as a service to the public and is not intended to grant rights or impose obligations. This article may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations and other interpretive materials for a full and accurate statement of their contents.

MLN Matters Number: MM4361
Related Change Request (CR) #:4361
Related CR Release Date: April 21, 2006
Effective Date: February 27, 2006
Related CR Transmittal #: R914CP
Implementation Date: May 22, 2006

 

   
 
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