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Medicare Monthly Review

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Medicare Monthly Review Part A and B
A Combined Part A and Part B Newsletter

MMR-2007 08B, August 2007

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

Claims Processing Change for Services Submitted with the Health Professional Shortage Area (HPSA) Modifiers QB or QU for Claims with Dates of Service on or After January 1, 2006 (5629)

Provider Types Affected
Physicians submitting claims to Medicare Part A/B Medicare Administrative Contractors (A/B MAC), or carriers for services rendered to Medicare beneficiaries in health professional shortage areas

Provider Action Needed

Impact to You
For dates of service on or after January 1, 2006, when a modifier is required to bill for the HPSA bonus, use the AQ modifier for physician services provided in HPSAs. Claims will be returned as unprocessable if submitted with the QB or QU modifiers, when submitted for dates of service on or after January 1, 2006.

What You Need to Know
Make certain that services eligible to receive a HPSA bonus for dates of service on or after January 1, 2006, are billed with the AQ modifier, when a modifier is required.

What You Need to Do
Make certain that your billing staffs are aware of these changes.

Background
Under certain circumstances, it is necessary to include a modifier on a claim in order to receive a HPSA bonus payment. The QB and QU modifiers are the appropriate modifiers to be submitted for claims with dates of service prior to January 1, 2006. The AQ modifier is the appropriate modifier to be used for dates of service on or after January 1, 2006. Per direction from the Centers for Medicare & Medicaid Services (CMS), some Medicare contractors allow claims submitted with the QB and QU modifiers with dates of service on or after January 1, 2006 to be submitted and processed, though no bonus payment is made as the correct modifier has not been submitted. According to Health Insurance Portability and Accountability Act (HIPAA) regulations for transactions and code sets, as found in 45 Code of Federal Regulations (CFR) 160, providers must include valid codes and modifiers, as derived from the standard transaction code sets, on their incoming claims submitted to Medicare. Therefore, allowing claims with inappropriate modifiers to be accepted into the Medicare claims processing system constitutes a violation of the HIPAA standard transaction code sets.

In order to comply with HIPPA regulations and allow claims to be forwarded successfully to supplemental payers, as of October 1, 2007, Medicare will no longer accept claims submitted with the QB or QU modifiers for invalid dates of service. Claims must be submitted with the correct modifiers for the correct dates of service in order to be processed.

Additional Information
For complete details regarding this Change Request (CR) please see the official instruction (CR5629) issued to your Medicare carrier, or A/B MAC. That instruction may be viewed by going to http://www.cms.hhs.gov/Transmittals/downloads/R1275CP.pdf External pdf file on the CMS Web site.

If you have questions, please contact your Medicare carrier, or A/B MAC, at their toll-free number which may be found at: http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip External Zip File on the CMS Web site.

Additional information on the HPSA bonus and the physician scarcity area bonus can be found at http://www.cms.hhs.gov/HPSAPSAPhysicianBonuses/01_overview.asp External link on the CMS Web site.

The Guide for Using the HPSA/PSA Web Page can be viewed by going to

http://www.cms.hhs.gov/HPSAPSAPhysicianBonuses/Downloads/instructions.pdf External pdf file on the CMS Web site.

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: MM5629
Pub. 100-4, Transmittal# R1275CP, CR# 5629
Related CR Release Date: June 29, 2007
Effective Date: January 1, 2006
Implementation Date: October 1, 2007

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