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Page, Woltberg & Wirth, LLC <br />Page 2 of 4 <br />beneficiary is loaded onto the ambulance, NOT by the location of your ambulance service's station or the jurisdiction of the <br />Medicue carrier. <br />Once you determine your GPCI, your base rate under the new fee schedule is calculated by taking 70% of the appropria[e <br />unadjus[ed base ra[e (from one the 7 levels of service above), and multiplying that by the GPCI for your area. Then, add in <br />the remaining 30% of the unadjusted base rate to determine the base rate for your service. <br />Remember, as discussed below, between April I, 2002 and December 31, 2005, your actual payment amount will be <br />determined by "blending" your fee schedule paymen[ wi[h your existing paymen[ amount. The fee schedule payment amount <br />will be phased in in percentages over Ihis time period accotding to the phase-in schedule below. As of Ianuary 1, 2006, it's <br />100% fee schedule, ready or not! <br />An important note: if your actual charge, that is the amoun[ you actually bill Medicare for the service, is LESS than the fee <br />schedule payment, Medicare will pay the lesser of your actual chazge or the fee schedule amount. Providers should review <br />their charge sdvc[ures to ensure they aze billing at appropriate levels to ensure they receive the revenue to which they are <br />entitled. <br />PHASE IN PERIOD EXTENDED TO 5 YEARS: There is now a FIVE YEAR phase-in period instead of a four-year <br />phase in period as originally proposed. During the phase-in period, your paymen[s will be determined by blending a portion <br />of your existing payment rate with a portion of the fee schedule payment rate as calculated above. The phase-in schedule is <br />as follows: I <br />YEAR EXISTING PAYMENT FEE SCHEDUI.E PAYMENT % <br />2002--80%--20% (Note: this blend is in effect from April 1, 2002 - December 31, 2002) <br />2003--60%-40°h <br />2004--40°k--60% <br />2005--20%--80% <br />2006--100°lo fee schedule amount <br />MANDATORY ASSIGNMENT: Assignment is mandatory under the new fee schedule, but will NOT be phased in. That <br />means that EFFECTIVE APRIL 1, 2002 you must accept the Medicare amount as paymen[ in full and may only bill the <br />patient for unmet copayment and deductible amounts, NOT your full chazges. Mandatory assignment will NOT apply [o <br />non-covered services. So, for example, you would not be precluded from billing a Medicaze beneFiciary for non-covered <br />mileage if you hansport them to a facility that is not the closest appropriate faciliTy under Medicare guidelines. You can also <br />bill beneficiaries directly for your full chazges for other non-covered services like wheelchair vans or ambulance transports ro <br />docror's offices. In some instances, an advance bene£ciary notice (ABN) may be desirable, bu[ the ABN rules are not <br />changed at all by the fee schedule final rule. <br />MEDICAL NECESSITY: for payment [o be made, the pa[ienPs condition must meet medical necessity requirements for <br />ambulance transport a[ the level of service billed. For non-emergency hansports, the patient must be EITHER (1) bed <br />confined (under the current definition); OR (2) have a medical condition, "regazdless of bed confinement," such that <br />"transportation by ambulance is medically required." Therefore, bed confinemen[ is not the SOLE determinan[ of inedical <br />necessity for non-emergency transports. <br />MANDATORY ALS PROVIDERS: In some azeas, local law may require that the ambulance service provide all services <br />at the ALS leveL Medicare has recognized these local ordinances as binding and in the pas[ has paid such ambulance <br />services at the ALS rate even when the patient required only BLS. Once the fee schedule is fully implemented, payment at <br />the ALS rate can be made only when the 6eneficiary's condition requires an ALS intervention (or an ALS assessment, as <br />discussed below). However, Medicaze will phase in this policy by blending the ALS-level paymen[s with the new fee <br />schedule BLS rates underthe blending percentages discussed above. <br />PHYSiCIAN CERTIFICATION STATEMENTS: Medicare has changed the rules for physician certification statements <br />(PCS). Effective April 1, ambulance services must have a PCS form signed by the attending physician BEFORE rendering a <br />http://www.pwwemslaw.corrJPWWFeeSchedAnalysis 2/28/2002 <br />