decisionhealth Newsletters, Answer Books - 2005 Issue 11 (November)
Physician_Fee_Schedule_Rules / pfs1
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Article Overview
This article reviews Medicare payment policy revisions tied to the Physician Fee Schedule for calendar year 2006. It covers CMS rulemaking on ESRD-related payment provisions, covered outpatient drugs and biologicals under Part B, ASP reporting and related manufacturer submissions, inhalation drug dispensing fees, and temporary IVIG-related payment adjustments. The content is aimed at readers who need to understand the scope of 2006 Medicare payment updates, the agencies and statutory provisions involved, and the broader categories of guidance addressed in the final rule.
Why This Topic Matters
It helps providers, manufacturers, and billing staff identify which Medicare payment and reporting policies changed for 2006 and which operational areas were affected, especially for Part B drugs, dialysis facilities, and inhalation drug suppliers.
Article Sections
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Pediatric ESRD Facility Exceptions
Discussion of ESRD facility exception policy changes for pediatric facilities and CMS responses to public comments. Includes regulatory references and related procedural updates.
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H. Payment for Covered Outpatient Drugs and Biologicals
Overview of Part B drug payment policy for 2006, including ASP-based payment administration, reporting requirements, and related CMS responses to comments.
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ASP Issues
Background on the ASP methodology, manufacturer reporting, and proposed refinements to calculation and reporting processes.
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a. Estimation Methodology for Lagged Price Concessions
Discussion of how lagged price concession estimates are handled within the ASP framework and CMS’s treatment of related public comments.
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b. Price Concessions: Wholesaler Chargebacks
Consideration of wholesaler chargebacks within ASP calculations and CMS’s proposed and final treatment of sales-channel methodology.
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c. Determining the Payment Amount Based on ASP Data
Explanation of how CMS derives payment amounts from manufacturer ASP submissions and how billing-code level payment calculations are structured.
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d. Reporting WAC
Clarification of when manufacturers must report wholesale acquisition cost information and how the reporting requirement applies in different circumstances.
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e. Revised Format for Submitting ASP Data
Description of proposed changes to the ASP reporting template and associated data elements for manufacturer submissions.
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f. Limitations on ASP
CMS discussion of statutory limitations affecting ASP-based payment and the threshold used for comparison with other pricing measures.
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2. Payment for Drugs Furnished During CY 2006 in Connection With the Furnishing of Renal Dialysis Services if Separately Billed by Renal Dialysis Facilities
Policy on payment methodology for separately billed ESRD drugs and related CMS reasoning, comments, and final decisions.
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3. Clotting Factor Furnishing Fee
Annual update to the clotting factor furnishing fee and the basis for the 2006 amount.
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4. Payment for Inhalation Drugs and Dispensing Fee
Extensive discussion of inhalation drug payment policy, including the dispensing fee, stakeholder comments, access concerns, and CMS’s final 2006 policy.
What You Will Learn
- How CMS structured Medicare Part B drug payment policy for calendar year 2006.
- What categories of guidance were addressed for ASP reporting and payment administration.
- How CMS treated ESRD-related drug payment issues and pediatric facility exceptions.
- How inhalation drug dispensing fee policy was evaluated for 2006.
- What temporary IVIG-related payment issues were addressed in the rulemaking.
Who Should Read This
- Physician office billing staff
- Hospital outpatient billing and reimbursement staff
- Dialysis facility administrators
- Drug and biological manufacturers
- Pharmacy and supplier compliance teams
- Healthcare reimbursement analysts
- Medical coders and coding educators
Codes Discussed
Code Ranges Discussed
Modifiers Discussed
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