decisionhealth Newsletters, Answer Books - 2006 Issue 3 (March)
Program_Memos / 2000 / B-00-67
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Article Overview
This article summarizes Medicare program guidance for skilled nursing facility consolidated billing, including claim-processing instructions, carrier and CWF edits, and categories of services that are included in or excluded from consolidated billing. It is relevant to providers, suppliers, coders, billers, and claims contractors who work with SNF-related Medicare fee-for-service claims and need to understand the broad operational changes tied to the 2001 implementation timeline.
Why This Topic Matters
The memorandum affects how SNF resident services are billed, which claims may be paid separately, and what edits contractors use to detect billing mismatches. It is important for avoiding rejections, duplicate billing issues, and incorrect payment processing for SNF stays.
Article Sections
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Program Memorandum and Background
Introduces the memorandum, its subject, and the general Medicare consolidated billing framework for SNF residents. It also provides the background and implementation context for the policy.
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New Procedures and Determining the End of a SNF Stay
Describes operational updates effective in 2001 and outlines when SNF resident status ends for consolidated billing purposes. It also identifies the facility types included or excluded from the policy.
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Types of Services Included and Excluded from Consolidated Billing
Summarizes the broad categories of services subject to consolidated billing and the types of services carved out from that framework. It also addresses ambulance and managed care-related considerations.
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Claims Processing Instructions, Carrier and CWF Edits
Covers claim form and electronic record requirements, processing edits, and general carrier and CWF instructions. It includes guidance on facility identifiers, review edits, and adjustment messages.
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Use of the PC/TC Indicators to Identify Physician's Services
Explains how carrier processing uses professional and technical component indicators for physician-related services in the SNF setting. It includes general processing categories and associated claim handling.
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HCPCS Codes to Identify Physical, Occupational and Speech Language Therapy Services and Audiologic Function Tests
Lists therapy and audiologic function testing service codes addressed by the memorandum and describes how they are handled in consolidated billing. It also references associated remittance and beneficiary notice messaging.
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Ambulance Claims
Addresses ambulance claims and the circumstances under which they are handled within or outside consolidated billing. It also notes claim-processing outcomes and related messaging.
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Specific Drugs, Services, and Supplies to be Excluded from CB
Presents categories of drug, service, and supply codes identified as excluded from consolidated billing. Subsections organize these exclusions by service category and billing context.
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Chemotherapy Drugs
Lists chemotherapy drug codes that are addressed as part of the exclusion categories. The section is part of the broader excluded-drugs discussion.
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Chemotherapy Administration Services
Lists codes for administration-related services within the exclusion categories. It is grouped with other excluded drug and procedure categories.
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Radioisotope Services
Lists codes for radioisotope-related services included in the exclusion discussion. This subsection is part of the broader services and supplies exclusions.
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Customized Prosthetic Devices
Lists codes for customized prosthetic devices identified in the exclusion list. It appears as one of the specific categories carved out from consolidated billing.
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Codes for Emergency Services Excluded from CB
Covers emergency and outpatient hospital services that are treated differently under consolidated billing. The section is subdivided by service category and includes claim-processing conditions.
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CT Scans
Lists computed tomography service codes included in the emergency-services exclusion discussion. These are organized as a subcategory of the outpatient services section.
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Cardiac Catheterization
Lists cardiac catheterization service codes addressed in the emergency-services exclusion section. It is one of several outpatient procedure subcategories.
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MRI
Lists magnetic resonance imaging service codes included in the outpatient emergency-services discussion. This subsection is part of the broader exclusion framework.
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Radiation Therapy
Lists radiation therapy codes addressed under the outpatient services exclusion area. It forms another subcategory within the emergency-services section.
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Angiography
Lists angiography-related codes included in the outpatient services discussion. It is presented as a distinct procedure category within the broader section.
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Outpatient Surgery
Lists outpatient surgery-related codes and notes which services are treated differently under consolidated billing. It also includes claim-processing checks tied to place of service.
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Erythropoietin (EPO) Services
Describes the EPO-related exclusions and associated code groupings. This section is part of the broader list of services and supplies excluded from consolidated billing.
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Dialysis
Addresses dialysis-related services, supplies, and diagnosis-code requirements in the SNF setting. It is included among the explicit exclusions from consolidated billing.
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CWF Edits
Discusses claim history interactions, auto-cancel responses, and utilization edits involving SNF inpatient and Part B claims. It also outlines general contractor resolution procedures and managed care exceptions.
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Notification
Notes provider notification expectations and the memorandum's implementation, effective, and discard dates. This section closes the main memorandum text.
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Attachment
Introduces an attachment on carrier edits for SNF consolidated billing. It explains the purpose of the edit logic and the related system considerations.
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Carrier Edits for SNF Consolidated Billing
Provides detailed edit logic and operational handling for SNF consolidated billing in CWF and carrier systems. It includes utilization and consistency edits, duplicate claim logic, and processing exceptions.
What You Will Learn
- The scope of Medicare SNF consolidated billing and how it affects claim submission workflows.
- Which broad service categories are treated as included, excluded, or separately processed under the memorandum.
- How carrier and CWF edits relate to SNF resident claims, facility identifiers, and claim history.
- Which general categories of services and procedures are singled out for special handling in the article.
- The implementation timing and administrative context for the memorandum's billing changes.
Who Should Read This
- Medical coders
- Hospital and SNF billers
- Revenue cycle staff
- Medicare claims processors
- Practice administrators
- Compliance staff
Codes Discussed
Code Ranges Discussed
Modifiers Discussed
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