Lymphedema Therapy Source

  

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Compression Billing Confusion

We’re resuming our educational blog about lymphedema. And we’re moving on from the last few posts about Medicare’s new coverage of lymphedema supplies & compression … almost. I had a recent incident worth mentioning.

Lymphedema Treatment Act Website

The Lymphedema Treatment Act (LTA) website has a list of durable medical equipment (DME) suppliers for lymphedema compression supplies & garments. It’s a good start, but it’s not entirely accurate. I’ve had a few inquiries from people who saw this business (Lymphedema Therapy Source) listed on the LTA website as a Medicare supplier. While this business just became an approved Medicare DME supplier this month, it can’t provide supplies or compression garments for people in states outside of Texas (not yet, anyway). That’s because most states (if not all) require a business to have a (DME) license in their state. And that usually requires a physical presence in that state.

The LTA advocacy team sent an email in Aug informing readers that Medicare has updated their online supplier search tool to include compression supplies. Unfortunately, Medicare (nor the Lymphedema Treatment Act website) contain an accurate list of businesses that can bill Medicare for lymphedema supplies.

August LTA newsletter. While both Medicare & the LTA lists include DME suppliers, Medicare’s list may not specialize in lymphedema products. And the LTA list may not include DME suppliers that can bill Medicare in your state (or at all).

How to Find a Billing Supplier

If you have insurance other than Medicare, your carrier may provide a list of suppliers for DME that are in-network. But like the Medicare list, they may not specialize in lymphedema products. The takeaway is: You should call before making a trip to visit a supplier to make sure they sell (on site) the item you’re seeking.

Here’s an example. A few weeks ago, a man came to my office building looking for an orthotic (with a doctor’s script in hand). His doctor had sent him to the building because another company (Accentus) is a local DME supplier who showed as in-network with his insurance. What the man didn’t know is the company specializes in diabetic supplies & that particular office is solely composed of backend office staff (i.e. it’s not a storefront). The girls in the office came looking for me assuming I could help him.

While this business can now bill insurance for DME, the specialty is lymphedema. Not orthopedic products like an ankle brace. I was able to read the script, explain the situation, & advise the man he needed to contact his insurance company again for a list of in-network suppliers. He then needed to call those companies to ensure they sold the ankle support he needed.

Conclusion

While it’s terrific that Medicare will now pay for lymphedema compression, treatment supplies & aids thanks to the efforts of the Lymphedema Treatment Act team, the downside is there’s a lot of confusion among beneficiaries as to how to find a supplier who can bill for their DME needs.

(First posted 09/16/24 for Aug.)

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Cash Pay for Medicare Compression?

Medicare will now pay for lymphedema compression supplies, aids & garments. But there may be an occasion when a patient wants to pay cash for an item. Simple, right? Well (as noted in last month’s post), government complicates things. (Next month, we’ll resume our normal educational blog about lymphedema.)

Disclaimer: Information is not garanteed to be comprehensive or accurate. Consult a healthcare law attorney for guidance.

Image by Andrew Patrick / Pexels

In this post, “provider” will be used interchangeably with “supplier” except where noted.

Billing Medicare 1,2

Most patients will want to bill Medicare for anything Medicare will cover. In such cases, providers (i.e. therapists who add a DME supplier aspect to their provider therapy business for their own patients) must have a PTAN (provider transaction access number). This is obtained when enrolling with Medicare. There are three classifications: “participating,” “non participating,” & those who “opt out”.

Participating Providers 3, 4

A participating provider is an individual who contracts with Medicare. They have agreed to accept what Medicare will pay. They are required (by law) to submit a claim on behalf of a Medicare beneficiary for any service or item that’s a covered benefit. This now includes lymphedema compression (thanks to Heather Ferguson & team – see also the Lymphedema Treatment Act). Because they contract with Medicare, these providers cannot accept cash for an item sold to a Medicare beneficiary (other than the deductible, 20% coinsurance or upgrades). They also have other rules (such as issuing an ABN – advanced beneficiary notice – when certain services or items are not expected to be covered.) Some commercial insurance companies require therapists to be Medicare participants in order to become an in-network provider with them.

A Participating Provider can become a Non Participating Provider by notifying their regional national provider enrollment contractor during the enrollment period (mid-Nov to Dec 31 each year). There are currently two regional enrollment providers (NPE East & NPE West) that took the place of the prior National Supplier Clearing House (“NSC”).

Non Participating Providers 5-8

Non participating providers are individuals who accept Medicare payment but not necessarily in full. (They are still “contracted” providers & must have a PTAN in order to bill Medicare – whether they accept or do not accept Medicare’s payment amount in full.) If they choose not to accept Medicare’s payment in full, they can charge more than Medicare’s payment amount (similar to out-of-network providers), but they have a limit (by law) on what amount they can charge. However, this limit only applies to providers, not suppliers.

Non participating providers can require payment upfront but must still issue an ABN (like participating providers). They’re supposed to submit a claim to Medicare on behalf of a patient in order to collect any billed amount. (If a patient submits a claim, a “CMS 1490S” form can be used.) Can a “non participating provider” sell an item for cash to a Medicare beneficiary? Possibly – if a patient specifically states they don’t want Medicare to be billed. (see image below)

Opting Out 9,10

The Social Security Act Title 18 amendment (of the Balanced Budget Act of 1997, §4507) has a provision allowing a provider to opt out of Medicare. Opt-out providers have chosen not to work with Medicare at all. Instead, they privately contract with patients. This decision is valid for two years at a time. Opting out means a provider can legally bill a Medicare patient directly for services that would be covered. This is not an option for therapists or suppliers.

Non-Contracted Providers (Cash Practices or “retail”) 11,12

Can cash-only practices (without a PTAN) choose to sell compression to Medicare patients? According to CFR 42, section 1395m (j)(4)(A), no. One exception may be if the supplier informed the patient before any transaction took place that the supplier did not bill Medicare & the patient agreed to pay cash. And an ABN should be issued for signature as well.

What about internet sales? 12

Can a Medicare patient pay cash for an item now covered by Medicare? Not without the supplier having liability. According to one legal source, a supplier needs to ensure they have an obvious notice on their website (& at checkout) for all Medicare beneficiaries informing the buyer that the supplier does not have a PTAN & does not bill Medicare. They might even consider having an ABN form signed by each Medicare buyer.

Competitive Bidding

Items covered under the LTA are not currently subject to Competitive Bidding according to 42 U.S. Code § 1395m – Special payment rules for particular items and services.

References
1 Title 42 USC section 1395 m(j), https://www.cgsmedicare.com/jc/pubs/pdf/chpt2.pdf
2 https://www.cms.gov/regulations-and-guidance/guidance/manuals/downloads/pim83c10.pdf
3 (Upgrades) CFR 1395m (19) Certain Upgraded Items https://www.law.cornell.edu/uscode/text/42/1395m
4 (Enrollment Providers) https://www.achc.org/blog/cms-replacing-nsc/)(https://www.cms.gov/medicare/provider-enrollment-and-certification/medicareprovidersupenroll/downloads/contact_list.pdf
5 (Limit not for Suppliers) https://www.medicareinteractive.org/get-answers/medicare-covered-services/outpatient-provider-services/participating-non-participating-and-opt-out-providers#:~:text=Non%2Dparticipating%20providers%20accept%20Medicare,care%20services%20as%20full%20payment
6 (CMS 1490S) https://www.cms.gov/medicare/cms-forms/cms-forms/cms-forms-items/cms012949
7 (paying cash) https://www.webpt.com/blog/times-a-medicare-patient-cant-pay-cash#:~:text=As%20a%20non%2Dparticipating%20provider,may%20reimburse%20the%20patient%20directly
8 https://www.medicareinteractive.org/get-answers/medicare-covered-services/outpatient-provider-services/participating-non-participating-and-opt-out-providers#:~:text=Non%2Dparticipating%20providers%20accept%20Medicare,care%20services%20as%20full%20payment
9 (opting out) https://www.novitas-solutions.com/webcenter/portal/MedicareJL/pagebyid?contentId=00093112#P22_1451
10 (opting out) https://www.congress.gov/bill/105th-congress/house-bill/2015#:~:text=were%20not%20notified.-,(Sec.,shall%20receive%20no%20Medicare%20reimbursement
11 (CFR 42, subch 18, part B, section 1395m, (j)(4)(A)) https://www.law.cornell.edu/uscode/text/42/1395m
12 https://medtrade.com/news/billing-reimbursement/selling-dme-by-a-supplier-without-a-ptan/#:~:text=AMARILLO%2C%20TX%20%2D%20Certain%20disclaimers%20must%20be,does%20not%20have%20a%20Medicare%20supplier%20number%2C

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Billing for Compression (part 3)

We’ve been talking about how a therapist can bill for compression in light of the passage of the Lymphedema Treatment Act. Last month, we noted there were (3) models. The third model involved:

  • a therapist billing Medicare for compression as a supplier & for service as a provider for their own patients, and
  • the same therapist also billing for compression for people who are not their patients.

This gets tricky because the model gives rise to unique ownership concerns related to Medicare & Medicaid payments. (Government complicates things.) These concerns revolve around federal statutes & criminal liability. That’s the focus of this month’s blog.

Disclaimer: Information is not guaranteed to be comprehensive or accurate. Consult a healthcare law attorney for guidance.

Model 3

You would think billing for other people’s patients could be done in your therapy business. But that’s not the case – unless the individual is your patient. And would another therapist want to refer their patients to you – a competitor? Of course, there are several people seeking compression that aren’t wanting treatment. They just need someone who can bill insurance. But does billing for a supply item constitute someone becoming a patient?  Besides that, the 42 CFR has special considerations for therapists billing for compression for their own patients that doesn’t apply to therapists billing for individuals who are not their patients. (See April’s blog update.) A seemingly easy solution is to have a second business.

If you have a second business for DME, why not simplify things? Keep your therapy services in the therapy business & the DME in a DME business. You could have both businesses in the same location & save on costs (like rent). Additional benefits could include having a different taxonomy code (for potential better reimbursement rates), less confusion among insurance payors, & legal protection from financial losses.  You could refer your therapy patients to the DME business. Right? Wrong. (Why not? Well, government complicates things.)

Medicare Supplier Standards2

Anyone who plans to bill federal healthcare programs for DME must be mindful of the 42 CFR Supplier Standards. One of those standards states a supplier is prohibited from sharing a practice location with another Medicare provider or supplier. But there are a few exceptions. Two of these include:

  • a therapist (i.e. provider) who is billing DME for their own patients only
  • a DME supplier can be co-located with & owned by a Medicare provider (e.g. therapist), but the businesses must operate separately (separate phone lines, separate computers, separate staff, etc.). You must also meet the definition of a Medicare provider.7,8

It would seem you actually could separate the therapy business & refer your patients to your DME company. But that’s not the case. (Did I mention government complicates things?)

The Anti-Kickback Statute

The Anti-Kickback Statute is one of the fraud & abuse laws mentioned last month. It was an amendment added to the Social Security Act & first passed by Congress in 1972 as an effort to prevent fraud & abuse of federal healthcare programs (i.e. Medicare & Medicaid).6 It can be found in Title 42 of the U.S. code which covers public health & welfare. (These laws are broken down into titles, chapters, subchapters, parts & sections.)3,4 Specifically, Section 1320a-7b talks about the Anti-Kickback Statute. This amendment prevents giving or receiving anything of value (e.g. money, free rent or other perks) for generating healthcare business paid for by federal programs.

In other words, if you had two businesses that billed Medicare or Medicaid, & you wanted to refer patients from one to the other, you can’t. (Unless, of course, you don’t mind jail time & hefty monetary penalties. Most therapists try to avoid these.) There are a few “safe harbor” exclusions that will allow such business transactions.5 But all elements of a safe harbor must be met. (And these have pros & cons.)

Two notes: First, this only applies to providers/suppliers billing federal healthcare programs (clarification is needed as to whether the non-direct plans like the exchange programs provided by commercial plans are included in this). Second, you can still have a therapy business providing therapy services & DME to your own patients. You can also have a separate DME business for other people’s patients in addition. But these must operate entirely separately & cannot refer business between them if you bill federal healthcare programs unless you fall within one of the safe harbor exclusions. You would also be wise to consider other mitigating factors to prevent implication of Anti-Kickback Statute violation.

There’s one more question that comes to mind regarding billing. What if a Medicare patient wants to pay cash for an item? We’ll look at that next month.

References
1 https://oig.hhs.gov/compliance/physician-education/fraud-abuse-laws/
2 (supplier standards) https://www.ecfr.gov/current/title-42/chapter-IV/subchapter-B/part-424/subpart-D/section-424.57
3 https://www.govinfo.gov/app/details/USCODE-2010-title42/USCODE-2010-title42-chap7-subchapXI-partA-sec1320a-7b
4 https://uscode.house.gov/
5 (safe harbors) https://www.ecfr.gov/current/title-42/chapter-V/subchapter-B/part-1001/subpart-C/section-1001.952
6 https://www.whistleblowerllc.com/anti-kickback-statute/#:~:text=Congress%20first%20enacted%20the%20AKS,physicians%20corrupt%20medical%20decision%2Dmaking.
7 (clinic definition) https://www.govinfo.gov/content/pkg/USCODE-2011-title42/html/USCODE-2011-title42-chap7-subchapXVIII-partE-sec1395x.htm, https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/downloads/R5BP.pdf & https://www.ssa.gov/OP_Home/ssact/title18/1861.htm
8 (OTPP definition) https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/downloads/R5BP.pdf

Attribution
Photo by Olia Danilevich Pexels

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Billing for Compression (part 2)

Last month, we highlighted how therapists can bill insurance for compression for their own patients. It’s not exactly straight-forward. There are several federal & state laws that must be considered (among others). And if you want to bill compression for other people’s patients, well – that throws a wrench into the mix! This post will discuss how therapists can do that & what needs to be considered.

Disclaimer: Information is not guaranteed to be comprehensive or accurate. Consult a healthcare law attorney for guidance.

Billing Medicare

Let’s recap your options for billing for compression as a therapist. There are (3) models.

  1. You only bill Medicare for compression as a supplier (not for service as a provider). You still have to know the laws relevant to DME & pay related fees. But the model is simple.
  2. You bill Medicare for compression as a supplier & for service as a provider within your business. It’s still fairly simple but it is a bit more complex than the first model.
  3. You bill Medicare for compression as a supplier & for service as a provider – but you also want to bill compression for other people’s patients. Hmmm….that’s tricky. This model has unique ownership precautions that not only gets into federal statutes (as do the above options) but also criminal liability.

First, in order to bill for compression, you must have a DME license in your state & follow your laws (therapist or not). You must also credential with insurance companies (if you want to be in-network) & decide whether you’re going to bill yourself (using a software) or whether you’re going to use a third-party. (Each of these has their own learning curve.)

Second, if you want to bill for compression in other states (obviously for people who are not your patients), you must follow the same procedures as above. You also need to be prepared to open a physical location in each of those states. Third, if you plan to bill for your own patient’s compression & also bill for other people’s compression, you need to be aware of federal statutes pertaining to fraud & abuse as well as to business ownership.

Federal Statutes: Fraud & Abuse Laws1

The Office of Inspector General outlines five of the most important laws pertaining to medical professionals. These include:

1. False Claims Act – don’t lie, overcharge or provide poor-quality goods
2. The Anti-Kickback Statute – don’t give or take rewards (money or otherwise) for referrals or business involving federal funds
3. Stark (or self-referral) Law – a physician (or their family) can’t have a financial interest in a business & refer Medicare or Medicaid patients to it
4. The Exclusion Authorities – people or business convicted of certain crimes are automatically excluded from federal health care plan participation
5. Civil Monetary Penalties Law – you may be fined fees (ranging from $10k-$50k per violation) based on certain laws breached

Some of these laws are for physicians only (such as Stark Law), but others pertain to everyone. The most relevant to our discussion is the Anti-Kickback Statute. We’ll pick that topic up next time.

References
https://oig.hhs.gov/compliance/physician-education/fraud-abuse-laws/

Attribution
Pexels calculation photo by Tom Miroshnichenko
Pexels gavel photo by Katrin Bolovtsova

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Compression Garments & Insurance (part 2)

As you know from last month’s blog, the Lymphedema Treatment Act (LTA) was passed in December of 2022. Most of 2023 has been spent with Heather Ferguson & others communicating with legislators & Medicare on what should be included in the bill coverage.

Flat-knit hose & a toe cap

Bill Coverage

On page 45 of the “Medicare and You 2024” handbook,1 it states if you have a diagnosis of lymphedema, Medicare will cover your medically gradient compression garments (with a physician’s prescription) at 80%. Coverage is for standard, off-the-shelf garments or custom-fitted garments. You’ll pay your 20% (unless you have a supplemental plan). Your part B deductible applies.

The proposed final rule is a more specific.2 It states medically gradient compression garments (readymade or custom, Velcro or other) will be covered as well as bandaging supplies. Anyone providing these items must be enrolled with Medicare as a DME supplier & meet supplier standard requirements.

Where You Can Find a Supplier Who Can Bill For Compression Garments

You can use Medicare’s online search tool3 to search for a supplier capable of billing for the items. One concern I have is whether these will be competent fitters (vs standard DME suppliers whose knowledge is typically limited to basic sleeves & hose). Lymphedema Therapy Source plans to use a second business to bill for lymphedema supplies & compression (including pneumatic compression pumps). This will include a lengthy process of becoming an enrolled DMEPOS supplier, becoming accredited, meeting all DME supplier and quality standards, obtaining a surety bond & submitting claims to the appropriate Medicare contractor for DME. (No small task!)

circular-knit hose

Billing Codes4 (see updates at the end of page)

While therapy services are billed using CPT codes, products (or DME supplies) are billed with HCPCS Level II codes. Below is a list of expected codes & descriptions for lymphedema compression items covered by Medicare as a result of the Lymphedema Treatment Act.

HCPCS Codes for Compression Treatment Items:
Compression Hose
A6530 Gradient compression stocking, below knee, 18-30 mmHg each
A6531 Gradient compression stocking, below knee, 30-40 mmHg, each*
A6532 Gradient compression stocking, below knee, 40-50 mmHg, each*
A6533 Gradient compression stocking, thigh length, 18-30 mmHg, each
A6534 Gradient compression stocking, thigh length, 30-40 mmHg, each
A6535 Gradient compression stocking, thigh length, 40-50 mmHg, each
A6536 Gradient compression stocking, full length/chap style, 18-30 mmHg, each
A6537 Gradient compression stocking, full length/chap style, 30-40 mmHg, each
A6538 Gradient compression stocking, full length/chap style, 40-50 mmHg, each
A6539 Gradient compression stocking, waist length, 18-30 mmHg, each
A6540 Gradient compression stocking, waist length, 30-40 mmHg, each
A6541 Gradient compression stocking, waist length, 40-50 mmHg, each

Velcro (or other)
A6545 Gradient compression wrap, non-elastic, below knee, 30-50 mmHg, each*
A6549 Gradient compression stocking/sleeve, not otherwise specified

Compression Sleeves & Gloves
S8420 Gradient pressure aid (sleeve and glove combination), custom made
S8421 Gradient pressure aid (sleeve and glove combination), readymade
S8422 Gradient pressure aid (sleeve), custom made, medium -weight
S8423 Gradient pressure aid (sleeve), custom made, heavy -weight
S8424 Gradient pressure aid (sleeve), readymade
S8425 Gradient pressure aid (glove), custom made, medium -weight
S8426 Gradient pressure aid (glove), custom made, heavy -weight
S8427 Gradient pressure aid (glove), readymade
S8428 Gradient pressure aid (gauntlet), readymade

Other (including treatment supplies)
S8429 Gradient pressure exterior wrap
S8430 Padding for compression bandage, roll
S8431 Compression bandage, roll

There may be changes to some of these codes. For those with an asterisks (*), new HCPCS codes may be assigned when these items are used as surgical dressings (such as in the case of an open venous stasis ulcer).

Velcro leg & foot compression

***UPDATE 11/30/23***

Beginning in 2024, there will be 81 HCPSC codes specifically for lymphedema compression supplies (most will be new).

Where You Can Find More Information

Visit the Lymphedema Treatment Act for more information & an up-to-date status on the bill & its coverage: https://lymphedematreatmentact.org/faqs/.

A special thank-you to Heather Ferguson & her team for their ongoing fight to get the LTA passed.

***UPDATE 01/05/24***

Lymphedema HCPCS billing codes have been published & are listed here. A person must have one of the following diagnosis codes:

  • I89.0 (lymphedema, not elsehwere classified)
  • I97.2 (postmastectomy lymphedema)
  • I97.89 (Other postprocedural complications and disorders of the circulatory system, not elsewhere classified)
  • Q82.0 (hereditary/primary lymphedema)

References
1 https://www.medicare.gov/publications/10050-Medicare-and-You.pdf
2 https://lymphedematreatmentact.org/wp-content/uploads/2023/07/LTA-Section-Home-Health-Rule.pdf
3 https://www.medicare.gov/medical-equipment-suppliers/
4 LTA Home Health Rule, p. 13

Contact Us

309 W. Eldorado Pkwy
Little Elm, Texas 75068-5196
214-422-8265 | 469-579-5034
214-614-9352 fax
info@LTStherapy.com

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