(Medicare Claims Processing Manual)

 The beneficiary is admitted as an inpatient to a Medicare-participating hospital or critical access hospital (CAH), or as a resident to another SNF;   The beneficiary receives services from a Medicare -participating home health agency under a plan of care;   The beneficiary receives one of the types of outpatient hospital services that CMS has designated as being exceptionally intensive (see 20.1.2); or   The beneficiary is formally discharged (or otherwise departs) from the SNF or DPU, unless the beneficiary is readmitted (or returns) to that or another SNF before the following midnight. This provision is sometimes referred to as the midnight rule (see Pub. 100-02, Medicare Benefit Policy Manual, chapter 3, 20.1, which specifies that an inpatient day . . . begins at midnight and ends 24 hours later).  A discharge from the Medicare- certified DPU includes situations in which the beneficiary is moved from the DPU to a Medicare non -certified area within the same institution.   When a beneficiary is absent from the SNF overnight (i.e., the absence from the SNF spans midnight), the beneficiarys status as a SNF resident for CB purposes would end upon the point of departure from the SNF (per the above-described midnight rule), and would not resume until the actual point of arrival back at the SNF the next day. Accordingly, that beneficiary would not be considered a SNF resident for CB purposes between those two points, so that any offsite services furnished during the interim (such as an overnight sleep study) would not be subject to CB.  It should be noted that the scenarios described in the first three clauses above would become relevant only if a beneficiary leaves the SNF but then arrives back in that or another SNF before the following midnight.  This is because under the midnight rule discussed in the fourth clause, whenever a beneficiary leaves the SNF but does not arrive back in that or another SNF later on that same day, the beneficiarys resident  status for CB purposes would end immediately upon departure --before any of the other events described in the first three clauses could even occur.  By contrast, when a beneficiary does return to that or another SNF by the end of the same day (a scenario that normally would serve to maintain the beneficiarys status as a resident of the originating SNF throughout the absence), the occurrence of one of the intervening events listed in the first three clauses above would nevertheless serve to end the beneficiarys resident status at that point.  For example, when a beneficiary leaves the SNF to receive outpatient emergency services at the hospital, th e emergency services would never be subject to CB even in a situation where the beneficiary returns to the SNF later that same day because the receipt of the emergency services themselves under the third clause above would have already served to suspend the beneficiarys SNF resident status with respect to those services under the regulations at 42 CFR 411.15(p)(3)(iii).  These requirements apply only to Medicare fee -for-service beneficiaries residing in a participating SNF or DPU.  Claims are submitted to the A/B MAC (A) on the ASC X12 837 institutional format or Form CMS -1450.  All services billed by the SNF (including those furnished under arrangements with an outside supplier) for a resident of a SNF in a covered Part A stay are included in the SNFs Part A bill.  If a resident is not in a covered Part A stay (Part A benefits exhausted, posthospital or level of care requirements not met), the SNF is required to bill for all physical therapy, occupational therapy, and/or speech- language pathology services provided to a SNF resident under Part B.  The CB provision requires that effective for services and items furnished on or after July 1, 1998, payment is made directly to the SNF.   Thus, SNFs are no longer able to unbundle services to an outside supplier that can then submit a separate bill directly to an A/B MAC (B) or DME MAC for residents in a Part A stay, or for SNF residents receiving physical therapy, occupational therapy, and/or speech -language pathology services paid under Part B.  Instead, the SNF must furnish the services either directly or under an arrangement with an outside supplier or provider of services in which the SNF (rather than the supplier or provider of servic es) bills Medicare.  Medicare does not pay amounts that are due a provider to any other person under assignment, or power of attorney, or any other direct payment arrangement.  As a result, the outside supplier must look to the SNF (rather than the A/B MAC  (A), or (B), or DME MAC or the beneficiary) for payment.  The SNF may collect any applicable deductible or coinsurance from the beneficiary.   NOTE :  The requirements for participation at 42 CFR 483.15(c)(1)(i)(A) -(F) specify the limited circumstances under which a resident can be involuntarily moved out of a Medicare- certified SNF or DPU.  These circumstances can include situations in which the resi dent's health has improved to the point where he or she no longer needs SNF care.  However, if a resident has exhausted Part A benefits but nevertheless continues to require SNF care, he or she cannot be moved out of the Medicare- certified SNF or DPU for reasons other than those specified in the regulations.  For example, the resident cannot be moved to avoid the CB requirements, or to establish a new benefit period.  The determination to move the beneficiary out of the SNF or DPU must not be made on the basis of the beneficiary having exhausted his or her benefits, but rather, on the beneficiary's lack of further need for SNF care.  Once a resident of a Medicare -certified DPU ceases to require SNF care, he or she may then be moved from the DPU to the Medicare non -certified area of the institution.  As discussed above, such a move would end the beneficiary's status as a SNF "resident" for CB purposes.  Enforcement of CB is done through editing in Medicare claims processing systems using lists of Healthcare Common Procedure Coding System (HCPCS) codes that are subject to the CB provision of SNF PPS.  In order to assure proper payment in all settings, Medi care systems must edit for services, provided to SNF beneficiaries, both included and excluded from CB.  Transmittals with instructions provide updates to previous lists of the exclusions, and some inclusions, to CB.  Such transmittals can be found on the CMS Web site at:  https://www.cms.gov/Regulations- and-Guidance/Guidance/Manuals/Internet -Only -Manuals -IOMs.html  or http://www.cms.gov/Medicare/Billing/SNFConsolidatedBilling/index.html .  Step -by-step instructions for accessing the exclusion list itself appear in the Medicare Benefit Policy Manual, Chapter 8, 10.2.  The list of HCPCS codes enforcing CB may be updated each quarter.  For the notice on CB for the quarter beginning January, separate instructions are published for A/B MACs (A) and A/B MACs (B)/DME MACs.  Since this is usually the only quarter in which new permanent HCPCS codes are produced, this recurring update is referred to as an annual update.  Other updates for the remaining quarters of the year will occur as needed  prior to the next annual update.  In lieu of another update, editing based on the prior list of codes remains in effect.  Some non -January quarterly updates may apply to each of A/B MACs (A) and (HHH) and A/B MACs (B)/DME MACs, and the applicability of the instruction will be clear in each update.  All future updates will be submitted via a Recurring Update Notification form.    Effective July 1, 1998, CB became effective for those services and items that were not specifically excluded by law from the SNF prospective payment system (PPS) when they were furnished to residents of a SNF in a covered Part A stay and also includes physical therapy, occupational therapy, and/or speech-language pathology services in a noncovered stay.  SNFs became subject to CB once they transitioned to PPS.  Due to systems limitations, CB was not implemented at that time for residents not in a Part A covered stay (Part A benefits exhausted, post-hospital or level of care requirements not met).  Section 313 of the Benefits Improvement and Protection Act (BIPA) of 2000 subsequently repealed this aspect of CB altogether, except for physical therapy, occupational therapy, and/or s peech -language pathology services.  In addition, for either type of resident, the following requirements were also delayed: (1) that the physicians forward the technical portions of their services to the SNF; and (2) the requirement that the physician enter the facility provider number of the SNF on the claim.    Effective July 1, 1998, under 42 CFR 411.15(p)(3)(iii) published on May 12, 1998, a number of other services are excluded from CB.  The hospital outpatient department will bill these services directly to the A/B MAC (A) when furnished on an outpatient basis by a hospital or a cri tical access hospital (see 20.1.2).  Physicians and other practitioners professional services will be billed directly to the A/B MAC (B) (see 20.1.1).  Hospice care (see 20.2.2) and the ambulance trip that initially conveys an individual to the SNF to be admitted as a resident, or that conveys an individual from the SNF when discharged and no longer considered a resident (see 20.3), are also excluded from CB.   Effective April 1, 2000, 103 of the Balanced Budget Refinement Act (BBRA) excluded additional services and drugs from CB that therefore had to be billed directly to the A/B MAC (B) or DME MAC by the provider or supplier for payment (see 20.3).  As opposed to whole categories of services being excluded, only certain specific services and drugs (identified by HCPCS code) were excluded in each category.  These exclusions included ambulance services furnished in conjunction with renal dialysis services, certa in specific chemotherapy drugs and their administration services, certain specific radioisotope services, and certain customized prosthetic devices.   Effective January 1, 2001, 313 of the BIPA, restricted CB to the majority of services provided to beneficiaries in a Medicare Part A covered stay and only to therapy services provided to beneficiaries in a noncovered stay (see 20.5).   Effective for claims with dates of service on or after April 1, 2001 , for those services and supplies that were not specifically excluded by law and are furnished to a SNF resident covered under the Part A benefit, physicians are required to forward the technical portions of any services to the SNF to be billed by the SNF to the A/B MAC (A) for payment (see 20.1.1).  10.2 - Types of Facilities Subject to the Consolidated Billing Requirement for SNFs  (Rev. 4409, Issued: 10- 04-19, Effective: 11 -05-19, Implementation: 11-  05-19) Consolidated billing applies to:    Participating SNFs;  Short term hospitals, long term hospitals, and rehabilitation hospitals certified as swing -bed hospitals, except critical access hospitals (CAHs) certified as swing bed hospitals (however, while a CAHs SNF -level swing bed services are not subject to consolidated billing, they remain subject to the bundling requirement for hospitals , as specified in the Medicare Claims Processing Manual, Chapter 3, 60).  Rural (non- CAH) swing bed hospitals that furnish SNF -level services are subject to both  the consolidated billing and  hospital bundling requirements (see 100.1); accordingly, as explained in the FY 2002 SNF PPS final rule (66 FR 39593, July 31, 2001), for the small number of services (such as dialysis) that are excluded from consolidated billing but remain subject to hospital bundling, the billing responsibility would remain with the rural swing bed hospital itself (in accordance with the hospital bundling requirement), but it would use a separate inpatient Part B claim to bill for those serv ices outside of the bundled SNF PPS rate (in recognition of their exclusion from the consolidated billing requirement).   But consolidated billing does not apply to:    A nursing home that is not Medicare -certified, such as:   o A nursing home that does not participate at all in either the Medicare or Medicaid programs;   o A non- certified part of a nursing home that also includes a participating distinct part SNF unit; and   o A nursing home that exclusively participates in the Medicaid program as an NF.    CAHs certified as swing -bed hospitals.  However, as noted above, CAH swing-bed services are subject to the hospital bundling requirement at section 1862(a)(14) of the Social Security Act and 42 CFR  411.15(m).