(Medicare Claims Processing Manual)

2. Brief Office Visits for Monitoring or Changing Drug Prescriptions -  Brief office visits for the sole purpose of monitoring or changing drug prescriptions used in the treatment of mental, psychoneurotic and personality disorders are not subject to the limitation.  These visits are reported using HCPCS code M0064 or any successor code (brief office visit for the sole purpose of monitoring or changing drug prescriptions used in the treatment of mental, psychoneurotic, and personality disorders).  Claims where the diagnosis reported is a mental, psychoneurotic, or personality disorder (other than a diagnosis specified in subsection A) are subject to the limitation except for the procedure identified by HCPCS code M0064 or any successor code.    3. Diagnostic Services -  A/B MACs (B) do not apply the limitation to psychiatric diagnostic evaluations and diagnostic psychological and neuropsychological tests performed to establish or confirm the patients diagnosis.  Diagnostic services include psychiatr ic diagnostic evaluations billed under CPT codes 90801 or 90802 (or any successor codes) and, psychological and neuropsychological tests billed under CPT code range 96101- 96118 (or any successor code range).   An initial visit to a practitioner for professional services often combines diagnostic evaluation and the start of therapy.  Such a visit is neither solely diagnostic nor solely therapeutic.  Therefore, A/B MACs (B) must deem the initial visit to be diagnostic so that the limitation does not apply.  Separating diagnostic and therapeutic components of a visit is not administratively feasible, unless the practitioner already has separately identified them on the bill.  Determining the entire visit to be thera peutic is not justifiable since some diagnostic work must be done before even a tentative diagnosis can be made and certainly before therapy can be instituted.  Moreover, the patient should not be disadvantaged because therapeutic as well as diagnostic ser vices were provided in the initial visit.  In the rare cases where a practitioners diagnostic services take more than one visit, A/B MACs (B) must not apply the limitation to the additional visits.  However, it is expected such cases are few.  Therefore, when a practitioner bills for more than one visit for professional diagnostic services, A/B MACs (B) may find it necessary to request documentation to justify the reason for more than one diagnostic visit.    4. Partial Hospitalization Services Not Directly Provided by a Physician or a Practitioner -  The limitation does not apply to partial hospitalization services that are not directly provided by a physician, clinical psychologist, nurse practitioner, clinical n urse specialist, or a physician assistant.  Partial hospitalization services are billed by hospital outpatient departments and community mental health centers (CMHCs) to A/B MACs (A).  However, services furnished by physicians, clinical psychologists, nurs e practitioners, clinical nurse specialists, and physician assistants to partial hospitalization patients are billed separately from the partial hospitalization program of services.   Accordingly, these professionals mental health services to partial hospitalization patients are paid under the physician fee schedule by A/B MACs (B) and may be subject to the limitation. (See chapter 4, section 260.1C).  5. Intensive Outpatient Services Not Directly Provided by a Physician or a Practitioner -  The limitation does not apply to intensive outpatient services that are not directly provided by a physician, clinical psychologist, nurse practitioner, clinical nurse s pecialist, or a physician assistant.  Intensive outpatient services are billed by hospital outpatient departments, community mental health centers (CMHCs), RHCs, FQHCs, and OTPs to A/B MACs (A).  However, services furnished by physicians, clinical psychologists, nurse practitioners, clinical nurse specialists, and physician assistants to intensive outpatient patients are billed separately from the intensive outpatient program of services.   Accordingly, these professionals mental health services to intensi ve outpatient patients are paid under the physician fee schedule by A/B MACs (B) and may be subject to the limitation. (See chapter 4, section 261.1C).   E. Computation of Limitation    A/B MACs (B) determine the Medicare approved payment amount for services subject to the limitation.  They:     Multiply the approved amount by the limitation percentage amount;      Subtract any unsatisfied deductible; and,      Multiply the remainder by 0.8 to obtain the amount of Medicare payment. The beneficiary is responsible for the difference between the amount paid by Medicare and the full Medicare approved amount.    The following examples illustrate the application of the limitation in various circumstances as it is gradually reduced under section 102 of the Medicare Improvements for Patients and Providers Act (MIPPA).  Please note that although the calendar year 2009 Part B deductible of $135 is used under these examples, the actual deductible amount for calendar year 2010 and future years is unknown and will be subject to change.    Example #1:  In 2010, a clinical psychologist submits a claim for $200 for outpatient treatment of a patients mental disorder.  The Medicare -approved amount is $180.  Since clinical psychologists must accept assignment, the patient is not liable for the $20 in exces s charges.  The patient previously satisfied the $135 annual Part B deductible.  The limitation reduces the amount of incurred expenses to 68  percent of the approved amount.  Medicare pays 80 percent of the remaining incurred expenses.  The Medicare paym ent and patient liability are computed as follows:    1. Actual charges..$200.00  2. Medicare-approved amount   ..$180.00  3. Medicare incurred expenses (0.6875 x line 2).....$123.75  4. Unmet deductible..$0.00  5. Remainder after subtracting deductible (line 3 minus line 4)..$123.75  6. Medicare payment (0.80 x line 5).$99.00  7. Patient liability (line 2 minus line 6).$81.00    Example  #2:  In 2012, a clinical social worker submits a claim for $135 for outpatient treatment of a patients mental disorder.  The Medicare -approved amount is $120.  Since clinical social workers must accept assignment, the patient is not liable for the $15 in exc ess charges.  The limitation reduces the amount of incurred expenses to 75 percent of the approved amount.  The patient previously satisfied $70 of the $135 annual Part B deductible, leaving $65 unmet.  The Medicare payment and patient liability are computed as follows:    1. Actual charges..$135.00  2. Medicare-approved am........$120.00  3. Medicare incurred expenses (0.75 x line...$90.00  4. Unmet deductible...$65.00  5. Remainder after subtracting deductible (line 3 minus line   6. Medicare payment (0.80 x line ...$20.00  7. Patient liability (line 2 minus line 6)..........$100.00    Example #3:  In calendar year 2013, a physician who does not accept assignment submits a claim for $780 for services in connection with the treatment of a mental disorder that did not require inpatient hospitalization.  The Medicare-approved amount is $750.  Because the physician does not accept assignment, the patient is liable for the $30 in excess charges.  The patient has not satisfied any of the $135 Part B annual deductible.  The Medicare payment and patient liability are computed as follows:    1. Actual charges..$780.00  2. Medicare-approved amount..$750.00  3. Medicare incurred expenses (0.8125 x line 2....$609.38  4. Unmet deductible ..$135.00  5. Remainder after subtracting deductible (line 3 minus line  4 6.  4)...$474.38 7. Medicare payment (0.80 x line 5) ..$379.50  8. Patient liability (line 1 minus line 6)    $400.50    Example #4:  A patients Part B expenses during calendar year 2014 are for a physicians services in connection with the treatment of a mental disorder that initially required inpatient hospitalization, with subsequent physician services furnished on an outpatient basis.  The patient has not satisfied any of the $135 Part B deductible.  The physician accepts assignment and submits a claim for $780.  The Medicare-approved amount is $750.  Since the limitation will be completely phased out as of January 1, 2014, the entire $750 Medicare-approved amount is recognized as the total incurred expenses because such expenses are no longer reduced.  Also, there is no longer any distinction between mental health services the patient receives as an inpatient or outpatient.  The Me dicare payment and patient liability are computed as follows:    1. Actual charges..$780.00  2. Medicare-approved amount..$750.00  3. Medicare incurred expenses (1.00 x line    ..$750.00  4. Unmet deductible    ..$135.00  5. Remainder after subtracting deductible (line 3 minus line 4)..$615.00  6. Medicare payment (0.80 x line 5).$492.00 7.  Beneficiary liability (line 2 minus line 6).$258.00   220 - Chiropractic Services  (Rev. 3721, Issued: 02- 24-17, Effective: 05-25-17, Implementation: 05-25-17)  A.   Verification of Chiropractor's Qualifications   Establish a reference file of chiropractors eligible for payment as physicians under the criteria in Pub. 100-02, Benefits Policy Manual, Chapter 15, Sections 30.5 & 240A.  Pay only chiropractors on file.  Information needed to establish such files is furnished by the RO.  The RO is notified by the appropriate State agency which chiropractors are licensed and whether each meets the national uniform standards.  B.   Durable Medical Equipment Regional Carriers Processing Claims When a Chiropractor is the Supplier   Effective July 1, 1999, except for restrictions to chiropractor services as stipulated in 1861(s)(2)(A) of the Social Security Act, chiropractors (specialty 35) can bill for durable medical equipment, prosthetics, orthotics and supplies if, as the supplier, they have a valid supplier number assigned by the National Supplier Clearinghouse.  In order to process claims, the Common Working File has been changed to allow specialty 35 to bill for services furnished as a supplier.  C.   Documentation  The following information must be recorded by the chiropractor and kept on file.  The date of the initial treatment or date of exacerbation of the existing condition must be entered in Item 14 of Form CMS-1500.  This serves as affirmation by the chiropract or that all documentation required as listed below and in Pub. 100-02, Benefits Policy Manual, Chapter 15, Section 240.1.2 is being maintained on file by the chiropractor.  1. Specification of the precise spinal location and level of subluxation (see Pub. 100-02, Benefits Policy Manual, Chapter 15, Section 240.1.4) giving rise to the diagnosis and symptoms.  2. Effective for claims with dates of service on and after January 1, 2000, the x-ray is no longer required .  However, the x- ray may  still be used to demonstrate subluxation for claims processing purposes.  Effective for claims with dates of service on or after October 1, 2000, when the x-ray is used to demonstrate subluxation, the date of the x -ray must be entered in Item 19 of Form C MS-1500 and the date must be within the parameters specified in Pub. 100-02, Benefits Policy Manual, Chapter 15, Section 240.1.2.  For claims with dates of service prior to January 1, 2000, and for claims with dates of service on or after October 1, 2000, for which an x-ray is still used to show subluxation, the following instructions on documentation apply:  An x -ray film (including the date of the film) is available for your review demonstrating the existence of a subluxation at the specified level of the spine.  If the beneficiary refuses to have the x -ray, the chiropractor must submit one of the appropriate HCPCS codes for chiropractic manipulation in addition to modifier GX (service not covered by Medicare), and the claim will be denied as a technical denial.   The following reflects the remittance advice messages and associated codes that will appear when rejecting/denying claims under this policy.  This CARC/RARC combination is compliant with CAQH CORE Business Scenario 3.  Group Code: PR CARC: 96  RARC: M111  MSN: 3.1  NOTE:  The refusal of the beneficiary to have an x -ray taken will no longer need to be coded for claims with dates of service on or after January 1, 2000.   D.   Claims Processing   Edits and suggested MSN and RA messages.