(Medicare Claims Processing Manual)

The distance between the CAH or entity and the other provider or supplier of ambulance services will be determined as the shortest distance in miles measured over improved roads between the CAH or the entity and the site at which the vehicles of the neares t provider or supplier of ambulance services are garaged.  An improved road is any road that is maintained by a local, State, or Federal government entity and is available for use by the general public.  An improved road includes the paved surface up to the front entrance of the CAH and the front entrance of the garage.   40 - Billing Coverage and Utilization Rules for PPS and Non -PPS Hospitals (Rev. 2388, Issued: 01- 20-12, Effective: 04 -22-12, Implementation: 04- 22-12)  A. - General   Days of utilization are charged based upon actual days of coverage including grace and waiver days.  The number of covered days used are maintained by CMS to track the beneficiary's eligible days in a benefit period.  The hospital collects the coinsurance, if applicable, for only the number of days charged against the beneficiary's utilization record maintained by CMS.  For example, if the mean length of stay for a DRG is 10 days and the beneficiary is discharged after 3, only 3 days of utilization is charged.  In a like situation, if the DRG mean length of stay is 10 days and the beneficiary is discharged after 15, the 15 days are charged against the utilization record.   NOTE:   There are some exceptions to this rule under LTCH PPS.  See 150.4.  Coinsurance, if applicable, is payable by the beneficiary for the number of days used.  The hospital subtracts the coinsurance amount from the DRG payment.  Days after benefits are exhausted are not charged against the beneficiary's utilization even though the hospital may receive the full DRG payment.   The basic prospective payment amount will be paid if:    There is at least l day of utilization left at the time of admission and that day is also a day of entitlement (e.g., a day before the beneficiary discontinued voluntary Part A entitlement by not paying the premium).    There is at least l day for which payment may be made under the guarantee of payment.  (If benefits are exhausted prior to admission and no payment may be made under guarantee of payment, only Part B benefits are available.)    The beneficiary becomes entitled after admission.  The hospital may not bill the beneficiary or other persons for days of care preceding entitlement except for days in excess of the outlier threshold.  Utilization is not counted for any days treated as noncovered, except as described below:    Utilization is not counted for any nonentitlement days, or days after benefits are exhausted (including guarantee of payment days), even if those days are treated as covered for outlier calculation or treated as Medicare patient days for the cost report.    The length of stay exceeds the day/cost outlier threshold (Day outliers were discontinued at the end of FY 1997), utilization is counted for medically unnecessary days which are noncovered but for which the hospital may not charge the beneficiary because t he requirements of 40.2 were not met.  See 40.2.2 for identification of these days.    If the adjusted cost of the stay exceeds the cost outlier threshold, utilization is counted for any medically unnecessary days on which all Part A services are treated as noncovered under 40.2.B  and for which the hospital may not charge the beneficiary.  (Where only ancillary services are denied, all days are counted as covered.)   Lifetime reserve days (LTR) for an inpatient hospital stay for which prospective payment may be made is subject to the following:   If the beneficiary had one or more regular benefit days (full or coinsurance days) remaining in the spell of illness when admitted, there is no advantage in using lifetime reserve days.  The beneficiary is deemed to have elected not to use lifetime reserve days for the nonoutlier (Day outliers were discontinued at the end of FY 1997) portion of the stay.  IPPS uses Occurrence Span code 70 for the covered non -utilization period after regular benefit days are exhausted or when only LTR days are exhausted.  For example:   EXAMPLE 1: No Cost Outlier, only LTR Days available and Exhaust prior to discharge  Dates of Service  01/05 - 01/16  Medically necessary days  11 Benefit days available VC 83  1 LTR  Covered days VC 80  1 Noncovered days VC 81  10 Cost report days  11 OC A3  01/15(includes covered non -utilization period)  OSC 70  01/06 - 01/15  Room & Board revenue code   11 Total & Covered units  Medicare approved revenue codes  Charges in covered  Reimbursement  Full DRG payment, no cost outlier  Beneficiary Liability:  LTR copayment amoun t  EXAMPLE 2: No Cost Outlier, Coinsurance Days available and Exhaust prior to discharge  Dates of Service  01/05 - 01/16  Medically necessary days  11 Benefit days available VC 82  3 Coinsurance  Covered days VC 80 3 Noncovered days VC 81  8 Cost report days  11 OSC 70  01/08 - 01/15  Room & Board revenue code  11 Total & Covered units  Medicare approved revenue codes  Charges in covered  Reimbursement  Full DRG payment, no cost outlier  Beneficiary Liability  Coinsurance copayment amount   After regular benefits have been exhausted, lifetime reserve days will be used automatically for outlier days unless the beneficiary elects not to use them, or the average daily charges for outlier days to be reimbursed as lifetime reserve days do not exceed the lifetime reserve day coinsurance amount.  (In the latter case the beneficiary is deemed to have elected not to use lifetime reserve days for outlier days.) An election not to use lifetime reserve for outlier days applies to all outlier days in an ad mission.    If the beneficiary had no regular benefit days remaining when admitted, available lifetime reserve days are used automatically for each day of the stay.  Exceptions exist if the beneficiary elects not to use lifetime reserve days, or the charges for which the beneficiary is liable, if electing not use lifetime reserve days, do not exceed the charges for which the beneficiary would be liable if the lifetime reserve days were used.  Using lifetime reserve days, the beneficiary would be responsible for the sum of the coinsurance amounts for the lifetime reserve days that would be used plus the total charges for outlier days, if any, for which no lifetime reserve days are available.  (In the latter case the beneficiary will be deemed to have elected not to use any lifetime reserve days.)   An election by the beneficiary not to use lifetime reserve days applies to the entire stay and precludes any payment for the stay.  A deemed election not to use lifetime reserve days applies to the entire stay and precludes any payment for the stay unless payment may be made under the guarantee of payment.   The number of days for which utilization is charged may be different from the number used in Pricer to compute outlier status or the number of Medicare patient days shown on the cost report.   40.1 - "Day Count" Rules for All Providers  (Rev. 1, 10- 01-03)  A3-3620   See 40.2.A  for general rules on counting days.  A. - Day of Admission   For all hospitals, the A/B MAC (A) counts the day of admission for the cost report and for utilization.  For PPS hospitals, it counts the day of admission for Pricer purposes unless the rules for same day transfer apply.   B. - Day of Discharge, Death, or Beginning a Leave of Absence   The A/B MAC (A) does not count the day of discharge or death for cost report, utilization or Pricer purposes unless the admission and discharge day are the same day.  Where admission and discharge occur on the same day, it counts one day for cost report, utilization and Pricer purposes.  If the patient is admitted with the expectation that the patient will remain overnight, but is discharged or dies before midnight, it counts the day for the cost report, utilization and Pricer.  It does not count any days i n a leave of absence (occurrence span code 74), for cost report, utilization or Pricer purposes.  C. - Same Day Transfer From Participating Hospital to Nonparticipating Hospital or Nonparticipating Distinct Part of Hospital   If the beneficiary is admitted to a PPS hospital with the expectation that the beneficiary will remain overnight, but is transferred to a nonparticipating provider or a nonparticipating distinct part of the same provider before midnight, the A/B MAC (A) counts the day for the cost report, utilization and Pricer.  If the beneficiary is admitted to a non- PPS hospital with the expectation that the beneficiary will remain overnight, but is transferred to a nonparticipating hospital or a nonparticipating distinc t part of a hospital before midnight, the A/B MAC (A) counts the day for cost report and utilization purposes.  D. - Same Day Transfer From Participating Hospital to Participating Hospital   If the beneficiary is transferred to a participating hospital or distinct part of a participating hospital, the A/B MAC (A) counts the day, if it is determined to be covered, for the cost report and for Pricer at both hospitals.  However, it charges utilization on the bill only for the later admission to avoid charging the beneficiary twi ce for the same day.  The earlier admission, for which the A/B MAC (A) does not charge utilization, can be recognized by condition code 40 (same day transfer), and the same date entered in the "From" and "Through" dates in CWF.   E. - Guarantee of Payment Days   There can be up to fourteen guarantee of payment days (8 days plus weekends and Federal holidays) beginning with the date in occurrence code 20.  The A/B MAC (A) does not charge utilization, as the beneficiary has no days remaining, but counts guarantee of  payment days for the cost report and Pricer.   F. - Provider Liability Issue   When the A/B MAC (A) or the QIO finds the provider liable, the A/B MAC (A) or the QIO determines the cause for provider liability prior to making any decision regarding utilization.  If the provider is technically liable, i.e., liable for reasons other tha n custodial care or medical necessity of the services, the A/B MAC (A) shows the dates of provider liability in occurrence span code 77, and counts the days for utilization, but not for cost report or Pricer purposes.  If the provider is liable because ser vices were not medically necessary or were custodial care, the A/B MAC (A) shows the dates of provider liability in occurrence span code 79 and does not count the days for cost report, utilization or Pricer purposes.   G. - Special Rules Which Differ for PPS and Other Providers   If Part A payment may be made for a hospital stay under PPS (i.e., there is at least one Medicare patient day, guarantee of payment day, or day for which the program is liable to the hospital under the limitation of liability provision), the A/B MAC (A) tr eats all days as covered for cost report purposes, except as provided below.  It applies this same rule when per diem payments are made to a transferring PPS hospital, whether for all or part of a stay, or when a PPS hospital requests outlier payment, whet her or not such payment is made.  For non- PPS hospitals, PPS exempt units and SNFs, it counts the number of days available to the beneficiary for all purposes.   Where outlier status is involved and there are either pre -entitlement days or days after benefits were exhausted, the A/B MAC (A) reduces cost report days by the lesser of the number of pre -entitlement/post-benefits exhausted days or the number of days in the stay in excess of the outlier threshold.  1. Length of Stay Does Not Exceed the Day Outlier Threshold (Day outliers discontinued after FY 97)   The A/B MAC (A) counts all days (including day of admission, but not the day of discharge or death, unless it is also the day of admission) as covered for cost report and Pricer purposes.  It does not count those medically unnecessary days for which the pr ovider meets notice requirements and other conditions for charging the beneficiary.  (See 40.2.2 C and D .)  It does not count those medically unnecessary days for cost report or Pricer purposes.  It counts the actual number of days available to the beneficiary for utilization.   2. Length of Stay Exceeds the Day Outlier Threshold (Day outliers discontinued after FY 97)   The A/B MAC (A) counts all days (including the day of admission, but not the day of discharge or death unless it is also the day of admission) in the stay for cost report and Pricer purposes except as follows:   a. Pre-entitlement Days