Avoid Anticipated Medicare Mandatory Reporting Penalties

July 29, 2020

hands on a calculator and keyboard to illustrate Medicare Mandatory Reporting Rules

Nancy Grover of workerscompensation.com wrote an in-depth article on Tower MSA Partner’s “Avoiding Medicare Mandatory Reporting Penalties” webinar.  CMS is considering comments received to its proposed regulation that included penalties as high as $1,000 per day per claim. Final regs could publish any time. 

“There probably won’t be a lot of changes [in the final rule],” said Tower’s Chief Compliance Officer Dan Anders, who presented the webinar with Jesse Shade, VP of Information Technology.

Penalties could be imposed on organizations for not reporting a claim closure at all, exceeding error tolerance, or reporting contradictory information at different times. The article quoted Anders’ “contradictory information” example of a Medicare beneficiary with work-related injury on his right shoulder and a diagnoses code indicating the injury was on the right knee.

“CMS would have conflicting information. Even if the error is subsequently corrected, CMS could still impose a penalty of up to $365,000 [for a year],” he said.

To avoid penalties from even minor mistakes, Anders recommended that attendees note the omission of data, confirm the correct use of diagnosis codes, be sure to promptly report termination of ongoing responsibility for medicals or ORM.

“And ensure you have a reporting platform that is identifying potential errors and is working with you … to resolve errors and avoid penalties,” he said.

Tower is well positioned to serve as your reporting agent partner.  The company proactively developed its own Section 111 Mandatory Reporting dashboard, which Shade demonstrated on the webinar. He showed the many ways the platform helps users identify possible mistakes, address missing data points, confirm ICD9 and ICD10 codes, and run reports to direct their efforts.   Incorporating all the elements CMS examines, the dashboard simplifies and automates the process for users.

The dashboard is ready to roll as soon as CMS publishes the final regs.  As usual, Tower is ahead of the game — meeting clients’ needs before they know they have them.

Related

PREMIER WEBINAR: Avoiding the Medicare Mandatory Reporting Penalty

CMS Releases Updated Section 111 and MSPRP User Guides – Schedules Reporting Webinar

July 17, 2020

CMS User Guides for Section 111 Reporting. open book with colored page markers

New CMS User Guides released.

The Centers for Medicare and Medicaid Services (CMS) recently released updated user guides for Non-Group Health Plan MMSEA Section 111 Mandatory Insurer Reporting and the Medicare Secondary Payer Recovery Portal (MSPRP).  CMS also just announced an August webinar on Section 111 reporting matters.

CMS User Guides: Updated MMSEA Section 111

On June 29, CMS released Version 5.9 of the NGHP MMSEA Section 111 User Guide.  Highlights of the updated user guide:

  • A reminder has been added that while the threshold for physical trauma-based liability insurance settlements remains at $750, this threshold does not apply to non-trauma liability reporting for alleged ingestion, implantation, or exposure cases. Any settlement, regardless of amount, should be reported for these types of cases. (Sections 6.4.2, 6.4.3, and 6.4.4).
  • The limit dollar amount that triggers a threshold error has been adjusted from $99,999,999 to $99,999,999.99. This error occurs any time the No-Fault Insurance Limit amount or the cumulative value of all reported TPOCs (detailed and auxiliary records) exceed this limit. Additionally, the No-Fault Insurance Limit field number has been corrected under “Exceptions.” (Section 7.3.2).
  • When considering the requirements for the Ongoing Responsibility for Medicals (ORM), remember, per current policy, that the dollar limit for No-Fault Insurance Limits (Field 61) represents a combined total of Med-Pay and Personal Injury Protection (PIP) (Section 6.7.1).
  • When considering the requirements for the Ongoing Responsibility for Medicals (ORM), remember, per current policy, that the dollar limit for No-Fault Insurance Limits (Field 61) represents a combined total of Med-Pay and Personal Injury Protection (PIP) (Appendix A).
  • The CR02 claim response file error code field number has been corrected (Appendix F) (Table F-4).

CMS User Guides: Updated MSPRP

On July 13, CMS released Version 4.9 of its MSPRP User Guide.  The MSPRP is a web-based application which allows authorized users to, among other tasks, investigate, dispute and resolve Medicare conditional payments.  Updates can be found on page 1-1 of the user guide.  Significantly, users can now view and print outgoing correspondence from the MSPRP.  This is correspondence that has been received or letters that have been sent related to a BCRC or CRC case.

Section 111 Reporting Webinar

CMS will be hosting a Section 111 NGHP webinar on August 13, 2020 at 1:00 PM ET.  According to the notice, “the format will be opening remarks by CMS followed by a presentation that will include NGHP reporting best practices and reminders.”  The webinar notice can be found here.

If you have any questions regarding the updates, please contact Dan Anders, Chief Compliance Officer at daniel.anders@towermsa.com or 888.331.4941.

Time for an MSA Do-over?

July 8, 2020

CMS User Guides for Section 111 Reporting. open book with colored page markers

Is it time for an MSA do-over for open claims? Given the amended review process, we think it is.

Michael Stack’s recent article – Case Study: $101,312 Savings Through MSA Amended Review Process – in www.reduceyourworkerscomp.com points out that not every claim with a CMS-approved MSA settles on the first attempt. The piece describes one of CMS’s rare do-over opportunities, the Amended Review process.  

In the past, once an MSA had been approved by CMS, that was it.  If the claim didn’t close and subsequent changes in medical treatment reduced the MSA’s allocated costs, that was too bad. 

Process change allows for a productive MSA do-over

Fortunately, the agency changed its stance in 2017 and now allows the submission of revised MSAs to reflect changes in medical treatment and costs. Naturally, the claims need to meet certain criteria, which the article clearly outlines.

Stack, a highly regarded expert in workers’ compensation cost containment, illustrates his points with one of Tower’s Amended Review case studies, which resulted in savings of over $100,000.

During the economic fallout of COVID-19, some injured workers are re-thinking their earlier decisions to not settle their cases.  This is a good time to pull out any unsettled claims with MSAs, consider the Amended Review process and reopen settlement talks.

For more information, please see our Chief Compliance Officer Dan Anders’ earlier posts on Amended Reviews:

 

Contact Dan at Daniel.Anders@TowerMSA.com with any questions; he will be happy to help you determine if this program can help you close any of your claims.