Otolaryngology Coding Alert

Juggling two fee schedules for one calendar year could drive the most patient otolaryngologist to pull his hair out. Because the 2002 Medicare Physician Fee Schedule is in effect until March 1, CMS implemented various rules for processing claims incurred during the interim period, including not paying for claims containing new CPT codes and reimbursing at the 2002 rate. So, otolaryngologists will have wait for payment on claims containing 2003 codes and for payment adjustments on 2002 codes.

The CMS Web page includes program memorandum AB-02-181, which explains the schedule's implementation for 2003. The memo directs payers to reimburse claims for services in January and February 2003, and processed before March 1, at the 2002 Physician Fee Schedule rates except for new 2003 codes. Effective March 1, carriers should pay claims including those submitted with January and February dates of service at the 2003 rates.

For claims that contain new codes submitted for services performed Jan. 1 through Feb. 28, insurers will hold claims until March 1 and then pay the services at the 2003 payment rate. CMS encourages physicians and practitioners "not to submit the new calendar year 2003 Medicare Physician Fee Schedule HCPCS codes for services performed during the months of January and February 2003." If the insurers suspend clean claims, however, CMS requires them to pay interest, if applicable. Therefore, Medicare's directives are inconsistent. The agency tells physicians to hold claims with new HCPCS codes until March 1 but offers incentives for submitting them before that date.

In July, CMS will issue automatic adjustments for services with January and February 2003 dates of service that are billed with 2002 HCPCS but paid at the 2003 rates. Physicians do not need to take further action to receive the adjustment payments. Following is a schedule of dates and activities: