No Medicare does not equal no contracts. Note: Can't decide if opting out is right for you? Check out last month's article about the pros and cons of opting out of your Medicare contract. 1. Notify Medicare That You're Opting Out First, file an affidavit with your Medicare contractors informing them that your physician is opting out. If you are already a participating provider, CMS states, "To opt out of Medicare, a participating physician must first terminate his or her Medicare Part B participation agreement," says Barbara J. Cobuzzi, MBA, CPC, CENTC, CPC-H, CPC-P, CPC-I, CHCC, president of CRN Healthcare Solutions, a coding and reimbursement consulting firm in Tinton Falls, N.J., and senior coder and auditor for The Coding Network. Tool: The affidavit needs to: • state the date when you will opt out of Medicare • outline the standard terms of the agreement. Example: In the past, you had only one time each year when Medicare allowed you to terminate Medicare participation. You now have more chances as CMS expanded termination options to a quarterly basis: Jan. 1, April 1, July 1, and Oct. 1. Crucial: Don't forget: 2. Create a Patient Contract If your practice decided to opt out of Medicare, but your providers plan to still see Medicare patients (which you can do), you'll need solid patient contracts. "The provider has to have a written 'private contract' with each Medicare beneficiary to whom [the provider] provides any service, except in a life-threatening emergency," explains Will Rodgers, president of Enterprise Medical Billing in Beaumont, Calif. This contract must, among other things, inform your patients that you are no longer part of Medicare and therefore, neither they nor the provider will receive any reimbursement from Medicare.You will be able to treat patients with Medicare coverage just like before, but you won't bill Medicare for the services. Instead, you will bill any secondary or supplementary insurance the patient may have, or bill the patient directly. For example, "Medigap insurance will not pay if you are opted out since Medigap pays only secondary to Medicare payment," Cobuzzi says. Remember: 3. Set Up Internal Processes to Avoid Claim Errors Finally, implement procedures within your office to ensure that: • You never file a Medicare claim • You do not provide the information to your patient to file a Medicare claim. Rule breaker: Don't miss: Resource: "Most of the information on the process and requirements of opting-out can be found in the