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AIAAOPA in Advance

Breaking News for O&P Professionals
December 24, 2007 ♦ Volume 11 Number 25
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O&P News 
CMS announces DMEPOS Accreditation Deadline
 
During the special DMEPOS Open Forum conference call on Wednesday, Dec. 19, 2007, CMS announced that all existing DMEPOS suppliers will have to become accredited by Sept. 30, 2009 in order to bill and receive payment from Medicare. After that date, in order to keep your NSC number and your ability to bill for Medicare services, you must meet the Medicare quality standards and be accredited. If you do not, your NSC number will be revoked. The deadline for new suppliers has yet to be announced. Medicare will do this in upcoming MedLearn Matters articles and revisions to the Medicare manuals.     
 
As a part of the Medicare Modernization Prescription Drug and Improvement Act of 2003 (MMA), all DMEPOS suppliers must meet certain quality standards and become accredited in order to do business with Medicare (This requirement is not connected to the competitive bidding program).  The quality standards can be located on CMS’ Web site. CMS has deemed ten organizations as accrediting bodies for DMEPOS suppliers.  The list of accrediting bodies can be found on CMS’ Web site
 
CMS stressed that suppliers should start the process early, as most accreditation processes take some time to complete. Waiting until the last minute may cause you to lose your NSC number. 
 
CMS also stated during the call that all suppliers of DMEPOS, including podiatrists and physicians supplying orthoses, prostheses and diabetic shoes and inserts to their patients will also have to become accredited in order to bill the DME MAC for these items.
 
Questions?  Contact Daniel Gurley at dgurley@AOPAnet.org or (571) 431-0812.
 
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2008 Medicare DMEPOS Fee Schedule Released

The Center for Medicare and Medicaid Services has released the 2008 Medicare DMEPOS Fee Schedule.  Barring any last minute action by Congress, existing HCPCS codes will receive a 2.7% increase in Medicare allowables over 2007 levels.  This increase matches the increase in the Consumer Price Index for Urban consumers (CPI-U) from July 2006 through June 2007.  The CPI-U is used to determine the annual increase in O&P fees. 
 
 
New codes that directly replace deleted HCPCS codes have been assigned Medicare Allowables that are effective Jan. 1, 2008. New codes that do not replace any deleted codes will be paid under Individual Consideration until July 2008, when fee schedules for these codes will be published.  
 
A link to the full 2008 DMEPOS Fee schedule may be downloaded here 

Questions? Contact Joe McTernan at jmcternan@AOPAnet.org or (571) 431-0811. 


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2008 Medicare Bill Passed
 
After months of debate, Congress passed a Medicare bill that funds the program through the first half of 2008. The good news is that there do not appear to be any fee cuts that would impact O&P provider fees under Medicare. The 2.7% increase in the Medicare fee schedule for O&P is on track to take effect Jan. 1, 2008. The Medicare bill includes a six-month fix to avoid the 10% cuts that would have been triggered under the Medicare physician fee schedule. This “correction” will be paid for by some modest reductions to the Medicare Advantage (managed care) program. 
 
So the battle and discussions over making some substantive changes to Medicare, including, but not limited to, the Medicare physician fee schedule, will simply go on through the first six months of the New Year. That means Congress and physicians are likely to find themselves in June, 2008 facing the prospect of a large scale reduction in Medicare physician fees, but in an even less favorable, more politically charged environment of election-year politics.

AOPA will continue to represent the needs of orthotic and prosthetic professionals, press the effort for Medicare refinements to fight fraud and abuse, promote the qualifications of O&P providers, and monitor this Medicare situation. We will report any updates about Medicare spending as soon as they become available to us.
 
Questions? Contact Steven Rybicki at srybicki@AOPAnet.org or (571) 431-0835. 

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Department of Justice Expands Medicare Fraud Strike Force
The United States Department of Justice (DOJ) recently announced that they are converting their Medicare Fraud Strike force currently operating in Miami, FL from temporary status to permanent status. The DOJ also announced that they are expanding the program into Houston and Los Angeles, two additional hotbeds of Medicare fraud.
 
A spokesman for DOJ cited the success of the programs in Miami as the primary reason for the expansion.  After operating for only part of 2007, the strike force brought cases against 120 individuals who billed Medicare for more than $408 million in Miami-Dade County alone.  DOJ hopes that the expansion of the strike force will serve as a deterrent to those who consider committing Medicare fraud.
 
Questions? Contact Joe McTernan at jmcternan@AOPAnet.org or (571) 431-0811.
 
 

Membership Renewal Deadline Approaching: Dec. 31st!
 
Don’t miss a day of AOPA 2008 – renew your membership today. This valuable resource for coding and billing issues and other AOPA services ends unless AOPA receives your membership renewal. Call Michael Chapman at (571) 431-0843 if you need another invoice or to review the reasons you should renew TODAY!
 
Questions? Contact Michael Chapman at mchapman@AOPAnet.org or (571) 431-0843.
 
 


 

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Fast Fact

For 2005, the upper limb orthotic code with the highest usage was L3908 (wrist extension control cock-up WHO, non-molded, prefabricated) with 212,579 frequencies.  These billings resulted in a total allowed of $9,185,595.  Medical supply companies led billing with 31 percent of the total frequencies, followed by orthopedic surgeons at 25 percent and pharmacies at 13 percent.  No other specialty billed more that 5 percent of the total frequencies.
 
 

Coding Corner: Functional Level Modifiers
 
One of the most common reasons for Medicare denial of prosthetic claims is the omission of functional level modifiers on knee, ankle, and foot components. These modifiers are mandatory on these components and must be included in order for Medicare to process your claim. The modifiers and their descriptors are as follows:
 
K0: Does not have the ability or potential to ambulate or transfer safely with or without assistance and a prosthesis does not enhance their quality of life or mobility.

K1: Has the ability or potential to use a prosthesis for transfers or ambulation on level surfaces at fixed cadence. Typical of the limited and unlimited household ambulator.

K2: Has the ability or potential for ambulation with the ability to traverse low level environmental barriers such as curbs, stairs or uneven surfaces. Typical of the limited community ambulator.

K3: Has the ability or potential for ambulation with variable cadence. Typical of the community ambulator who has the ability to traverse most environmental barriers and may have vocational, therapeutic, or exercise activity that demands prosthetic utilization beyond simple locomotion.

K4: Has the ability or potential for prosthetic ambulation that exceeds basic ambulation skills, exhibiting high impact, stress, or energy levels. Typical of the prosthetic demands of the child, active adult, or athlete.
 
 

Refresher on Business Associate Agreements
 
The Health Insurance Portability and Accountability Act (HIPAA) Privacy rule requires that you enter into contracts with your business associates to ensure that they protect your patients' protected health information (PHI). A business associate is anyone who, on your behalf, performs a function or activity involving the use of your patients' PHI. Business associates include your medical malpractice insurers and their underwriting agents, who may need access to your patients' PHI when handling a claim. Business associate agreements are not required when the sharing of PHI is for treatment of the patient. In other words, you do not need a business associate agreement between you and a hospital, referring physician, skilled nursing facility, etc.    
 
Business associates also include accrediting agencies that review your patients’ files as part of the accrediting process. ABC has indicated that it has included a business associate agreement in its accrediting application process.  However for other accrediting bodies, you should contact them directly for further information. 
 
Questions?  Contact Daniel Gurley at dgurley@AOPAnet.org or (571) 431-0812.
 
 
Click on the 2008 Media Planner

Find out how AOPA can help you promote your products in 2008!

AOPA members save 30% on advertising in the O&P Almanac and AOPA Yearbook.


Contact Amy Clontz at (888) 557-7277, option 2, for a free quote and marketing assessment.

Shape Your Future in Less Than Fifteen Minutes
 
AOPA’s member survey gathers data that will help the entire field understand the implications of change happening every day that affects your business ranging from patient care issues, reimbursements, threats and opportunities. Your response requiring less than fifteen minutes of your time can be one of the best investments you can make in your future. Go to the AOPA Web site and complete the easy, user friendly, online version. You don’t even have to have your AOPA member ID – just create your own unique user name and password specifically for this survey.

Questions? Contact Steven Rybicki at srybicki@AOPAnet.org or (571) 431-0835.
 
 

Don’t Miss the B.O.A.T. – It’s On The Way!
 
Are you satisfied with your business’ profitability? If the answer is no (and it should be) then don’t miss the B.O.A.T. The Business Optimization Analysis Tool (B.O.A.T) will have its pre-launch Beta testing beginning in January. All of the participants in the 2007 Operating Performance and Compensation study invited to enjoy a six month free subscription to this sophisticated “profit building” tool, while they also function as the Beta testers. The B.O.A.T provides a private and secure Web site for each subscriber that brings together in one place an orderly process for evaluating your economic and business health; measuring your external market and competition; analyzing your management processes and their effectiveness, including patient care practices; and benchmarking financial results against budget and peer top performers.
 
The B.O.A.T. Workgroup reviewed the site in early December and one member exclaimed, “that it far exceeded my expectations.” That workgroup is chaired by Tom Kirk and its members include Anita Liberman-Lampear, Rod Cheney, CPO, FAAOP and Rick Fleetwood. Industry Insights, the same firm that does AOPA’s Operating Performance and Compensation Report has created the site to the B.O.A.T. Workgroup’s specifications and will maintain the site ensuring the confidentiality of all data. For the OPC participants, Industry Insights will populate their Web pages with the financial operating data they supplied for 2006 and 2005 which gives users an instant history for comparing 2007 and future results.  No one from AOPA will have access to any of the site’s individual data.

Questions? Contact Steven Rybicki at srybicki@AOPAnet.org or (571) 431-0835.
 
 

Your Help Needed for National Media Opportunities
 
AOPA is seeking the help of members in identifying insured amputee patients that have been denied coverage for the appropriate prostheses. As a result of efforts by the Amputee Coalition of America (ACA), the O&P field has a wonderful window of opportunity, with the right patient story, to have this kind of story aired on ABC’s Good Morning America. AOPA is assisting the ACA in trying to find that “right” person to follow-up on the interest media has expressed in this story.  If your facility has a patient or knows of an individual who would fit this “profile”, please contact Steven Rybicki at srybicki@AOPAnet.org or (571) 431-0835.

Even beyond the recent interest in this particular story, having the right person with the right story can put the spotlight on a disparity in coverage that has frustrated so many amputees seeking to recover their former productive lives. National media exposure on Good Morning America, the Today Show or other high profile programs can be a springboard for more extensive media exposure and AOPA is trying to identify patients on an ongoing basis who might be willing to share their story.  In addition to conveying important messages, our field may see results  that can help make legislators more knowledgeable in the various states which are considering “parity” legislation, and as they consider Medicare, VA and Medicaid policy and research priorities relative to O&P.
 
 
O&P Resources from AOPA 
LCodeSearch.com: Quick Response to Coding Questions
 
LCodeSearch.com is gaining momentum as more and more AOPA members are logging into this Web based quick reference site on appropriate coding for hundreds of O&P products. AOPA member manufacturers are adding their products and codes to the site and the AOPA Coding and Reimbursement Committee is verifying accuracy and resolving any coding questions. If you don’t see products of a favored manufacturer already on the site, remind them that as an AOPA member their products can be added to the site free of charge. All manufacturers will be given an opportunity to enhance their listings, enabling them to communicate extensive product information and post pictures, for a modest annual fee, covering all products posted on the site.

Questions? Contact Devon Bernard at dbernard@AOPAnet.org  or (571) 431-0854.

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2008 AOPA Policy Forum: A Must for You and O&P
 
Plan now to make your voice heard with members of Congress March 9-11, 2008 during the AOPA Policy Forum. During this critical election year, it’s vital that the members of the orthotic and prosthetic profession make their presence known, register their views, and get the latest information on what Washington issues may threaten their future. Top policy makers, legislators, and O&P leaders will headline a program that promises more impact on Medicare decision making than any other event in the O&P field next year. More details to come, but mark your calendar and help secure your future. Individual visits with legislators will be scheduled by AOPA and their lobbying firm, Alston Bird.

Questions?  Contact Daniel Gurley at dgurley@AOPAnet.org or (571) 431-0812. 


Need Help? Find It Here.

Reach more prospective employees with the only interactive, O&P-specific online employment network: the O&P Job Board.

AOPA members pay only $80 to post a job. 
Contact Corrinn Mullins at cmullins@AOPAnet.org or (571) 431-0860.

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AOPA and Chase: If You’re Paying More Than 1.9%, You’re Paying Too Much

AOPA members should check their current credit card processing rate to determine whether it makes sense to switch to the AOPA Chase Paymentech program with processing fees as low as 1.9%. Savings can amount to “found” dollars for the bottom line.  As an example, if your current rate is 2.5% or more and you process $500,000 annually in credit card payments — the .6% savings can mean another $3,000 to the bottom line. That’s like a patient care facility getting a 200% return on their annual dues investment in AOPA. Or it’s the same as getting two years of AOPA membership free!

Check your rate and if you’re paying too much, call AOPA’s dedicated payments expert, Eric Mock, at (214) 849-3603. Be sure and mention your AOPA membership.

Questions? Contact Michael Chapman mchapman@AOPAnet.org or (571) 431-0843.
 
 

Limited Supply: End of Year Clearance
 
The AOPA Bookstore’s limited supply of year-end inventory can save you BIG DOLLARS.  Among the terrific values are the O&P Business and Clinical Forms (Version 2) the Coding and Billing suite and the Coding & Billing/Mastering Medicare (Version 2) combo deal.

You can also pre-order the 2008 Coding Suite, which will be available in March!

Check out the specials on the AOPA Bookstore’s Web site or call the AOPA Bookstore at (571) 431-0865.
 
 

October 18 Medicare Audio Seminar Now Available on CD
 
The “Guidelines on Billing Different Venues & Should I Participate with Medicare?” audio seminar is now available for purchase on CD from the AOPA Bookstore. This seminar covers the complex rules of who to bill for services in various venues, from inpatient hospitals and SNFs to home health and hospice care.  It covers not only the Two Day Rule, but also the differences in billing between orthotic and prosthetic care. In addition, this seminar discusses the pros and cons of Medicare participation and what it can mean to your facility’s bottom line.
 
The cost is $99 for AOPA members and $199 for non-members. CDs may be purchased on the AOPA Web site; please visit the AOPA bookstore to order.
 
Each informative audio seminar is worth 1.5 continuing education credits.  Past topics, also available on CD, include:  “Medicare Changes for 2007:  New Codes, New Fees, New Medical Policies;” “Why Was My Claim Denied?  Hints on Minimizing Claims Denials;” “The New CMS-1500 Form:  Get It Right the First Time;” and “Hints on Billing for Diabetic and Orthopedic Shoes.”
 
The schedule and list of topics for 2008 will be posted to the AOPA Web site as soon as it’s announced.

Questions? Contact Erin Kennedy at ekennedy@AOPAnet.org or call (571) 431-0834.
 
 

National Assembly Planning Already Under Way
 
The 2008 Assembly Advisory Committee met in Chicago to start mapping out plans for next year’s Assembly (Sept. 10-13, 2008). Russ Hornfisher of Becker Orthopedic Appliance Company chaired the Advisory Committee and led the tour of the Hyatt Regency Chicago facilities, chairing the working lunch and overseeing the process of planning the biggest and best National Assembly event ever. 
 
Expect some changes reflecting the evaluations completed by members at the 2007 National Assembly including high-level speakers and programs that spark that “wow” quality.  Contributing to the success of the event is its outstanding location in the heart of Chicago’s booming commercial area. It’s a short walk to the best restaurants, top tourist attractions and the Miracle Mile.

Questions? Contact Tina Moran at tmoran@AOPAnet.org or (571) 431-0808.

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O&P Insider's Track
The Only Up-to-the Minute O&P Newsline
People In the News

Tammy Schulte, CO has joined the staff of OrPro Prosthetics & Orthotics clinical practice in Waldorf, Maryland.
 

Send Us Your News!
New employee? New office? Tell us! Share your news with the over 15,000 readers of the O&P Almanac and AOPA In Advance newsletter. Contact Steven Rybicki at srybicki@AOPAnet.org.

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AMERICAN ORTHOTIC & PROSTHETIC ASSOCIATION (AOPA)

American Orthotic & Prosthetic Association (AOPA)
330 John Carlyle St., Suite 200, Alexandria, VA 22314
Tel: (571) 431-0876, Fax: (571) 431-0899
www.AOPAnet.org