1. October 2009 Presentation by EDS Provider Relations Field Consultants UB-04 Billing Medicare Replacement Plans

2. UB-04 Billing – Medicare Replacement Plans 2/ October 2009 Agenda Session Objectives Definition of Medicare Replacement Plans How Medicare Replacement Plans Work Contrast of Medicare Crossover and Replacement Plans Billing Requirements for Crossovers and Replacement Plans Related Web interChange Features Clarification of Crossover and Replacement Plan Reimbursement Eligibility Verification Most Common Denials Helpful Tools Questions

3. UB-04 Billing – Medicare Replacement Plans 3/ October 2009 Session Objectives Provide a clear definition of Medicare Replacement Plans and how they work Explain the critical differences between Medicare Crossovers and Medicare Replacement Plans Clearly define the UB-04 electronic and paper billing requirements for crossovers and replacement plans Provide the knowledge necessary for providers to improve their billing processes with respect to crossovers and replacement plans

4. UB-04 Billing – Medicare Replacement Plans 4/ October 2009 What is a Medicare Replacement Plan? Created by the Balanced Budget Act of 1997 Medicare beneficiaries given the option to receive Medicare benefits through private health insurance plans Replacement of original Part A and Part B plan Sometimes referred to as Medicare+Choice, Part C, Medicare Advantage Plan, or Medicare HMO

5. UB-04 Billing – Medicare Replacement Plans 5/ October 2009 How Replacement Plans Work Plans are approved by Medicare but run by private companies Some plans require referrals to see specialists Premiums, copays, and deductibles often lower Cover all Part A and Part B services Often have networks requiring member to use certain doctors and hospitals Offer extra benefits, such as prescription drug coverage

6. UB-04 Billing – Medicare Replacement Plans 6/ October 2009 Medicare Replacement Plans Health Maintenance Organizations (HMOs) Preferred Provider Organizations (PPOs) Private Fee-for-Service Plans (PFFS) Medicare Medical Savings Account (MSA) Medicare Special Needs Plans

7. UB-04 Billing – Medicare Replacement Plans 7/ October 2009 Medicare Replacement Plans - TPL or Crossover? Replacement plans are considered TPL (Third Party Liability); not Medicare Crossovers This is a critical distinction, as billing requirements and reimbursement are different for TPL vs. Crossover A Medicare crossover is defined as a claim billed to the original Part A and Part B plan, which is covered –Noncovered claims, should be billed separately to Medicaid as a TPL –Attach copies of the Medicare Remittance Notice Medicare Replacement Plans, and all other insurances, other than the original Medicare Part A and Part B plans, are considered TPL

8. UB-04 Billing – Medicare Replacement Plans 8/ October 2009 UB-04 Billing – Medicare Replacement Plans Medicare Replacement Plans will not automatically cross over from the Medicare carrier to Medicaid Medicare Replacement Plans can be submitted via Web interChange –Coordination of Benefits information must be entered at the header level, but not required at the detail level –Must use the Attachment feature, and mail the Medicare Remittance Notice (EOB) as an attachment, along with an Attachment Cover Sheet –The words Medicare Replacement Policy must be written on the attachment –The words Medicare Replacement Policy should be entered in the Notes section

9. UB-04 Billing – Medicare Replacement Plans 9/ October 2009 UB-04 Billing – Medicare Replacement Plans Paper claims should be submitted to the regular IHCP claims address –P.O. Box 7271 –Indianapolis, IN 46207-7271 Enter the payment received from the Medicare Replacement Plan in the Prior Payments field 54 A-C Enter the words Replacement Plan in the Payer Name field 50 A-C Do not enter any reference to Medicare in Payer Name field, as this causes the claim to be treated as a crossover claim

10. UB-04 Billing – Medicare Replacement Plans 10/ October 2009 UB-04 Billing – Medicare Replacement Plans Submit a copy of the Medicare Remittance Notice The words Medicare Replacement Policy must be written at the top of the claim form and on the attachment Standard Medicaid prior authorization rules apply to these claims Standard Medicaid timely filing limits apply to these claims –No filing limit for Medicare crossovers

11. UB-04 Billing – Medicare Replacement Plans 11/ October 2009 UB-04 Billing – Medicare Replacement Plans The following slides illustrate how to access the Web interChange screens to enter benefit information at the header Medicare Replacement Plans, and to enter Attachment and Note information

12. UB-04 Billing – Medicare Replacement Plans 12/ October 2009 Web interChange – Claims Processing Menu

13. UB-04 Billing – Medicare Replacement Plans 13/ October 2009 Institutional Claim

14. UB-04 Billing – Medicare Replacement Plans 14/ October 2009 Coordination of Benefits

15. UB-04 Billing – Medicare Replacement Plans 15/ October 2009 Coordination of Benefits

16. UB-04 Billing – Medicare Replacement Plans 16/ October 2009 Attachment Information

17. UB-04 Billing – Medicare Replacement Plans 17/ October 2009 Claims Attachment Cover Sheet

18. UB-04 Billing – Medicare Replacement Plans 18/ October 2009 Reimbursement Medicare Replacement Plan reimbursement is equal to the Medicaid allowable minus the payment from the Medicare Replacement Plan carrier Reimbursement is based on the aggregate (totals), not line-by-line calculations, for both crossovers and replacement plans The excess of the providers charges over the combined Medicare and Medicaid payments must be written off; it cannot be charged to the member

19. UB-04 Billing – Medicare Replacement Plans 19/ October 2009 Eligibility Verification For a member with a Medicare Replacement Plan, the Web interChange Eligibility Inquiry screen will indicate that the member has Medicare Part A and Medicare Part B No information will appear about the Medicare Replacement Plan in the Third Party Carrier section

20. UB-04 Billing – Medicare Replacement Plans 20/ October 2009 Most Common Denial Codes Edit 2502 Recipient Covered by Medicare Part B or D (with attachment) Cause –The member is covered by Medicare Part B and has a Medicare Replacement Plan, but the attachment does not adequately document the replacement plan Resolution –Electronic Verify Medicare Replacement Policy is entered in the Notes section Verify the name of the replacement/HMO is entered in the Benefit Information window –Paper Verify the Medicare Replacement Plan payment is indicated in field 54 A-C Verify Medicare Replacement Policy is written at the top of the claim and the attached Medicare Remittance Notice

21. UB-04 Billing – Medicare Replacement Plans 21/ October 2009 Most Common Denial Codes Edit 2501 Recipient Covered by Medicare Part A (with attachment) Cause –The member is covered by Medicare Part A and has a Medicare Replacement Plan, but the attachment does not adequately document the replacement plan Resolution –Electronic Verify Medicare Replacement Policy is entered in the Notes section Verify the name of the replacement/HMO is entered in the Benefit Information window –Paper Verify the Medicare Replacement Plan payment is indicated in field 54 A-C Verify Medicare Replacement Policy is written at the top of the claim and the attached Medicare remittance notice

22. UB-04 Billing – Medicare Replacement Plans 22/ October 2009 Helpful Tools IHCP Web site at www.indianamedicaid.com www.indianamedicaid.com IHCP Provider Manual (Web, CD- ROM, or paper) Customer Assistance Written Correspondence Provider field consultant Avenues of Resolution

23. UB-04 Billing – Medicare Replacement Plans 23/ October 2009 Questions

24. October 2009 Office of Medicaid Policy and Planning (OMPP) 402 W. Washington St, Room W374 Indianapolis, IN 46204 EDS, an HP Company 950 N. Meridian St., Suite 1150 Indianapolis, IN 46204 EDS and the EDS logo are registered trademarks of Hewlett-Packard Development Company, LP. HP is an equal opportunity employer and values the diversity of its people. © 2009 Hewlett-Packard Development Company, LP.