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ASA NEWSLETTER
 
 
November 2001
Volume 65
Number 11
   
Medicare Coverage and Compliance in Pain Management

Allan R. Escher, Jr., D.O.
Lawrence S. Gorfine, M.D.
Committee on Pain Medicine


On June 14, 2001, Health and Human Services Secretary Tommy Thompson announced a series of measures to reform the operations of the Centers for Medicare & Medicaid Services (CMS), known then as HCFA, and to improve service for the nearly 40 million Medicare and 37 million Medicaid beneficiaries and their physicians. The administrator of CMS, Thomas A. Scully, announced three new initiatives to make CMS “responsive, efficient and accessible.” First, Mr. Scully proposed the creation of Open Door Policy Committees chaired by himself and other senior-level staff who will hear from providers and beneficiary groups in the formulation of policy input. Second, Regional Forums open to the public would gauge the effects of CMS policies. Lastly, Mr. Scully proposed the creation of in-house expert teams to think “out of the box” on ways to simplify regulations and decrease administrative burdens. Indeed, such proposals are certainly positive and hopefully will be of benefit to all physicians.

Pain management patients can present challenges in both diagnosis and treatment plans. Many patients may have several pain conditions requiring the involvement of a multidisciplinary approach.

Frequently, the greatest challenge is formulating a treatment plan that will benefit the patient and also stand up to the scrutiny of Medicare and other third-party payers. To help meet this goal, a new Medicare Web site can be reached at <www.hcf.gov/medicare/mr>. This Web site is an educational tool to help physicians, other providers and the public better understand the coverage decision process and to answer common questions. An area of recent heightened media attention is Medicare fraud.

Many physicians are afraid of fines or even jail for innocent mistakes. The site provides a brief overview of the government’s main enforcement tool, the False Claims Act. This act covers offenses “committed with actual knowledge of the falsity of the claim, reckless disregard of the truth or falsity of the claim or deliberate ignorance of the truth or falsity of the claim.” The other remedy of the federal government is the Civil Monetary Penalties Law, which has the same standard of proof. In summary, CMS attempts to distinguish between innocent errors and negligence (erroneous claims) as opposed to reckless or intentional conduct (fraudulent claims).

To reduce the incidence of errors, CMS established the Medicare Integrity Program (MIP). An overview of the MIP is provided in the form of a 12-chapter manual that gives examples of fraudulent activities, program memoranda and guidelines. Medical Review, Benefit Integrity and Medicare Integrity Program Provider Education and Training (MIP-PET) are discussed in chapter one; also of benefit are separate exhibits and archives to illustrate the policies regarding Medicare integrity.

CMS established new contracting entities called the Program Safeguard Contractors (PSCs). A PSC can perform with CMS authority any or all of the following: medical review, cost-report audits, data analysis, provider education and fraud protection. A common fallacy is the belief that PSCs get bonuses (bounties) for dollars recovered from providers. CMS is quick to point out that MIP funding is stable and that all monies recovered are returned to the Medicare Trust Fund. Physicians may proactively conduct self-audits to identify coverage and coding errors using the Office of the Inspector General Compliance Program Guidelines, which can be found at <www.os.dhhs.gov/oig/modcomp/index.htm>.

The coverage of pain procedures by Medicare is a perennial source of consternation among pain medicine physicians. There are two types of coverage decisions: National Coverage Decisions (NCD) and Local Medical Review Policy (LMRP). NCDs are established by CMS to describe the circumstances for coverage of a specific medical service procedure or device. Once an NCD is published, the decision is binding on all carriers, program contractors, peer-review organizations and Medicare Plus Choice organizations. Of particular importance, the NCD is binding on an administrative law judge during the claims review process. The review process in approving an NCD is rigorous and includes a National Coverage Request Application, Coverage Decision Memorandum and an expert panel review.

CMS contracts with private insurance groups, variously called carriers, intermediaries or PSCs, to process Medicare claims. These “Medicare contractors” then review and render decisions to ensure that the service is covered under Medicare Part A or B. However, “in the absence of a specific national coverage decision, local contractors may make coverage decisions at their own discretion.” Treatment plans can be constrained by LMRPs. This is due to the fact that Medicare carriers establish LMRPs to give guidance to physicians in terms of delivery of care and payment of care within a specific geographic area. Contractor medical directors develop these with input from physicians on advisory committees so that they are “consistent with scientific evidence and clinical practice.” Contractors’ LMRPs may be accessed on a monthly basis on the Web site <www.lmrp.net>.

In Florida, policy number E0782 governs the coverage of implantable infusion pumps. This provides detailed information on such topics as coding guidelines, LMRP description and indications of medical necessity for the system. Approved indications are “Chemotherapy for Liver Cancer,” “Anti-Spasmodic Drugs for Severe Spasticity,” “Opioid Drugs for Treatment of Chronic Intractable Pain” and “Other Uses” approved by the “contractor’s medical staff.” Under the “Other Comments” section, definitions are given ranging from the obvious “chronic: persisting over a long period of time” to the esoteric such as “torsion dystonia.” Under “Advisory Committee Notes,” one learns that this LMRP was developed with input from “representatives of the Florida Society of Anesthesiologists and pain medicine specialists.” This is the ideal way for LMRPs to be formulated, with the active involvement of the relevant specialists.

An example of a denied procedure is percutaneous lysis of epidural adhesions on the basis that it is “not considered medically reasonable or necessary,” or that the procedure is “investigational.” Subjective evidence of clinical benefit to the patient in one’s practice does not translate to Medicare coverage of the service or procedure. Objective outcomes data provide the best tool to shape LMRPs in the advisory committee setting. Physicians must be proactive in the draft process of these LMRPs! One can get involved by contacting the contractor medical director in one’s geographic area and offering one’s expertise in the development of future relevant LMRPs. Also, effective January 1, 2001, contractors began listing draft LMRPs on their Web site, allowing physicians to comment electronically. CMS’ new Web site <www.draftlmrp.net> offers browsing, title searches and expeditious links.

Physicians also can provide input through the Carrier Advisory Committee (CAC) structure. One should become familiar with the physicians on the local CAC. If pain management is not represented on the CAC, one could advocate for its presence. There is definitely a push under Secretary Thompson to empower physicians to give input into coverage decisions by Medicare; recent policy revisions reflect this.

Effective October 1, 2001, there will be annual mandated reviews of all LMRPs. Carriers must revise within 90 days those that contradict NCDs, coverage provisions in interpretive manuals or national payment policies. Changes in transmittal #14 (9/26/01) of the Medicare Program Integrity Manual mandates the following disclaimer be included in all LMRPs: “...Although the final decision rests with the contractor, this policy was developed in cooperation with advisory groups, which includes representatives from [fill in appropriate specialty name].” It is up to physicians to fill in this most appropriate blank.



    Allan R. Escher, Jr., D.O., is a Pain Fellow at University of South Florida, Tampa, Florida.

    Lawrence S. Gorfine, M.D., is Director and President, Southern Pain Institute, Lake Worth, Florida.


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