HCAC e-news
October 27, 2003 ~ Published by Home Care Association of Colorado

DUAL ELIGIBLE PATIENTS

AND THE HOME HEALTH ABN

A guest article by Peggy Waldon
Quality Management Coordinator & HIPAA Privacy Officer, Best Care, Inc., Denver, Colo.
Member of HCAC Reimbursement/Regulatory Council

 

Many agencies have been faced with the dilemma of how to obtain a Medicare denial in order to bill Medicaid for a patient who is dual eligible and is not homebound, or does not have a Medicare skilled need. Agencies have in the past received conflicting and confusing information from many sources. Therefore the Home Care Association of Colorado (HCAC) Regulatory and Reimbursement Council arranged to meet via teleconference with representatives from Cahaba (Medicare Intermediary), ACS (Medicaid Intermediary), CMS Region VIII, Health Care Policy and Financing (HCPF – Medicaid), The National Association of Home Care (NAHC) and the Massachusetts Home Care Association. The teleconference was conducted in order to establish a clear process for dealing with the dual eligible patient who is not eligible for Medicare home health coverage for the episode of care and how to indicate that to Medicaid so services can be billed and reimbursed in a timely manner. The following process was agreeable to all participants at the close of the teleconference.

SCENARIO:

A dual eligible patient is referred to the agency for skilled services (RN, PT, OT, ST, CNA). During the initial assessment (open visit) the patient indicates that they are not homebound and do not intend to be homebound while receiving care from the agency.

The caregiver doing the open should do the following…

  • Explain to the patient/client/family that they are eligible for Medicare and Medicaid, but since Medicare requires the patient to be homebound for services to be delivered and the patient is not homebound, Medicaid may be the payer of choice.
  • The patient must sign the Home Health Advance Beneficiary Notice (HHABN). The form must be the new Form No. CMS-R-296 (June2002) required to be used as of 9/1/03. [The new form and directions can be found at the following web sites: www.cms.gov/providers/hha - this is a good general reference site; and www.cms.gov/medlearn/refhhabn.asp  - which takes you right to the site. Go to the ABN section for updates. Copy the form into Word and revise as needed at the top to include your agency name.]
  • Be sure to read and follow all directions exactly, even if you need to add necessary information.
  • The HHABN gives the patient three choices, Options A, B, and C.

Option A: requests that the agency get an official denial from Medicare.

Option B: gives two options

1. Don’t bill Medicare but bill my other insurance or

2. Don’t bill either insurance.

Option C: states that patient does not wish to receive the services Medicare won’t pay for.

Option B.1 is the choice that allows the agency to bill Medicaid without any interaction with Medicare. That choice states: "OptionB.1 – Please submit a claim to my other insurance, but not to Medicare"

  • If patient chooses to select the B.1 box, signs and dates the ABN, the date should be the same as the Start of Care on the 485.
  • When billing for the services on the UB 92, the agency would use occurrence code 51 (which means Medicare has not been billed). Answer yes to the question – Does the Patient have Medicare? and in the following "Date Denied" box put the date the ABN was signed (same as the SOC (start of care). The agency is indicating to ACS (Medicaid Intermediary) that the patient has chosen to not use their Medicare home care benefit because they don’t qualify for Medicare coverage due to homebound status. It is understood that the patient has signed the HHABN. The agency does not need to send anything to Medicare and can bill Medicaid.
  • The signed HHABN is retained in the patient’s record and may be requested by Medicaid during an audit, or a surveyor during a survey of the agency.
  • If the patient chooses to mark Option A on the HHABN form, the agency would use condition code 20 (CC20) on the UB 92. This triggers an ADR (Additional Developmental Request). When the ADR is received and you send your documentation to the Medicare Intermediary you MUST send the HHABN. The absence of an HHABN may result in the provider being held liable under the limitations of liability provisions, if all or part of the claim is denied. See the Medicare A Newsline of September 1, 2003 Vol. 10, No. 12, p.48. There is an article "Changes in Requesting HHABNs for Demand Bills." This is the process only if the patient chooses Option A on the HHABN.

Additional information:

There have been some questions concerning time limits and the HHABN. A response to the question was received from the National Association for Home Care Dept. of Regulatory Affairs: "The statement made during the Open Door Forum that ‘all ABNs must be reissued annually’ is contrary to a Q&A response that CMS provided to Home Health agencies in the past. According to the CMS staff person, the statement that all ABNs must be renewed annually is true only for providers using ABN form R-131. Home health agencies use form R-296."

Therefore, home health agencies are not required to reissue ABN forms R-296 annually. The only time a new HHABN is required is if there is a change in the facts of a prior ABN (or in those very limited situations where a home health provider issues an ABN form R –131 for non-home health services.)

The above statement refers to Medicare and Medicaid patients alike.

 

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