aScope™ Duodeno Coding and Payment Guide: Medicare Outpatient Transitional Pass-Through Payments
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TRANSITIONAL PASS THROUGH PAYMENT UPDATE (12/4/20)
Effective January 1, 2021
On December 2, 2020, the Centers for Medicare & Medicaid Services (CMS) announced a modification to the way the Medicare outpatient Transitional Pass Through (TPT) payment for single-use duodenoscopes is calculated. This change simplifies the payment calculation, and will help ensure rapid patient access to single-use duodenoscopes like the aScope Duodeno. The change takes effect January 1, 2021.
The modification removes the device offset that was subtracted in the calculation. In addition to making the payment easier to calculate, the change will result in a larger TPT payment for all eligible procedures.
Below are examples showing the change and the resulting difference in payment.
New Calculation Beginning January 1, 2021
*The charged amount shown is for demonstration purposes only and is not a recommendation on how to charge. The cost-to-charge ratio shown is an example for demonstration purposes. The offset amount shown is for CPT code 43265.
UPDATE ON INPATIENT REIMBURSEMENT
Ambu submitted an application to CMS in October 2020 for inpatient New Technology Add-on Payment (NTAP), which would provide similar additional reimbursement for Medicare inpatient procedures. If approved by CMS, NTAP would take effect October 1, 2021.
The information below is on the TPT payment policy issued in July 2020, which remains in effect until December 30, 2020.
Medicare Outpatient Transitional Pass-Through Payment
Effective July 1, 2020, the Centers for Medicare & Medicaid Services (CMS), the federal agency that administers the Medicare program, created a new transitional pass-through (TPT) category and new HCPCS C code for single-use endoscopes, such as the aScopeTM Duodeno, used in performing endoscopic retrograde cholangiopancreatography (ERCP) procedures in the hospital outpatient department (HOPD). TPT status remains in effect for 2 to 3 years.
HOPDs may obtain additional, separate payment for devices with TPT status, in addition to payment for the procedure(s) furnished during the patient encounter. When applicable, hospitals should bill the newly established HCPCS code C1748 – “Endoscope, single-use (i.e. disposable), upper GI, imaging/illumination device (insertable).”1
Application of TPT Payment in Non-Medicare Claims
TPT payment applies to patients with traditional Medicare; however, Medicaid, Medicare Advantage and commercial health plans may also recognize the C code and provide separate additional payment. Applicability of separate additional payment for HCPCS code C1748 is based on the hospital’s contract with the patient’s health plan. To determine if HCPCS code C1748 and separate payment applies to claims for non-Medicare patients, we suggest reviewing the hospital’s contract, or contacting the patient health plan for more information.
How TPT Payment Works
The payment for devices with TPT varies based on the hospital’s charge for the device and the associated procedures performed. The hospital’s charge amount for the device is adjusted by applying the hospital’s cost-tocharge-ratio (CCR) for the revenue center associated with the device, minus the device “offset” amount associated with the related CPT procedure code. CMS determines each hospital’s CCR and establishes offset amounts for each procedure. The offset amounts can be found on page 3 of this guide. The total payment for the patient encounter will include the TPT payment as well as the APC payment associated with the reported CPT code(s).
TPT Payment Example
The following is an example of how the TPT payment and the total procedure payment are determined:
1. Hospital establishes charge for the device. The hospital will establish an appropriate charge for single-use duodenoscopes, taking into consideration the revenue center’s CCR and device cost.
2. Medicare applies the CCR to the established charge. The hospital bills the charge to Medicare.Medicare then applies the revenue center CCR.
3. The device offset amount is applied to the APC payment for the relevant CPT code. Medicare appliesthe device offset amount to the payment rate for the associated CPT code (e.g., $383, rounded, for CPT43262).
4. The TPT payment is calculated. The device offset is subtracted from the adjusted charge to calculate theTPT payment.
5. APC payment added. The APC payment for the related CPT code is added (e.g., the APC payment for CPT43262 is $2,999, rounded).
6. Total case payment is calculated. Add the TPT payment to the APC payment for the related CPT code tocalculate the total payment for the patient case.
Coding for the aScope Duodeno
HCPCS Code for Reporting the aScope Duodeno
Coding and 2020 National Medicare Payment Rates for ERCP
1. Additional information regarding this new device category and TPT payment status for single-use endoscopes is available at: https://www.cms.gov/files/document/r10166cp.pdf (See Section 7 and Tables 8 and 9).
2. Items that are insertable may be billed with revenue code 0278 per the National Uniform Billing Committee (NUBC)’s Updated Guidance on Other Implant Revenue Code (0278) effective July 1, 2020 available at: https://www.nubc.org/system/files/media/file/2020/04/Guidance%20on%20Other%20Implant%20RC0278.pdf
3. Current Procedural Terminology (CPT®) is a registered trademark of the American Medical Association (AMA). Copyright 2020AMA. All rights reserved.
4. 2020 CMS PFS Final Rule, Addendum B (available on CMS website), 84 Fed. Reg. 221 (Nov. 15, 2019).
5 .2020 CMS OPPS/ASC Final Rule, Addendum AA and B (available on CMS website), 84 Fed. Reg. 218 (Nov. 12, 2019) and Correction Notice, 85 Fed. Reg. 2 (Jan 3, 2020).
6. Pub 100-04 Medicare Claims Processing Transmittal 10166, Change Request 11814, July 2020 Update of the Hospital Outpatient Prospective Payment System (OPPS), dated June 5, 2020 available at https://www.cms.gov/files/document/r10166cp.pdf.
About the aScope Duodeno
The aScope Duodeno is a single-use sterile duodenoscope that seamlessly integrates into existing hospital systems and offers an intuitive, lightweight design with similar functionality to reusable duodenoscopes. The aScope Duodeno is part of a system that includes a reusable process unit, the Ambu® aBox™ Duodeno. Duodenoscopes are used for visual examination of the duodenum and play a key role in diagnosis and treatment of conditions like gallstones, pancreatitis, and tumors or cancer in the bile duct and pancreas.
In July, 2020, the aScope Duodeno endoscope received FDA clearance and was also granted Breakthrough Device Designation. The FDA's Breakthrough Device Program is reserved for certain medical devices that provide for more effective treatment or diagnosis of life-threatening or irreversibly debilitating diseases or conditions. This program is intended to help patients receive more timely access to these medical devices by expediting their development, assessment and review by FDA.
For release information in additional countries and territories, please contact your Ambu local sales representative for further information.
Indications for Use
The aScope Duodeno is designed to be used with the aBox Duodeno, endoscopic accessories (e.g. biopsy forceps) and other ancillary equipment (e.g. video monitor) for endoscopy and endoscopic surgery within the duodenum.
The aBox Duodeno is designed to be used with the aScope Duodeno, endoscopic accessories (e.g. biopsy forceps) and other ancillary equipment (e.g. medical grade video monitor) for endoscopy and endoscopic surgery within the duodenum.
The reimbursement information provided in this Guide was obtained from third-party sources and information that is publicly available on the internet. The reported Medicare national average payments are subject to change and may vary based on geographic location and other individual factors. Information in this Guide is not legal advice, nor is it advice about how to code or complete claims for payment. It is the provider’s responsibility to report the appropriate codes based on the procedures furnished to a specific patient and the patient’s medical condition. Providers are also responsible for submitting claims for these services consistent with the specific payer billing requirements.
Payer billing, coding, and coverage requirements vary from payer to payer and are updated and change over time. Ambu encourages providers to verify current billing, coding and coverage policies and requirements with the specific payer if the provider has questions. Providers may also contact the American Gastroenterology Association (AGA), the American Society for Gastrointestinal Endoscopy (ASGE) and/or the American Medical Association (AMA).
Ambu does not promote the use of its products outside of the approved FDA approved indications for use and labeling.