June 2, 2010         

 

Haight Brown & Bonesteel

 

Medicare, Medicaid & SCHIP Extension (MMSEA) Update

Recently, the Centers for Medicare and Medicaid Services ("CMS") posted an alert on its website announcing the availability of a new Direct Data Entry option for Liability and Workers' Compensation insurers or self-insureds ("RREs") to satisfy their mandatory MMSEA reporting requirements, if the RREs qualify as "Small Reporters." Click here to view the alert: http://www.cms.gov/MandatoryInsRep/09_Alerts.asp#TopOfPage

 

A “Small Reporter" is defined as a RRE that will submit 500 or fewer Non Group Health Plan ("NGHP") reports per calendar year. Ordinarily, a RRE can use the Query Function to make a separate inquiry to determine, as a preliminary matter, whether a claimant is in fact a Medicare beneficiary. The Query Function, however, is not available if the RRE selects the DDE option.  Instead, the injured party information is entered first and will be matched online, in real time, as the data is entered. If no beneficiary match is found, and the RRE confirms that the information is complete, then no further data elements will be required at that time. When an inquiry is submitted and no matches are found, the inquiry counts toward the 500 claim report limit.

 

CMS cautions that utilizing the manual submission method could take considerable time since the same number of data elements (about 130) would still be required. However, with relatively few reports required, it would seem that the DDE alternative would be considerably more economical for Small Reporters, since they would have no need to hire expensive intermediaries for data entry and could train their own staff. With only a fraction of cases either involving Medicare beneficiaries or requiring inquiries about Medicare status, the 500 claim report limit should be more than adequate for low volume RREs. Since routine discovery will provide the answer in most cases, there simply is no need to send an inquiry about Medicare status in every case.

 

In addition, Small Reporters have no assigned data submission window. Rather, they are required to submit reports within 45 calendar days of the Total Payment Obligation to Claimant ("TPOC") date or within 45 calendar days of assuming Ongoing Responsibility for Medical Payments ("ORM"). Since retroactive reporting is required for ORM existing any time prior to 1/1/2010, and continuing on or after 1/1/2010 and for certain TPOC amounts dating from 10/1/2010 through 12/31/2010, an exception will be made for these claim records to be reported outside the 45 calendar day grace period.

 

Small Reporters may begin using the DDE option on January 3, 2011. 

 

This document is intended to provide you with general information about MMSEA reporting requirements. The contents of this document are not intended to provide specific legal advice. If you have questions about the contents of this update, please contact Tom Charchut at 310-215-7100 or tcharchut@hbblaw.com or contact your preferred Haight Brown & Bonesteel attorney. This communication may be considered advertising in some jurisdictions.

 

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