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Medicare Outpatient Prospective Payment System

 

INTRODUCTION

The Blue Cross and Blue Shield Association (Association) on behalf of the Health Care Financing Administration (HCFA) developed this Medicare Outpatient Prospective Payment System (OPPS) training session. The training session has been prepared to assist providers and Medicare fiscal intermediaries (FIs) with the information they will need to know in order to successfully implement the new payment system.

This session and the training publication are designed for training individuals who will in turn, train providers and FI staff in OPPS. We have provided training text, overhead slides, and reference documents to facilitate that process.

This training publication was initially produced prior to the publication of the final rule implementing Medicare’s Outpatient Prospective Payment System. We have revised the training material to incorporate the best information available at the time of publication. Please refer to the final rule as published in the Federal Register for authoritative guidance in the new system.

This publication should not be considered an authoritative source in making Medicare Program policy determinations.

 

COURSE OBJECTIVES

At the end of this session participants will be able to:

  • Explain (at a conceptual level) the basic components of OPPS
  • Explain (at a conceptual level) how the components of OPPS interact from claim submission to finalization using program materials developed for provider training
  • Understand the impact of OPPS on FI workload and work flow , as well as the impact on audit and reimbursement
  • Understand the fiscal intermediary (FI) responsibilities related to OPPS provider education and anticipated provider concerns
  • Understand how to use the training tools developed for this course to help address provider OPPS education

CERTIFICATION

This training course meets the Continuing Education and Training (CET) requirements of the Government Auditing Standards and should qualify for CET credit by your state Board of Accountancy, since Blue Cross and Blue Shield Association is a corporate sponsor in the state of Illinois and an approved sponsor in the National Association of State Boards of Accountancy, National Registry of CPE Sponsors (91-00149-99).

Registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses.

Complaints regarding registered sponsors may be addressed to NASBA, 380 Lexington Avenue, New York, NY 10168-0002, 1-212-490-3868.

 

GLOSSARY OF TERMS

APG

Ambulatory Patient Group

APASS

Arkansas Part A Standard System

APC

Ambulatory Payment Classification

ASC

Ambulatory Surgical Center

BBA

Balanced Budget Act of 1997

BBRA

Balanced Budget Refinement Act of 1999 (per OPPS PM)

CAH

Critical Access Hospital

CC

Condition Code

CCI

Correct Coding Initiative

CELIP

Claim Expansion and Line Item Pricing

CFR

Code of Federal Regulations

CMHC

Community Mental Health Center

CORF

Comprehensive Outpatient Rehabilitation Facility

CPT

Current Procedural Terminology

DME

Durable Medical Equipment

E&M

Evaluation and Management

EOMB

Explanation of Medicare Benefits

ERA

Electronic Remittance Advice

FI

Fiscal Intermediary

FISS

Fiscal Intermediary Shared System

FMR

Focused Medical Review

F.R.

Final Rule

HCFA

Health Care Financing Administration

HCPCS

HCFA Common Procedure Coding System

HHA

Home Health Agency

ICD-9-CM

International Classification of Disease, Clinical Modification

MR

Medical Review

MSN

Medicare Summary Notice

NDC

National Drug Code

OCE

Outpatient Code Editor

OPPS

Outpatient Prospective Payment System

PHP

Partial Hospitalization Program

PPS

Prospective Payment System

SPR

Standard Paper Remittance

SSA

Social Security Act

TOP

Transitional Outpatient Payment

VC

Value Code

 

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