82_FR_58637 82 FR 58400 - Medicare Program; Extension of Prior Authorization for Repetitive Scheduled Non-Emergent Ambulance Transports

82 FR 58400 - Medicare Program; Extension of Prior Authorization for Repetitive Scheduled Non-Emergent Ambulance Transports

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 82, Issue 237 (December 12, 2017)

Page Range58400-58403
FR Document2017-26759

This notice announces a 1-year extension of the Medicare Prior Authorization Model for Repetitive Scheduled Non-Emergent Ambulance Transport. The extension of this model is applicable to the following states and the District of Columbia: Delaware, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, and West Virginia.

Federal Register, Volume 82 Issue 237 (Tuesday, December 12, 2017)
[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Notices]
[Pages 58400-58403]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26759]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-6063-N3]


Medicare Program; Extension of Prior Authorization for Repetitive 
Scheduled Non-Emergent Ambulance Transports

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Notice.

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SUMMARY: This notice announces a 1-year extension of the Medicare Prior 
Authorization Model for Repetitive Scheduled Non-Emergent Ambulance 
Transport. The extension of this model is applicable to the following 
states and the District of Columbia: Delaware, Maryland, New Jersey, 
North Carolina, Pennsylvania, South Carolina, Virginia, and West 
Virginia.

DATES: This extension began on December 5, 2017 and ends on December 1, 
2018. However, prior authorization is available upon provider, 
supplier, or beneficiary request for dates of service between December 
2, 2017 and December 4, 2017.

FOR FURTHER INFORMATION CONTACT: Angela Gaston, (410) 786-7409. 
Questions regarding the Medicare Prior Authorization Model Extension 
for Repetitive Scheduled Non-Emergent

[[Page 58401]]

Ambulance Transport should be sent to [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Medicare may cover ambulance services, including air ambulance 
(fixed-wing and rotary-wing) services, if the ambulance service is 
furnished to a beneficiary whose medical condition is such that other 
means of transportation are contraindicated. The beneficiary's 
condition must require both the ambulance transportation itself and the 
level of service provided in order for the billed service to be 
considered medically necessary.
    Non-emergent transportation by ambulance is appropriate if either 
the--(1) beneficiary is bed-confined and it is documented that the 
beneficiary's condition is such that other methods of transportation 
are contraindicated; or (2) beneficiary's medical condition, regardless 
of bed confinement, is such that transportation by ambulance is 
medically required. Thus, bed confinement is not the sole criterion in 
determining the medical necessity of non-emergent ambulance 
transportation; rather, it is one factor that is considered in medical 
necessity determinations.\1\
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    \1\ 42 CFR 410.40(d)(1).
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    A repetitive ambulance service is defined as medically necessary 
ambulance transportation that is furnished in 3 or more round trips 
during a 10-day period, or at least 1 round trip per week for at least 
3 weeks.\2\ Repetitive ambulance services are often needed by 
beneficiaries receiving dialysis or cancer treatment.
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    \2\ Program Memorandum Intermediaries/Carriers, Transmittal AB-
03-106.
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    Medicare may cover repetitive, scheduled non-emergent 
transportation by ambulance if the--(1) medical necessity requirements 
described previously are met; and (2) ambulance provider/supplier, 
before furnishing the service to the beneficiary, obtains a written 
order from the beneficiary's attending physician certifying that the 
medical necessity requirements are met (see 42 CFR 410.40(d)(1) and 
(2)).\3\
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    \3\ Per 42 CFR 410.40(d)(2), the physician's order must be dated 
no earlier than 60 days before the date the service is furnished.
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    In addition to the medical necessity requirements, the service must 
meet all other Medicare coverage and payment requirements, including 
requirements relating to the origin and destination of the 
transportation, vehicle and staff, and billing and reporting. 
Additional information about Medicare coverage of ambulance services 
can be found in 42 CFR 410.40, 410.41, and in the Medicare Benefit 
Policy Manual (Pub. L. 100-02), Chapter 10, at http://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/downloads/bp102c10.pdf.
    According to a study published by the Government Accountability 
Office in October 2012, entitled ``Costs and Medicare Margins Varied 
Widely; Transports of Beneficiaries Have Increased,'' \4\ the number of 
basic life support (BLS) non-emergent transports for Medicare Fee-For-
Service beneficiaries increased by 59 percent from 2004 to 2010. A 
similar finding published by the Department of Health and Human 
Services' Office of Inspector General in a 2006 study, entitled 
``Medicare Payments for Ambulance Transports,'' \5\ indicated a 20 
percent nationwide improper payment rate for non-emergent ambulance 
transport. Likewise, in June 2013, the Medicare Payment Advisory 
Commission published a report \6\ that included an analysis of non-
emergent ambulance transports to dialysis facilities and found that, 
during the 5-year period between 2007 and 2011, the volume of 
transports to and from a dialysis facility increased 20 percent, more 
than twice the rate of all other ambulance transports combined.
---------------------------------------------------------------------------

    \4\ Government Accountability Office Cost and Medicare Margins 
Varied Widely; Transports of Beneficiaries Have Increased (October 
2012).
    \5\ Office of Inspector General Medicare Payment for Ambulance 
Transport (January 2006).
    \6\ Medicare Payment Advisory Commission, June 2013, pages 167-
193.
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    Section 1115A of the Social Security Act (the Act) authorizes the 
Secretary to test innovative payment and service delivery models to 
reduce program expenditures, while preserving or enhancing the quality 
of care furnished to Medicare, Medicaid, and Children's Health 
Insurance Program beneficiaries. Section 1115A(d)(1) of the Act 
authorizes the Secretary to waive such requirements of Titles XI and 
XVIII, as well as sections 1902(a)(1), 1902(a)(13), 1903(m)(2)(A)(iii), 
and 1934 (other than subsections (b)(1)(A) and (c)(5)) of the Act as 
may be necessary solely for purposes of carrying out section 1115A of 
the Act with respect to testing models described in section 1115A(b) of 
the Act. Consistent with this standard, we will continue to waive the 
same provisions for the extension of this model as have been waived for 
the initial three years of the model. Additionally, we have determined 
that the implementation of this model does not require the waiver of 
any fraud and abuse law, including sections 1128A, 1128B, and 1877 of 
the Act. Thus providers and suppliers affected by this model must 
comply with all applicable fraud and abuse laws.
    In the November 14, 2014 Federal Register (79 FR 68271), we 
published a notice entitled ``Medicare Program; Prior Authorization of 
Repetitive Scheduled Non-emergent Ambulance Transports,'' which 
announced the implementation of a 3-year Medicare Prior Authorization 
model that established a process for requesting prior authorization for 
repetitive, scheduled non-emergent ambulance transport rendered by 
ambulance providers/suppliers garaged in 3 states (New Jersey, 
Pennsylvania, and South Carolina). These states were selected as the 
initial states for the model because of their high utilization and 
improper payment rates for these services. The model began on December 
1, 2014, and was originally scheduled to end in all 3 states on 
December 1, 2017.
    In the October 23, 2015 Federal Register (80 FR 64418), we 
published a notice titled ``Medicare Program; Expansion of Prior 
Authorization of Repetitive Scheduled Non-emergent Ambulance 
Transports,'' which announced the inclusion of 6 additional states 
(Delaware, the District of Columbia, Maryland, North Carolina, West 
Virginia, and Virginia) in the Repetitive Scheduled Non-Emergent 
Ambulance Transport Prior Authorization model in accordance with 
section 515(a) of the Medicare Access and CHIP Reauthorization Act of 
2015 (MACRA) (Pub. L. 114-10). These 6 states began participation on 
January 1, 2016, and the model was originally scheduled to end in all 
nine model states on December 1, 2017.

II. Provisions of the Notice

    This notice announces that the Medicare Prior Authorization Model 
for Repetitive Scheduled Non-Emergent Ambulance Transport is being 
extended in the current model states of Delaware, the District of 
Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, South 
Carolina, Virginia, and West Virginia, effective December 5, 2017, for 
an additional year to allow for additional evaluation of the model. 
Repetitive, scheduled non-emergent ambulance transport claims with 
dates of service of December 2, 2017 through December 4, 2017 will not 
be stopped for prepayment review if prior authorization is not 
requested before the fourth round trip in a 30-day period; however, 
providers, suppliers, and beneficiaries may request prior authorization 
for these dates of service. The model will now end in all states on 
December 1, 2018. Prior authorization will not be available for 
repetitive

[[Page 58402]]

scheduled non-emergent ambulance transportation services furnished 
after that date.
    We will continue to test whether prior authorization helps reduce 
expenditures, while maintaining or improving quality of care, using the 
established prior authorization process for repetitive, scheduled non-
emergent ambulance transport to reduce utilization of services that do 
not comply with Medicare policy.
    We will continue to use this prior authorization process to help 
ensure that all relevant clinical or medical documentation requirements 
are met before services are furnished to beneficiaries and before 
claims are submitted for payment. This prior authorization process 
further helps to ensure that payment complies with Medicare 
documentation, coverage, payment, and coding rules.
    The use of prior authorization does not create new clinical 
documentation requirements. Instead, it requires the same information 
that is already required to support Medicare payment, just earlier in 
the process. Prior authorization allows providers and suppliers to 
address coverage issues prior to furnishing services.
    The prior authorization process under this model will continue to 
apply in the nine states listed previously for the following codes for 
Medicare payment:
     A0426 Ambulance service, advanced life support, non-
emergency transport, Level 1 (ALS1).
     A0428 Ambulance service, BLS, non-emergency transport.

    While prior authorization is not needed for the mileage code, 
A0425, a prior authorization decision for an A0426 or A0428 code will 
automatically include the associated mileage code.
    We have conducted and will continue to conduct outreach and 
education to ambulance providers/suppliers, as well as beneficiaries, 
through such methods as updating the operational guide, frequently 
asked questions (FAQs) on our website, a physician letter explaining 
the ambulance providers/suppliers' need for the proper documentation, 
and educational events and materials issued by the Medicare 
Administrative Contractors (MACs). We are also working to implement a 
new process that will help identify alternate transportation resources 
for beneficiaries who receive non-affirmative decisions. Additional 
information about the implementation of the prior authorization model 
is available on the CMS website at http://go.cms.gov/PAAmbulance.
    Under this model, submitting a prior authorization request is 
voluntary. However, an ambulance provider/supplier or beneficiary is 
encouraged to submit to the MAC a request for prior authorization along 
with all relevant documentation to support Medicare coverage of a 
repetitive, scheduled non-emergent ambulance transport. If prior 
authorization has not been requested by the fourth round trip in a 30-
day period, the subsequent claims will be stopped for prepayment 
review.
    In order for a prior authorization request to be provisionally 
affirmed, the request for prior authorization must meet all applicable 
rules and policies, including any local coverage determination (LCD) 
requirements for ambulance transport claims. A provisional affirmation 
is a preliminary finding that a future claim submitted to Medicare for 
the service likely meets Medicare's coverage, coding, and payment 
requirements. After receipt of all relevant documentation, the MACs 
will make every effort to conduct a review and postmark the 
notification of their decision on a prior authorization request within 
10 business days for an initial submission. Notification will be 
provided to the ambulance provider/supplier and to the beneficiary. If 
a subsequent prior authorization request is submitted after a non-
affirmative decision on an initial prior authorization request, the 
MACs will make every effort to conduct a review and postmark the 
notification of their decision on the resubmitted request within 20 
business days.
    An ambulance provider/supplier or beneficiary may request an 
expedited review when the standard timeframe for making a prior 
authorization decision could jeopardize the life or health of the 
beneficiary. If the MAC agrees that the standard review timeframe would 
put the beneficiary at risk, the MAC will make reasonable efforts to 
communicate a decision within 2 business days of receipt of all 
applicable Medicare-required documentation. As this model is for non-
emergent services only, we expect requests for expedited reviews to be 
extremely rare.
    A provisional affirmative prior authorization decision may affirm a 
specified number of trips within a specific amount of time. The prior 
authorization decision, justified by the beneficiary's condition, may 
affirm up to 40 round trips (which equates to 80 one-way trips) per 
prior authorization request in a 60-day period. Alternatively, a 
provisional affirmative decision may affirm less than 40 round trips in 
a 60-day period, or may affirm a request that seeks to provide a 
specified number of transports (40 round trips or less) in less than a 
60-day period. A provisional affirmative decision can be for all or 
part of the requested number of trips. Transports exceeding 40 round 
trips (or 80 one-way trips) in a 60-day period require an additional 
prior authorization request.
    The following describes examples of various prior authorization 
scenarios:
     Scenario 1: When an ambulance provider/supplier or 
beneficiary submits a prior authorization request to the MAC with 
appropriate documentation and all relevant Medicare coverage and 
documentation requirements are met for the ambulance transport, the MAC 
will send a provisional affirmative prior authorization decision to the 
ambulance provider/supplier and the beneficiary. When the subsequent 
claim is submitted to the MAC by the ambulance provider/supplier, it is 
linked to the prior authorization decision via the claims processing 
system, and the claim will be paid so long as all Medicare coding, 
billing, and coverage requirements are met. However, the claim could be 
denied for technical reasons, such as the claim was a duplicate claim 
or the claim was for a deceased beneficiary. In addition, a claim 
denial could occur because certain documentation, such as the trip 
record, needed in support of the claim cannot be submitted with a prior 
authorization request because it is not available until after the 
service is provided.
     Scenario 2: When an ambulance provider/supplier or 
beneficiary submits a prior authorization request, but all relevant 
Medicare coverage requirements are not met, the MAC will send a non-
affirmative prior authorization decision to the ambulance provider/
supplier and to the beneficiary advising them that Medicare will not 
pay for the service. The provider/supplier or beneficiary may then 
resubmit the request with additional documentation showing that 
Medicare requirements have been met. Alternatively, an ambulance 
provider/supplier could furnish the service and submit a claim with a 
non-affirmative prior authorization tracking number, at which point the 
MAC would deny the claim. The ambulance provider/supplier and the 
beneficiary would then have the Medicare denial for secondary insurance 
purposes and would have the opportunity to submit an appeal of the 
claim denial if they think Medicare coverage was denied 
inappropriately.
     Scenario 3: When an ambulance provider/supplier or 
beneficiary submits a prior authorization request with incomplete 
documentation, a detailed decision letter will be sent to the ambulance 
provider/supplier and to the beneficiary, with an explanation of what

[[Page 58403]]

information is missing. The ambulance provider/supplier or beneficiary 
can rectify the error(s) and resubmit the prior authorization request 
with appropriate documentation.
     Scenario 4: If an ambulance provider or supplier renders a 
service to a beneficiary and does not request prior authorization by 
the fourth round trip in a 30-day period, and the claim is submitted to 
the MAC for payment, then the claim will be stopped for prepayment 
review and documentation will be requested.
    ++ If the claim is determined to be for services that were not 
medically necessary or for which there was insufficient documentation, 
the claim will be denied, and all current policies and procedures 
regarding liability for payment will apply. The ambulance provider/
supplier or the beneficiary, or both, can appeal the claim denial if 
they believe the denial was inappropriate.
    ++ If the claim is determined to be payable, it will be paid.
    Under the model, we will work to limit any adverse impact on 
beneficiaries and to educate beneficiaries about the process. If a 
prior authorization request is non-affirmed, and the claim is still 
submitted by the ambulance provider/supplier, the claim will be denied, 
but beneficiaries will continue to have all applicable administrative 
appeal rights. We will also work to implement a process that will help 
identify alternate transportation resources for beneficiaries who 
receive non-affirmative decisions.
    Only one prior authorization request per beneficiary per designated 
time period can be provisionally affirmed. If the initial ambulance 
provider/supplier cannot complete the total number of prior authorized 
transports (for example, the initial ambulance company closes or no 
longer services that area), the initial request is cancelled. In this 
situation, a subsequent prior authorization request may be submitted 
for the same beneficiary and must include the required documentation in 
the submission. If multiple ambulance providers/suppliers are providing 
transports to the beneficiary during the same or overlapping time 
period, the prior authorization decision will only cover the ambulance 
provider/supplier indicated in the provisionally affirmed prior 
authorization request. Any ambulance provider/supplier submitting 
claims for repetitive, scheduled non-emergent ambulance transports for 
which no prior authorization request is submitted by the fourth round 
trip in a 30-day period will be subject to 100 percent prepayment 
medical review of those claims.
    Additional information is available on the CMS website at http://go.cms.gov/PAAmbulance.

III. Collection of Information Requirements

    Section 1115A(d)(3) of the Act states that chapter 35 of title 44, 
United States Code (the Paperwork Reduction Act of 1995), shall not 
apply to the testing and evaluation of models or expansion of such 
models under this section. Consequently, this document need not be 
reviewed by the Office of Management and Budget under the authority of 
the Paperwork Reduction Act of 1995.

IV. Regulatory Impact Statement

    This document announces a 1-year extension of the Medicare Prior 
Authorization Model for Repetitive Scheduled Non-Emergent Ambulance 
Transport. Therefore, there are no regulatory impact implications 
associated with this notice.

    Authority: Section 1115A of the Social Security Act.

    Dated: November 16, 2017.
Seema Verma,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2017-26759 Filed 12-8-17; 4:15 pm]
 BILLING CODE 4120-01-P



                                               58400                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices

                                               margin requirements for derivatives that                Treasury repo transactions in the GCF                   The Regulatory Flexibility Act (5
                                               reference SOFR and would help market                    market, and FICC-cleared bilateral                    U.S.C. 601 et seq.) (RFA) generally
                                               participants compare SOFR to existing                   Treasury repo transactions. For each of               requires an agency to perform an initial
                                               benchmarks. The Board recognizes that                   these market segments, each dealer will               and a final regulatory flexibility analysis
                                               market participants might benefit from                  report its aggregate borrowing activity               on the impact a rule is expected to have
                                               historical data. While longer histories of              (excluding, to the extent possible,                   on small entities. The RFA imposes
                                               comparable commercially produced                        transactions between affiliated entities              these requirements in situations where
                                               repo rates are publicly available, the                  and transactions in which the Federal                 an agency is required by law to publish
                                               Board believes that a significantly                     Reserve is a counterparty), along with                a general notice of proposed rulemaking
                                               longer history of the Treasury repo rates               the weighted-average rate of its                      for any proposed rule. The production
                                               may not be possible due to limitations                  borrowing. If FRBNY publishes                         of the rates does not create any
                                               on the availability of data. The Board                  Treasury repo rates that use survey data              obligations or rights for any private
                                               and FRBNY will work with BNYM and                       and subsequently receives updated data,               parties, including any small entities,
                                               DTCC to determine whether FRBNY can                     FRBNY would issue same-day revisions                  and so the Board was not required to
                                               publish additional historical data for the              at or around 2:30 p.m. ET if the use of               publish a notice of proposed
                                               Treasury repo rates.                                    updated data would result in the                      rulemaking. Accordingly, the RFA does
                                                 Two commenters suggested that the                     published rate changing by more than                  not apply and an initial and final
                                               proposed threshold of ‘‘greater than one                one basis point.                                      regulatory flexibility analysis is not
                                               basis point’’ for revising the proposed                    Finally, two commenters asked that                 required.
                                               rates was too sensitive. Another                        FRBNY begin publishing the Treasury                     The Board did not receive any
                                               commenter explained that its members                    repo rates as soon as possible. FRBNY                 comments regarding the Paperwork
                                               had not achieved consensus on the                       intends to begin publishing the Treasury              Reduction Act or the RFA.
                                               threshold at which FRBNY should                         repo rates in the second quarter of 2018.               By order of the Board of Governors of the
                                               revise errors, but the commenter                                                                              Federal Reserve System, December 7, 2017.
                                               emphasized that FRBNY should                            4. Governance
                                                                                                                                                             Ann E. Misback,
                                               articulate a clear rationale for its
                                                                                                         A commenter suggested that                          Secretary of the Board.
                                               revision policy. The Board notes that,
                                                                                                       governance arrangements for the                       [FR Doc. 2017–26761 Filed 12–11–17; 8:45 am]
                                               because FRBNY will round the Treasury
                                                                                                       Treasury repo rates should align with
                                               repo rates to the nearest whole basis                                                                         BILLING CODE 6210–01–P

                                               point, the threshold is effectively two                 the Principles for Financial Benchmarks
                                               basis points. The Board also notes that                 published by the International
                                               this is the same threshold employed for                 Organization of Securities Commissions                DEPARTMENT OF HEALTH AND
                                               EFFR and OBFR, for which revisions are                  (IOSCO) in July 2013.12 FRBNY plans to                HUMAN SERVICES
                                               very rare. The Federal Reserve will                     publish an IOSCO statement of
                                               periodically review the revision                        compliance covering the Treasury repo                 Centers for Medicare & Medicaid
                                               threshold to ensure that revisions are                  rates in the first half of 2018.                      Services
                                               very rare and do not impose undue                       III. Conclusion                                       [CMS–6063–N3]
                                               operational costs on users of the
                                               Treasury repo rates.                                      After considering public comments,                  Medicare Program; Extension of Prior
                                                 A commenter asked whether FRBNY                       the Board concludes that the public                   Authorization for Repetitive Scheduled
                                               would publish the proposed rates if                     would benefit if FRBNY publishes the                  Non-Emergent Ambulance Transports
                                               relevant data sources were unavailable                  three Treasury repo rates as proposed,
                                               and, if so, whether FRBNY would                         with certain modifications described                  AGENCY: Centers for Medicare &
                                               correct such rates retroactively when                   above.                                                Medicaid Services (CMS), HHS.
                                               data becomes available. Another                                                                               ACTION: Notice.
                                                                                                       IV. Administrative Law
                                               commenter suggested that FRBNY                                                                                SUMMARY:   This notice announces a 1-
                                               should provide more information                            In accordance with the Paperwork
                                                                                                                                                             year extension of the Medicare Prior
                                               regarding the back-up repo market                       Reduction Act of 1995 (44 U.S.C. 3506;
                                                                                                                                                             Authorization Model for Repetitive
                                               survey it would conduct if standard data                5 CFR part 1320, Appendix A.1), the
                                                                                                                                                             Scheduled Non-Emergent Ambulance
                                               sources are unavailable. As noted in the                Board reviewed the Request for
                                                                                                                                                             Transport. The extension of this model
                                               Request for Information, in the event                   Information and this final notice under
                                                                                                                                                             is applicable to the following states and
                                               that data sources are unavailable, the                  the authority delegated to the Board by
                                                                                                                                                             the District of Columbia: Delaware,
                                               Treasury repo rates would be calculated                 the Office of Management and Budget.
                                                                                                                                                             Maryland, New Jersey, North Carolina,
                                               based upon back-up repo market survey                   For purposes of calculating burden
                                                                                                                                                             Pennsylvania, South Carolina, Virginia,
                                               data collected from FRBNY’s primary                     under the Paperwork Reduction Act, a
                                                                                                                                                             and West Virginia.
                                               dealer counterparties. FRBNY currently                  ‘‘collection of information’’ involves 10
                                                                                                                                                             DATES: This extension began on
                                               collects repo data from primary dealers                 or more respondents. As noted above,
                                               each morning. Going forward, FRBNY                      the data to be used to produce the rates              December 5, 2017 and ends on
                                               will also collect data each afternoon.                  will be obtained solely from (1) BNYM                 December 1, 2018. However, prior
                                               The afternoon survey will capture that                  with respect to tri-party GC repo data                authorization is available upon
                                               day’s activity by primary dealers and                   and (2) DTCC Solutions with respect to                provider, supplier, or beneficiary
                                               will be available as a contingency data                 GCF repo data and DVP bilateral repo                  request for dates of service between
ethrower on DSK3G9T082PROD with NOTICES




                                               source for the following morning’s                      data. Therefore, producing the rates will             December 2, 2017 and December 4,
                                               publication of the Treasury repo rates.                 not involve a collection of information               2017.
                                               The survey will request aggregated                      pursuant to the Paperwork Reduction                   FOR FURTHER INFORMATION CONTACT:
                                               primary dealer activity in each of the                  Act.                                                  Angela Gaston, (410) 786–7409.
                                               market segments captured in the                                                                               Questions regarding the Medicare Prior
                                               Treasury repo rates: Overnight tri-party                  12 See https://www.iosco.org/library/pubdocs/pdf/   Authorization Model Extension for
                                               Treasury repo transactions, overnight                   IOSCOPD415.pdf.                                       Repetitive Scheduled Non-Emergent


                                          VerDate Sep<11>2014   20:03 Dec 11, 2017   Jkt 244001   PO 00000   Frm 00023   Fmt 4703   Sfmt 4703   E:\FR\FM\12DEN1.SGM   12DEN1


                                                                          Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices                                          58401

                                               Ambulance Transport should be sent to                   Benefit Policy Manual (Pub. L. 100–02),               model must comply with all applicable
                                               AmbulancePA@cms.hhs.gov.                                Chapter 10, at http://www.cms.gov/                    fraud and abuse laws.
                                               SUPPLEMENTARY INFORMATION:                              Regulations-and-Guidance/Guidance/                       In the November 14, 2014 Federal
                                                                                                       Manuals/downloads/bp102c10.pdf.                       Register (79 FR 68271), we published a
                                               I. Background                                              According to a study published by the              notice entitled ‘‘Medicare Program;
                                                  Medicare may cover ambulance                         Government Accountability Office in                   Prior Authorization of Repetitive
                                               services, including air ambulance                       October 2012, entitled ‘‘Costs and                    Scheduled Non-emergent Ambulance
                                               (fixed-wing and rotary-wing) services, if               Medicare Margins Varied Widely;                       Transports,’’ which announced the
                                               the ambulance service is furnished to a                 Transports of Beneficiaries Have                      implementation of a 3-year Medicare
                                               beneficiary whose medical condition is                  Increased,’’ 4 the number of basic life               Prior Authorization model that
                                               such that other means of transportation                 support (BLS) non-emergent transports                 established a process for requesting
                                               are contraindicated. The beneficiary’s                  for Medicare Fee-For-Service                          prior authorization for repetitive,
                                               condition must require both the                         beneficiaries increased by 59 percent                 scheduled non-emergent ambulance
                                               ambulance transportation itself and the                 from 2004 to 2010. A similar finding                  transport rendered by ambulance
                                               level of service provided in order for the              published by the Department of Health                 providers/suppliers garaged in 3 states
                                               billed service to be considered                         and Human Services’ Office of Inspector               (New Jersey, Pennsylvania, and South
                                               medically necessary.                                    General in a 2006 study, entitled                     Carolina). These states were selected as
                                                  Non-emergent transportation by                       ‘‘Medicare Payments for Ambulance                     the initial states for the model because
                                               ambulance is appropriate if either the—                 Transports,’’ 5 indicated a 20 percent                of their high utilization and improper
                                               (1) beneficiary is bed-confined and it is               nationwide improper payment rate for                  payment rates for these services. The
                                               documented that the beneficiary’s                       non-emergent ambulance transport.                     model began on December 1, 2014, and
                                               condition is such that other methods of                 Likewise, in June 2013, the Medicare                  was originally scheduled to end in all 3
                                               transportation are contraindicated; or (2)              Payment Advisory Commission                           states on December 1, 2017.
                                                                                                       published a report 6 that included an                    In the October 23, 2015 Federal
                                               beneficiary’s medical condition,
                                                                                                       analysis of non-emergent ambulance                    Register (80 FR 64418), we published a
                                               regardless of bed confinement, is such
                                                                                                       transports to dialysis facilities and                 notice titled ‘‘Medicare Program;
                                               that transportation by ambulance is
                                                                                                                                                             Expansion of Prior Authorization of
                                               medically required. Thus, bed                           found that, during the 5-year period
                                                                                                                                                             Repetitive Scheduled Non-emergent
                                               confinement is not the sole criterion in                between 2007 and 2011, the volume of
                                                                                                                                                             Ambulance Transports,’’ which
                                               determining the medical necessity of                    transports to and from a dialysis facility
                                                                                                                                                             announced the inclusion of 6 additional
                                               non-emergent ambulance transportation;                  increased 20 percent, more than twice
                                                                                                                                                             states (Delaware, the District of
                                               rather, it is one factor that is considered             the rate of all other ambulance
                                                                                                                                                             Columbia, Maryland, North Carolina,
                                               in medical necessity determinations.1                   transports combined.
                                                                                                                                                             West Virginia, and Virginia) in the
                                                  A repetitive ambulance service is                       Section 1115A of the Social Security               Repetitive Scheduled Non-Emergent
                                               defined as medically necessary                          Act (the Act) authorizes the Secretary to             Ambulance Transport Prior
                                               ambulance transportation that is                        test innovative payment and service                   Authorization model in accordance with
                                               furnished in 3 or more round trips                      delivery models to reduce program                     section 515(a) of the Medicare Access
                                               during a 10-day period, or at least 1                   expenditures, while preserving or                     and CHIP Reauthorization Act of 2015
                                               round trip per week for at least 3                      enhancing the quality of care furnished               (MACRA) (Pub. L. 114–10). These 6
                                               weeks.2 Repetitive ambulance services                   to Medicare, Medicaid, and Children’s                 states began participation on January 1,
                                               are often needed by beneficiaries                       Health Insurance Program beneficiaries.               2016, and the model was originally
                                               receiving dialysis or cancer treatment.                 Section 1115A(d)(1) of the Act                        scheduled to end in all nine model
                                                  Medicare may cover repetitive,                       authorizes the Secretary to waive such                states on December 1, 2017.
                                               scheduled non-emergent transportation                   requirements of Titles XI and XVIII, as
                                               by ambulance if the—(1) medical                         well as sections 1902(a)(1), 1902(a)(13),             II. Provisions of the Notice
                                               necessity requirements described                        1903(m)(2)(A)(iii), and 1934 (other than                 This notice announces that the
                                               previously are met; and (2) ambulance                   subsections (b)(1)(A) and (c)(5)) of the              Medicare Prior Authorization Model for
                                               provider/supplier, before furnishing the                Act as may be necessary solely for                    Repetitive Scheduled Non-Emergent
                                               service to the beneficiary, obtains a                   purposes of carrying out section 1115A                Ambulance Transport is being extended
                                               written order from the beneficiary’s                    of the Act with respect to testing models             in the current model states of Delaware,
                                               attending physician certifying that the                 described in section 1115A(b) of the                  the District of Columbia, Maryland, New
                                               medical necessity requirements are met                  Act. Consistent with this standard, we                Jersey, North Carolina, Pennsylvania,
                                               (see 42 CFR 410.40(d)(1) and (2)).3                     will continue to waive the same                       South Carolina, Virginia, and West
                                                  In addition to the medical necessity                 provisions for the extension of this                  Virginia, effective December 5, 2017, for
                                               requirements, the service must meet all                 model as have been waived for the                     an additional year to allow for
                                               other Medicare coverage and payment                     initial three years of the model.                     additional evaluation of the model.
                                               requirements, including requirements                    Additionally, we have determined that                 Repetitive, scheduled non-emergent
                                               relating to the origin and destination of               the implementation of this model does                 ambulance transport claims with dates
                                               the transportation, vehicle and staff, and              not require the waiver of any fraud and               of service of December 2, 2017 through
                                               billing and reporting. Additional                       abuse law, including sections 1128A,                  December 4, 2017 will not be stopped
                                               information about Medicare coverage of                  1128B, and 1877 of the Act. Thus                      for prepayment review if prior
                                               ambulance services can be found in 42                   providers and suppliers affected by this              authorization is not requested before the
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                                               CFR 410.40, 410.41, and in the Medicare                                                                       fourth round trip in a 30-day period;
                                                                                                         4 Government Accountability Office Cost and         however, providers, suppliers, and
                                                 1 42 CFR 410.40(d)(1).                                Medicare Margins Varied Widely; Transports of         beneficiaries may request prior
                                                 2 Program Memorandum Intermediaries/Carriers,         Beneficiaries Have Increased (October 2012).
                                                                                                                                                             authorization for these dates of service.
                                               Transmittal AB–03–106.                                    5 Office of Inspector General Medicare Payment
                                                 3 Per 42 CFR 410.40(d)(2), the physician’s order      for Ambulance Transport (January 2006).               The model will now end in all states on
                                               must be dated no earlier than 60 days before the          6 Medicare Payment Advisory Commission, June        December 1, 2018. Prior authorization
                                               date the service is furnished.                          2013, pages 167–193.                                  will not be available for repetitive


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                                               58402                      Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices

                                               scheduled non-emergent ambulance                        However, an ambulance provider/                       period. A provisional affirmative
                                               transportation services furnished after                 supplier or beneficiary is encouraged to              decision can be for all or part of the
                                               that date.                                              submit to the MAC a request for prior                 requested number of trips. Transports
                                                  We will continue to test whether prior               authorization along with all relevant                 exceeding 40 round trips (or 80 one-way
                                               authorization helps reduce                              documentation to support Medicare                     trips) in a 60-day period require an
                                               expenditures, while maintaining or                      coverage of a repetitive, scheduled non-              additional prior authorization request.
                                               improving quality of care, using the                    emergent ambulance transport. If prior                   The following describes examples of
                                               established prior authorization process                 authorization has not been requested by               various prior authorization scenarios:
                                               for repetitive, scheduled non-emergent                  the fourth round trip in a 30-day period,                • Scenario 1: When an ambulance
                                               ambulance transport to reduce                           the subsequent claims will be stopped                 provider/supplier or beneficiary submits
                                               utilization of services that do not                     for prepayment review.                                a prior authorization request to the MAC
                                               comply with Medicare policy.                               In order for a prior authorization                 with appropriate documentation and all
                                                  We will continue to use this prior                   request to be provisionally affirmed, the             relevant Medicare coverage and
                                               authorization process to help ensure                    request for prior authorization must                  documentation requirements are met for
                                               that all relevant clinical or medical                   meet all applicable rules and policies,               the ambulance transport, the MAC will
                                               documentation requirements are met                      including any local coverage                          send a provisional affirmative prior
                                               before services are furnished to                        determination (LCD) requirements for                  authorization decision to the ambulance
                                               beneficiaries and before claims are                     ambulance transport claims. A                         provider/supplier and the beneficiary.
                                               submitted for payment. This prior                       provisional affirmation is a preliminary              When the subsequent claim is submitted
                                               authorization process further helps to                  finding that a future claim submitted to              to the MAC by the ambulance provider/
                                               ensure that payment complies with                       Medicare for the service likely meets                 supplier, it is linked to the prior
                                               Medicare documentation, coverage,                       Medicare’s coverage, coding, and                      authorization decision via the claims
                                               payment, and coding rules.                              payment requirements. After receipt of                processing system, and the claim will be
                                                  The use of prior authorization does                  all relevant documentation, the MACs                  paid so long as all Medicare coding,
                                               not create new clinical documentation                   will make every effort to conduct a                   billing, and coverage requirements are
                                               requirements. Instead, it requires the                  review and postmark the notification of               met. However, the claim could be
                                               same information that is already                        their decision on a prior authorization               denied for technical reasons, such as the
                                               required to support Medicare payment,                   request within 10 business days for an                claim was a duplicate claim or the claim
                                               just earlier in the process. Prior                      initial submission. Notification will be              was for a deceased beneficiary. In
                                               authorization allows providers and                      provided to the ambulance provider/                   addition, a claim denial could occur
                                               suppliers to address coverage issues                    supplier and to the beneficiary. If a                 because certain documentation, such as
                                               prior to furnishing services.                           subsequent prior authorization request                the trip record, needed in support of the
                                                  The prior authorization process under                is submitted after a non-affirmative                  claim cannot be submitted with a prior
                                               this model will continue to apply in the                decision on an initial prior                          authorization request because it is not
                                               nine states listed previously for the                   authorization request, the MACs will                  available until after the service is
                                               following codes for Medicare payment:                   make every effort to conduct a review                 provided.
                                                  • A0426 Ambulance service,                           and postmark the notification of their                   • Scenario 2: When an ambulance
                                               advanced life support, non-emergency                    decision on the resubmitted request                   provider/supplier or beneficiary submits
                                               transport, Level 1 (ALS1).                              within 20 business days.                              a prior authorization request, but all
                                                  • A0428 Ambulance service, BLS,                         An ambulance provider/supplier or                  relevant Medicare coverage
                                               non-emergency transport.                                beneficiary may request an expedited                  requirements are not met, the MAC will
                                                  While prior authorization is not                     review when the standard timeframe for                send a non-affirmative prior
                                               needed for the mileage code, A0425, a                   making a prior authorization decision                 authorization decision to the ambulance
                                               prior authorization decision for an                     could jeopardize the life or health of the            provider/supplier and to the beneficiary
                                               A0426 or A0428 code will automatically                  beneficiary. If the MAC agrees that the               advising them that Medicare will not
                                               include the associated mileage code.                    standard review timeframe would put                   pay for the service. The provider/
                                                  We have conducted and will continue                  the beneficiary at risk, the MAC will                 supplier or beneficiary may then
                                               to conduct outreach and education to                    make reasonable efforts to communicate                resubmit the request with additional
                                               ambulance providers/suppliers, as well                  a decision within 2 business days of                  documentation showing that Medicare
                                               as beneficiaries, through such methods                  receipt of all applicable Medicare-                   requirements have been met.
                                               as updating the operational guide,                      required documentation. As this model                 Alternatively, an ambulance provider/
                                               frequently asked questions (FAQs) on                    is for non-emergent services only, we                 supplier could furnish the service and
                                               our website, a physician letter                         expect requests for expedited reviews to              submit a claim with a non-affirmative
                                               explaining the ambulance providers/                     be extremely rare.                                    prior authorization tracking number, at
                                               suppliers’ need for the proper                             A provisional affirmative prior                    which point the MAC would deny the
                                               documentation, and educational events                   authorization decision may affirm a                   claim. The ambulance provider/supplier
                                               and materials issued by the Medicare                    specified number of trips within a                    and the beneficiary would then have the
                                               Administrative Contractors (MACs). We                   specific amount of time. The prior                    Medicare denial for secondary
                                               are also working to implement a new                     authorization decision, justified by the              insurance purposes and would have the
                                               process that will help identify alternate               beneficiary’s condition, may affirm up                opportunity to submit an appeal of the
                                               transportation resources for                            to 40 round trips (which equates to 80                claim denial if they think Medicare
                                               beneficiaries who receive non-                          one-way trips) per prior authorization                coverage was denied inappropriately.
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                                               affirmative decisions. Additional                       request in a 60-day period.                              • Scenario 3: When an ambulance
                                               information about the implementation                    Alternatively, a provisional affirmative              provider/supplier or beneficiary submits
                                               of the prior authorization model is                     decision may affirm less than 40 round                a prior authorization request with
                                               available on the CMS website at http://                 trips in a 60-day period, or may affirm               incomplete documentation, a detailed
                                               go.cms.gov/PAAmbulance.                                 a request that seeks to provide a                     decision letter will be sent to the
                                                  Under this model, submitting a prior                 specified number of transports (40                    ambulance provider/supplier and to the
                                               authorization request is voluntary.                     round trips or less) in less than a 60-day            beneficiary, with an explanation of what


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                                                                          Federal Register / Vol. 82, No. 237 / Tuesday, December 12, 2017 / Notices                                           58403

                                               information is missing. The ambulance                   percent prepayment medical review of                  comments be faxed to the Office of
                                               provider/supplier or beneficiary can                    those claims.                                         Information and Regulatory Affairs,
                                               rectify the error(s) and resubmit the                     Additional information is available on              OMB, Attn: FDA Desk Officer, Fax:
                                               prior authorization request with                        the CMS website at http://go.cms.gov/                 202–395–7285, or emailed to oira_
                                               appropriate documentation.                              PAAmbulance.                                          submission@omb.eop.gov. All
                                                  • Scenario 4: If an ambulance                                                                              comments should be identified with the
                                               provider or supplier renders a service to               III. Collection of Information
                                                                                                                                                             OMB control number 0910–0001. Also
                                               a beneficiary and does not request prior                Requirements
                                                                                                                                                             include the FDA docket number found
                                               authorization by the fourth round trip in                 Section 1115A(d)(3) of the Act states               in brackets in the heading of this
                                               a 30-day period, and the claim is                       that chapter 35 of title 44, United States            document.
                                               submitted to the MAC for payment, then                  Code (the Paperwork Reduction Act of
                                                                                                                                                             FOR FURTHER INFORMATION CONTACT:
                                               the claim will be stopped for                           1995), shall not apply to the testing and
                                               prepayment review and documentation                     evaluation of models or expansion of                  Domini Bean, Office of Operations,
                                               will be requested.                                      such models under this section.                       Food and Drug Administration, Three
                                                  ++ If the claim is determined to be for              Consequently, this document need not                  White Flint North, 10A–12M, 11601
                                               services that were not medically                        be reviewed by the Office of                          Landsdown St., North Bethesda, MD
                                               necessary or for which there was                        Management and Budget under the                       20852, 301–796–5733, PRAStaff@
                                               insufficient documentation, the claim                   authority of the Paperwork Reduction                  fda.hhs.gov.
                                               will be denied, and all current policies                Act of 1995.                                          SUPPLEMENTARY INFORMATION:    In
                                               and procedures regarding liability for                                                                        compliance with 44 U.S.C. 3507, FDA
                                               payment will apply. The ambulance                       IV. Regulatory Impact Statement
                                                                                                                                                             has submitted the following proposed
                                               provider/supplier or the beneficiary, or                  This document announces a 1-year                    collection of information to OMB for
                                               both, can appeal the claim denial if they               extension of the Medicare Prior                       review and clearance.
                                               believe the denial was inappropriate.                   Authorization Model for Repetitive
                                                  ++ If the claim is determined to be                  Scheduled Non-Emergent Ambulance                      Application for FDA Approval To
                                               payable, it will be paid.                               Transport. Therefore, there are no                    Market a New Drug
                                                  Under the model, we will work to                     regulatory impact implications                        OMB Control Number 0910–0001—
                                               limit any adverse impact on                             associated with this notice.                          Extension
                                               beneficiaries and to educate
                                                                                                         Authority: Section 1115A of the Social                Under section 505(a) of the Federal
                                               beneficiaries about the process. If a prior
                                                                                                       Security Act.                                         Food, Drug, and Cosmetic Act (the
                                               authorization request is non-affirmed,
                                               and the claim is still submitted by the                   Dated: November 16, 2017.                           FD&C Act) (21 U.S.C. 355(a)), a new
                                               ambulance provider/supplier, the claim                  Seema Verma,                                          drug may not be commercially marketed
                                               will be denied, but beneficiaries will                  Administrator, Centers for Medicare &                 in the United States, imported, or
                                               continue to have all applicable                         Medicaid Services.                                    exported from the United States, unless
                                               administrative appeal rights. We will                   [FR Doc. 2017–26759 Filed 12–8–17; 4:15 pm]           an approval of an application filed with
                                               also work to implement a process that                   BILLING CODE 4120–01–P
                                                                                                                                                             FDA under section 505(b) or (j) of the
                                               will help identify alternate                                                                                  FD&C Act is effective with respect to
                                               transportation resources for                                                                                  such drug. The Agency has codified
                                               beneficiaries who receive non-                          DEPARTMENT OF HEALTH AND                              regulations regarding applications for
                                               affirmative decisions.                                  HUMAN SERVICES                                        FDA approval to market a new drug
                                                  Only one prior authorization request                                                                       under 21 CFR part 314. This collection
                                               per beneficiary per designated time                     Food and Drug Administration                          of information supports the regulatory
                                               period can be provisionally affirmed. If                [Docket No. FDA–2013–N–0523]                          requirements found in those regulations.
                                               the initial ambulance provider/supplier                                                                       The collection of information is
                                               cannot complete the total number of                     Agency Information Collection                         necessary for FDA to make a scientific
                                               prior authorized transports (for                        Activities: Submission for Office of                  and technical determination whether
                                               example, the initial ambulance                          Management and Budget Review;                         the product is safe and effective for use,
                                               company closes or no longer services                    Comment Request; Applications for                     and is summarized as follows:
                                               that area), the initial request is                      Food and Drug Administration                            Section 314.50(a) requires that an
                                               cancelled. In this situation, a                         Approval To Market a New Drug                         application form (Form FDA 356h) be
                                               subsequent prior authorization request                                                                        submitted that includes information
                                               may be submitted for the same                           AGENCY:    Food and Drug Administration,              about the applicant, the submission, and
                                               beneficiary and must include the                        HHS.                                                  a checklist of enclosures.
                                               required documentation in the                           ACTION:   Notice.                                       Section 314.50(b) requires that an
                                               submission. If multiple ambulance                                                                             index be submitted with the archival
                                               providers/suppliers are providing                       SUMMARY:   The Food and Drug                          copy of the application and that it
                                               transports to the beneficiary during the                Administration (FDA) is announcing                    reference certain sections of the
                                               same or overlapping time period, the                    that a proposed collection of                         application.
                                               prior authorization decision will only                  information has been submitted to the                   Section 314.50(c) requires that a
                                               cover the ambulance provider/supplier                   Office of Management and Budget                       summary of the application be
                                               indicated in the provisionally affirmed                 (OMB) for review and clearance under                  submitted that presents a good general
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                                               prior authorization request. Any                        the Paperwork Reduction Act of 1995.                  synopsis of all the technical sections
                                               ambulance provider/supplier submitting                  DATES: Fax written comments on the                    and other information in the
                                               claims for repetitive, scheduled non-                   collection of information by January 11,              application.
                                               emergent ambulance transports for                       2018.                                                   Section 314.50(d) requires that the
                                               which no prior authorization request is                 ADDRESSES: To ensure that comments on                 new drug application (NDA) contain the
                                               submitted by the fourth round trip in a                 the information collection are received,              following technical sections about the
                                               30-day period will be subject to 100                    OMB recommends that written                           new drug: Chemistry, manufacturing,


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Document Created: 2018-10-25 10:49:01
Document Modified: 2018-10-25 10:49:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThis extension began on December 5, 2017 and ends on December 1, 2018. However, prior authorization is available upon provider, supplier, or beneficiary request for dates of service between December 2, 2017 and December 4, 2017.
ContactAngela Gaston, (410) 786-7409. Questions regarding the Medicare Prior Authorization Model Extension for Repetitive Scheduled Non-Emergent Ambulance Transport should be sent to [email protected]
FR Citation82 FR 58400 

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