RELATES TO:
KRS
205.520,
205.560,
42
C.F.R. Part 414, 424.57,
440.230,
45 C.F.R. Part 160,
162.1002, Part 164,
42
U.S.C. 1320d,
1395m,
1395w-4,
1396d(i)
NECESSITY, FUNCTION, AND CONFORMITY: The Cabinet for Health and
Family Services, Department for Medicaid Services, has responsibility to
administer the Medicaid Program.
KRS
205.520(3) authorizes the
cabinet, by administrative regulation, to comply with any requirement that may
be imposed, or opportunity presented, by federal law to qualify for federal
Medicaid funds. This administrative regulation establishes the provisions
relating to coverage and reimbursement requirements for durable medical
equipment, medical supplies, prosthetics, and orthotics.
Section 1. Definitions.
(1) "Certificate of Medical Necessity" or
"CMN" means a form required by the department to document medical necessity for
durable medical equipment, medical supplies, prosthetics, or
orthotics.
(2) "CMS" means the
Centers for Medicare and Medicaid Services.
(3) "Covered benefit" or "covered service"
means an item of durable medical equipment, a prosthetic, an orthotic, or a
medical supply for which coverage is provided by the department.
(4) "Customized" means that an item has been
constructed, fitted, or altered to meet the unique medical needs of an
individual Medicaid recipient and does not include the assemblage of modular
components or the addition of various accessories that do not require unique
construction, fitting, or alteration to individual specifications.
(5) "Date of service" means:
(a) The date the durable medical equipment,
prosthetic, orthotic, or supply (DMEPOS) is provided to the
recipient;
(b) For mail order
DMEPOS, the later of the shipping date or the date the recipient was discharged
home from an inpatient hospital stay or nursing facility;
(c) For DMEPOS delivered to a recipient's
home immediately subsequent to a hospital inpatient stay, the date of final
discharge; or
(d) Up to two (2)
calendar days prior to discharge from a hospital or nursing facility if:
1. The item was provided for purposes of
fitting or training of the patient;
2. The item is ready for use in the
recipient's home; and
3. Billing is
not done prior to the date of the recipient's discharge from the
facility.
(6)
"Department" means the Department for Medicaid Services or its
designee.
(7) "DMEPOS" means
durable medical equipment, prosthetics, orthotics, or supplies.
(8) "Durable medical equipment" or "DME"
means medical equipment that:
(a) Withstands
repeated use;
(b) Is primarily and
customarily used to serve a medical purpose;
(c) Is generally not useful to a person in
the absence of an illness or injury; and
(d) Is appropriate for use in the
home.
(9) "Healthcare
common procedure coding system" or "HCPCS" means a collection of codes
acknowledged by the Centers for Medicare and Medicaid Services (CMS) that
represents procedures or items.
(10) "Home" means a place where the recipient
resides excluding:
(a) A nursing
facility;
(b) A hospital;
(c) An intermediate care facility for
individuals with an intellectual disability; or
(d) An institution for mental diseases as
defined by
42
U.S.C.
1396d(i).
(11) "Incidental" means that a medical
procedure or service:
(a) Is performed at the
same time as a more complex primary procedure or service; and
(b)
1.
Requires little additional resources; or
2. Is clinically integral to the performance
of the primary procedure or service.
(12) "Invoice price" means an itemized
account of a manufacturer's actual charges that are billed to a supplier for
goods or services provided by the manufacturer or distributor.
(13) "Medicaid Program DME Fee Schedule"
means a list, located at
http://chfs.ky.gov/dms., that:
(a) Contains the current Medicaid maximum
allowable amount established by the department for a covered item of durable
medical equipment, a prosthetic, an orthotic, or a medical supply;
and
(b) Is updated at least
quarterly to coincide with the quarterly updates made by the Centers for
Medicare and Medicaid Services as required by
42 U.S.C.
1395m and
1395w-4
and 42 C.F.R. Part
414 .
(14) "Medical supply" means an item that is:
(a) Consumable;
(b) Nonreusable;
(c) Disposable; and
(d) Primarily and customarily used to serve a
medical purpose.
(15)
"Medically necessary" or "medical necessity" means that a covered benefit is
determined to be needed in accordance with
907
KAR 3:130.
(16) "Medicare accreditation" means having
met the quality standards established in
42 U.S.C.
1395m(a)(20).
(17) "Mutually exclusive" means that two (2)
DMEPOS items:
(a) Are not reasonably provided
in conjunction with each other during the same patient encounter on the same
date of service;
(b) Represent
duplicate or very similar items; or
(c) Represent medically inappropriate use of
HCPCS codes.
(18)
"Nutritional supplement" means a liquid or powder administered enterally or
orally that is specially formulated to supply complete diagnosis-appropriate
nutrition, including kilocalories, protein, vitamins, and minerals.
(19) "Orthotic" means a mechanical device or
brace that is designed to support or correct a defect or deformity or to
improve the function of a movable part of the body.
(20) "Prescriber" means a physician,
podiatrist, optometrist, dentist, advanced practice registered nurse, physician
assistant, or chiropractor who:
(a) Is acting
within the legal scope of clinical practice under the licensing laws of the
state in which the health care provider's medical practice is
located;
(b) If the individual is
an enrolled Kentucky Medicaid provider, is in compliance with all requirements
of:
(c) Is in good standing with the appropriate
licensure board and CMS; and
(d)
Has the legal authority to write an order for a medically necessary item of
durable medical equipment, a medical supply, a prosthetic, or an orthotic for a
recipient.
(21) "Prior
authorization" means approval that a supplier shall obtain from the department
before being reimbursed.
(22)
"Prosthetic" means an item that replaces all or part of the function of a body
part or organ.
(23)
"Reasonableness" means:
(a) The expense of the
item does not exceed the therapeutic benefits that could ordinarily be derived
from use of the item;
(b) The item
is not substantially more costly than a medically-appropriate alternative;
and
(c) The item does not serve the
same purpose as an item already available to the recipient.
(24) "Supplier" means a
Medicare-certified provider of durable medical equipment, medical supplies,
prosthetics, or orthotics who is enrolled in the Kentucky Medicaid
Program.
(25) "Usual and customary
charge" means the uniform amount that a supplier bills to the general public
for a specific covered benefit.
Section 2. General Coverage.
(1) Except as provided in subsection (2) of
this section, coverage for an item of durable medical equipment, a medical
supply, a prosthetic, or an orthotic shall:
(a) Be based on medical necessity and
reasonableness;
(b) Be clinically
appropriate pursuant to the criteria established in
907
KAR 3:130;
(c) Require prior authorization in accordance
with Section 7 of this administrative regulation;
(d) Be provided in compliance with
42 C.F.R.
440.230(c); and
(e) Be restricted to an item used primarily
in the home.
(2)
(a) Except as provided in paragraph (b) of
this subsection, the criteria referenced in subsection (1) of this section that
was in effect on the date the durable medical equipment, prosthetic, orthotic,
or medical supply is provided shall be used as the basis for the determination
of coverage, subject to medical necessity override by the department to ensure
compliance with
42 C.F.R.
440.230(c).
(b) If criteria referenced in subsection (1)
of this section does not exist or is unavailable for a given item or service,
the Medicare criteria in effect on the date the durable medical equipment,
prosthetic, orthotic, or medical supply is provided shall be used as the basis
for the determination of coverage, subject to medical necessity override by the
department to ensure compliance with
42 C.F.R.
440.230(c).
(3) Unless specifically exempted by the
department, a DME item, medical supply, prosthetic, or orthotic shall require a
CMN that shall be kept on file by the supplier for the period of time mandated
by
45 C.F.R.
164.316.
(4) An item for which a CMN is not required
shall require a prescriber's written order.
(5) If Medicare is the primary payor for a
recipient who is dually eligible for both Medicare and Medicaid, the supplier
shall comply with Medicare's CMN requirement and a separate Medicaid CMN shall
not be required.
(6) A required CMN
shall be:
(a) The appropriate Medicare CMN in
use at the time the item or service is prescribed;
(b) A MAP-1000, Certificate of Medical
Necessity, Durable Medical Equipment; or
(c) A MAP-1000B, Certificate of Medical
Necessity, Metabolic Formulas and Foods.
(7) A CMN shall contain:
(a) The recipient's name and
address;
(b) A complete description
of the item or service ordered;
(c)
The recipient's diagnosis;
(d) The
expected start date of the order;
(e) The length of the recipient's need for
the item;
(f) The medical necessity
for the item;
(g) The prescriber's
name, address, telephone number, and National Provider Identifier (NPI), if
applicable; and
(h) The
prescriber's signature and date of signature.
(8) Except as specified in subsections (9)
and (10) of this section, a prescriber shall examine a recipient within sixty
(60) calendar days prior to the initial order of a DME item, medical supply,
prosthetic, or orthotic.
(9) Except
as specified in subsection (11) of this section, a prescriber shall not be
required to examine a recipient prior to subsequent orders for the same DME
item, medical supply, prosthetic, or orthotic unless there is a change in the
order.
(10) A prescriber shall not
be required to examine a recipient prior to the repair of a DME item,
prosthetic, or orthotic.
(11) A
change in supplier shall require a new CMN signed and dated by a prescriber who
shall have seen the recipient within sixty (60) calendar days prior to the
order.
(12) A CMN shall be updated
with each request for prior authorization.
(13) The department shall only purchase a new
DME item.
(14) A new DME item that
is placed with a recipient initially as a rental item shall be considered a new
item by the department at the time of purchase.
(15) A used DME item that is placed with a
recipient initially as a rental item shall be replaced by the supplier with a
new item prior to purchase by the department.
(16) A supplier shall not bill Medicaid for a
DME item, medical supply, prosthetic, or orthotic before the item is provided
to the recipient.
(17) A supplier
shall not ship supplies to a recipient unless the supplier has:
(a) First had direct contact with the
recipient or the recipient's caregiver; and
(b) Verified:
1. That the recipient wishes to receive the
shipment of supplies;
2. The
quantity of supplies in the shipment; and
3. Whether or not there has been a change in
the use of the supply.
(18) A verification referenced in subsection
(17) of this section for each recipient shall be documented in a file regarding
the recipient.
(19) If a supplier
ships more than a one (1) month supply of an item, the supplier shall assume
the financial risk of nonpayment if the recipient's Medicaid eligibility lapses
or a HCPCS code is discontinued.
(20) A supplier shall have an order from a
prescriber before dispensing any DMEPOS item to a recipient.
(21) A supplier shall have a written order on
file prior to submitting a claim for reimbursement.
Section 3. Purchase or Rental of Durable
Medical Equipment.
(1) Except as established
on the Medicaid Program DME Fee Schedule, durable medical equipment shall be
covered through purchase or rental based upon anticipated duration of medical
necessity.
(2)
(a) A MAP 1001 form shall be completed if a
recipient requests an item or service not covered by the department.
(b) A recipient shall be financially
responsible for an item or service requested by the recipient via a MAP 1001
that is not covered by the department.
(c) A MAP 1001 shall be completed as follows:
1. The DME supplier shall ensure that the
recipient or authorized representative reads and understands the MAP
1001;
2. The recipient or
authorized representative shall indicate on the MAP 1001 if the recipient
chooses to receive a noncovered service;
3. The DME supplier shall complete the
supplier information on the MAP 1001;
4. The DME supplier shall provide a copy of
the completed MAP 1001 to the recipient; and
5. The DME supplier shall maintain the
completed MAP 1001 on file for at least the period of time mandated by
45 C.F.R.
164.316.
(d) If an item or service was denied due to
the supplier not meeting the timeframes to obtain a prior authorization or the
item or service does not meet medical necessity for a prior authorization, the
MAP 1001 shall not be used to obligate the recipient for
payment.
Section
4. Special Coverage.
(1) An
augmentative communication device or other electronic speech aid shall be
covered for a recipient who is permanently unable to communicate through oral
speech if:
(a) Medical necessity is
established based on a review by the department of an evaluation and
recommendation submitted by a speech-language pathologist; and
(b) The item is prior authorized by the
department.
(2) A
customized DME item shall be covered only if a noncustomized medically
appropriate equivalent is not commercially available.
(3) A physical therapy or occupational
therapy evaluation shall be required for:
(a)
A power wheelchair; or
(b) A
wheelchair for a recipient who, due to a medical condition, is unable to be
reasonably accommodated by a standard wheelchair.
(4) Orthopedic shoes and attachments shall be
covered if medically necessary for:
(a) A
congenital defect or deformity;
(b)
A deformity due to injury; or
(c)
Use as a brace attachment.
(5) A therapeutic shoe or boot shall be
covered if medically necessary to treat a nonhealing wound, ulcer, or lesion of
the foot.
(6) An enteral or oral
nutritional supplement shall be covered if:
(a) The item is prescribed by a licensed
prescriber;
(b) Except for an amino
acid modified preparation or a low-protein modified food product specified in
subsection (7) of this section, it is the total source of a recipient's daily
intake of nutrients;
(c) The item
is prior authorized; and
(d)
Nutritional intake is documented on the CMN.
(7) An amino acid modified preparation or a
low-protein modified food product shall be covered:
(a) If prescribed for the treatment of an
inherited metabolic condition specified in
KRS
205.560(1)(c);
(b) If not covered through the Medicaid
outpatient pharmacy program;
(c)
Regardless of whether it is the sole source of nutrition; and
(d) If the item is prior
authorized.
(8) A DME
item intended to be used for postdischarge rehabilitation in the home may be
delivered to a hospitalized recipient within two (2) calendar days prior to
discharge home for the purpose of rehabilitative training.
(9) An electric breast pump shall be covered
for the following:
(a) Medical separation of
mother and infant;
(b) Inability of
an infant to nurse normally due to a significant feeding problem; or
(c) An illness or injury that interferes with
effective breast feeding.
(10) Rental of an airway clearance vest
system for a three (3) month trial period shall be required before purchase of
the equipment.
Section 5.
Coverage of Repairs and Replacement of Equipment.
(1) The department shall not be responsible
for repair or replacement of a DME item, prosthetic, or orthotic if the repair
or replacement is covered by a warranty.
(2) Reasonable repair to a purchased DME
item, prosthetic, or orthotic shall be covered:
(a) During a period of medical
need;
(b) If necessary to make the
item serviceable;
(c) If a warranty
is not in effect on the requested repair; and
(d) In accordance with Section 6(3) of this
administrative regulation.
(3) Extensive maintenance to purchased
equipment, as recommended by the manufacturer and performed by an authorized
technician, shall be considered to be a repair.
(4) The replacement of a medically necessary
DME item, medical supply, prosthetic, or orthotic shall be covered for the
following:
(a) Loss of the item;
(b) Irreparable damage or wear; or
(c) A change in a recipient's condition that
requires a change in equipment.
(5) Suspected malicious damage, culpable
neglect, or wrongful disposition of a DME item, medical supply, prosthetic, or
orthotic shall be reported by the supplier to the department if the supplier is
requesting prior authorization for replacement of the item.
Section 6. Limitations on
Coverage.
(1) The following items shall be
excluded from Medicaid coverage through the DME Program:
(a) An item covered for Medicaid payment
through another Medicaid program;
(b) Equipment that is not primarily and
customarily used for a medical purpose;
(c) Physical fitness equipment;
(d) Equipment used primarily for the
convenience of the recipient or caregiver;
(e) A home modification;
(f) Routine maintenance of DME that includes:
1. Testing;
2. Cleaning;
3. Regulating; and
4. Assessing the recipient's
equipment;
(g) Except as
specified in Section 7(1)(j) of this administrative regulation, backup
equipment; or
(h) An item
determined not medically necessary, clinically appropriate, or reasonable by
the department.
(2)
Except if Medicare is the primary payer, the following diabetic supplies (HCPCS
codes) shall be covered as a pharmacy benefit at the point of sale:
(a) A4206, a syringe with needle (sterile,
1cc or less);
(b) A4250, urine test
or reagent strips or tablets;
(c)
A4252, blood ketone test or reagent strip;
(d) A4253, blood glucose test or reagent
strips;
(e) A4256, calibrating
solutions;
(f) A4258, lancet
device;
(g) A4259, lancets;
or
(h) E0607, home blood glucose
monitor.
(3) An estimated
repair shall not be covered if the repair cost equals or exceeds:
(a) The purchase price of a replacement item;
or
(b) The total reimbursement
amount for renting a replacement item of equipment for the estimated remaining
period of medical need.
(4) Durable medical equipment, prosthetics,
orthotics, and medical supplies shall be included in the facility reimbursement
for a recipient residing in a hospital, nursing facility, or intermediate care
facility or institution for individuals with an intellectual or developmental
disability.
Section 7.
Prior Authorization Requirements and Process.
(1) Prior authorization shall be required for
the following:
(a) An item or repair billed to
the department at $500 or more;
(b)
Rental of equipment as indicated on the Medicaid Program DME Fee Schedule
excluding oxygen services after twelve (12) continuous months of
service;
(c) Orthopedic
shoes;
(d) An adjustment to a
prosthetic or orthotic;
(e) An
augmentative communication device;
(f) A customized DME item;
(g) A replacement DME item, prosthetic, or
orthotic if replacement is prior to the:
1.
Usual and customary lifetime of the item; or
2. Limitation set by the department as
indicated in the Medicaid Program DME Fee Schedule;
(h) A nutritional supplement;
(i) An amino acid modified preparation or a
low-protein modified food product;
(j) A loaner item for a member-owned piece of
equipment that is being repaired;
(k) A DMEPOS item denoted by a general or
nonspecific HCPCS code;
(l) An item
designated on the Medicaid Program DME Fee Schedule as requiring prior
authorization;
(m) An item that
exceeds the quantity limitation established in the Medicaid Program DME Fee
Schedule; or
(n) An item designated
by an HCPCS code not indicated on the Medicaid Program DME Fee Schedule that is
determined by the department to be a covered benefit.
(2)
(a) If
an item requires prior authorization, a supplier shall:
1.
a. Submit
all required documentation prior to the date of service; or
b. Within one (1) year from the date of
service with department approval;
2. Submit a written request to the department
for prior authorization, which shall include the prescriber's order;
and
3. Submit a completed CMN to
the department within ninety (90) business days of the date of the request for
prior authorization.
(b)
If the required prior authorization submittals required by paragraph (a) of
this subsection are not submitted within the established time frames, the prior
authorization request shall be denied.
(3) If an item requires an evaluation or
recommendation by a specialist, the evaluation or recommendation shall be in
writing and submitted with the CMN.
(4) The supplier shall not bill a recipient
for a DME item, medical supply, prosthetic, or orthotic if the supplier has not
completed the prior authorization process within the timeframe specified in
subsection (2) of this section.
(5)
If a supplier provides an item that requires prior authorization before the
prior authorization is received, the supplier shall assume the financial risk
that the prior authorization might not be subsequently approved.
(6) A supplier may initially obtain a faxed
CMN from a prescriber to expedite the prior authorization process, but a
signed, original CMN subsequently shall be required.
(7) A supplier shall request prior
authorization by mailing, faxing, or electronically submitting the following
information to the department:
(a) A completed
prior authorization form MAP-9;
(b)
A completed CMN; and
(c) If
requested by the department, additional information required to establish
medical necessity, clinical appropriateness, or reasonableness.
(8) The following additional
information shall be required for prior authorization of a customized item:
(a) An estimate of the fitting
time;
(b) An estimate of the
fabrication time;
(c) A description
of the materials used in customizing the item; and
(d) An itemized estimate of the cost of the
item, including the cost of labor.
(9) The following additional information
shall be required for prior authorization of a repair to purchased equipment:
(a) A description of the nature of the
repair;
(b) An itemization of the
parts required for the repair;
(c)
An itemization of the labor time involved in the repair; and
(d) A copy of the manufacturer's warranty
indicating the purchase date or a written notice from the DME supplier stating
that the requested repair is not covered by the warranty.
(10) An item shall be prior authorized based
on:
(a) Medical necessity and the
corresponding prior-authorized period of medical necessity; and
(b)
1.
Clinical appropriateness pursuant to the criteria established in
907
KAR 3:130; or
2. Medicare criteria if the criteria
referenced in subparagraph 1. of this paragraph does not exist or is
unavailable.
(11) A prior authorization period shall be
extended upon the provision of a new CMN indicating current medical necessity
and:
(a) Clinical appropriateness pursuant to
the criteria established in
907
KAR 3:130; or
(b) Medicare criteria if the criteria
referenced in paragraph (a) of this subsection does not exist or is
unavailable.
(12)
(a) Prior authorization by the department
shall not:
1. Be a guarantee of recipient
eligibility; or
2. Guarantee
reimbursement.
(b)
Eligibility verification shall be the responsibility of the supplier.
(13) Upon review and determination
by the department that removing prior authorization shall be in the best
interest of Medicaid recipients, the prior authorization requirement for a
specific covered benefit shall be discontinued, at which time the covered
benefit shall be available to all recipients without prior
authorization.
(14) If it is
determined by the department to be in the best interest of Medicaid recipients,
the department may designate that an item of durable medical equipment suitable
for use in the home may be provided, if prior authorized, to a recipient
temporarily residing in a hospital that does not bill patients, Medicaid, or
other third-party payers for any health care services.
(15)
(a) For
purposes of obtaining prior authorization, a signed invoice price quote from
the manufacturer shall be acceptable documentation.
(b) If the invoice price differs from the
manufacturer's invoice price quote, the supplier shall amend the prior
authorization and shall maintain documentation of the quote and the
invoice.
Section
8. Reimbursement for Covered Services.
(1) Except for an item specified in
subsections (2) and (5) of this section, a new item that is purchased shall be
reimbursed at the lesser of:
(a) The
supplier's usual and customary charge for the item;
(b) The purchase price specified in the
Medicaid Program DME Fee Schedule; or
(c) If indicated in the Medicaid Program DME
Fee Schedule as manually priced, invoice price plus twenty (20) percent for an
item not utilizing a billing code.
(2) Pursuant to
45 C.F.R.
162.1002, the department shall recognize U.S.
Department for Health and Human Services quarterly HCPCS code updates.
(a) An item denoted by an HCPCS code not
currently on the Medicaid Program DME Fee Schedule that has been determined by
the department to be a covered service shall be manually priced using the
actual invoice price plus twenty (20) percent.
(b)
1. The
department shall post HCPCS code change information on its Web site accessible
at
http://chfs.ky.gov/dms.
2. The information may also be obtained by
writing the Department for Medicaid Services at 275 East Main Street,
Frankfort, Kentucky 40621.
(3) If a copayment is required, copayment
provisions, including any provider deduction, shall be as established in
907 KAR
1:604.
(4)
For a service covered under Medicare Part B, reimbursement shall be in
accordance with
907
KAR 1:006.
(5) Reimbursement for the purchase of an item
that has been rented for less than ten (10) months shall be the purchase price
specified in subsection (1) of this section minus the cumulative rental payment
made to the supplier.
(6) A rental
item shall be reimbursed as follows, but reimbursement shall not exceed the
supplier's usual and customary charge for the item:
(a) The rental price specified in the
Medicaid Program DME Fee Schedule; or
(b) If indicated in the Medicaid Program DME
Fee Schedule as manually priced:
1. Ten (10)
percent of the purchase price per month for the monthly rental of an item;
or
2. Two and one-half (2.5)
percent of the purchase price per week for the weekly rental of an item that is
needed for less than one (1) month.
(7) If reimbursement for a rental item has
been made for a period of ten (10) consecutive months, the item shall be
considered to be purchased and shall become the property of the
recipient.
(8) Labor costs for a
repair shall be billed in quarter hour increments using the HCPCS codes for
labor specified in the Medicaid Program DME Fee Schedule and shall be
reimbursed the lessor of:
(a) The supplier's
usual and customary charge; or
(b)
The reimbursement rate specified in the Medicaid Program DME Fee
Schedule.
(9)
Reimbursement shall include instruction and training provided to the recipient
by the supplier.
(10) The rental
price of an item shall include rental of the item and the cost of:
(a) Shipping and handling;
(b) Delivery and pickup;
(c) Setup;
(d) Routine maintenance; and
(e) Essential medical supplies required for
proper use of the equipment.
(11) The purchase price of a prosthetic or
orthotic shall include:
(a) Acquisition cost
and applicable design and construction;
(b) Required visits with a prosthetist or
orthotist prior to receipt of the item;
(c) Proper fitting and adjustment of the item
for a period of one (1) year;
(d)
Required modification, if not a result of physical growth or excessive change
in stump size, for a period of one (1) year; and
(e) A warranty covering defects in material
and workmanship.
Section
9. Conditions for Provider Participation. A participating DME
provider shall:
(1) Have an active Medicare
DME provider number;
(2) Adhere to
all CMS supplier standards in accordance with
42
C.F.R.
424.57;
(3)
(a)
Provide proof of Medicare accreditation, by an approved Medicare accreditation
entity, to the department every three (3) years unless exempt from Medicare
accreditation by CMS; or
(b) If
exempt from Medicare accreditation by CMS, provide a letter to the department
on company letterhead that indicates the CMS exemption status;
(4) Be enrolled in the Kentucky
Medicaid Program in accordance with:
(5) Comply with the requirements regarding
the confidentiality of personal medical records pursuant to
42
U.S.C.
1320d and 45 C.F.R. Parts
160 and
164;
and
(6) Comply with the following:
(a) A supplier shall bill Medicaid rather
than a recipient for a covered service;
(b) A supplier shall not bill a recipient for
a service that is denied by the department on the basis that the service is
incidental to, or mutually exclusive with, a covered service; and
(c) A supplier may bill a recipient for a
service not covered by Medicaid if the provider informed the recipient of
noncoverage prior to providing the service.
Section 10. Managed Care Organizations and
Reimbursement. A managed care organization shall not be required to reimburse
the same amount as the department reimburses for a service or item covered
pursuant to this administrative regulation.
Section 11. Federal Approval and Federal
Financial Participation. The department's coverage and reimbursement for
services pursuant to this administrative regulation shall be contingent upon:
(1) Receipt of federal financial
participation for the coverage and reimbursement; and
(2) Centers for Medicare and Medicaid
Services' approval for the coverage and reimbursement.
Section 12. Appeal Rights.
(1) If an individual is denied prior
authorization for DMEPOS based upon an application of this administrative
regulation, the DME supplier involved in the prior authorization request may
appeal the denial. To appeal the denial, the DME supplier shall submit to the
department, within thirty (30) calendar days of the prior authorization denial,
a written request, by mail or fax, for a reconsideration review.
(2) Upon receipt of a reconsideration request
and any supporting documentation, the department shall:
(a) Conduct a reconsideration review within
thirty (30) calendar days from the receipt of the request;
(b) Base the reconsideration review decision
solely upon information that is:
1. Contained
in the individual's medical records; and
2. Submitted with the written request
pursuant to subsection (1) of this section; and
(c) Issue a notification of approval or
denial within five (5) working days of a reconsideration review.
(3) If an outcome of a services
reconsideration review results in a denial, the department shall grant an
appeal.
(4) An appeal of a
department decision regarding a Medicaid recipient who is:
(a) Enrolled with a managed care organization
shall be in accordance with
907
KAR 17:010; or
(b) Not enrolled with a managed care
organization shall be in accordance with
907
KAR 1:563.
(5) An appeal of a department decision
regarding a Medicaid provider based upon an application of this administrative
regulation shall be in accordance with
907
KAR 1:671.
Section 13. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) Form MAP-9, "Prior
Authorization for Health Services", July 2010;
(b) Form MAP-1000, "Certificate of Medical
Necessity, Durable Medical Equipment", July 2010;
(c) Form MAP-1000B, "Certificate of Medical
Necessity, Metabolic Formulas and Foods", July 2010 edition; and
(d) Form MAP 1001, "Advance Member Notice",
September 2006.
(2) This
material may be inspected, copied, or obtained, subject to applicable copyright
law:
(a) At the Department for Medicaid
Services, 275 East Main Street, Frankfort, Kentucky 40621, Monday through
Friday, 8 a.m. to 4:30 p.m.; or