From the President: About that No-Fault regulation that takes effect on April 1, 2013...
In his query the Dr. Silber wrote:
In the meantime, a question has arisen regarding the regulation and how it will be implemented for which the Association seeks clarification. Specifically, the NYSCA seeks clarification of the following provisions:
New subdivision (g) of section 65-3.8 provides as follows:
(ii) for those claimed medical service fees that exceed the charges permissible pursuant to Insurance Law sections 5108(a) and (b) and the regulations promulgated thereunder for services rendered by medical providers.
The problem area is (g)(1)(ii). Some NYSCA members have identified an ambiguity in the way these stipulations may be read.
On the one hand, it may be read that the regulation says that "no payment shall be due" for "those claimed medical service fees that exceed the charges permissible pursuant to the Insurance Law §§ 5108(a) and (b)" - that is, the WC fee schedule.
Specifically, §§ 5108(a) and (b) of Insurance Law stipulate as follows:
(b) The superintendent, after consulting with the chairman of the workers' compensation board and the commissioner of health, shall promulgate rules and regulations implementing and coordinating the provisions of this article and the workers' compensation law with respect to charges for the professional health services specified in paragraph one of subsection (a) of section five thousand one hundred two of this article, including the establishment of schedules for all such services for which schedules have not been prepared and established by the chairman of the workers' compensation board.
Fees that are in "excess" - more than, above or beyond the amounts allotted in the Workers' Compensation fee schedule for individual services are not the real issue at hand here, although this is one way to read the ambiguity.
The concern that arises is that the Workers’ Compensation fee schedule permits doctors of chiropractic (and physical therapists) to be paid for only eight (8) units of treatment. Providers bill a combination of medically necessary therapies that oftentimes exceed the eight (8) units permitted. In addition, most electronic health care software programs follow the AMA CPT® coding rules and the software cannot be adjusted to bill only for, or exactly for eight (8) units or less when the services provided often tabulate for more. This is problematic since many practitioners provide and bill services in excess of the eight (8) units allotted pursuant to the revised and expanded Workers’ Compensation fee schedule. The Workers’ Compensation Board has accommodated the providers by allowing providers to bill for more than the eight (8) units payable but also stipulated that Workers’ Compensation payers would only be responsible for paying for maximum eight (8) units permitted.
If chiropractors (or physical therapists) provide and bill for services in excess of the eight (8) units allowed under the Workers' Compensation fee schedule, the No-Fault regulation adopted appears to allow insurers to deny payment automatically and in total, even though the dollar amount for services individually charged do not exceed the service dollar charges in the Workers Compensation fee schedule for those specific services.
The NYSCA does not contest the fact that providers should not be billing the payers of injured patients dollar amounts for individual and specific services that exceed the dollar amounts for individual services permitted by the Workers’ Compensation fee schedule. At the same time, however, the Association does not think it fair that the a provider’s payment could be automatically and completely denied should the practitioner provide and bill for services whose combined unit values go beyond the eight (8) units permitted by the Workers’ Compensation fee schedule, even though the dollar amounts (fees) for the individual services charges do not exceed and are consistent with the individual dollar amounts (fees) for those services found in the Workers’ Compensation fee schedule. This would be a disservice to the providers involved. If the eight (8) units of service carry over to the §§ 5108(a) and (b) fee schedule(s), then the Association feels that providers should be able to bill for services irrespective of the eight (8) unit service cap with the understanding that payers would only be obligated to pay for up to the eight (8) unit service limit.
Please clarify this ambiguity and how the Department intends on implementing this regulation.
As the deadline for implementation of the April 1, 2013 regulation looms, and not having heard from the Department of Financial Services relative to the Association’s February 20, 2013 inquiry above, I telephoned the Department of Financial Services and spoke directly to someone in the Insurance Bureau that works on No-Fault issues. After explaining the foregoing ambiguity again, the DFS representative explained that he believed the issue had been addressed in the State Administrative Procedure Act (SAPA) run-up to the regulation and that the Regulatory Impact Statement clearly states that ONLY the portion of a provider’s fee that exceeds the fee schedule will be denied, not the entire fee.
Not content to take the Department’s word, I looked up the Regulatory Impact Statement (RIS) directly and it seems to concur with the DFS statement. Under the rubric: “Preventing Billing in Excess of Mandated Fee Schedule or for Services Not Rendered,” the RIS states as follows: