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Medicare Outpatient Prospective Payment System

INTRODUCTION The Blue Cross and Blue Shield Association (Association) on behalf of the Health Care Financing Administration (HCFA) developed this Medicare Outpatient Prospective Payment System (OPPS) training session. The training session has been prepared to assist providers and Medicare fiscal intermediaries (FIs) with the information they will need to know in order to successfully implement the new payment system. This session and the training publication are designed for training individuals who will in turn, train providers and FI staff in OPPS. We have provided training text, overhead slides, and reference documents to facilitate that process. This training publication was initially produced prior to the publication of the final rule implementing Medicare’s Outpatient Prospective Payment System. We have revised the training material to incorporate the best information available at the time of publication. Please refer to the final rule as published in the Federal Register for authoritative guidance in the new system. This publication should not be considered an authoritative source in making Medicare Program policy determinations. COURSE OBJECTIVES At the end of this session participants will be able to:
  • Explain (at a conceptual level) the basic components of OPPS
  • Explain (at a conceptual level) how the components of OPPS interact from claim submission to finalization using program materials developed for provider training
  • Understand the impact of OPPS on FI workload and work flow, as well as the impact on audit and reimbursement
  • Understand the fiscal intermediary (FI) responsibilities related to OPPS provider education and anticipated provider concerns
  • Understand how to use the training tools developed for this course to help address provider OPPS education
CERTIFICATION This training course meets the Continuing Education and Training (CET) requirements of the Government Auditing Standards and should qualify for CET credit by your state Board of Accountancy, since Blue Cross and Blue Shield Association is a corporate sponsor in the state of Illinois and an approved sponsor in the National Association of State Boards of Accountancy, National Registry of CPE Sponsors (91-00149-99).
Registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses.
Complaints regarding registered sponsors may be addressed to NASBA, 380 Lexington Avenue, New York, NY 10168-0002, 1-212-490-3868.

GLOSSARY OF TERMS

APG Ambulatory Patient Group
APASS Arkansas Part A Standard System
APC Ambulatory Payment Classification
ASC Ambulatory Surgical Center
BBA Balanced Budget Act of 1997
BBRA Balanced Budget Refinement Act of 1999 (per OPPS PM)
CAH Critical Access Hospital
CC Condition Code
CCI Correct Coding Initiative
CELIP Claim Expansion and Line Item Pricing
CFR Code of Federal Regulations
CMHC Community Mental Health Center
CORF Comprehensive Outpatient Rehabilitation Facility
CPT Current Procedural Terminology
DME Durable Medical Equipment
E&M Evaluation and Management
EOMB Explanation of Medicare Benefits
ERA Electronic Remittance Advice
FI Fiscal Intermediary
FISS Fiscal Intermediary Shared System
FMR Focused Medical Review
F.R. Final Rule
HCFA Health Care Financing Administration
HCPCS HCFA Common Procedure Coding System
HHA Home Health Agency
ICD-9-CM International Classification of Disease, Clinical Modification
MR Medical Review
MSN Medicare Summary Notice
NDC National Drug Code
OCE Outpatient Code Editor
OPPS Outpatient Prospective Payment System
PHP Partial Hospitalization Program
PPS Prospective Payment System
SPR Standard Paper Remittance
SSA Social Security Act
TOP Transitional Outpatient Payment
VC Value Code
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