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Medicare Monthly Review Part A and B
A Combined Part A and Part B Newsletter
July 2008

MLN Matters. . .Information for Medicare Providers
(Issued by the Centers for Medicare & Medicaid Services)

Part A Information

MLN Matters Number: MM6030
Related Change Request (CR) #: 6030
Related CR Release Date: May 30, 2008
Effective Date: June 30, 2008
Related CR Transmittal #: R1522CP
Implementation Date: June 30, 2008




Charges to Hold a Bed during Skilled Nursing Facility (SNF) Absence

 

Provider Types Affected
Skilled nursing facilities (SNF) submitting claims to Medicare contractors (fiscal intermediaries (FI), and/or Part A/B Medicare Administrative Contractors (A/B MAC)) for SNF services provided to Medicare beneficiaries.

What You Need to Know
This article is based on Change Request (CR) 6030 which describes the policies relating to bed-hold payments in a SNF by updating the Medicare Claims Processing Manual (Chapter 1 (General Billing Requirements), Section 30.1 (Charges to Hold a Bed during SNF Absence)).

Background
Charges to a beneficiary for admission or readmission to a skilled nursing facility (SNF) are not allowable. However, when temporarily leaving a SNF, a resident can choose to make bed-hold payments to the SNF. Under the Social Security Act (Section1819(c)(1)(B)(iii);(see http://www.ssa.gov/OP_Home/ssact/title18/1819.htm on the internet) and the Code of Federal Regulations (42 CFR §483.10(b)(5)-(6), a SNF must inform residents in advance of their option to make bed-hold payments, as well as the amount of the facility’s charge

Note that SNFs, but not hospitals, may bill the beneficiary for holding a bed during a leave of absence if Medicare requirements are met.

Bed-hold payments are readily distinguishable from payments made prior to initial admission, in that the absent individual has already been admitted to the facility and has established residence in a particular living space within it. Similarly, bed-hold payments are distinguishable from payments for readmission, in that the latter compensate the facility merely for agreeing in advance to allow a departing resident to reenter the facility upon return, while bed-hold payments represent remuneration for the privilege of actually maintaining the resident’s personal effects in the particular living space that the resident has temporarily vacated.

One indicator that post-admission payments do, in fact, represent permissible bed-hold charges related to maintaining personal effects in a particular living space (rather than a prohibited charge for the act of readmission itself) would be that the charges are calculated on the basis of a per diem bed-hold payment rate multiplied by however many days the resident is absent, as opposed to assessing the resident a fixed sum at the time of departure from the facility.

Under §1819(c)(1)(B)(iii) of the Act and 42 CFR 483.10(b)(5)-(6), the facility must inform residents in advance of their option to make bed-hold payments, as well as the amount of the facility’s charge. For these optional payments, the facility should make clear that the resident must affirmatively elect to make them prior to being billed. A facility cannot simply deem a resident to have opted to make such payments and then automatically bill for them upon the resident’s departure from the facility.”

See Chapter 30 of the Medicare Claims Processing Manual for related notification requirements. That chapter is available at http://www.cms.hhs.gov/manuals/downloads/clm104c30.pdf on the CMS Web site.

Additional Information
The official instruction, CR 6030, issued to your FI or A/B MAC regarding this change may be viewed at http://www.cms.hhs.gov/Transmittals/downloads/R1522CP.pdf on the Centers for Medicare & Medicaid Services (CMS) Web site. The revised section of the Medicare Claims Processing Manual is attached to CR6030.

If you have any questions, please contact your FI or A/B MAC at their toll-free number, which may be found at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on the CMS Web site.

Disclaimer This article was prepared as a service to the public and is not intended to grant rights or impose obligations. This article may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations and other interpretive materials for a full and accurate statement of their contents.

News Flash – The revised Skilled Nursing Facility (SNF) Spell of Illness Quick Reference Chart (January 2008), which provides Medicare claims processing information related to SNF spells of illness, can be accessed at http://www.cms.hhs.gov/MLNProducts/downloads/SNFSpellIllnesschrt.pdf on the Centers for Medicare & Medicaid Services Web site.

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