2013 Final OPPS Final HOPPS 2013 Summary SIR On November 1, 2012 The Centers for Medicare & Medicaid Services (CMS) issued a final rule that would update payment policies and payment rates for services furnished to Medicare beneficiaries in hospital outpatient departments (HOPDs) and ambulatory surgical centers (ASCs) beginning Jan. 1, 2013. The final rule affects hospital outpatient departments in more than 4,000 hospitals, including general acute care hospitals, inpatient rehabilitation facilities, inpatient psychiatric facilities, long-term acute care hospitals, children’s hospitals, and cancer hospitals, and approximately 5,000 Medicare-participating ASCs. The final rule will be published on November 15, 2012. It will take effect January 1, 2013 with a comment period that closes on December 31, 2012. A display copy of the final rule can be found at: http://www.ofr.gov/OFRUpload/OFRData/2012-26902_PI.pdf The Addenda to the final rule for the HOPPS are available at: http://www.cms.gov/Medicare/Medicare-Fee-for-ServicePayment/HospitalOutpatientPPS/Hospital-Outpatient-Regulations-and-Notices-Items/CMS1589-FC.html The Addenda to the final rule for the ASC payment system are available at: http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/ASCPayment/ASCRegulations-and-Notices-Items/CMS-1589-FC.html Under the policies in this final rule payment rates for hospital outpatient departments will increase by 1.8 percent. The increase is based on the projected hospital market basket—an inflation rate for goods and services used by hospitals—of 2.6 percent, minus 0.8 percent in statutory reductions, including a 0.7 percent adjustment for economy-wide productivity and a 0.1 percentage point adjustment required by statute. CMS is using a final conversion factor of $71.313 for CY2013 in the calculation of the national unadjusted payment rates for those items and services for which payment rates are calculated using geometric mean costs. They also are using a reduced conversion factor of $69.887 in the calculation of payments for hospitals that fail to comply with the Hospital OQR Program requirements. Total payments to hospitals under the OPPS in CY 2013 will be approximately $48.1 billion. Table 57 (page 1169) of this final rule displays the distributional impact all the OPPS changes on Staff Summary Page 1 2013 Final OPPS various groups of hospitals and CMHCs for CY 2013 compared to all estimated OPPS payments in CY 2012. Geometric Mean-Based Relative Payment Weights (p. 172) CY 2013 CMS is using the geometric mean costs of services within an APC to determine the relative payment weights of services, rather than the median costs they have used since the inception of the OPPS. CMS says that the final policy to base the APC relative payment weights on the geometric mean costs rather than the median costs of services within an APC will not significantly impact most providers. Number of Claims CMS used approximately 153 million final action claims for HOPD services furnished on or after January 1, 2011, and before January 1, 2012. Of those approximately 153 million final action claims, approximately 121 million claims )re the type of bill potentially appropriate for use in setting rates for OPPS services. Of the approximately 121 million claims, approximately 5 million claims were not for services paid under the OPPS or were excluded as not appropriate for use. From the remaining approximately 116 million claims, CMS created approximately 120 million single records, of which approximately 81 million were “pseudo” single or “single session” claims (created from approximately 39 million multiple procedure claims). Approximately 1 million claims were trimmed out on cost or units in excess of +/- 3 standard deviations from the geometric mean, yielding approximately 120 million single bills for ratesetting. Bypass List (p. 69) For CY2013 CMS will bypass 480 HCPCS codes, as displayed in Addendum N. Table 1 contains the list of codes that they are removing from the CY 2013 bypass list because these codes were either deleted from the HCPCS before CY 2011 (and therefore were not covered OPD services in CY 2011) or were not separately payable codes under the CY 2013 OPPS because these codes are not used for ratesetting (and therefore would not need to be bypassed). None of these deleted codes are “overlap bypass” codes. Packaged Costs CMS will continue to update the packaged cost threshold by the market basket increase. By applying the final CY 2012 market basket increase of 1.9 percent to the prior non-rounded dollar threshold of $52.76, CMS determined that the threshold remains for CY 2013 at $55 ($53.76 rounded to $55, the nearest $5 increment). Therefore, they will set the geometric mean packaged cost threshold on the CY 2011 claims at $55 for a code to be considered for addition to the CY 2013 OPPS bypass list. Two Times Rule (p. 357) CMS is finalizing their two times rule proposals with some modifications. The final list of 19 APCs exempted from the 2 times rule for CY 2013 is displayed in Table 17. Items and services within an APC group shall not be treated as comparable with respect to the use of resources if the highest median/mean cost for an item or service within the group is more than 2 times greater than the lowest median/mean cost for an item or service within the same Staff Summary Page 2 2013 Final OPPS group (the 2 times rule). For purposes of identifying significant HCPCS for examination in the 2 times rule, CMS considers codes that have more than 1,000 single major claims or codes that have both greater than 99 single major claims and contribute at least 2 percent of the single major claims used to establish the APC geometric mean cost to be significant. Packaging (p. 246) CMS is finalizing their existing packaging policies. The HCPCS codes that CMS unconditionally packaged (assigned status indicator “N”), or conditionally packaged (assigned status indicators “Q1,” “Q2,” or “Q3”) are displayed in Addendum B. Device Dependent APCs (p. 119) CMS is finalizing their proposed policy to use the standard methodology for calculating costs for device-dependent APCs for CY 2013 that was finalized in the CY 2012 OPPS/ASC final rule. Hospital Outpatient Outlier Payments (p. 313) CMS will continue to make an outlier payment that equals 50 percent of the amount by which the cost of furnishing the service exceeds 1.75 times the APC payment amount when both the 1.75 multiple threshold and the final fixed-dollar threshold of $2,025 are met. Rural Adjustment (p. 303) CMS is continuing the adjustment of 7.1 percent to the OPPS payments to certain rural sole community hospitals (SCHs), including essential access community hospitals (EACHs). This adjustment will apply to all services paid under the OPPS, excluding separately payable drugs and biologicals, devices paid under the pass-through payment policy, and items paid at charges reduced to cost. Cancer Hospital Payment Adjustment (p. 306) For CY 2013, CMS is continuing their policy to provide additional payments to cancer hospitals so that the hospital’s payment-to-cost ratio (PCR) with the payment adjustment is equal to the weighted average PCR for the other OPPS hospitals using the most recent submitted or settled cost report data. Based on those data, a target PCR of 0.91 will be used to determine the CY 2013 cancer hospital payment adjustment to be paid at cost report settlement. That is, the payment amount associated with the cancer hospital payment adjustment will be the additional payment needed to result in a PCR equal to 0.91 for each cancer hospital. Table 9 indicates the estimated percentage increase in OPPS payments to each cancer hospital for CY 2013 due to the cancer hospital payment adjustment policy. Staff Summary Page 3 2013 Final OPPS New Carotid Angiography Codes for CY2013 HCPCS 36221 36222 36223 36224 36225 36226 36227 36228 Short Descriptor Place cath thoracic aorta Place cath carotid/inom art Place cath carotid/inom art Place cath carotd art Place cath subclavian art Place cath vertebral art Place cath xtrnl carotid Place cath intracranial art 2013 APC 2013 Payment Rate 2012 Payment Rate 0279 0279 0279 0280 0279 0280 $2,219.82 $2,219.82 $2,219.82 $3,630.40 $2,219.82 $3,630.40 N/A N/A N/A N/A N/A N/A 2013 APC 2013 Payment Rate 2012 Payment Rate 0621 $786.08 N/A 0621 0622 0622 $786.08 $1,754.10 $1,754.10 N/A N/A N/A New Thrombolysis Codes for CY2013 HCPCS Short Descriptor 37211 Thrombolytic art therapy Thrombolytic venous therapy Thromblytic art/ven therapy Cessj therapy cath removal 37212 37213 37214 Mechanical Thrombectomy (APC 0653) (p. 409) CMS received comments expressing concern regarding the proposed 19.7 percent reduction in the payment rate CPT code 36870. CMS continues to believe that APC 0653 is the most appropriate APC assignment for CPT code 36870 based on its clinical homogeneity and resource costs in relation to the other procedures assigned to the APC. CMS stated that their analysis of the latest hospital outpatient data for claims submitted for services provided during CY 2011 shows a geometric mean cost for CPT code 36870 of approximately $2,662, based on 539 single claims (out of 50,476 total claims), which is relatively similar to the proposed rule payment rate of approximately $2,748 for APC 0653. Endovascular Revascularization of the Lower Extremity (APCs 0083, 0229, and 0319) (p. 416) Despite objections, CMS is finalizing, without modification, their LE placements: CPT codes 37183 and 37210 to APC 0229; CPT code 37223 to APC 0083; and CPT codes 37234 and 37235 to APC 0083. Staff Summary Page 4 2013 Final OPPS HCPCS Short Descriptor 2013 Payment Rate 2013 APC 2012 Payment Rate % Change in Payment Rate 37220 Iliac revasc 0083 $4,023.05 $4,623.91 -12.99% 37221 Iliac revasc w/stent 0229 $8,656.82 $8,095.74 6.93% 37222 Iliac revasc add-on 0083 $4,023.05 $4,623.91 -12.99% 37223 Iliac revasc w/stent add-on 0083 $4,023.05 $4,623.91 -12.99% 37224 Fem/popl revas w/tla 0083 $4,023.05 $4,623.91 -12.99% 37225 Fem/popl revas w/ather 0229 $8,656.82 $8,095.74 6.93% 37226 Fem/popl revasc w/stent 0229 $8,656.82 $8,095.74 6.93% 37227 Fem/popl revasc stnt & ather 0319 $14,596.24 $14,210.32 2.72% 37228 Tib/per revasc w/tla 0083 $4,023.05 $4,623.91 -12.99% 37229 Tib/per revasc w/ather 0229 $8,656.82 $8,095.74 6.93% 37230 Tib/per revasc w/stent 0229 $8,656.82 $8,095.74 6.93% 37231 Tib/per revasc stent & ather 0319 $14,596.24 $14,210.32 2.72% 37232 Tib/per revasc add-on 0083 $4,023.05 $4,623.91 -12.99% 37233 Tibper revasc w/ather add-on 0229 $8,656.82 $8,095.74 6.93% 37234 Revsc opn/prq tib/pero stent 0083 $4,023.05 $4,623.91 -12.99% 37235 Tib/per revasc stnt & ather 0083 $4,023.05 $4,623.91 -12.99% Non-Ophthalmic Fluorescent Vascular Angiography (APC 0397) (p. 485) CMS is finalizing their proposal to assign HCPCS code C9733 to APC 0397 and to continue to assign the code to status indicator “Q2.” APC 0397 has a CY 2013 final geometric mean cost of approximately $340. New/Revised Respiratory System: Lungs and Pleura Codes for CY2013 HCPCS Short Descriptor 2013 APC 32551 32554 32555 32556 32557 Insertion of chest tube Aspirate pleura w/o imaging Aspirate pleura w/ imaging Insert cath pleura w/o image Insert cath pleura w/ image 0070 0070 0070 0070 0070 2013 Payment Rate 2012 Payment Rate $412.39 $412.39 $412.39 $412.39 $412.39 $385.64 N/A N/A N/A N/A % Change in Payment Rate 6.94% Packaging Recommendation of the HOP Panel (p. 227) For CY 2013, CMS is accepting the Panel’s recommendation and finalizing their proposal to assign a status indicator of “Q1” to HCPCS code 19290, which is assigned to APC 0340 with a CY 2013 final payment rate of approximately $51. Staff Summary Page 5 2013 Final OPPS Therapeutic Radiopharmaceuticals (p. 561) CMS is finalizing their proposal to provide payment for drugs, biologicals, diagnostic and therapeutic radiopharmaceuticals and contrast agents that are granted pass-through status based on the ASP methodology. If a diagnostic or therapeutic radiopharmaceutical receives passthrough status during CY 2013, they will follow the standard ASP methodology to determine the pass-through payment rate that drugs receive which is ASP+6 percent. If ASP data are not available for a radiopharmaceutical, CMS will provide pass-through payment at WAC+6 percent, the equivalent payment provided to pass-through drugs and biologicals without ASP information. If WAC information is also not available, they will provide payment for the passthrough radiopharmaceutical at 95 percent of its most recent AWP. HCPCS Short Descriptor 2013 APC 2013 Payment Rate A9543 A9545 Y90 ibritumomab, rx I131 tositumomab, rx 1643 1645 $38,058.06 $30,188.56 % Change in Payment Rate $35,830.70 6.22% $29,618.96 1.92% 2012 Payment Rate Computed Tomography of Abdomen/Pelvis (APCs 0331 and 0334) (p. 491) CMS is finalizing their proposal, without modification to continue to assign CPT code 74176 to APC 0331 and CPT codes 74177 and 74178 to APC 0334. In addition, they are continuing to assign these CPT codes to their existing composite APCs for CY 2013. Specifically, they are continuing to assign CPT code 74176 to composite APC 8005, and to assign CPT codes 74177 and 74178 to composite APC 8006. Level II Nervous System Imaging (APC 0402) (p. 489) CMS is finalizing their proposal, without modification, to continue to assign CPT code 78607 to APC 0402. The final CY 2013 geometric mean cost for APC 0402 is approximately $472. Multiple Imaging Composite (p. 156) CMS is finalizing their proposed policy, without modification, to calculate multiple imaging composite APC costs for CY 2013 pursuant to their established methodology. CMS used approximately 1.0 million “single session” claims out of an estimated 1.6 million potential composite cases from our ratesetting claims data, to calculate the final CY 2013 costs for the multiple imaging composite APCs. APC Group Title 2013 Payment Rate 2012 Payment Rate % Change in Payment Rate 8004 Ultrasound Composite $196.61 $191.69 3% 8005 CT and CTA without Contrast Composite $400.28 $431.98 -7% 8006 CT and CTA with Contrast Composite $682.10 $721.75 -5% 8007 MRI and MRA without Contrast Composite $706.85 $699.94 1% 8008 MRI and MRA with Contrast Composite $1,038.94 $1,000.68 4% Staff Summary Page 6 2013 Final OPPS Table 6 lists the HCPCS codes that will be subject to the multiple imaging composite policy and their respective families and approximate composite APC costs for CY 2013. Table 7 lists the OPPS imaging family services that overlap with HCPCS codes on the CY 2013 bypass list. Payment Adjustment Policy for Radio-Isotopes Derived from Non-Highly Enriched Uranium Sources (p. 372) CMS is finalizing their proposed non-highly enriched uranium sources policy with some modifications. Specifically, they are modifying the policy to provide that a product identified as non-HEU sourced must be at least 95 percent derived from non-HEU sources. They also are finalizing their proposal to establish a HCPCS code for Tc-99m from non-HEU sources with a revised code definition. The number and title of the new HCPCS code is HCPCS code Q9969 (Tc-99m from non- highly enriched uranium source, full cost recovery add-on, per study dose) for CY 2013. HCPCS code Q9969 is assigned to APC 1442 (Non-HEU TC-99M Add-On/Dose) with a status indicator of “K” and a CY 2013 payment rate of $10. Supervision of Hospital Outpatient Therapeutic Services (p. 736) CMS clarified the application of the supervision regulations to physical therapy, speech-language pathology, and occupational therapy services that are furnished in OPPS hospitals and critical access hospitals (CAHs). In addition, CMS noted that they are extending the enforcement instruction one final year through CY 2013. Outpatient Status (p. 744) CMS stated that they were concerned about recent increases in the length of time that Medicare beneficiaries spend as outpatients receiving observation services. Hospitals continue to express concern about Medicare Part A to Part B rebilling policies when a hospital inpatient claim is denied because the inpatient admission was not medically necessary. In the CY 2013 OPPS/ASC proposed rule, CMS provided an update on the Part A to Part B Rebilling Demonstration that is in effect for CY 2012 through CY 2014, which was designed to assist CMS in evaluating these issues. They also solicited public comments on potential clarifications or changes to their policies regarding patient status that may be appropriate. CMS did not provide responses to the public comments they received because in the proposed rule they solicited public comments, and did not propose any changes in policy. They will consider the feedback they received from the public as they move forward. OPPS Payment for Hospital Outpatient Visits (p. 665) CMS is finalizing their proposals related hospital outpatient visits, with one modification. They are reassigning HCPCS code G0379 to APC 0608 for CY 2013. CMS will: continue to recognize the definitions of a new patient and an established patient, which are based on whether the patient has been registered as an inpatient or outpatient of the hospital within the 3 years prior to a visit; apply their policy of calculating costs for clinic visits under the OPPS using historical hospital claims data through five levels of clinic visit APCs (APCs 0604 through 0608); and continue to recognize Type A emergency departments and Type B emergency departments for payment purposes under the OPPS, and to pay for Type A emergency department visits based on their costs through the five levels of Type A emergency department APCs Staff Summary Page 7 2013 Final OPPS (APCs 0609 and 0613 through 0616) and to pay for Type B emergency department visits based on their costs through the five levels of Type B emergency department APCs (APCs 0626 through 0630). CMS will continue their policy to recognize the existing CPT codes for critical care services and establish a payment rate based on historical claims data. They will continue to implement claims processing edits that conditionally package payment for the ancillary services that are reported on the same date of service as critical care services in order to avoid overpayment. CMS will continue to monitor the hospital claims data for CPT code 99291 in order to determine whether revisions to this policy are warranted based on changes in hospitals’ billing practices. Inpatient Only Procedures (p. 722) CMS reevaluated data on the 39 additional CPT codes requested by the commenters. The codes are listed in Table 44. As a result of the reevaluation, CMS remains convinced that these procedures can be safely performed only in the inpatient setting. (Codes of interest below) 0075T Transcatheter placement of extracranial vertebral or intrathoracic carotid artery stent(s), including radiologic supervision and interpretation, percutaneous; initial vessel 37182 TIPS The complete list of codes to be paid by Medicare in CY 2013 only as inpatient procedures is included as Addendum E. Hospital Outpatient Quality Reporting (OQR) Program (p. 875) The rule made several changes to the quality-reporting program for outpatient departments. While CMS did not add any new measures to the 22 measures finalized for the CY 2014 payment determination, CMS did confirm the removal of one measure; deferred data collection for another measure, and confirmed the suspension of data collection for a third measure. In addition, CMS finalized proposed revisions to several procedural requirements that apply to the reporting of quality data and finalized the automatic retention of Hospital OQR Program measures adopted in previous payment determinations for subsequent year payment determinations, until the measures are actively removed, payment determinations for subsequent year payment determinations, until the measures are actively removed, suspended, or replaced. Electronic Health Record (EHR) Incentive Program (p. 968) CMS is extending the 2012 Medicare EHR Incentive Program Electronic Reporting Pilot for Eligible Hospitals and CAHs through 2013, exactly as finalized for 2012. CMS recently issued a final rule (77 FR 53968) for Stage 2 of the Medicare and Medicaid EHR Incentive Programs. Revisions to the Quality Improvement Organization (QIO) Regulations (p. 1044) CMS is revising the QIO program regulations to: (1) give QIOs the authority to send and receive secure transmissions of electronic versions of medical information; (2) provide more detailed and improved procedures for QIOs when completing Medicare beneficiary complaint reviews and general quality of care reviews, including procedures related to a new alternative dispute resolution process called “immediate advocacy”; (3) increase the information beneficiaries receive in response to QIO review activities; (4) convey to Medicare beneficiaries the right to Staff Summary Page 8 2013 Final OPPS authorize the release of confidential information by QIOs; and (5) make other technical changes that are designed to improve the regulations. Other Provisions Included in this Final Rule Drugs and Pharmacy Overhead Payment for Partial Hospitalization Services Staff Summary Page 9 2013 Final OPPS AMBULATORY SURGICAL CENTER (ASC) PAYMENT SYSTEM For CY 2013, CMS is increasing payment rates under the ASC payment system by 0.6 percent. This increase is based on a projected CPI-U update of 1.4 percent minus a multifactor productivity adjustment required by the Affordable Care Act that is projected to be 0.8 percent. Based on this update, CMS estimates that total payments to ASCs (including beneficiary costsharing and estimated changes in enrollment, utilization, and case-mix), for CY 2013 will be approximately $4.074 billion, an increase of approximately $310 million compared to estimated CY 2012 payments. Impacts of the ASC Payment Update For impact purposes, the surgical procedures on the ASC list of covered procedures are aggregated into surgical specialty groups using CPT and HCPCS code range definitions. The percentage change in estimated total payments by specialty groups under the CY 2013 payment rates compared to estimated CY 2012 payment rates ranges between -3 percent for respiratory system procedures, integumentary system procedures, and cardiovascular system procedures and 3 percent for nervous system procedures. ASC Conversion Factor (p. 872) The final ASC conversion factor of $42.917 is the product of the CY 2012 conversion factor of $42.627 multiplied by the wage index budget neutrality adjustment of 1.0008 and the MFPadjusted CPI-U payment update of 0.6 percent. Changes for CY 2013 to Covered Surgical Procedures Designated as Office-Based (p. 804) CMS is adding 25 procedures to the list of ASC covered surgical procedures for CY 2013. The procedures, their descriptors, and payment indicators are displayed in Table 51. Codes of Interest from Table 51—New ASC Covered Surgical Procedures For CY 2013 CY 2013 Descriptor CY2013 ASC Payment Indicator** Transcatheter placement of an intravascular stent(s) (except coronary, carotid, vertebral, iliac, and lower extremity arteries), percutaneous; initial vessel G2 CY 2013 HCPCS Codes 37205 37206 37224 37225 Transcatheter placement of an intravascular stent(s) (except coronary, carotid, vertebral, iliac, and lower extremity arteries), percutaneous; each additional vessel (list separately in addition to code for primary procedure) Revascularization, endovascular, open or percutaneous, femoral, popliteal artery(s), unilateral; with transluminal angioplasty Revascularization, endovascular, open or percutaneous, femoral, popliteal artery(s), unilateral; with atherectomy, includes angioplasty within the same vessel, when performed Staff Summary G2 G2 G2 Page 10 2013 Final OPPS 37226 Revascularization, endovascular, open or percutaneous, femoral, popliteal artery(s), unilateral; with transluminal stent placement(s), includes angioplasty within the same vessel, when performed G2 37227 Revascularization, endovascular, open or percutaneous, femoral, popliteal artery(s), unilateral; with transluminal stent placement(s) and atherectomy, includes angioplasty within the same vessel, when performed J8 37228 Revascularization, endovascular, open or percutaneous, tibial, peroneal artery, unilateral, initial vessel; with transluminal angioplasty G2 37229 Revascularization, endovascular, open or percutaneous, tibial, peroneal artery, unilateral, initial vessel; with atherectomy, includes angioplasty within the same vessel, when performed G2 37230 Revascularization, endovascular, open or percutaneous, tibial, peroneal artery, unilateral, initial vessel; with transluminal stent placement(s), includes angioplasty within the same vessel, when performed G2 37231 Revascularization, endovascular, open or percutaneous, tibial, peroneal artery, unilateral, initial vessel; with transluminal stent placement(s) and atherectomy, includes angioplasty within the same vessel, when performed J8 37232 Revascularization, endovascular, open or percutaneous, tibial/ peroneal artery, unilateral, each additional vessel; with transluminal angioplasty (list separately in addition to code for primary procedure) G2 37233 Revascularization, endovascular, open or percutaneous, tibial/ peroneal artery, unilateral, each additional vessel; with atherectomy, includes angioplasty within the same vessel, when performed (list separately in addition to code for primary procedure) G2 37234 Revascularization, endovascular, open or percutaneous, tibial/ peroneal artery, unilateral, each additional vessel; with transluminal stent placement(s), includes angioplasty within the same vessel, when performed (list separately in addition to code for primary procedure) G2 37235 Revascularization, endovascular, open or percutaneous, tibial/ peroneal artery, unilateral, each additional vessel; with transluminal stent placement(s) and atherectomy, includes angioplasty within the same vessel, when performed (list separately in addition to code for primary procedure) G2 **Final payment indicators are based on a comparison of the final rates according to the ASC standard ratesetting methodology and the MPFS final rates. At the time this final rule with comment period was being developed for publication, current law Staff Summary Page 11 2013 Final OPPS authorizes a negative update to the MPFS payment rates for CY 2013. For a discussion of those rates, we refer readers to the CY 2013 MPFS final rule with comment period. G2 - Non-office-based surgical procedure added in CY 2008 or later; payment based on OPPS relative payment weight J8 - Device-intensive procedure added to ASC list in CY 2008 or later; paid at adjusted rate No Cost/Full Credit and Partial Credit Devices (p. 815) CMS will reduce the payment for the device implantation procedures listed in Table 54 that are subject to the adjustment by the full device offset amount for no cost/full credit cases. ASCs must append the modifier “FB” to the HCPCS procedure code when the device furnished without cost or with full credit is listed in Table 55, and the associated implantation procedure code is listed in Table 54. In addition, for CY 2013, CMS will reduce the payment for implantation procedures listed in Table 54 that are subject to the adjustment by one half of the device offset amount if a device is provided with partial credit, if the credit to the ASC is 50 percent or more of the device cost. If the ASC receives a partial credit of 50 percent or more of the cost of a device listed in Table 55, the ASC must append the modifier “FC” to the associated implantation procedure code if the procedure is listed in Table 54. Table 54 includes the following codes of interest: 19296 (Place po breast cath for rad), 19297 (Place breast cath for rad), 19298 (Place breast rad tube/caths), 37227 (Fem/popl revasc stnt & ather) and 37231 (Tib/per revasc stent & ather). Table 55 includes the following codes of interest: C1777 (Stent, non-coat/cov w/o del) Payment for Covered Ancillary Services for CY 2013 (p. 837) CMS will provide payment for covered ancillary services in accordance with the policies in this final rule. Covered ancillary services and their final CY 2013 payment indicators are listed in Addendum BB. CMS will update the ASC payment rates and make changes to ASC payment indicators as necessary to maintain consistency between the OPPS and ASC payment system regarding the packaged or separately payable status of services and the proposed CY 2013 OPPS and ASC payment rates. Radiology Services CY 2013 payment rates for separately payable covered radiology services are based on a comparison of the MPFS nonfacility PE RVU-based amounts and the ASC payment rates calculated according to the ASC standard ratesetting methodology and then set at the lower of the two amounts. Alternatively, payment for a radiology service may be packaged into the payment for the ASC covered surgical procedure if the radiology service is packaged or conditionally packaged under the OPPS. Radiology services paid based on the ASC standard ratesetting methodology are assigned payment indicator “Z2” (Radiology service paid separately when provided integral to a surgical procedure on ASC list; payment based on OPPS relative payment weight) and those for which the proposed payment is based on the MPFS nonfacility PE RVU-based amount are assigned payment indicator “Z3” (Radiology service paid separately when provided integral to a surgical procedure on ASC list; payment based on MPFS nonfacility PE RVUs). Staff Summary Page 12 2013 Final OPPS Nuclear Medicine Payment indicators for all nuclear medicine procedures (defined as CPT codes in the range of 78000 through 78999) that are designated as radiology services that are paid separately when provided integral to a surgical procedure on the ASC list are set to “Z2” so that payment is made based on the OPPS relative payment weights rather than the MPFS nonfacility PE RVU-based amount, regardless of which is lower. Contrast Payment indicators for radiology services that use contrast agents are set to “Z2” so that payment for these procedures will be based on the OPPS relative payment weight and, therefore, will include the cost for the contrast agent. Ambulatory Surgical Center Quality Reporting (ASCQR) Program CMS finalized proposed revisions to the ASC Quality Reporting (ASCQR) program, including requirements for claims-based measures regarding the dates for submission, payment of claims and data completeness, and a methodology for reducing payment to ASCs that do not meet the program’s reporting requirements. CMS also adopted principles to be applied in future measure selection and development. CMS previously finalized the measure sets that apply to the CYs 2014 through 2016 payment determinations. Staff Summary Page 13