Well, providers, you can thank our President, this new law is now in effect. This Contractural Obligation Code is for the 2% sequestration reduction you have heard so much talk about.
Any claims for payments with a from date of service on or after April 1, 2013 will be subject to the 2% reduction fee. This applies to all fee for service Medicare claim payments and it is in effect until March 31, 2014. Note that there are no exemptions from this provided in the law for any health care item or service provided under the fee for service program.
The verbiage for this adjustment code is as follows “Adjustment code for mandated Federal, State or local law/regulation that is not already covered by another code and is mandated before a new code can be created.” You will see these adjustments reported at the line level for the Part B Physician and at the claim level for Institutional Part A claims.
Providers with the highest Medicare patient base will have the biggest impact from this on revenue for the next year. It’s more important than ever to bill for all services that you provide and to know all of the newer codes and services that you can bill for in order to have some offset to dwindling revenue numbers.
We are here to help, give us a call if you need help with your billing, your never under any obligation call toll free. 1.877.666.5279, and Take Advantage!