Medicare General Information, Eligibility and Entitlement Manual (Pub. 100-01), Ch. 5 § 10.1.1
Basic Commitment in Provider Agreement
10.1.1 - Basic Commitment in Provider Agreement
(Rev. 58, Issued: 03-06-09, Effective: 06-08-09, Implementation: 06-08-09)
Section 1866 of the Act and 42 CFR 489 require the provider to agree to the following:
1. To limit its charges to beneficiaries and to other individuals on their behalf to:
•
The deductible and coinsurance amounts (see §10.1.2 for details;
•
The blood deductible (see §10.1.4 for details); and
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Services requested by the beneficiary. (See §10.1.5)
2. To return any amounts incorrectly collected from a beneficiary or any other person on
the beneficiary's behalf;
3. To notify the A/B MAC (A) or (HHH) promptly if it hires an individual who at any
time during the preceding year was employed in a managerial, accounting, auditing, or
similar capacity by a MAC;
4. In the case of a hospital or a Critical Access Hospital (CAH), either to furnish directly
or to make arrangements (as defined in §10.3 of this chapter) for all Medicare-covered
services to inpatients of a hospital or a CAH except the following:
•
Physicians' services that meet the criteria of 42 CFR 405.550(b) for payment on a
reasonable charge basis;
•
Physician assistant services, as defined in section 1861(s)(2)(K)(I) of the Act, that
are furnished after December 31, 1990;
•
Certified nurse-midwife services, as defined in section 1861(ff) of the Act, that
are furnished after December 31, 1990;
•
Qualified psychologist services, as defined in section 1861(ii) of the Act, that are
furnished after December 31, 1990; and
•
Services of an anesthetist, as defined in 42 CFR 410.69.
5. In the case of a hospital or CAH that furnishes inpatient hospital services or inpatient
CAH services for which payment may be made under Medicare, to maintain an
agreement with a PRO for that organization to review the admissions, quality,
appropriateness, and diagnostic information related to those inpatient services. The
requirement of this paragraph applies only if, for the area in which the hospital or CAH is
located, there is a PRO that has a contract with CMS under Part B of title XI of the Act;
6. To maintain a system that, during the admission process, identifies any primary payers
other than Medicare so that incorrect billing and Medicare overpayments can be
prevented;
7. To bill other primary payers before billing;
8. If the provider receives payment for the same services from Medicare and another
payer that is primary to Medicare, to reimburse Medicare any overpaid amount within 60
days;
9. If the provider receives, from a payer that is primary to Medicare, a payment that is
reduced because the provider failed to file a proper claim; to reimburse Medicare any
overpaid amount up to the amount that would have been paid had the provider filed a
proper claim timely.
10. In the State of Oregon, because of a court decision, and in the absence of a reversal
on appeal or a statutory clarification overturning the decision, hospitals may bill liability
insurers first. However, if the liability insurer does not pay "promptly," the hospital must
withdraw its claim or lien and bill Medicare for covered services;
11. In the case of home health agencies, to offer to furnish catheters, catheter supplies,
ostomy bags, and supplies related to ostomy care to any individual who requires them as
part of their furnishing of home health services;
12. In the case of hospital emergency department services that provide for medical
screening to determine if an emergency medical condition exists, CMS guidelines
provided in CFR 42 489.24(d) for transfer of patients to other facilities should be
followed;
13. In the case of hospital emergency department services report to CMS or the State
Survey Agency any time it has reason to believe it may have received an individual who
has been transferred in an unstable emergency medical condition from another hospital in
violation of the requirements of CFR 42 489.24(d);
14. In the case of inpatient hospital services for admissions on and after January 1, 1987,
to participate in the Tricare program;
15. In the case of inpatient hospital services for admissions on and after July 1, 1987, to
admit veterans whose admission is authorized by the VA and to meet related VA
admission and payment requirements;
16. In the case of a hospital, to give each beneficiary a notice about his or her discharge
rights at or about the time of the individual's admission;
17. In the case of a hospital with an emergency department:
•
To post conspicuously in any emergency department or in a place or places likely
to be noticed by all individuals entering the emergency department, as well as
those individuals waiting for examination and treatment in areas other than
traditional emergency departments (that is, entrance, admitting area, waiting
room, treatment area), a sign (in a form specified by the Secretary) specifying
rights of individuals under Section 1867 of the Act with respect to examination
and treatment for emergency medical conditions and women in labor; and
•
To post conspicuously information indicating whether or not the hospital or
critical access hospital participates in the Medicaid program under a State plan
approved under title XIX;
18. In the case of a hospital with an emergency department (including both the
transferring and receiving hospitals), to maintain:
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Medical and other records related to individuals transferred to or from the hospital
for a period of 5 years from the date of the transfer;
•
A list of physicians who are on call for duty after the initial examination to
provide treatment necessary to stabilize an individual with an emergency medical
condition; and
•
A central log on each individual who comes to the emergency department seeking
assistance and whether he or she refused treatment, was refused treatment, or
whether he or she was transferred, admitted and treated, stabilized and transferred,
or discharged.
19. Effective December 1, 1991, in the case of a hospital to comply with the advance
directive provisions of 4206 of OBRA 1990. Hospitals must, in accordance with written
policies and procedures, for all adult individuals:
•
Inform them, in writing, of State laws regarding advance directives;
•
Inform them, in writing, of its policies regarding the implementation of advance
directives (including a clear and concise explanation of a conscientious objection,
to the extent that State law permits for a hospital or any agent of a hospital that, as
a matter of conscience, cannot implement an advance directive);
•
Document in the individual's medical record whether the individual has executed
an advance directive;
•
Not condition the provision of care or otherwise discriminate against an
individual based on whether that individual has executed an advance directive
(since the law does not require the individual to do so); and
•
Educate staff and the community on issues concerning advance directives.
20. Effective October 1, 2007, CMS revised the regulations governing provider
agreements that require hospitals to disclose physician ownership information to patients
when a referring physician (or his or her immediate family member) has an ownership
interest in the hospital. Pursuant to 42 CFR 489.20(u), hospitals must: (1) furnish written
notice to each patient at the beginning of the patient’s hospital stay or outpatient visit that
the hospital is a physician-owned hospital, in order to assist the patient in making an
informed decision regarding his or her care. The notice must disclose the fact that the
hospital meets the Federal definition of a physician-owned hospital and that the list of
physician owners or immediate family members of physicians is available upon request
and must be provided to the patient at the time of the request; and (2) require each
physician who is a member of the hospital’s medical staff to agree, as a condition of
continued medical staff membership or admitting privileges, to disclose in writing to all
patients the physician refers to the hospital any ownership or investment interest in the
hospital held by the physician or held by an immediate family member of the physician.
Disclosure must be made at the time of the referral.
Effective October 1, 2008, hospitals that do not have any physician owners who refer
patients to the hospital are exempt from the disclosure requirements (See 42 CFR
489.20(v)). In addition, CMS may deny a provider agreement to a hospital that does not
have procedures in place to notify patients of physician ownership in the hospital (See 42
CFR 489.12).