Medicare Claims Processing Manual (Pub. 100-04), Ch. 18 § 1.3
Waiver of Cost Sharing Requirements of Coinsurance, Copayment
1.3 - Waiver of Cost Sharing Requirements of Coinsurance, Copayment
and Deductible for Furnished Preventive Services Available in Medicare
(Rev. 2233, Issued: 05-27-11, Effective: 01-01-11, Implementation: 06-28-11)
Section 4104(b)(4) of the ACA, amends section 1833(a)(1) of the Act, by requiring 100
percent payment for the IPPE, AWV and for those preventive services recommended by the
United States Preventive Services Task Force (USPSTF) with a grade of A or B for any
indication or population and that are appropriate for the individual.
Waiver of Coinsurance and Copayment for Preventive Services and Screenings
This requirement waives any coinsurance or copayment that would otherwise be applicable
under section 1833(a)(1) of the Act for those items and services listed in section
1861(ww)(2) of the Act (excluding electrocardiograms) to which the USPSTF has given a
grade of A or B. In addition, section 4103(c)(1) of the Affordable Care Act waives the
coinsurance or copayment for the AWV.
The coinsurance or copayment represents the beneficiary’s share of the payment to the
provider or supplier for furnished services. Coinsurance generally refers to a percentage
(for example, 20 percent) of the Medicare payment rate for which the beneficiary is liable
and is applicable under the PFS, while copayment generally refers to an established amount
that the beneficiary must pay that is not necessarily related to a particular percentage of the
Medicare payment, and is applicable under the hospital Outpatient Prospective Payment
System (OPPS).
Waiver of Deductible for Preventive Services and Screening
Section 4104(b)of the Affordable Care Act amends section 1833(b)(1) of the Act to waive
the deductible for preventive services described in subparagraph (A) of section
1861(ddd)(3) of the Act that have a grade of A or B from the USPSTF. In addition, section
4103(c)(1) of the Affordable Care Act waives the deductible for the AWV. These
provisions are effective for services furnished on and after January 1, 2011. Section
101(b)(2) of the MIPPA amended section 1833(b) of the Act to waive the deductible for the
IPPE effective January 1, 2009.
NOTE: Not all preventive services allowed in Medicare and recommended by the
USPSTF have a Grade of A or B, and therefore, some of the preventive services do not
meet the criteria in sections 1833(a)(1) and (b)(1) of the Act for the waiver of deductible
and coinsurance. Refer to the Preventive Services Table in section 5.2, of this section, for
specific USPSTF ratings for preventive services.