Medicare Claims Processing Manual (Pub. 100-04), Ch. 19 § 100.5
A/B MAC (A) - Outpatient - Medicare Part B - Payment Policy
100.5 - A/B MAC (A) - Outpatient - Medicare Part B - Payment Policy
(Rev. 1511; Issued: 05-23-08; Effective: 01-01-08; Implementation: 06-23-08)
The IHS providers are paid for covered outpatient services based upon an all inclusive
outpatient per visit rate (AIR). The AIR is established by CMS and IHS based upon a
review of yearly cost reports prepared by IHS’s contractor. Upon completion of the
review, IHS submits the agreed upon rate to OMB for approval. Upon approval by OMB,
IHS publishes the approved rate in the Federal Register. The AIR is established for each
calendar year. The approved AIR is issued periodically in a Recurring Update
Notification.
Medicare Part B deductible and coinsurance amounts are applied to outpatient services,
but are waived by the IHS.
These rates are not all inclusive inpatient ancillary per diem rates and should not be
confused with the all-inclusive inpatient ancillary per diem rates paid to IHS providers
for services covered under Medicare Part B when coverage is no longer provided under
Medicare Part A. For more information on the all-inclusive inpatient ancillary per diem
rates, see §100.3.4 of this chapter.