Important Update on O&P Business News Alert — A recent news alert sent on Monday, December 26th, directed O&P providers to hold 2012 Medicare claims for the first 10 business days of January to avoid the 27.4% cut to physician reimbusements schedule to go into effect on January 1st. This information was correct until the very last minute as congressional Republicans relented their holdout of a 2-month extension of the doc fix on Friday afternoon. President Obama signed the legislation into law to avoid the 27.4% reimbursement cut to physicians serving Medicare just before the Christmas holiday, so O&P providers need not worry about holding their Medicare claims until mid-January. The O&P community will have to wait and see what happens at the end of February when the current 2-month extension expires. Click here for a link to the alert in question.
CMS Releases 2012 Medicare Fee Schedule for O&P — Last month CMS released the 2012 fee schedule for DMEPOS Medicare providers. Effective January 1, 2012, O&P providers will see a 2.4% increase in their reimbursement rates. The fee schedule is tied to increases in the consumer price index for urban communities and is calculated annually. Please note the failure of the Joint Congressional Committee on Deficit Reduction earlier this year will bring an automatic 2% cut to reimbursement rates in 2013 if no other legislative fix is initiated in 2012. Along with the announcement of the fee schedule increase, CMS also released updated HCPCS code information, deleting the following codes: E0571, L3966, L4380, L1500, L3968, L5311, L1510, L3969, L7266, L1520, L3970, L7272, L3972, L3964, L3974, L7274, L3965, L750. More information on the CMS release can be found here