Attorneys: CMS proposal goes too far

WASHINGTON - In a little-noticed proposed rule published in the Federal Register March 2, CMS announced plans to revoke supplier numbers for "abuse of billing privileges." Unfortunately, the agency failed to define what constitutes abuse, say industry attorneys, and that could lead to big problems. "It's really wide open," said Asela Cuervo, a Washington, D.C.-based healthcare attorney. "There are no standards or parameters for how they plan to measure 'abuse.' Is it measured against your total volume of claims or 10 claims?" The rule is tucked into a larger proposed rule that would establish an appeals process for providers whose applications for enrollment or renewal have been denied. Industry stakeholders could submit comments until May 1, 2007. CMS proposes to revoke supplier numbers when "a provider submits a claim or claims for services that could not have been furnished to a beneficiary." For example: a provider bills for services that are undeliverable because the beneficiary is deceased. Revocation wouldn't be the only punishment. In a move Cuervo described as "serious," CMS also proposes that providers with revoked supplier numbers be banned from re-enrolling in the Medicare program for three years. Industry attorneys don't necessarily buy the need for such severity. "It's not beyond my realm of reality to imagine providers drop shipping items to a beneficiary whose family hasn't notified them the beneficiary has died," said Elizabeth Hogue, a Burtonsville, Md.-based healthcare attorney.