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- Federal Register
- Vol. 59, No. 134
- Thursday, July 14, 1994
-
- [BPD─799─GN]
-
- Medicare Program; Medicare Secondary Payer (MSP) Amendments
-
- AGENCY: Health Care Financing Administration (HCFA), HHS.
-
- ACTION: General notice.
-
- SUMMARY: This notice
-
- 1. Describes the changes made to the MSP for the disabled provision by
- sections 13561(b) and 13561(e) of the Omnibus Budget Reconciliation Act of
- 1993, Public Law 103─66, hereafter referred to as OBRA '93; and
-
- 2. Provides guidance for employers and employer health plans so that they can
- provide to Medicare contractors and beneficiaries the information necessary to
- implement these changes.
-
- Section 13561(b) changes the sunset date of the MSP for the disabled provision
- from October 1, 1995 to October 1, 1998.
-
- Section 13561(e) modifies the MSP for the disabled provision to conform to the
- MSP for the working aged provision, so that for both groups, the MSP provision
- applies (and the group health plan is primary payer) only when coverage under
- the plan is based on "current employment status with an employer."
-
- DATES: This notice is effective August 15, 1994.
-
- FOR FURTHER INFORMATION CONTACT: Eve Fisher, (410) 966─5641.
-
- SUPPLEMENTARY INFORMATION: Under the amendments made by section 13561(e) of
- OBRA '93, Medicare is the secondary payer for health services provided to
- disabled individuals who have large group health plan coverage based on the
- individual's own or a family member's "current employment status with an
- employer". An individual has current employment status if the individual is
- currently employed (including as a self-employed person), is the employer, or
- is associated with the employer in a business relationship. Before these
- amendments, Medicare was the secondary payer not only for disabled individuals
- who had coverage based on their own or a family member's current employment
- status but also for individuals who had coverage on some other basis, but who
- were treated as employees by their employers.
-
- Under present law, Medicare continues to be secondary payer for disabled
- individuals who have LGHP coverage on the basis of their own or a family
- member's current employment. Medicare is now primary payer for disabled
- individuals who are not working and who are not family members of workers.
-
- The statutory changes made by subsections (b) and (e) of section 13561 can be
- put into effect without first issuing regulations because it is clear on the
- face of the statute what the Congress intended. Moreover, we have already had
- to apply these provisions because the Congress made the changes applicable to
- services furnished on or after August 10, 1993. This notice will help to
- ensure that all affected parties are aware of, and able to comply with, the
- new provisions.
-
- Employers that wish to have an evaluation of the Medicare payment status of
- disabled individuals affected by this amendment must send beneficiary
- information to the Medicare carrier (not the intermediary) in the State where
- the employer's home office is located. The beneficiary information includes
- the name, sex, birth date, social security number, and health insurance claim
- (HIC) number. The affected individuals are the disabled beneficiaries who are
- currently covered under the employer's LGHP but whose coverage is not based on
- the beneficiary's or a family member's current employment status. The employer
- must give the Medicare carrier written certification that each identified
- beneficiary has LGHP coverage on a basis other than current employment status.
-
- After it receives and evaluates the beneficiary information, the Medicare
- carrier will give the employer written notice of the names and HIC numbers of
- the beneficiaries for whom Medicare will be primary payer, and the effective
- date of the changed payment status.
-
- Disabled beneficiaries who are identified by the Medicare carrier, and
- who have delayed enrollment in Medicare Part B because their LGHPs were
- primary payers under the previous statutory provision, will have the
- opportunity to enroll in Part B during a special enrollment period. That
- period will cover the 7 months beginning with the month in which the employer
- notifies the beneficiary that it is no longer primary payer, or the month
- following the last month for which the LGHP makes primary payment, whichever
- is later.
-
- The premium increases that generally apply to delayed enrollment will be
- waived for all months, beginning with January 1987, during which the
- beneficiary was covered under the LGHP. Entitlement to Medicare Part B may be
- established as of the first day of the month of filing for Part B, or
- retroactive to the first month for which the LGHP no longer makes primary
- payment, provided the beneficiary agrees to pay all premiums due.
-
- The employer must provide to each affected beneficiary a written notice that
- includes the following information:
-
- A statement advising the beneficiary that the plan will no longer make
- primary payment for services furnished on or after a specified date no earlier
- than August 10, 1993.
-
- A statement advising the beneficiary of the opportunity for immediate
- enrollment in Medicare Part B.
-
- A statement showing all the months during which the beneficiary was covered
- under the LGHP.
-
- The employer must also
-
- Provide to the beneficiary a copy of the notice from the Medicare carrier
- certifying that Medicare is now the primary payer; and
-
- Advise the beneficiary to take the employer notice and the carrier notice to
- the Social Security office when he or she goes to enroll in Part B.
-
- The information collection and recordkeeping requirements contained in the
- guidance, above, have been sent to the Office of Management and Budget for
- review under the Paperwork Reduction Act of 1980.
-
- In accordance with Executive Order 12866, this notice was not reviewed by the
- Office of Management and Budget.
-
- (Catalog of Federal Domestic Assistance Program No. 93.773, Medicare Hospital
- Insurance; and No. 93.774, Medicare Supplementary Medical Insurance Program)
-
- Dated: April 12, 1994.
-
- Bruce C. Vladeck,
-
- Administrator, Health Care Financing Administration.
-
- [FR Doc. 94─17011 Filed 7─13─94; 8:45 am]
-
- BILLING CODE 4120─01─P
-
-
-