NIM-ECLIPSE. Spinal System. Reimbursement Brief

NIM-ECLIPSE Spinal System Reimbursement Brief

1 NIM-ECLIPSE Spinal System Reimbursement brief NIM-ECLIPSE Spinal System The NIM-ECLIPSE Spinal System is a surgeon-directed and neurophysiologist-supported spinal neuromonitoring technology, which allows for as many as 32 channels of simultaneous electroencephalography (EEG), evoked potentials (EP), and electromyography (EMG) monitoring. The NIM-ECLIPSE Spinal System also provides for automatic pedicle screw monitoring with direct nerve and screw stimulation. During surgery, the NIM-ECLIPSE Spinal System may allow physicians to monitor critical neural pathways, which helps prevent postoperative neurological deficits. Accessories for the NIM-ECLIPSE Spinal System include a Ball-Tip Probe, which provides full control from the sterile field. Additional accessories include several other precision surgical instruments. The NIM Pedicle Access Needle enables percutaneous screw placement and is available with a bevel or trocar tip. The X-PAK Probe aids in monitoring the direct lateral approach. For open pedicle screw placement, pedicle probes are available in straight, thoracic, and lumbar tips. There is some controversy over reimbursement of intraoperative nerve monitoring. The information in this guide summarizes what we have gathered from the Centers for Medicare and Medicaid Services (CMS), commercial payers, and healthcare consultants familiar with coding rules, reimbursement, and medical policies. Physician Reimbursement Coverage and Payment for Intraoperative Nerve Monitoring The following is based on Medicare policies, coding guidelines, and edits. Many commercial payers follow the same practices as the national standard. However, some commercial payers may have a different interpretation and physicians should contact local payers for verification and guidance. Monitoring Performed by the Operating Physician Medicare does not pay for nerve monitoring when performed by the operating surgeon, i.e., the same surgeon who performs the primary procedure. Specifically, Medicare coverage policies for intraoperative neurophysiology testing state the following: This test must be requested by the operating surgeon and the monitoring must be performed by a physician, other than:» the operating surgeon;» the technical/surgical assistant; or» the anesthesiologist rendering the anesthesia Wisconsin Physician Services Insurance, Local Coverage Determination for Intraoperative Neurophysiological Testing Moreover, the NCCI policy states: Intraoperative neurophysiology testing should not be reported by the physician performing an operative procedure since it is included in the global package. However, when performed by a different physician during the procedure, it is separately reportable by the second physician. The physician performing an operative procedure should not bill other 90000 neurophysiology testing codes for intraoperative neurophysiology testing since they are also included in the global package. National Correct Coding Policy Manual, Chapter 11, version 16.3, pages XI-20-21 Furthermore, consultants have advised us that intraoperative neurophysiology testing as well as codes 95860, 95861, 95863, 95864, 95865, 95869, 95928, and 95929 were created and assigned RVUs on the basis of being performed by a physician other than the operating surgeon. Therefore, our best understanding of this issue is that the operating surgeon should not separately report any of these codes. Additional information on this topic is available by contacting your local Medicare carrier or the AMA.

NIM-ECLIPSE Spinal System Reimbursement brief 2 Physician Reimbursement continued Current Procedural Terminology (CPT) codes are used by physicians for all services and by facilities for outpatient services. Use of CPT codes is governed by various coding guidelines published by the American Medical Association (AMA) and other major sources such as professional medical societies (for physicians) and the American Hospital Association (for hospitals). In addition, the National Correct Coding Initiative (NCCI), a set of CPT coding edits created and maintained by CMS, has become a national standard. Medicare Physician Fee Schedule CPT Description 95861 Needle electromyography; two extremities with or without related paraspinal areas 95864 Needle electromyography; four extremities with or without related paraspinal areas Medicare and most indemnity insurers use a fee schedule to pay physicians for their professional services, assigning a payment amount to each CPT code. Under Medicare s Resource-Based Relative Value Scale (RBRVS) methodology for physician payment, each CPT code is assigned a point value, known as the Relative Value Unit (RVU), which is then multiplied by a conversion factor to determine the physician payment. Many other payers use Medicare s RBRVS fee schedule or some variation of it. Industrial or work-related injury cases are usually reimbursed according to the official fee schedule for each state. Medicare s RVUs and RBRVS payments are listed below. Select the most appropriate code(s). Professional Technical Global Component Component Payment (RVUs) (RVUs) (RVUs) $83.42 (2.33) $108.48 (3.03) 95865 Needle electromyography; larynx $84.85 (2.37) 95870 Needle electromyography; limited study of muscles in one extremity or nonlimb (axial) muscles (unilateral or bilateral), other than thoracic paraspinal, cranial nerve supplied muscles, or sphincters 95940 Continuous intraoperative neurophysiology monitoring in the operating room, one on one monitoring requiring personal attendance, each 15 minutes 95941 Continuous intraoperative neurophysiology monitoring, from outside the operating room (remote or nearby) or for monitoring of more than one case while in the operating room, per hour G0453 Continuous intraoperative neurophysiology monitoring, from outside the operating room (remote or nearby), per patient, (attention directed exclusively to one patient) each 15 minutes 95925 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in upper limbs 95926 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in lower limbs 95938 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in upper and lower limbs 95927 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in the trunk or head 95928 Central motor evoked potential study (transcranial motor stimulation); upper limbs 95929 Central motor evoked potential study (transcranial motor stimulation); lower limbs 95939 Central motor evoked potential study transcranial motor stimulation); in upper and lower limbs $19.69 (0.55) $90.58 (2.53) $136.40 (3.81) $60.15 (1.68) $69.10 (1.93) $173.99 (4.86) $244.88 (6.84) $145.00 (4.05) $88.79 (2.48) $33.30 (0.93) $33.30 (0.93) $28.64 (0.80) $27.57 (0.77) $46.18 (1.29) $27.93 (0.78) $81.27 (2.27) $79.48 (2.22) $123.16 (3.44) Source: CY2015 Medicare Physician Fee Schedule, Final Rule. Federal Register, November 13, 2014. No geographic adjustments. $130.32 (3.64) $117.79 (3.29) $298.22 (8.33) $126.02 (3.52) $180.44 (5.04) $181.87 (5.08) $384.86 (10.75) Note: This list is not inclusive of all applicable CPT codes. The codes listed are not always separately reimbursed in addition to the primary spinal procedure. Check NCCI for current bundling edits. $158.96 (4.44) $145.35 (4.06) $344.41 (9.62) $153.95 (4.30) $261.71 (7.31) $261.35 (7.30) $508.02 (14.19)

3 NIM-ECLIPSE Spinal System Reimbursement brief Facility Reimbursement For facilities, coding and reimbursement depend on the setting, inpatient or outpatient, and the type of facility, hospital or Ambulatory Surgery Center (ASC). Also note that facilities do not append a TC modifier to the CPT codes. It is understood that the facility is billing for the technical component. Hospital Inpatient Hospitals use ICD-9-CM procedure codes to report inpatient services. For these services, hospitals should code nerve monitoring separately with ICD-9-CM procedure code 00.94. 00.94 Intra-operative Neurophysiologic Monitoring Medicare uses the DRG payment methodology to reimburse hospitals for inpatient services. Each inpatient stay is assigned to one payment group, based on the ICD-9-CM codes assigned to the major diagnoses and procedures. Each DRG has a flat payment rate that bundles the reimbursement for all services the patient received during the inpatient stay. Some non-medicare insurers also use the DRG payment methodology. Many other insurers use per diem or per case methods depending on their contract with the hospital. The use of the NIM-ECLIPSE Spinal System is not paid separately under DRGs and most other inpatient reimbursement methodologies. Instead, it is bundled into the overall payment for the inpatient stay. However, hospitals must still accurately charge for the use of the NIM-ECLIPSE Spinal System because this data is often used to develop future payment rates. Hospital Outpatient Facilities use CPT/HCPCS (Healthcare Common Procedure Coding System) codes to report outpatient services. Under Medicare s methodology for hospital outpatient payment, each HCPCS code is assigned to one Ambulatory Payment Classification (APC). Each APC has a relative weight that is multiplied by a conversion factor to determine the payment. An APC and payment amount are assigned to each significant service. Although some services are bundled and not separately payable, total payment to the facility is the sum of the APC amounts for the services provided during the outpatient encounter. Many payers use Medicare s APC methodology or a similar type of fee schedule to reimburse hospitals for outpatient services. Other payers use a percent of charges mechanism, depending on their contract with the hospital. Note: Selected NCCI edits apply to CPT codes billed by hospitals for outpatient services. Status Indicators Each HCPCS code in the Outpatient Prospective Payment System (OPPS) is assigned a status indicator to signify whether a discount (payment reduction) applies to the respective APC payment. The following two status indicators are represented in these procedures: N Items and services packaged into APC Rates (paid under OPPS; payment is packaged into payment for other services, including outliers. Therefore, there is no separate APC payment.) S Significant procedures, not discounted when multiple. Q1 STV Packaged Codes 1. Packaged APC payment if billed on the same date of service as a HCPCS code assigned status indicator S, T, or V. 2. In other circumstances, payment is made through a separate APC payment). Ambulatory Surgery Center Medicare s Ambulatory Surgical Center (ASC) List of Covered Procedures includes only primary surgical procedures. Nerve monitoring and other ancillary procedures are not assigned to ASC Groups and are not separately payable to the facility. The single payment made to the ASC for the primary surgical procedure includes all other facility services furnished by the ASC in connection with it. Commercial payer reimbursement may vary depending on the ASC s individual provider contract and the patient s benefits. You should contact your local payers to verify coverage and appropriate coding.

NIM-ECLIPSE Spinal System Reimbursement brief 4 Facility Reimbursement continued CPT Description APC Select most appropriate code(s): Status Indicator Medicare Payment 95861 Needle electromyography; two extremities with or without related paraspinal areas 95864 Needle electromyography; four extremities with or without related paraspinal areas 0218 S $158.79 0218 S $158.79 95865 Needle electromyography; larynx 0215 S $94.93 95870 Needle electromyography, limited study of muscles in one extremity or non-limb (axial) muscles (unilateral or bilateral), other than thoracic paraspinal, cranial nerve supplied muscles, or sphincters 95940 Continuous intraoperative neurophysiology monitoring in the operating room, one on one monitoring requiring personal attendance, each 15 minutes 95941 Continuous intraoperative neurophysiology monitoring, from outside the operating room (remote or nearby) or for monitoring of more than one case while in the operating room, per hour G0453 Continuous intraoperative neurophysiology monitoring, from outside the operating room (remote or nearby), per patient, (attention directed exclusively to one patient) each 15 minutes 95925 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in upper limbs 95926 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in lower limbs 95938 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in upper and lower limbs 95927 Short-latency somatosensory evoked potential study, stimulation of any/all peripheral nerves or skin sites, recording from the central nervous system; in the trunk or head 95928 Central motor evoked potential study (transcranial motor stimulation); upper limbs 95929 Central motor evoked potential study (transcranial motor stimulation); lower limbs 95939 Central motor evoked potential study transcranial motor stimulation); in upper and lower limbs 0340 Q1 $52.35 N N N N N N 218 S $158.79 216 S $272.60 216 S $272.60 218 S $158.79 0216 S $272.60 0215 Q1 $94.93 0218 S $158.79 Source: CY2015 Medicare Outpatient Prospective Payment and Ambulatory Surgery Center Payment Systems, Final Rule. Federal Register, November 10, 2014. Status Indicators Each HCPCS code in the Outpatient Prospective Payment System (OPPS) is assigned a status indicator to signify whether a discount (payment reduction) applies to the respective APC payment. The following two status indicators are represented in these procedures: N Items and services packaged into APC Rates (paid under OPPS; payment is packaged into payment for other services, including outliers. Therefore, there is no separate APC payment.) S Significant procedures, not discounted when multiple. Q1 STV Packaged Codes (Packaged APC payment if billed on the same date of service as a HCPCS code assigned status indicator S, T, or V. ; in other circumstances, payment is made through a separate APC payment).

5 NIM-ECLIPSE Spinal System Reimbursement brief Quick Summary of Neural Integrity Monitoring Coding Basics» Codes 95940, 95941, and G0453 are used for intraoperative nerve monitoring. They are add-on codes and cannot be billed alone; they must always be billed with the codes for the EMG, SSEP, and MEP tests performed.» One unit of code 95941 is billed for each 15 minutes of intraoperative monitoring, whereas one unit of 95940 or G0453 is billed per hour. However, time spent interpreting the EMG, SSEP, and MEP tests does not count toward the time for these intraoperative monitoring codes.» Medicare does not cover new CPT code 95941 and instead requires HCPCS code G0453 for remote monitoring. Commercial payers are still split on which of these codes will be integrated into their policies.» The intraoperative nerve monitoring codes are bundled with many of the spinal procedure codes and cannot be reported separately. It is important for the physician and hospital to thoroughly review the NCCI edits when reporting intraoperative monitoring with spinal procedures.» Medicare does not pay separately for nerve monitoring when it is performed by the operating surgeon or when it is performed by the surgical assistant or the anesthesiologist. However, a second physician, such as a neurologist or neurophysiologist, may bill separately for nerve monitoring.» Some carriers allow remote monitoring by digital transmission or closed circuit television as long as the remote physician is monitoring in real-time, is dedicated exclusively to the monitoring, and has the ability to immediately contact the operating surgeon.» For services provided in a facility setting, including those to hospital inpatients and hospital outpatients, the physician should bill only for the professional component, using modifier 26.» In the facility setting, the physician cannot bill the payer for monitoring performed by others even if they are employed by the physician. However, if the physician provides the equipment or employs the technician, the physician may be able to look to the hospital for additional reimbursement under a separate arrangement. www.aanem.org/aaem/practiceissues/coding/ coding_faqs.cfm» Non-physician practitioners who maintain separate provider numbers can be considered physician equivalents and may bill payers separately under their own provider numbers, as permitted within the scope of their licenses and as permitted by state law. Medicare Benefit Policy Manual, Chapter 15, 80» If the hospital contracts with a third-party supplier to provide intraoperative nerve monitoring, billing depends on the payer. For Medicare patients, the hospital bills for the technical component and physicians and non-physician practitioners provided by the supplier may bill Medicare for the professional component.» For hospital inpatients, nerve monitoring is usually bundled into the overall payment for the stay and is not paid separately under DRGs and other inpatient reimbursement methodologies. It is still important to record charges accurately because the data is often used to develop future payment rates.» For hospital outpatients, Medicare has packaged the payment for nerve monitoring into the payment for the surgical procedure. However, commercial payer reimbursement may vary depending on the provider s contract with the payer. Contact your payers to verify coverage and payment.

NIM-ECLIPSE Spinal System Reimbursement brief 6 Coding and Reimbursement Assistance SPINELINE Coding and Reimbursement Support Provides coding, billing and reimbursement assistance for procedures performed using Medtronic products. Phone: 877-690-5353 E-mail: (Physician) spinalcodingmd@medtronic.com (Hospital) spinalcodinghospital@medtronic.com Internet: www.medtronicspinal.com/spineline

www.medtronicspinal.com/spineline Medtronic Spinal and Biologics Business Worldwide Headquarters 2600 Sofamor Danek Drive Memphis, TN 38132 1800 Pyramid Place Memphis, TN 38132 (901) 396-3133 (800) 876-3133 Customer Service: (800) 933-2635 For more information visit www.myspinetools.com For additional reimbursement information contact the SpineLine Coding and Reimbursement Support Line at (877) 690-5353. The materials and information cited here are for informational purposes only and are provided to assist in obtaining coverage and reimbursement for health care services. However, there can be no guarantee or assurances that it will not become outdated, without the notice of Medtronic, Inc., or that government or other payers may not differ with the guidance contained here. The responsibility for coding correctly lies with the healthcare provider ultimately, and we urge you to consult with your coding advisors and payers to resolve any billing questions that you may have. All products should be used according to their labeling. CPT 2014 American Medical Association (AMA). All Rights Reserved. CPT is a trademark of the AMA. Fee schedules, relative value units, conversion factors and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein. Applicable FARS/DFARS Restrictions Apply to Government Use. The NIM-ECLIPSE Spinal System is manufactured by Medtronic Xomed, Inc. Distributed by Medtronic Sofamor Danek USA, Inc. 2014 Medtronic Sofamor Danek USA, Inc. All Rights Reserved. PMD002988-6.0/122214