Bloomberg Law®, an integrated legal research and business intelligence solution, combines trusted news and analysis with cutting-edge technology to provide legal professionals tools to be...
National Provider Identifier Final Rule
Key Development: CMS final rule requires providers and suppliers to have a National Provider Identifier number.
Potential Impact: CMS says the rule will reduce Medicare spending $1.6 billion over 10 years.
By Steve Teske
All providers and suppliers who qualify for a National Provider Identifier (NPI) will be required to include the NPI on any enrollment applications to Medicare and Medicaid, as well as on any payment claims, according to a final rule issued by the Centers for Medicare & Medicaid Services April 24.
CMS said the rule will save Medicare about $1.6 billion over 10 years.
The rule also requires physicians and other professionals who are permitted to order and certify covered items and services for Medicare beneficiaries to be enrolled in Medicare. In addition, it mandates document retention and provision requirements on providers and suppliers that order and certify items and services for Medicare beneficiaries.
CMS may revoke a provider's enrollment in federal health care programs for up to a year for failing to meet the documentation requirements. The agency said most providers that want to enroll in Medicare and Medicaid already have an NPI.
CMS said the rule would give it and states the ability to link provider claims to the ordering or certifying physician or eligible professional and to check for suspicious ordering activity.
The regulation, which is scheduled for publication in the April 27 Federal Register, is effective June 26.
CMS said it based its Medicare savings estimate on a decrease in the use of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS), imaging services, clinical laboratory services, and home health care because a small number of patients will go to physicians without enrollment numbers and thus will not get referrals to these services.
Some provider claims without proper documentation, including some fraudulent claims, could be denied as a result of the rule, but the agency said it does not have “a basis for quantifying the value of such claims.”
CMS said the rule will give it and states the ability to link provider claims to the ordering or certifying physician or eligible professional and to check for suspicious ordering activity.
The regulation implements Section 1128J(e) of the Social Security Act, added by the Patient Protection and Affordable Care Act, which requires that all providers and suppliers eligible for an NPI include it on all applications and payment claims for federal health care programs.
”CMS is setting out a reasonable policy that will allow for physicians to qualify if they are enrolled in [the Provider Enrollment, Chain, and Ownership System] or another format of Medicare enrollment,” he said.
“Further, they indicate that there will be no adverse actions on claims until after they issue a notice that the automated edit is going to be turned on,” Dombi added. “This should mean that providers can anticipate that any remaining bugs in the system will have been worked out before the edit goes live.”
By Steve Teske
The final rule is at /uploadedfiles/BNA_V2/Images/From_BNA_V1/News/NPI-final-rule(1).pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)