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<chapter num="42" heading="Free-Standing Medicare-Certified Ambulatory Surgical Centers" title_num="10" subtitle_num="09">
  <regulation prefix="Regulation" num=".01" heading="Definitions.">
    <paragraph num="A.">
      <text>In this chapter, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Covered surgical procedures” means those surgical and other medical procedures which meet the criteria specified in 42 CFR Part 416, Subpart F, §416.166(a) and (b), and which are published by the Centers for Medicare and Medicaid Services (CMS) in the Federal Register.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Dental Benefits Administrator (DBA)” means an entity that administers the dental program for the  Maryland Department of Health.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“Dental services” means emergency, preventive, or therapeutic services for oral diseases which are administered by or under the general supervision of a dentist in the practice of the profession.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>“Department” means the Maryland Department of Health as defined in COMAR 10.09.36.01.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>“Free-standing Ambulatory Surgery Center (ASC)” means an entity capable of providing ambulatory surgical services, which is not located in a hospital setting, and which is Medicare-certified to furnish ambulatory surgical services.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>“Hospital” means any institution which falls within the jurisdiction of Health-General Article, Title 19, Subtitle 3, Annotated Code of Maryland, and is licensed pursuant to COMAR 10.07.01.</text>
      </paragraph>
      <paragraph num="(7)">
        <text>“Medical Assistance Program” means the Medical Assistance Program as defined in COMAR 10.09.36.01.</text>
      </paragraph>
      <paragraph num="(8)">
        <text>“Medicare” means Medicare as defined in COMAR 10.09.36.01.</text>
      </paragraph>
      <paragraph num="(9)">
        <text>“Medicare-certified facility” means a facility which:</text>
        <paragraph num="(a)">
          <text>Is certified for Medicare by the regional office of the Centers for Medicare and Medicaid Services (CMS) to furnish ambulatory surgical services directly to patients;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Has an agreement with (CMS) under Medicare to participate as an ASC; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Meets the conditions set forth by (CMS) in 42 CFR Part 416, Subparts B, C, and F, §416.163.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(10)">
        <text>“Patient” means a recipient awaiting or undergoing health care or treatment.</text>
      </paragraph>
      <paragraph num="(11)">
        <text>“Physician” means an individual legally licensed to practice medicine in the state in which the physician's practice is located.</text>
      </paragraph>
      <paragraph num="(12)">
        <text>“Podiatrist” means a Doctor of Podiatry (D.P.M.) who is licensed to practice podiatry by the Board or by the state in which the service is rendered.</text>
      </paragraph>
      <paragraph num="(13)">
        <text>“Program” means Program as defined in COMAR 10.09.36.</text>
      </paragraph>
      <paragraph num="(14)">
        <text>“Provider” means a free-standing ambulatory surgical center which, through appropriate agreement with the Department, has been identified as a Program provider by the issuance of a provider account number.</text>
      </paragraph>
      <paragraph num="(15)">
        <text>“Recipient” means recipient as defined in COMAR 10.09.36.01.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="License Requirements.">
    <paragraph num="A.">
      <text>License requirements under this chapter are referenced in COMAR 10.09.36.02.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The provider shall ensure that all X-ray and other radiological equipment is maintained and inspected in compliance with the requirements of the Maryland Radiation Act, Environment Article, Title 8, Subtitle 3, Annotated Code of Maryland, and meets the standards established by COMAR 26.12.01 and COMAR 26.12.02 or other applicable standards established by the state in which the service is provided.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The provider shall ensure that Clinical Laboratory Improvement Amendments (CLIA) certification exists for all clinical laboratory services performed, and:</text>
      <paragraph num="(1)">
        <text>If located in Maryland, comply with requirements of Health-General Article, Title 17, Subtitles 2 and 3, Annotated Code of Maryland, and either COMAR 10.10.01 or 10.10.06, as applicable; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If located out-of-State, comply with other applicable standards established by the state or locality in which the service is provided.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Conditions for Participation.">
    <paragraph num="A.">
      <text>General requirements for participation in the Program are that a provider shall meet all conditions for participation as set forth in COMAR 10.09.36.03 and 42 CFR, Part 416, Subpart B.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Specific requirements for participation in the Program are that the provider shall meet all specific conditions for participation as set forth in 42 CFR, Part 416, Subpart C, to include the following:</text>
      <paragraph num="(1)">
        <text>Be approved by Medicare to furnish ambulatory surgical services to patients and maintain documentation of certification by the Department of Health and Human Services and the Centers for Medicare and Medicaid Services;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Have clearly defined, written, patient care policies;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Maintain adequate documentation of each recipient visit as part of the plan of care, which at a minimum, shall include:</text>
        <paragraph num="(a)">
          <text>Date of service;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Recipient's reason for visit;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>A brief description of service provided, and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>A legible signature and printed or typed name of the professional providing care, with the appropriate title;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>Have written, effective procedures for infection control which are known to all levels of staff as specified in COMAR 10.06.01;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Be approved by the state in which the service is provided, except where a Certificate of Need is not required;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Provide for in-house Program evaluation and clinical record review which assess use of services for appropriateness in meeting a recipient's needs;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Refer laboratory testing only to independent medical laboratory providers.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Covered Services.">
    <text>The Program covers the following:</text>
    <paragraph num="A.">
      <text>Medically necessary facility services rendered to recipients in a free-standing Medicare-certified ambulatory surgical center;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Diagnostic, curative, palliative, or rehabilitative services, when clearly related to the recipient's individual needs;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Surgical procedures which meet the standards described in 42 CFR Part 416, Subpart D, §416.65, and as published by the Centers for Medicare and Medicaid Services; and</text>
    </paragraph>
    <paragraph num="D.">
      <text>Dental services that have been pre-authorized by the Dental Benefits Administrator (DBA).</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Limitations.">
    <text>The Program does not cover the following:</text>
    <paragraph num="A.">
      <text>Services not specified in Regulation .04 of this chapter;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Services not medically necessary;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Investigational and experimental drugs and procedures;</text>
    </paragraph>
    <paragraph num="D.">
      <text>Services denied by Medicare as not medically justified;</text>
    </paragraph>
    <paragraph num="E.">
      <text>Separate billing of services which are included in the composite Medicare rate for an ambulatory surgical center;</text>
    </paragraph>
    <paragraph num="F.">
      <text>Surgical procedures which:</text>
      <paragraph num="(1)">
        <text>Generally result in extensive blood loss;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Require major or prolonged invasion of body cavities;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Directly involve major blood vessels;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Are generally emergency or life-threatening in nature;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Commonly require systemic thrombolytic therapy;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Are designated as requiring inpatient care (overnight);</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Can only be reported using a CPT unlisted surgical procedure code; or</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Are otherwise excluded under 42 CFR §411.15(a)—(h) and (j)—(s);</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>Physicians' services, including surgical procedures and all preoperative and postoperative services performed by a physician;</text>
    </paragraph>
    <paragraph num="H.">
      <text>Anesthesia services;</text>
    </paragraph>
    <paragraph num="I.">
      <text>Radiology services other than those integral to performance of a covered surgical procedure;</text>
    </paragraph>
    <paragraph num="J.">
      <text>Diagnostic procedures other than those directly related to a covered surgical procedure;</text>
    </paragraph>
    <paragraph num="K.">
      <text>Ambulance services;</text>
    </paragraph>
    <paragraph num="L.">
      <text>Leg, arm, back, and neck braces other than those that serve the function of a cast or splint;</text>
    </paragraph>
    <paragraph num="M.">
      <text>Artificial limbs; or</text>
    </paragraph>
    <paragraph num="N.">
      <text>Non-implantable prosthetic devices and durable medical equipment (DME).</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Payment Procedures.">
    <paragraph num="A.">
      <text>The Program reimburses a facility fee when the free-standing Medicare certified ambulatory surgery center provides a covered surgical procedure, in accordance with 42 CFR §416.166 to an eligible Medicaid recipient. Reimbursement for the facility fee includes, but is not limited to the following:</text>
      <paragraph num="(1)">
        <text>Nursing, technician, and related services;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Use of the facility;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Drugs, biologicals, surgical dressings, supplies, splints, casts, and appliances, and any equipment directly related to the provision of surgical procedures;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Administrative costs;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Materials including supplies and equipment for the administration and monitoring of anesthesia;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Radiology services for which separate payment is not allowed and other diagnostic tests or interpretive services that are integral to a surgical procedure;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Supervision of the services of a nurse anesthetist by the operating surgeon;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Ancillary items and services that are integral to a covered surgical procedure as defined in 42 CFR §416.166; and</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Any laboratory testing performed under a Clinical Laboratory Improvement Amendment of 1988 (CLIA) certificate of waiver.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Reimbursement Methodology:</text>
      <paragraph num="(1)">
        <text>Reimbursement fees equal 80 percent of the current Medicare-approved ASC facility fee for services furnished to Medicaid recipients in connection with covered surgical procedures.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>If one covered surgical procedure is furnished to a recipient, payment is at the Maryland Medicaid Program payment amount which is 80 percent of the current Medicare approved facility fee for that procedure.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>If more than one covered surgical procedure is provided to a recipient in a single operative session, payment is made at 100 percent of the Maryland Medicaid Program payment amount for the procedure with the highest reimbursement rate. Other covered surgical procedures furnished during the same session are reimbursed at 50 percent of the Maryland Medicaid Program payment amount for each procedure.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>When a covered surgical procedure is terminated before the completion due to extenuating circumstances or circumstances that threaten the well-being of the patient, the Medicaid Program payment amount is based on one of the following:</text>
        <paragraph num="(a)">
          <text>If the covered procedure for which the anesthesia is planned is discontinued after the induction of anesthesia or after the procedure is started, the reimbursement amount is 80 percent of the current Medicare approved facility fee; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>If the patient is prepared for surgery and the surgery is then cancelled before the induction of anesthesia, reimbursement shall be 50 percent of Maryland Medicaid payment amount.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Dental services rendered in an ASC on or after December 1, 2014, shall be reimbursed as follows:</text>
      <paragraph num="(1)">
        <text>For covered dental services that have a reimbursement amount of $1,000 through $2,999.99, the ASC facility fee will be $600;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For covered dental services that have a reimbursement amount of $3,000 through $4,999.99, the ASC facility fee will be $1,250;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>For covered dental services that have a reimbursement amount of $5,000 through $7,999.99, the ASC facility fee will be $2,500; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>For covered dental services that have a reimbursement amount of $8,000 and over, the ASC facility fee will be $3,000.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The provider shall submit a request for payment as set forth in COMAR 10.09.36.04A.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The Program reserves the right to return to the provider, before payment, all invoices not properly completed, including but not limited to, diagnostic and procedure codes and description of services provided.</text>
    </paragraph>
    <paragraph num="F.">
      <text>The Program shall authorize payment on Medicare cross-over claims only if:</text>
      <paragraph num="(1)">
        <text>The provider accepts Medicare assignment;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Medicare makes direct payment to the provider; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Medicare has determined that the services are medically  justified, excludes dental services.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>The Department shall make supplemental payment on Medicare cross-over claims subject to the following provisions:</text>
      <paragraph num="(1)">
        <text>Deductible is paid in full;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Coinsurance shall be paid lesser of:</text>
        <paragraph num="(a)">
          <text>100 percent of the coinsurance amount; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The balance remaining after the Medicare payment is subtracted from the Medicaid rate; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Services not covered by Medicare, but considered medically necessary by the Program, according to the limitations of Regulation .04C of this chapter.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>The provider may not bill the Program for:</text>
      <paragraph num="(1)">
        <text>Completion of forms and reports;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Broken or missed appointments;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Professional services rendered by mail or telephone; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Providing a copy of a recipient’s medical record when requested by another licensed provider on behalf of the recipient.</text>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>The Program shall make no direct payment to a recipient.</text>
    </paragraph>
    <paragraph num="J.">
      <text>The Program shall make no separate direct payment to any person employed by or under contract to any free-standing Medicare-certified ambulatory surgical center facility for services covered under this regulation.</text>
    </paragraph>
    <paragraph num="K.">
      <text>Billing time limitations for claims submitted pursuant to this chapter are set forth in COMAR 10.09.36.06.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Recovery and Reimbursement.">
    <text>Recovery and reimbursement under this chapter are set forth in COMAR 10.09.36.07.</text>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Cause for Suspension or Removal and Imposition of Sanctions.">
    <text>Causes for suspension or removal and imposition of sanctions under this chapter are set forth in COMAR 10.09.36.08.</text>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Appeal Procedures.">
    <text>Appeal procedures under this chapter are set forth in COMAR 10.09.36.09.</text>
  </regulation>
  <regulation prefix="Regulation" num=".10" heading="Interpretive Regulation.">
    <text>Interpretive regulations under this chapter are set forth in COMAR 10.09.36.10.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">Health-General Article, §§2-104(b), 15-103, and 15-105, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: September 2, 1991 (18:17 Md. R. 1918)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01B amended effective September 29, 2003 (30:19 Md. R. 1332); April 5, 2010 (37:7 Md. R. 571); March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B amended effective March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02C amended as an emergency provision effective September 16, 1992 (19:20 Md. R. 1812); amended permanently effective January 1, 1993 (19:25 Md. R. 2205)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .03 amended effective March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .03B amended effective April 5, 2010 (37:7 Md. R. 571)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04C amended effective September 29, 2003 (30:19 Md. R. 1332); April 5, 2010 (37:7 Md. R. 571); March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04D adopted effective March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05 amended effective April 5, 2010 (37:7 Md. R. 571)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05F amended effective March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .06 amended effective April 5, 2010 (37:7 Md. R. 571); March 16, 2015 (42:5 Md. R. 485)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .06B amended effective April 12, 2004 (31:7 Md. R. 584)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .06H amended effective July 4, 2016 (43:13 Md. R. 712)</annotation>
  </annotations>
</chapter>