Timeline of Reimbursement Legislation




1966 Federal government instituted Medicare and Medicaid reimbursement plans.
1981 OBRA decreased federal spending for health care.
1982 TEFRA placed a ceiling on hospital rate increases.
1982 Certified nurse midwives reimbursement set at 65% of physician fee with NO requirement for physician supervision.
1983 DRGs established as a Medicare prospective payment system for hospitals.
1983 Institute of Medicine (IOM) reported that NPs provide primary health care services of equal quality at less than one-half the cost of primary care physicians.
1989

OBRA enacted a new payment system which introduced fee schedules based on the resources and effort needed to perform a service. It allowed pediatric and family nurse practitioners (PNPs & FNPs) to be reimbursed according to complex regulations. It was phased in over a 5-year period beginning in 1992.

1990 OBRA clarified Medicare reimbursement to FNPs and PNPs in primary care and NPs and CNSs in long-term care nursing facilities.
1996

Strict regulations now required on-site supervision of residents in teaching hospitals and co-signing of charts by supervising physicians. Hospitals have been fined and criminal charges are possible for overcoding. Typically, audits also uncover a great deal of undercoding in health care reimbursment.
It needs to be clear that APNs are not in the same category as physician residents and physician assistants and do not require MD supervision or co-signatures unless the APNs are billing in the "incident to" category.

1997 Balanced Budget Act (BBA1997) removes distinction for NP and CNS reimbursement by geographic area. Contains requirement for physician collaboration. Allows NP/CNS reimbursement as long as a facility fee is not charged. Problems remain for APN billing in hospital settings. However, there is difficulty in writing the regulations to enact this legislation.
1997 Federal concerns with Medicare fraudulent billing have resulted in Medicare audits around the US and stringent requirements for documentation, coding and billing procedures, particularily in teaching hospitals where physician residents provide patient care.
1999 1999 Balanced Budget Act (BBA 1999)




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