NPI Contingency Plan Needed
Lynne Kottman, CCP, CHBME Legislative Advocate
On May 23rd, the NPI (National Provider Identifier) will be the required identifier on all claims. While most providers have gotten the message and obtained an NPI, many health plans are not prepared to process claims using this identifier. In addition to this issue, some software vendors have not completed reprogramming for the NPI and many have not completed successful testing. During the testing phase, a number of issues that could delay claims payments have been identified. As a result, on February 15th the National Committee on Vital and Health Statistics (NCVHS) sent a letter to HHS Secretary Mike Leavitt, urging the Secretary to adopt a contingency plan, "similar to the one utilized for the transaction and code set standards in 2003," because there is a lack of confidence that everyone will be ready to "go live" with the NPI on May 23rd as planned. The contingency plan envisioned by NCVHS would "...protect otherwise compliant covered entities from enforcement action if they develop and implement contingency plans, such as continuing to accept legacy identifiers, to assure continuity of operations." NCVHS made several recommendations to the Secretary: Recommendation #1: NCVHS recommends that HHS/CMS take the lead to provide this education, while also enlisting the participation of organizations that represent the healthcare industry. Several of these organizations expressed a willingness to provide assistance in the effort. Recommendation #2: NCVHS strongly recommends that HHS decide what NPPES information will be made available to the industry, issue a data dissemination notice, and make the data available at the earliest date possible. We believe this is essential to the success of NPI implementation. Recommendation #3: NCVHS recommends that covered entities be required to accomplish these tasks by the May 23, 2007 compliance date. Recommendation #4: NCVHS recommends that HHS publish contingency guidance similar to the one utilized for the transaction and code set standards in 2003. Such guidance would protect otherwise compliant covered entities from enforcement action if they develop and implement contingency plans, such as continuing to accept legacy identifiers, to assure continuity of operations. We suggest it would be prudent to institute a six-month contingency using the following conditions: - If HHS issues the data dissemination notice and makes NPPES data available to the industry prior to or on May 23, 2007, the contingency period would end six months later, on November 23, 2007.
- If HHS issues the data dissemination notice and makes NPPES data available after May 23, 2007, the contingency period would end six months after the date the data are available.
These recommendations come as a result of NCVHS’s January 24th hearing held to assess the readiness of various segments of the health care industry to comply with the May 23rd start date for use of the National Provider Identifier (NPI). The Healthcare Billing Management Association, along with other leaders in the health care delivery sector presented testimony. Subsequent to that hearing, the NCVHS sent its letter to the Secretary of HHS outlining the concerns the Committee heard and making recommendations to the Secretary. The letter states that the NCVHS heard testimony from "...associations representing providers, pharmacies, plans, health care software vendors and third-party billing companies. All expressed a great degree of concern, and agreed that many in the industry will not be able to meet the May 23, 2007 compliance date." To review the entire letter, go to: http://www.ncvhs.hhs.gov/070215lt.htm Secretary Leavitt is reportedly reviewing the NCVHS recommendations and has not as yet reported his decision on how HHS intends to respond. Also, to date, no information has been provided on when the Dissemination Notice will be released by HHS. The Dissemination Notice is necessary in order for the NPI database to be publicly available. Unless this Notice is available, physicians will not be able to report referring physician and insurance companies may not be able to link the provider’s NPI with their legacy identifying numbers. If the dissemination of the NPI database does not occur, and if a contingency extension plan is not developed, there exists a large probability that some claims will not be properly paid which will adversely impact provider payments.
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