almost everything you wanted to know about “t hird p arty ”

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Almost Everything You Wanted to Know About “ThirdPartyMinnesota Infinite Campus Interchange March 20, 2007 Arden Hills, MN

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Almost Everything You Wanted to Know About “T hird P arty ”. Minnesota Infinite Campus Interchange March 20, 2007 Arden Hills, MN. Goals for Today. You will: Know why districts bill third parties Understand how third party billing fits into due process - PowerPoint PPT Presentation

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Page 1: Almost  Everything You Wanted to Know About “T hird P arty ”

Almost Everything You Wanted to Know About

“ThirdParty”

Minnesota Infinite Campus Interchange

March 20, 2007

Arden Hills, MN

Page 2: Almost  Everything You Wanted to Know About “T hird P arty ”

Goals for Today

You will: Know why districts bill third parties

Understand how third party billing fits into due process

Realize the potential benefits to districts from third party billing

Page 3: Almost  Everything You Wanted to Know About “T hird P arty ”

Why?

Federal Intent Schools are obligated to provide specialized instruction and

related services at no cost to families, but not prohibited from charging others [P.L. 94-142 / 1975]

May use whatever state, local, federal and private sources are available [34 CFR §300.103(a)]

Financial responsibility of State Medicaid Agency precedes that of local education agency [34 CFR §300.154(a)(1)]

Page 4: Almost  Everything You Wanted to Know About “T hird P arty ”

Why? Minnesota Mandate

Beginning July 1, 2000, districts shall seek reimbursement from third parties [Minn. Stat. §125A.21, subd.2]

Payments to districts do not count toward monthly, annual, or lifetime limits for other MA or waivered services [Minn. Stat. §256B.0625, subd. 26]

Payments to districts by MA do not increase MA parental fees or have any copays attached [Minn.. Stat. §256B.0625, subd.26]

Page 5: Almost  Everything You Wanted to Know About “T hird P arty ”

Why?

Brings additional revenue into district No reduction in state aide

[Minn. Stat.§124.90, subd. 5]

Must be used to: Cover the cost of doing third party billing Obtain training and technical assistance to

increase third party billing Benefit students with special needs in the district

[Minn. Stat. §125A.21, subd. 3]

Page 6: Almost  Everything You Wanted to Know About “T hird P arty ”

Why?

Quality improvements happen Assures appropriate credentials Increased accountability Increased communication and team work Fits the IIIP and local collaborative models

Think of it as a fund raiser that’s: Less fattening than a bake sale Less work than a carnival Drier than a car wash

Page 7: Almost  Everything You Wanted to Know About “T hird P arty ”

How Does TP Fit?

Referral Child study or evaluation team Evaluation completed and report written Individualized Education Program written

Page 8: Almost  Everything You Wanted to Know About “T hird P arty ”

How Does TP Fit?

The IEP opens the door to the potential for billing a third party like Minnesota Health Care Programs (MA/MinnesotaCare)

Page 9: Almost  Everything You Wanted to Know About “T hird P arty ”

How Does TP Fit?

When writing the IEP, track any related services that are covered by MHCP

If the IEP includes covered services, make sure the: Evaluation Report Summary supports the medical

necessity of the service IEP adequately describes and authorizes the service

After the IEP is finalized and approved discuss the need to explore funding options and obtain the appropriate release/consent from parent or legal representative

Page 10: Almost  Everything You Wanted to Know About “T hird P arty ”

How Does TP Fit?

MA or MinnesotaCare only or MA/MnCare and Private but billing only Personal Care and/or Special Transportation Provide initial notice via Notice of Procedural

Safeguards Obtain one time release of information to share private

data with MN Department of Human Services (DHS) If billing for nursing and/or personal care, obtain annual

release to secure medical orders Provide annual notice via Notice of Procedural

Safeguards Keep signed release in education record according to

district retention policy or at least five years after last claim submitted

Page 11: Almost  Everything You Wanted to Know About “T hird P arty ”

How Does TP Fit?

Private or MA/MnCare and Private Give parent or legal representative enough information

to make an informed decision Obtain an annual release of information and consent to

ask/bill form If billing for nursing and/or personal care, obtain annual

release to secure medical orders Repeat process each year Keep signed release in education record according to

district retention policy or at least five years after last claim submitted

Page 12: Almost  Everything You Wanted to Know About “T hird P arty ”

Things to Remember….

Due process is not affected in any way by billing a third party Quality of service does not change

Amount or type of service does not change

Service is provided in the least restrictive environment

Services are not terminated, reduced or denied due to third party refusal to pay

Families do not incur any direct costs

Page 13: Almost  Everything You Wanted to Know About “T hird P arty ”

Things to Remember…. If problems arise, we will work through them together

If there is a payment dispute, district still provides the service

It takes time and effort to be successful at accessing third party revenue

Realistic and supportive leadership is essential to be successful with third party billing

Not every related service we provide is billable

Page 14: Almost  Everything You Wanted to Know About “T hird P arty ”

State of the State

Page 15: Almost  Everything You Wanted to Know About “T hird P arty ”

State of the StateAmounts Received by MN School Districts by School Year

$541,966

$4,003,234

$6,076,586

$11,248,554

$16,745,087

$19,725,800

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

School Year

Am

ou

nt

Series1

Page 16: Almost  Everything You Wanted to Know About “T hird P arty ”

State of the State

Approximate Payments to Districts by MHCP by Category of Service

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

PhysicalTherapy

OccupationalTherapy

Speech-Audiology

Mental Health Nursing Personal Care AT Spec Trans

Service

Am

ou

nt

2000-2001

2001-2002

2002-2003

2003-2004

*2004-2005*

Page 17: Almost  Everything You Wanted to Know About “T hird P arty ”

State of the StateAverage Received Per District

$7,039

$20,321$23,017

$39,607

$58,755

$65,973

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

SFY 01 SFY 02 SFY 03 SFY 04 SFY 05 SFY 06

School Fiscal Year

Am

ou

nt

Series1

Page 18: Almost  Everything You Wanted to Know About “T hird P arty ”

No Maytag Repairman

Cathy Griffin

Third Party Reimbursement Policy Specialist

MN Department of Education

1500 Highway 36 West

Roseville, MN 55113

Phone: 651-582-8263

Fax: 651-582-8729

[email protected]