ELIMINATION OF MEDI-CAL OPTOMETRY/OPTICAL BENEFITS

FREQUENTLY ASKED QUESTIONS

 

QUESTION: Why are optometry/optical benefits being eliminated?

 

ANSWER: In an effort to balance CA State Budget, the California Legislature, during the Third Extraordinary 2009-2010 Legislative Session, ratified Assembly Bill (AB) X3 5 (Evans, Chapter 20, Statutes of 2009), the budget trailer bill.  AB X3 5 contained provisions to eliminate certain Medi-Cal optional benefits, effective July 1, 2009.  In addition, the Legislature also enacted law requiring the Treasurer and Director of Finance to determine whether additional federal funding of not less than $10 billion would be available by June 30, 2010 to offset general fund expenditures and to reverse the optional benefit elimination.

 

In March, State Treasurer Bill Lockyer and Director of Finance Mike Genest jointly determined that $10 billion of additional federal funding would not be available by June 30, 2010 to offset general fund expenditures. Therefore, effective July 1, 2009, the following Medi-Cal optional benefits will be eliminated for adult recipients ages 21 years and older:

 

·             Acupuncture services

·             Adult dental services

·             Chiropractic services

·             Incontinence creams and washes

·             Optician/optical laboratory services

·             Optometry services

·             Podiatry services

·             Psychology services

·             Speech therapy and audiology services

 

QUESTION:  What is an “optional” benefit?

 

ANSWER: Federal law requires the Medi-Cal program to provide a core of basic services, including but not limited to hospital inpatient and outpatient care, skilled nursing care, physician visits, laboratory tests and X-rays, family planning, regular examinations for children under 21 years and services in rural health clinics. All other services are considered “optional” benefits because they are provided at the “option” of each state.

 

QUESTION: Is the elimination of optional benefits temporary?  If not, when will these services be available again?

 

ANSWER: Since the law does not specify a date when these optional benefits would be reinstated, the elimination is indefinite.  The Legislature and the Administration would have to approve any changes to the current law.   Providers should continue to check the Department of Health Care Services (www.dhcs.ca.gov) and Medi-Cal (www.medi-cal.ca.gov) Web sites for notices and articles for any updates.  

 

QUESTION: Does the elimination of optional benefits impact only Medi-Cal recipients 21 years of age and older?  Which recipients are excluded?

 

ANSWER: Yes, the elimination of optional benefits affects only Medi-Cal recipients 21 years of age and older. These optional benefits will continue to be available for Medi-Cal recipients under 21 years of age with full-scope benefits, recipients receiving the service(s) due to a condition that might complicate a pregnancy, and those residing in skilled and intermediate care nursing facilities as defined in Health and Safety Code (H&S), Section 1250 (c) and (d) and licensed in accordance to H&S Section (k).

 

QUESTION:            Does the elimination of optional benefits impact both Medi-Cal fee-for-service and Managed Care plans?

 

ANSWER: Yes.

 

QUESTION: Which programs are not affected by these optional benefit eliminations?

 

ANSWER: The following programs are not impacted?

 

·       Early and Periodic Screening, Diagnosis and Treatment (EPSDT) Program

·       California Children’s Services (CCS) Program

·       Genetically Handicapped Persons Program (GHPP)

·       County Mental Health Services

·       Home Health Agency (HHA) services

·       Adult Day Health Care Centers (ADHCs) services

·       Healthy Families Program

·       County Medical Services Program

 

QUESTION: Is the elimination of optometry services for routine eye examinations and eyeglasses only?  Can I still see a patient for primary eye care services to treat an eye infection or other medically related conditions?

 

ANSWER: All services provided by optometrists for Medi-Cal recipients 21 years of age and older minus those excluded recipients mentioned above are eliminated.

 

QUESTION: Can an adult Medi-Cal recipient be examined by an ophthalmologist?

 

ANSWER: Yes.  Physician services are exempt from the elimination of optional benefits.

 

QUESTION: Can an adult Medi-Cal recipient receive eyeglasses from an ophthalmologist?

 

ANSWER: No.  All eye appliances including eyeglasses, contact lenses, and low vision aids will no longer be covered for Medi-Cal recipients 21 years of age and older minus those excluded recipients mentioned above effective July 1, 2009.

 

QUESTION: If the service was performed prior to July 1, 2009, can I still bill for an eliminated service after this date?

 

ANSWER: Yes, claims with dates of service prior to July 1, 2009 can be billed after this date and follow the same timeliness requirements.

 

QUESTION: Can we still see Medi-Cal/Medicare recipients after July 1, 2009?  If yes, how do we bill Medi-Cal for these patients?

 

ANSWER: Yes, you can still examine patients who have Medicare/Medi-Cal dual eligibility after July 1, 2009. When billing after July 1, 2009, follow the guidelines below:

 

  • For Medi-Cal non-covered services, if Medicare pays for the service and there is any remaining coinsurance and/or deductible, submit a crossover claim. Medi-Cal will continue to process crossover claims for dual eligible recipients for Medi-Cal non-covered services.
  • If Medicare denies the service and the service is no longer covered by Medi-Cal, the patient is responsible for the charges. Providers can bill the Medicare denied services to Medi-Cal using the straight Medi-Cal claim instructions, if they are confused about what services are being cut and want to receive an official denial message from Medi-Cal.
  • If Medicare pays for the services at 100%, meaning there is no remaining coinsurance and/or deductible amounts remaining, no action is necessary.

 

QUESTION: What happens when the Medi-Cal eligible beneficiary reaches 21 years of age during the course of treatment but after the July 1, 2009 implementation date?

 

ANSWER: Recipients that are under 21 years of age and whose plan of care and course of treatment is scheduled to continue after he/she turns 21 yrs of age can continue services until the end of their course, even if it is after July 1, 2009 implementation date

 

QUESTION: What happens if a Medi-Cal eligible beneficiary 21 years of age and older requires additional time to complete treatment for a course of treatment that began prior to service date July 1, 2009?

 

ANSWER: Recipients that are 21 years of age and older and whose plan of care and course of treatment for an acute ocular condition began prior to July 1, 2009 can continue services until the end of their course, even if it is after July 1, 2009 implementation date.

 

QUESTION: How do I bill claims for patients who require continuing care?

 

ANSWER: All continuing care services must be billed with Modifier –GY.  Those services that require a Treatment Authorization Request (TAR) will continue to require a TAR after July 1, 2009.  Non-TAR services must be billed with Modifier –GY with medical justification included in the medical record.

 

QUESTION: Would services that are provided to an exempt beneficiary require medical documentation and/or justification with claim submission?

 

ANSWER: Providers should always include medical justification for the service in the medical record.  Instructions for billing will released through bulletin on the Medi-Cal web site (www.medi-cal.ca.gov) prior to the July 1, 2009 implementation date.

 

QUESTION: How does the elimination of optional benefits impact how orders are processed on the Prison Industry Authority (PIA) Optical Online Web Site?

 

ANSWER: Please refer to a separate FAQ posted on the PIA Optical Online Web Site addressing the processing of optical orders, which can be accessed at https://optical.pia.ca.gov/POOL/FAQ_Links.htm

 

If you have any questions, please contact Dr. Cory Vu at the address below:

 

Department of Health Care Services

Pharmacy Benefits Division

Vision Services Branch

1501 Capitol Avenue, Suite 71.3041

P.O. Box 997413, MS 4604

Sacramento, CA 95899-7413

Attn: Cory N. Vu, O.D.

Phone: (916) 552-9539

E-mail: cory.vu@dhcs.ca.gov