The Centers for Medicare and Medicaid Services briefly posted this week, and shortly thereafter withdrew, a notice that it would implement the second phase of the Provider Enrollment, Chain, and Ownership System (PECOS) on May 1.
PECOS became a problem for the industry in 2010 because it would deny all claims ordered by physicians not listed in the PECOS system. This put the onus on providers to pressure their physician referral partners to enter the system. Moreover, enrolling in the system proved complex and physicians were not clear on the requirements of enrollment.
While CMS rescinded its announcement, this could be an indication that a formal announcement regarding Phase Two PECOS implementation could be coming down the pike, a statement from the American Association from Homecare warned.
“CMS must give providers at least a 60-day notice before implementation,” the statement read. “The reason Phase Two is so important to homecare providers is that CMS will deny claims on the front end if HME items are ordered by a physician or other eligible professional who is not enrolled in the system.
“When CMS announced Phase Two’s effective date yesterday, AAHomecare immediately contacted senior Medicare officials asking for a meeting to discuss the implications for both homecare providers and Medicare beneficiaries,” the statement continued. “The association fears that with such massive changes on the horizon, beneficiaries will not get home medical equipment items on a timely basis and providers will be vulnerable to audits.”
