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May 26, 2003

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Medicaid no longer paying Medicare Part B co-pays

LOUISVILLE — In a letter to all ambulance providers, Medicaid has announced the end of cross over payments effective June 1, 2003. Some providers have estimated this loss at about four to six percent of total income.

The letter reads:

All Kentucky Medicaid Providers have received a letter this week notifying them that effective for dates of service on or after June 1, 2003 Medicaid will no longer pay for Medicare Part B co pays or deductibles unless Medicare pays less than Medicaid would have paid.

Section 1902(n) of the Social Security Act, as amended by the Balanced Budget Act of 1997, permits states to choose to continue to pay the full Medicare deductibles and coinsurance amounts for recipients eligible for both Medicare and Medicaid or to limit payment to the amounts established in their State Plan for the service.  The law further states that providers must consider these payment amounts as payment in full.  Medicaid recipients are not liable for any additional charges billed by medical providers.   

For additional information you are referred to Duane Dringenburg of the Physician and Specialty Services Division at 502-564-5969.

Sincerely,

Marcia R Morgan
Secretary

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