2024 Annual Provider Notice of
Laboratory Compliance
January 2024
To our Valued Healthcare Providers:
We appreciate you allowing Baylor Genetics the opportunity to serve the
healthcare needs of your patients. We are dedicated to providing you
and your patients with timely, high quality genetic testing services. We
are also committed to complying with all applicable federal and state
healthcare laws, rules, and regulations in providing these services.
The United States Department of Health and Human Services’ Office
of Inspector General (OIG) has issued guidance that recommends
laboratories provide annual notice to ordering providers as part of an
effective compliance program. The following information covers Baylor
Genetics’ policies and procedures for ordering providers to meet federal,
state, and private health plan requirements.
AUTHORIZED ORDERING PROVIDERS
Baylor Genetics can only bill third-party payers, including federal
healthcare programs, for testing ordered by a licensed physician or
other non-physician practitioner authorized by state law to order
laboratory tests. If your license has been revoked or suspended, it is
your responsibility to notify our laboratory immediately. You represent
and warrant that neither you, nor any employee, contractor or agent
performing services on behalf of you has been excluded, debarred,
suspended, proposed for debarment, or otherwise declared ineligible
from any federal healthcare program or federal procurement or
non-procurement program or convicted of a criminal offense that falls
with the scope of 42 U.S.C. §1320a-7a. You further agree that you will
immediately disclose any such debarment, suspension, exclusion,
proposed debarment or ineligibility to Baylor Genetics upon discovery
and not attempt to order any tests from Baylor Genetics.
Providers ordering laboratory testing on Medicare beneficiaries must be
registered in the Centers for Medicare and Medicaid Services (“CMS”)
Provider Enrollment, Chain and Ownership System (“PECOS”). It is
Baylor Genetics’ policy to only bill Medicare for laboratory testing
ordered by a PECOS enrolled provider and performed by Baylor Genetics,
per Medicare regulations. Additional information can be found at:
https://pecos.cms.hhs.gov.
MEDICAL NECESSITY POLICY
Baylor Genetics has an obligation to make a good-faith effort to ensure
all tests ordered are performed and billed in a manner consistent with
all federal and state laws and regulations. Third-party payers, including
federal healthcare programs, will only pay for tests that are medically
necessary for the diagnosis or treatment of the individual patient.
Criteria to establish medical necessity for testing must be based on
patient-specific elements identified during the clinical assessment and
documented by the ordering provider in the patient’s medical record. As
the ordering provider, you are responsible for documenting medical
necessity in the patient’s medical record (including your signature) and
for providing appropriate diagnostic information in the form of
ICD-10-CM code(s) to the highest level of specificity or a narrative to
Baylor Genetics when ordering laboratory testing services.
The OIG takes the position that providers who order medically
unnecessary tests for which federal healthcare program reimbursement
is claimed may be subject to criminal, civil and administrative penalties.
MEDICARE NATIONAL AND LOCAL COVERAGE AND
REIMBURSEMENT POLICY
Medicare and Medicare Administrative Contractors (MAC), Medicare
contractors, have developed National and Local Coverage
Determinations (NCDs and LCDs) that provide guidelines regarding
Medicare coverage of certain laboratory tests. These policies identify
the conditions for which the included tests are or are not covered or
reimbursed by Medicare, typically by reference to specific ICD-10-CM
code(s) that support coverage.
You can find NCDs in the Medicare Coverage Database at:
https://www.cms.gov/medicare-coverage-database/search.aspx
You can find LCDs through your regional MAC. Information regarding
LCDs is located at:
https://www.cms.gov/medicare/coverage/determinationprocess/lcds
Medicare reimbursement for laboratory tests can be found in the most
current Medicare Clinical Laboratory Fee Schedule
(https://www.cms.gov/medicare/medicare-fee-for-service-payment/clinicallabfeesched)
or the most current Physician Fee Schedule
(https://www.cms.gov/medicare/medicare-fee-for-service-payment/physicianfeesched).
State Medicaid reimbursement amounts will be equal to or lower than
the amount of Medicare reimbursement and are available through the
state Medicaid agency