*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***

Chapter 24 - Medical Spenddowns

Effective:  June 1, 2012

24.15.25 - P Bills

Archived:  June 1, 2016 (Previous Versions)

P Bills

"P" bills are health care expenses that have dates of service during the certification period and are non-reimbursable by MA or MinnesotaCare (MCRE).

P bills are applied to the spenddown after H bills and M bills.

For information that affects all health care expenses see Health Care Expenses.

General Provisions.

Applying P Bills.

Non-Reimbursable Health Care Expenses.

Access Services.

Dependent and Relative Expenses.

State-Funded MinnesotaCare Fee-For-Service Bills.

Out-of-Network Services.

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General Provisions

The following health care expenses, if incurred during the certification period for which eligibility is being determined, are considered P bills:

l  Non-reimbursable health care expenses, which include MA co-payments.

l  Non-reimbursed Health Care Access Services.

l  Health care expenses for dependents or financially responsible relatives who are not eligible for MA.

l  The remedial care expense deduction may be used if the client is residing in a residential living arrangement and there is a Group Residential Housing (GRH) agreement with the county agency.

l  Alternative Care costs.

Alternative Care is a state-funded program. Apply the client's out-of-pocket expense and the state-funded payments. Contact the case manager for amounts incurred and dates of service.

l  Minnesota Children Special Health Needs (MCSHN) expenses paid by the program.

This is a program administered by the Minnesota Department of Health. Apply the client's out-of-pocket expense and the state-funded payments. Contact the case manager for amounts incurred and dates of service.

l  Expenses paid by the Insurance Extension Program which pays health insurance premiums for individuals who are HIV positive.

The amount of the state-funded payment may be used as a health care expense. Contact the caseworker at DHS for the amounts of the state-funded payments and dates of service if the client has an HH span on RELG in MMIS.

l  State-Funded MinnesotaCare fee-for-service bills.

Applying P Bills

For information on applying P bills to a certain spenddown type see the following sections:

l  Monthly Spenddown.

l  Six-Month Spenddown.

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Non-Reimbursable Health Care Expenses

Non-reimbursable health care expenses are expenses that are not covered by MA or MinnesotaCare.

l  For ongoing non-reimbursable expenses, verify the need for the item at each renewal unless the physician's recommendation specifies a shorter period.

l  To qualify as an allowable spenddown expense for MA, the non-reimbursable health care service must meet all the following conditions:

n  Prescribed or recommended in writing by the client's physician or dentist.

n  Directly benefits the client.

n  Available through a licensed medical provider but not necessarily obtained through a licensed medical provider.

Example:

Jim's dentist, a licensed provider, refers him to a specialist who is not a licensed provider.

Action:

Although the expense is not reimbursable through MA, allow it as a non-reimbursable health care expense applied to Jim’s spenddown.

Example:

Glenda purchased vitamins through a mail-order company. Her physician advised her to take the vitamins for 12 months.

Action:

Although the mail order company is not a licensed provider and cannot be reimbursed, the vitamins could have been obtained through a licensed pharmacy. Allow the expense as a non-reimbursable health care expense applied to Glenda’s spenddown.

n  Not reimbursable through the county health care access plan.

n  Medically necessary.

A medically necessary service is a health service rendered for any of these situations:

m In response to a life-threatening condition or pain.

m To treat an injury, illness, or infection.

m To achieve a level of physical or mental function consistent with prevailing community standards for the diagnosis or condition.

m To care for a mother and child through the maternity period.

m To provide preventive health service.

m To treat a condition that could result in physical or mental disability.

n  The provider's professional peer group must recognize the service as the prevailing standard or current practice and as consistent with the client's diagnosis or condition.

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Access Services

Reimbursable expenses under the Health Care Access Services, such as transportation costs, which were not reimbursed or paid as access services can be used as a health care expense if both of these conditions:

l  The managed care health plan coverage does not cover them.

l  The county will not be reimbursing the expense through the Health Care Access fund.

Apply the reimbursable expenses under the Health Care Access Services to a spenddown first. Only reimburse expenses through the county health care access services plan that cannot be applied toward a spenddown.

Dependent and Relative Expenses

Health care expenses incurred by dependents or financially responsible relatives who are not applying or eligible for MA may be used to meet another household member’s spenddown. Include the following health care expenses:

l  Reimbursable expenses that can be paid through MMIS. These become non-reimbursable because the dependent or financially responsible relative is not on MA.

l  Non-reimbursable expenses that are not covered by MA or cannot be paid through MMIS, such as co-payments.

l  Bills paid by MinnesotaCare for family members for whom DHS does not receive FFP. See MinnesotaCare Expenses for instructions on which MinnesotaCare expenses are allowable.

Note:  Household member expenses incurred before the certification period are M bills.

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State-Funded MinnesotaCare Fee-For-Service Bills

Allow the amount of fee-for-service bills paid by the state for MinnesotaCare eligible household members. These MinnesotaCare clients are not on a managed care plan.

l  Verify the amounts and dates of service with an Explanations of Medical Benefits (EOMB) or other statements.

l  For more information see MinnesotaCare Expenses.

l  When MinnesotaCare clients apply for overlapping MA to cover inpatient hospital bills, see R Bills.

l  The following MinnesotaCare Major Programs receive state funding:

n  BB:  Non-pregnant adults without children, regardless of citizenship.

n  JJ:  Legal guardians, and foster parents and noncitizen parents and relative caretakers who do not qualify for federally funded health care coverage.

n  KK:  Non citizen children and pregnant women who do not qualify for federally funded health care coverage. For more information see Citizenship and Immigration Status.

Out-of-Network Services

Outstanding bills for services received from an out-of-network provider may be P bills for a managed care client. The reason the client went to an outside provider does not matter. Whether the service is a Minnesota Health Care Programs (MHCP) covered service is not relevant.

The health plan may deny coverage if a managed care client received services from a provider who is not in the health plan's network.

l  The services are allowable spenddown expenses if the services are the household's financial responsibility.

l  The bill must meet these conditions:

n  The date of service is during the certification period for which eligibility is being determined.

n  The provider billed the health plan.

Note:  The provider should bill the health plan even if the provider is not in the plan. Health plans have provisions for covering out-of-network services.

n  The health plan formally denied the claim because the provider is not in the health plan's provider network.

n  Verify the denial either with an Explanation of Medical Benefits (EOMB) from the health plan or another document.

n  The client is financially responsible for the expense.

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