Washington The Health Care Financing Administration has established new codes for all oxygen concentrators and a special type of walker. Both codes went into effect Jan. 1, 2000.

Replacing codes E1400-E1404, code E1390 covers oxygen concentrators that are capable of delivering 85 percent or greater oxygen concentration at the maximum liter flow rate prescribed for the patient. For patients currently using concentrators billed with the old codes, a revised CMN will not be required. Codes E1400-E1404 will continue to be required on all claims with service dates on or before Dec. 31, 1999. They will also be accepted if both the date of service is on or after Jan. 1, 2000, and the claim is received on or before March 31, 2000. They will be rejected as invalid if both the date of service is on or after Jan. 1, 2000, and the claim is received on or after April 1, 2000.

Code E0144 covers a folding wheeled walker that has a frame that surrounds the patient and an attached seat in the back. The medical necessity of this type of walker compared to a standard folding wheeled walker, E0143, has not been established. If the basic coverage criteria for a walker is met and code E0144 is billed, payment will be based instead on the allowance for the least costly medically appropriate alternative, E0143.

For more information, see www.hcfa.gov

Washington The Health Care Financing Administration has awarded its first national contract to New York City-based Group Health to ensure that Medicare doesn't pay health care claims that should be covered by a beneficiary's private health insurance.

In the past, HCFA has contracted with several private businesses to ensure that private health insurance companies pay their fair share of claims for the more than 39 million Medicare beneficiaries who also have private insurance to cover health care costs. By consolidating the contracts, HCFA hopes to increase the nearly $3 billion it saves annually by policing insurance companies.

"We are using private-sector techniques and expertise to modernize Medicare's accounting systems to better protect beneficiaries and taxpayers," says Nancy-Ann Min DeParle, HCFA administrator. "Medicare dollars must be spent on legitimate services for elderly and disabled Americans, not to pick up the tab for other insurance companies."

Under the five-year, $87 million contract, Group Health will coordinate Medicare payments with other insurance companies by collecting, reporting and managing claims information so that claims are paid by the primary insurer, whether that is Medicare or another insurer. -J.P.P