It is simple to opt out of Medicare - far simpler than staying in the Medicare program. Hundreds of physicians have already opted out, and we not heard a single regret by any of these physicians. Once HCFA unleashes its dreaded new program of "private auditors" to shake down physicians in the Medicare program, far more physicians will likely opt out - and even more will wish they had.
We have prepared this "How To" guide for your benefit. These suggestions do not constitute legal advice - please consult an attorney for any legal issues or questions.
IF YOU ARE A NON-PARTICIPATING PHYSICIAN, then opting out is as follows:
Step One: Notify your patients that you are opting out of Medicare.
Step Two: File a copy of the following affidavit with "each carrier that has jurisdiction over the claims that the physician or practitioner would otherwise file with Medicare" (quoting HCFA Qs and As on Private Contracts, #10). The addresses will vary depending on the region of the country in which you practice. The affidavit should be equivalent to the following:
I, ______, declare under penalty of perjury that the following is true and correct to the best of my knowledge, information, and belief:
1. I am a physician licensed to practice medicine in the state of ______. My address is at _________, my telephone number is _________, and my [national provider identifier (NPI) or billing number, if one has been assigned, uniform provider identification number (UPIN) if one has been assigned, or, if neither an NPI nor a UPIN has been assigned, my tax identification number (TIN)] is _________. I promise that, for a period of two years beginning on the date that this affidavit is signed (the "Opt-Out Period"), I will be bound by the terms of both this affidavit and the private contracts that I enter into pursuant to this affidavit.
2. I have entered or intend to enter into a private contract with a patient who is a beneficiary of Medicare ("Medicare Beneficiary") pursuant to Section 4507 of the Balanced Budget Act of 1997 for the provision of medical services covered by Medicare Part B. Regardless of any payment arrangements I may make, this affidavit applies to all Medicare-covered items and services that I furnish to Medicare Beneficiaries during the Opt-Out period, except for emergency or urgent care services furnished to Beneficiaries with whom I had not previously privately contracted. I will not ask a Medicare Beneficiary who has not entered into a private contract and who requires emergency or urgent care services to enter into a private contract with respect to receiving such services, and I will comply with 42 C.F.R. § 405.440 for such services.
3. I hereby confirm that I will not submit, nor permit any entity acting on my behalf to submit, a claim to Medicare for any Medicare Part B item or service provided to any Medicare Beneficiary during the Opt-Out Period, except for items or services provided in an emergency or urgent care situation for which I am required to submit a claim under Medicare on behalf of a Medicare Beneficiary, and I will provide Medicare-covered services to Medicare Beneficiaries only through private contracts that satisfy 42 C.F.R. § 405.415 for such services.
4. I hereby confirm that I will not receive any direct or indirect Medicare payment for Medicare Part B items or services that I furnish to Medicare Beneficiaries with whom I have privately contracted, whether as an individual, an employee of an organization, a partner in a partnership, under a reassignment of benefits, or as payment for a service furnished to a Medicare Beneficiary under a Medicare+Choice plan, during the Opt-Out Period, except for items or services provided in an emergency or urgent care situation. I acknowledge that, during the Opt-Out Period, my services are not covered under Medicare Part B and that no Medicare Part B payment may be made to any entity for my services, directly or on a capitated basis, except for items or services provided in an emergency or urgent care situation.
5. A copy of this affidavit is being filed with [the name of each local Medicare carrier], the designated agent of the Secretary of the Department of Health and Human Services, no later than 10 days after the first contract to which this affidavit applies is entered into. [FOR PARTICIPATING PHYSICIANS ONLY: My Medicare Part B Participation agreement terminates on the effective date of this affidavit.]
Executed on [date] by [Physician name] [Physician signature]
Step Three: Enter into a private contract for, and prior to, rendering any covered services to a Medicare Part B Beneficiary. Such private contract should include the following:
This agreement is between Dr. __________ ("Physician"), whose principal place of business is _____________, and patient ____________ ("Patient"), who resides at __________ and is a Medicare Part B beneficiary seeking services covered under Medicare Part B pursuant to Section 4507 of the Balanced Budget Act of 1997. The Physician has informed Patient that Physician has opted out of the Medicare program effective on _____ for a period of at least two years, and is not excluded from participating in Medicare Part B under Sections 1128, 1156, or 1892 or any other section of the Social Security Act.
Physician agrees to provide the following medical services to Patient (the "Services"):[ LIST]
In exchange for the Services, the Patient agrees to make payments to Physician pursuant to the Attached Fee Schedule. Patient also agrees, understands and expressly acknowledges the following:
Initial ____ Patient agrees not to submit a claim (or to request that Physician submit a claim) to the Medicare program with respect to the Services, even if covered by Medicare Part B.
____ Patient is not currently in an emergency or urgent health care situation.
____ Patient acknowledges that neither Medicare's fee limitations nor any other Medicare reimbursement regulations apply to charges for the Services.
____ Patient acknowledges that Medi-Gap plans will not provide payment or reimbursement for the Services because payment is not made under the Medicare program, and other supplemental insurance plans may likewise deny reimbursement.
___ Patient acknowledges that he has a right, as a Medicare beneficiary, to obtain Medicare-covered items and services from physicians and practitioners who have not opted-out of Medicare, and that the patient is not compelled to enter into private contracts that apply to other Medicare-covered services furnished by other physicians or practitioners who have not opted-out.
____ Patient agrees to be responsible, whether through insurance or otherwise, to make payment in full for the Services, and acknowledges that Physician will not submit a Medicare claim for the Services and that no Medicare reimbursement will be provided.
____ Patient understands that Medicare payment will not be made for any items or services furnished by the physician that would have otherwise been covered by Medicare if there were no private contract and a proper Medicare claim were submitted.
____ Patient acknowledges that a copy of this contract has been made available to him.
[Optional: ____ Patient agrees to reimburse Physician for any costs and reasonable attorneys' fees that result from violation of this Agreement by Patient or his beneficiaries.]
Executed on [date] by [Patient name] and [Physician name]
[Patient signature] [Physician signature]
[NOTE to physicians: keep a copy of all of these contracts in case HCFA demands them! HCFA requires that this contract be re-executed each period.]
Step Four: Install procedures to ensure that your office never files a Medicare claim, and never provides information to a patient that enables him to file a Medicare claim. The two exceptions - for emergency or urgent care and for covered services that Medicare would deem unnecessary - should be used with caution.
Step Five: Reduce the substantial overhead costs resultant from participating in the Medicare program and being subjected to the Medicare-inspired audits and threats. Then celebrate: you can now spend your time serving patients rather than catering to and being controlled by the government.
IF YOU ARE A PARTICIPATING PHYSICIAN, then opting out is as follows:
Step One: In the words of HCFA: "To opt out of Medicare, a participating physician must first terminate his or her Medicare Part B participation agreement" (HCFA Qs and As on Private Contracts, #5). At the beginning of 1998, HCFA only allowed termination of participation on an annual basis. More recently, however, HCFA has allowed termination on the following quarterly basis: Jan. 1, Apr. 1, July 1, and Oct. 1. Note, however, that a participating physician must give his or her carrier 30-days' prior notice by sending in the opt-out affidavit with an effective date of the beginning of the next quarter.
Subsequent Steps: Follow the above Steps One through Five for a non-participating physician, except that the physician may not provide private contracting services until the first date of the next quarter that is at least 30 days after receipt of the notice by the carrier. For example, the carrier must receive the notice from the physician by Sept. 1 if the physician seeks to provide private contracting services beginning on Oct. 1.
