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Changes to Out-of-Network Provider Claims Reimbursement

To reduce exposure to high, out-of-network provider charges, Blue Cross Blue Shield of Massachusetts is enhancing the standard out-of-network provider reimbursement approach for fully insured PPO plans. For out-of-network provider claims processed on and after January 1, 2018, Blue Cross will calculate most out-of-network claim payments based on 150 percent of the Medicare fee schedule. When no Medicare fee is available, Blue Cross will calculate the claim payment based on an amount determined by using current, publicly–available data reflecting fees typically reimbursed for the service, adjusted for geographic variations. Currently, the standard approach relies on the Blue Cross indemnity fee schedule to price these out-of-network claims. As a result of this change, use of the Blue Cross indemnity fee schedule as the standard approach for out-of-network reimbursement purposes will be eliminated.

These changes will be incorporated into PPO subscriber certificates upon the 2017 renewal.

Fully insured PPO accounts for which out-of-network claims currently are paid using a non-standard approach, will be migrated to the new standard out-of-network reimbursement approach upon their 2018 renewal, unless at that time Blue Cross approves use of provider charges as a non-standard benefit.

Out-of-network reimbursement changes also are being developed for ASC PPO plans and will be addressed in a future communication.

For more information, please contact your account executive.

Blue Cross Blue Shield of Massachusetts

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