US · guidance
CMS Pub. 100-05, ch. 5, § 50.2.8.1
MSPPAY Update to Apportion Prospective Payment System (PPS)
Outlier Amounts to All Service Lines with Potential Outlier Involvement
(Rev. 11550; Issued: 08-12-22; Effective: 10-13-22; Implementation:10-13-22)
MSPPAYOL (1) accepts OPPS and HHPPS MSP claims at the Ambulatory Payment
Classification (APC), Home Health Resource Groups (HHRG) and line levels, and (2) apportions
OPPS and HHPPS outlier amounts, when greater than zero, to all service lines that are PRICER-related and potential outlier service lines, that is, all service lines sent to the PRICER and returned
with a reimbursement. When MSP claims are received, A/B MAC (Part A) and A/B MAC (HHH)
must send the claim outlier amount received from the prospective payment PRICER systems to
the MSPPAY software. The shared system must set an indicator of "O" for any APC or HHRG
amount that includes a PRICER reimbursement. The indicator will enable MSPPAYOL to
determine which service amounts the outlier should apply. MSPPAYOL takes into consideration
the outlier amount, if available, and then apportion the outlier amount to the PRICER-related
service lines before calculating Medicare’s secondary payment. The subsequent service line level
calculation will account for the apportioned outlier amount resulting in a single payment amount
for each PRICER-related service line. MSPPAY will return the calculated MSP payment amounts
to the standard system along with an informational field reporting the apportioned outlier used to
calculate payment for that line item service or group of services. The modifications to
MSPPAYOL will allow for the service lines on the provider Remittance Advice (RA) to balance,
but the informational apportioned outlier amount will not be shown on the RA. The modifications
will also result in the line level MSP payment amounts being correctly reported on the PS&R
Report. If providers request Medicare adjust or reprocess HHPPS and OPPS MSP claims originally
processed prior to July 1, 2003, intermediaries must send these claims to MSPPAYOL.
A. MSPPAYPS
The CMS is making two modifications to MSPPAYPS as follows:
1 - MSPPAYPS is being modified to return provider and beneficiary line level
reimbursement amounts to the standard system.
2 - Although MSPPAYPS is no longer used to process OPPS and HHPPS MSP claims,
CMS will retain the sub-module for circumstances where Medicare is required to process MSP
claims under MSPPAYPS resulting from a court order, litigation or change to federal
regulations. The shared system retains a field where an indicator can be set that tells the standard
system to redirect these types of claims to MSPPAYPS instead of the MSPPAYOL sub-module.
History
(Rev. 11550; Issued: 08-12-22; Effective: 10-13-22; Implementation:10-13-22)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
f7e474e0561c5367623f3a614568a3d72a296da6f17243128a6411da7fe817d0
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