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REMICADE® (infliximab) and Medicare

Overview of Medicare

Medicare is a federal program that typically provides health insurance coverage to the following types of people:
  • People over age 65 with a work history
  • Individuals with certain disabilities who have been disabled for at least 2 years
  • Individuals diagnosed with End Stage Renal Disease (ESRD)
While Medicare covers many health care needs, it may not cover all of the patient's health care costs. The patient may have to pay a monthly premium for Medicare and then pay a co-insurance and deductible for many services.



Medicare Coverage of REMICADE®

Medicare covers most physician-administered drugs like REMICADE® under Medicare Part B. There are comprehensive published Part B coverage policies specific to REMICADE®. Copies of coverage policies are available on your regional Medicare Administrative Contractor (MAC) Web sites, and these can be found in the Billing and Reimbursement section of this Web site.

Medicare typically places few restrictions on REMICADE® coverage. However, some Medicare policies may limit coverage of REMICADE® to certain diagnoses, such as:
  • Crohn's Disease
  • Ulcerative Colitis
  • Rheumatoid Arthritis
  • Ankylosing Spondylitis
  • Psoriatic Arthritis
  • Plaque Psoriasis
You can check your regional MAC Web site for coverage policies for REMICADE® or call AccessOne® at 1‑888‑ACCESS‑1 (1‑888‑222‑3771) for more assistance.

The Four Parts of Medicare

Medicare is divided into four parts: A, B, C, and D. Part A covers facility care such as hospitals, and Part B covers physician and other outpatient services. Part C, which is known as the Medicare Advantage program, allows private managed care plans to administer the patient's Medicare benefits.

Medicare Part D offers prescription drug coverage to anyone enrolled in Medicare Parts A or B (Part D coverage is subject to a monthly premium). The table below provides additional detail regarding the four parts of the Medicare program.

Table 1. The Four Parts of Medicare
Part A
Typically known as the hospital benefit, Part A provides coverage for services such as hospitalizations, hospice care, skilled nursing facility stays, and home health services.
Part B
Part B benefits provide reimbursement for physician services, clinical laboratory services, hospital outpatient services, prescription drugs administered "incident to" a physician's services, durable medical equipment, and some home health services.
Part C
Also known as Medicare Advantage, this benefit provides Medicare through managed care plans.
Part D
Prescription drug coverage for medicines that are usually self-administered or taken orally.

To learn more about the different parts of Medicare, you can call the Medicare program at 1‑800‑MEDICARE (1‑800‑633‑4227) or visit www.medicare.gov.



Updates to Medicare in 2012

Annual updates to the Medicare program may affect providers and patients in 2012. Updates include changes in patient cost sharing for Medicare coverage and services.

It will be important to monitor the Medicare program in 2012 because additional changes may go into affect throughout the year.



Patient Costs for Medicare in 2012

Medicare beneficiaries are responsible for some of their health care costs. The 2012 premium, deductible, and co-insurance amounts for Medicare beneficiaries are listed below:

Part A (Inpatient Hospital, Skilled Nursing Care)1

Most Medicare beneficiaries do not pay a monthly premium for Part A coverage. However, they may have to pay a deductible for inpatient hospital stays, skilled nursing facility stays, and some home health services. For each benefit period, Medicare pays all covered costs except the Medicare Part A deductible. For each benefit period, the patient pays:
  • A total of $1156 for a hospital stay of 1‑60 days
  • For days 61 through 90, the patient is responsible for an additional $289/day
  • For days 91 through 150, the patient is responsible for an additional $578/day
  • For days beyond 150, the patient is responsible for all costs

Part B (Physician Services, Outpatient Hospital Services, Certain Home Health Services, Durable Medical Equipment)1

In 2012, the monthly fee or premium for Medicare Part B is based on your income. Most people will pay the standard monthly Part B premium of $99.90. However, some people will pay a higher premium if their modified adjusted gross income is more than $85,000 for an individual or $170,000 for a married couple. These amounts change each year. There is also a $140 per year deductible. After the patient meets the deductible, they pay 20% of the Medicare-approved amount for services.

Part C (Medicare Advantage)

Because these plans offer a variety of coverage, the patient's cost-share (eg, co-insurance, deductibles, premiums) can vary from plan to plan. You should check with the specific Medicare Advantage plan to find out what the patient costs will be.

Part D (Prescription Drugs)

People with Medicare that enroll in Part A or Part B have the option to join Medicare Part D, which provides prescription drug coverage. Patients usually pay an additional monthly fee or premium for Medicare Part D prescription drug coverage and will likely have other cost-sharing responsibilities like a co-payment and deductible.

Costs Associated with Medicare Part D Prescription Drug Coverage

People with Medicare Part D will pay an average monthly fee or premium of $38 in 2012. After a $320 deductible, the patient will pay 25% of the next $2930 in prescription drug costs2. The patient will then receive a 50% and 7% discount on brand and generic medications until they reach $4700 in prescription drug costs. The patient is responsible for 5% of all additional drug costs3.

For more details about the costs of Medicare coverage, please call the Medicare program at 1‑800‑MEDICARE (1‑800‑633‑4227) or visit www.medicare.gov.

Most Medicare Part D prescription drug plans have a formulary or list of drugs that are covered. These plans also have networks of pharmacies where patients can fill their prescriptions at lower costs. The plans may also offer mail-order benefits so patients can have their drugs shipped directly to their homes.



Medicare Supplemental Coverage

Most patients that have Medicare also have some type of secondary insurance coverage. This secondary coverage may be an employer-sponsored plan, Medigap plan, or Medicaid program. These plans offer a wide variety of supplemental coverage to Medicare. For example, Medigap plans may cover some or all of a patient's 20% co-insurance and deductible for administration of REMICADE® provided through Medicare Part B. However, Medigap plans typically do not provide this type of coverage for REMICADE® if it is provided under the Part D prescription drug benefit. Patients enrolled in a Medicare advantage plan cannot dually enroll in a Medigap plan.4



Coding Update for Disaster Victim Services

In order to track and facilitate claims processing of claims for disaster victims, the Centers for Medicare and Medicaid Services (CMS) established a national modifier and condition code:
CR, Catastrophic/Disaster Related
DR, Disaster Related
Any provider may use the modifier. MACs use either the modifier or the condition code. The condition code would identify claims that are or may be impacted by specific payer policies related to a national or regional disaster. The modifier indicates a specific Part B service that may be impacted by a policy related to the disaster.

For additional information regarding Disaster Victim Services, please contact Medicare at 1‑800‑MEDICARE (1‑800‑633‑4227) or visit www.medicare.gov or www.cms.gov.


1 CMS. Fact Sheet: Medicare Premiums and Deductibles for 2012. October 27, 2011.
2 CMS. Medicare & You Handbook, 2012. August 2011.
3 Medicare Prescription Drug Coverage (Part D). Accessed November 18, 2011.
4 Coverage Choices. Accessed November 21, 2011.