DC Medicaid EAPG FAQ
October 1, 2016
Control Log No.: DCO16032 3
payment. EAPGs reward hospitals for providing efficient access to a wide variety of increasingly
clinically complex outpatient hospital services in a more appropriate manner.
As opposed to Medicare’s APC mixed fee schedule approach, EAPGs are an outpatient visit grouping
system, which places patients and services into clinically coherent groups. EAPGs do rely on the
CPT/HCPCS procedure code but also use diagnosis codes and other clinical and demographic factors to
determine appropriate EAPG assignment. And while APCs generate payment based on volume of codes
submitted, EAPGs are more clinically driven and are designed to generate payments that reflect the
relative resource intensity of the entire visit. Therefore the use of EAPGs will result in higher payments
for higher intensity services and lower payments for lower intensity services.
7. In general, how will the new payment method impact hospitals?
In general, the new payment method provides rational incentives for the provision of outpatient hospital
services:
• There is a more direct link between the level of payment and the complexity of the service provided.
Efficiency and cost containment are rewarded. Hospitals that provide similar services are paid
similarly.
• Complete and correct coding of claims is more important, and may have an effect on claim payment.
It should be noted that CPT/HCPCS codes are not required nor expected on every line of the claim.
Some claim lines may be bundled whether or not a procedure code is present. Hospitals should code
claims according to national coding guidelines.
8. What other payers use EAPGs?
Medicaid programs currently using EAPGs include: New York, Virginia, Wisconsin, Illinois and
Washington, DC for payment; and Massachusetts for service-mix adjustment. Medicaid programs with
planned EAPG implementations for outpatient hospital services are: Ohio, Nebraska, Florida, Colorado,
and Texas. Massachusetts will begin using EAPGs for payment beginning December 1, 2016.
Commercial payers currently using EAPGs include: Oklahoma BlueCross BlueShield, Minnesota
BlueCross BlueShield, and Wellmark in Iowa and South Dakota. BlueCross BlueShield of Alabama will
move to EAPGs effective October 1, 2016.
9. Is my hospital required to purchase EAPG software in order to receive payment under the new
method?
No. The EAPG grouper/pricer specific to DC Medicaid assigns the EAPGs to the claim lines and
calculates the payment. The DC Medicaid claims processing system then adjudicates the claim for final
pricing. Hospitals may choose to purchase grouping software allowing them to project revenue. For
Washington, DC, the 3M sales representative is Kelli Boswell, Client Relationship Executive, 770-725-
2090. Neither DHCF nor Xerox has a financial interest in any 3M product.
10. Does my hospital have to start collecting additional data to use 3M EAPGs?
No. The data elements needed for EAPG grouping include only those that hospitals already submit on the
paper and electronic standard institutional claim forms. For example, diagnosis codes, CPT/HCPCS