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Denial Management Made Easier With Version 5010 Billing Standard

Posted by J. Paul Spencer, CPC, CPC-H in Fi-Med Services, Hot Topics, In the Press, Industry Updates, J. Paul Spencer, CPC CPC-H

We are often told that life has no instruction book. Personally, I have seen this blatantly come true in the form of my daily dealings with my 3-year-old son. I also longed for a better set of rules back in 1990, when I found myself briefly dating a woman who thought she was telekinetic, but was actually a hypochondriac. No worries, though. I came out unscathed and not once was she able to throw me across the room using only the power of her mind.

In the realm of Medicare denials, currently, under Version 4010 of the X12 electronic billing standards, Medicare offers very little in the way of pointing the EOMB recipient to a solution for a denial. With time, an experienced follow-up specialist can train themselves to understand in what direction each claim adjustment reason code (CARC) and remittance advice remark code (RARC) is pointing, leading to faster resolution.

Version 5010, set to be implemented by CMS beginning on January 1st, 2012, is slated to make this process much easier. As part of Version 5010, if a claim is denied due to a conflict with a Local Coverage Determination (LCD) or a National Coverage Determination (NCD), the Explanation of Medicare Benefits will indicate what LCD or NCD is being applied in the denial of this claim.

Given that local carriers now have their LCD’s categorized on the CMS website, first by carrier, then in alphabetical order (which is helpful roughly 30 % of the time),  referring the follow-up specialist to the exact coverage determination will cut down on the amount of time needed to research these denial issues.  As someone with daily involvement in Fi-Med’s denial management process, I cannot begin to tell you how I welcome this change.

While there are many other benefits to Version 5010, such as compatibility with ICD-10 and the removal of some redundancies found in the current version, finding a clearer path to a denial solution may turn out to be its most substantive change.

I look forward to the day when my lack of psychic powers ceases to be an impediment to the timely correction of Medicare denials. This whittles down my list of  ”50-10″ challenges in my life down to what happens in 7 years when I’m 50 and my son is 10. I really need to get in shape….

Referring Physician PECOS Phase II Delayed

Posted by J. Paul Spencer, CPC, CPC-H in Fi-Med Services, Hot Topics, In the Press, Industry Updates, J. Paul Spencer, CPC CPC-H

Following up on an earlier post here, CMS announced today that Phase II of Change Requests 6417 & 6421, dealing with referring physician mismatches between the NPI database and the PECOS system, has been delayed until April 5th, 2010.

Phase II of this change request orders the denial of any services referred by a physician who has a conflict between information found on the national NPI registry (NPPES) and the PECOS system. The change to the implementation schedule is being undertaken to give those physicians with conflicting information sufficient time to correct any irregularities.

For the present time, providers who bill for services referred by providers with this conflict will continue to get warning messages stating that the referring physician’s information is inaccurate. If this information has not been updated by the referring provider by April 5th, 2010, these services will be denied.

Calling Health Care Fraud What It Really Is

Posted by J. Paul Spencer, CPC, CPC-H in Coding and Compliance, Hot Topics, Industry Updates, J. Paul Spencer, CPC CPC-H

I’ve got theft on my mind this week.

Last Saturday night, while I was spending some spare time acting as the opening musical act for a handful of stand-up comedians, someone took a football-sized rock and threw it through my passenger-side front window. Aside from the costs of repairing the damage, I was relieved of my satellite radio player and a pair of $3 sunglasses.

This episode taught me a little something about crime, and that is that criminals aren’t know for their skills of selection. The satellite radio player is virtually worthless, as it is only good as long you have an antenna, power supply and a subscription. Perhaps they thought it was in actuality a GPS device, but a cursory check of my back seat would have shown them all they needed to know, as there was a rather large road atlas in plain view. My thesis has now morphed into the idea that it takes a special combination of hubris and stupidity to be a criminal on any level.

Which brings me to the world of Medicare compliance. I read a variety of trade publications from week to week that catalog the numerous billing violations – and subsequent fines paid – by health care providers around the country. To highlight just a few from the past few weeks:

  • An Atlanta radiologist found himself under federal indictment for falsely claiming that he had personally reviewed thousands of x-rays and radiological studies over a period of 8 months, when in fact the work was done by non-physician radiology techs;
  • A New York podiatrist was charged with multiples counts of fraud for billing out complicated surgical procedures of the feet, when in actuality, he was performing the less-complicated act of clipping his patients’ toenails;
  • A Boston man pleaded guilty to a 54-count indictment that accused him of enlisting people to stage auto accidents in the greater metropolitan area, then turning around and billing insurance companies for therapy services at his clinics stemming from “injuries” sustained in the fake accidents.

 

These are only three of the more egregious examples among dozens of other cases nationwide, and remember that these are all within the last month.

When I present Fi-Med’s compliance plan to new employees, I define “health care fraud” as “theft”. In a world where “stewardesses” have transformed into “flight attendants”, and “shell shock” is now “post-traumatic stress disorder”, it is tempting to use less pointed language to describe all-too-common objects and occurrences. Yet whether it is Medicare, Medicaid or a commercial insurance plan, the thieves such as the ones highlighted above exact a heavy toll not only on the resources of the insurer, but on the entire health care infrastructure with the increased costs of premiums and enforcement.

Having grown up in a family with 5 physicians of different specialties, one of the happier aspects of my job as a compliance officer is working together with health care providers to find simple solutions, whether it be for front desk processes or documentation, that keep them from inadvertently slipping onto the wrong end of the regulatory process. There is usually a “light bulb moment” in each of these conversations when a satisfactory conclusion is reached and where peace of mind is achieved.

While health care fraud has more subtlety than the mentally prehistoric toss of a rock through a window, it is no less an act of theft. Going forward, with a major national health care overhaul on the horizon, it particularly falls on those of us in the medical reimbursement field to give the best guidance possible to the providers we service to assist them in avoiding the sinkholes along the regulatory highway.

Stop Me If You’ve Heard This One Before…

Posted by J. Paul Spencer, CPC, CPC-H in Hot Topics, Industry Updates, J. Paul Spencer, CPC CPC-H

Do I hear four?

The thrice-delayed Red Flag Rules have been delayed again, this time until June 2010.

This particular delay was requested by Congress, which is currently working on legislation to exempt creditor businesses with fewer than 20 employees from the rules. As one can imagine, this would include quite a few free-standing medical providers. We’ll be following any new developments closely as the proposed legislation works it way through Congress. For now, enforcement of the rules remains on the shelf until an adequate compromise is reached.

Start Now to Collect E-Prescribing Bonus

Posted by J. Paul Spencer, CPC, CPC-H in Fi-Med Services, Industry Updates, J. Paul Spencer, CPC CPC-H

Beginning on January 1st of this year, CMS is allowing the reporting of codes related to the electronic prescribing of drugs for your patients in the office setting. As long as you are paid at least 10% of your total Medicare Part B reimbursement for services in the office, with the consistent reporting of these codes, you may be eligible for a 2% bonus payment at the end of 2009.

The following are the three codes that can be reported in addition to the E/M service for the office encounter:

G8443 – Used when all prescriptions during the encounter were generated using an e-prescribing system

G8445 – Used when there are no prescriptions dispensed during the encounter.

G8446 – Used when some or all of the prescriptions at the encounter were hand-written. This would be due to the affect of state or federal law based on what was prescribed. The prescription of Schedule II drugs (narcotics) falls into this category.

In 2010 and 2011, this bonus will decrease by .5% per year. Beginning in 2012, if you are not prescribing electronically, you face being penalized with reductions in your payments for office services through Medicare Part B.

If you currently do not have the ability to prescribe electronically, there are several vendors who offer technology that will fit the needs of your practice. While CMS does not recommend one vendor more than another, it advises practices to takes into account compliance with the HIPAA rules for privacy and security when choosing software for e-prescribing.

The AMA has comprehensive information available on their website at the following link to assist you in preparing your practice for e-prescribing:

http://www.ama-assn.org/ama1/pub/upload/mm/472/electronic-e-prescribing.pdf

As in every case, I am available to you at any time to assist you with this and other needs of your practice. Feel free to leave a comment or contact me directly.