Current Events 2005 Update

Medicare 2005 Update:
• New CMS project would ease supplemental insurance claims submission
• Medicare Audit Proof of Medical Necessity
• MMA does mandate welcome to Medicare physical, screening patients for diabetes and cardiovascular disease
• Medicare pay for performance pilot links quality measures to paycheck
• Copies you submit of denied claims will be denied by your carrier July 1st

Increasing Revenue at the Practice
Insurance Contract Reimbursement Negotiation
• Insurance Verification
• Billing claims with proper modifiers

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Current Events 2005 Update

May 2005 Program Presented by
Michael J. McLafferty CPA, MBA, CHFP, FACMPE

Maureen Doherty CPC, CPC-H

Overview of Topics Medicare 2005 Update
  • MMA won’t end extrapolation, but should limit when it can be used
  • MedPac advisory group may recommend limiting the specialties that can perform or interpret certain radiology tests
  • MMA does mandate welcome to Medicare physical, screening patients for diabetes and cardiovascular disease
  • Medicare Audit Proof of Medical Necessity
  • Medicare pay for performance pilot links quality measures to paycheck
  • Part B practices to get regular FFS payments for treating MA patients
  • New CMS project would ease supplemental insurance claims submission
  • Drugs currently reimbursed under Part B will continue to be reimbursed under Part B
  • Copies you submit of denied claims will be denied by your carrier July 1st
Increasing Revenue at the Practice
  • Insurance Contract Reimbursement Negotiation
  • Practice Management Software Assessments
  • Updating practice management software and encounter forms for code changes
  • Correct and Updated Patient Demographics
  • Patient Referrals / Authorizations
  • Insurance Verification
  • Collection of co-payments and co-insurance
  • Collection of past due balances
  • Billing claims with proper modifiers
  • Obtaining Advance Beneficiary Notices (ABN’s) for non-covered services by Medicare
New/Revised ICD-9 Codes

New/Revised ICD-9 Codes for 2005 Became Effective October 1, 2004
  • Codes were effective 10/1/04 with no grace period
    • 171 New Diagnosis Codes
    • 25 Deleted Diagnosis Codes
    • 203 Definitions Changed for Diagnosis Codes
  • Most significant additions
    • Digestive System –78 New Codes
Diagnosis Coding Guideline Revisions were issued and effective April 1, 2005
  • Diagnosis codes with more specificity
  • Most significant revisions:
    • Diabetes Mellitus
    • COPD
    • Asthma
2005 CPT Code Changes

157 New Codes;
  • Most significant additions:
    • Medicine –31
    • Path/Lab –19
    • Digestive –18
    • Radiology –13
    • Cardiovascular -10
  • 74 Revised Codes and
  • 46 Deleted Codes
  • Codes were effective 1/1/05 with no grace period
New Preventive Services

“Welcome to Medicare” Preventive Exam
  • For new Medicare patients
    • Must be performed within six months of the date a patient enters the program –Payment $124.91
  • Physicians must:
    • Perform a comprehensive exam, which may include ordering of follow-up procedures based on any abnormalities uncovered
    • Arrange for education, counseling & referral for those abnormalities
    • Make patient aware of other screenings or immunizations that may be medically necessary
    • Develop a written plan to coordinate all of the elements
Cardiovascular Screening
  • Screening blood tests are covered once every five years for patients without signs or symptoms of heart disease
    • Per CMS, the following codes should be done as part of a panel & with the patient fasting
      • 82465 –Cholesterol, serum or whole blood, total
      • 83718 –Lipoprotein, direct measurement; high density cholesterol, HDL cholesterol
      • 84478 –Triglycerides, screening
      • 80061 –Lipid Panel
    • CMS suggests the following diagnosis codes
      • V81.0 Special screening for ischemic heart disease
      • V81.1 Special screening for hypertension
      • V81.2 Special screening for other & unspecified cardiovascular conditions
Diabetes Screening
  • Physicians allowed to bill Medicare twice annually for “pre-diabetic” patients
    • Patients with a fasting glucose level of 100-125mg/dL or;
    • Patients with a 2 hour post glucose challenge of 140-199mg/dL
  • Physicians can bill once a year for patients who do not meet the clinical criteria for twice-yearly screening
  • Diabetes Screening Codes
    • 82947 –Glucose; quantitative, blood, except reagent strip
    • 82951 –Glucose; tolerance test (GTT), three specimens, includes glucose
  • Appropriate ICD-9 Code
    • V77.1 Special screening for diabetes mellitus
New Preventive Exam

“Welcome to Medicare” Preventive Exam
  • G0344 –Initial Preventive Physical Exam (IPPE)
  • G0366 –EKG
    • Routine EKG with at least 12 leads; with interpretation & report, performed as component of IPPE ($26.91
    • )
  • G0367 –EKG
    • Routine EKG with at least 12 leads; tracing only, without interpretation & report, performed as component of IPPE ($17.81)
  • G0368 –EKG
    • Routine EKG with at least 12 leads; interpretation & report only, performed as component of IPPE ($9.10)
Correct Coding Initiative (CCI) Changes

Version 11.1 effective 4/1/05
  • 1346 Code-Pair Additions
    • 286 Medicine
    • 265 Anesthesia
    • 242 Radiology
    • 148 Digestive
    • 109 HCPCS
  • 223 Code-Pair Deletions
  • 162 Mutually Exclusive Code Pair Additions
  • 22 Mutually Exclusive Code Pair Deletions
HIPAA Security 2005 Update
  • A covered entity must comply with the applicable standards, implementation specifications, and requirements with respect to electronic protected health information (PHI)
  • General Rules –General Requirements
    • Ensure the confidentiality, integrity, and availability of all electronic PHI the covered entity creates, receives, maintains, or transmits
    • Protect against any reasonably anticipated threats or hazards
    • Protect against any reasonably anticipated uses or disclosures not permitted
    • Ensure compliance by its workforce
  • General Rules –Flexibility of Approach
    • Implementation Specifications
      • Required or addressable
      • Utilize decision criteria if addressable
      • Implement recommended or alternative specification
      • Document why it would not be reasonable and appropriate
    • Maintenance
      • Monitor
      • Review and modify to protect electronic PHI
  • General Rules –Flexibility of Approach
    • Reasonable and appropriate approach
    • Decide which security measures to use
      • Size, complexity and capabilities of the organization
      • Hardware, software and security capabilities
      • Costs of security measures
      • Probability and importance of risks to electronic PHI
    • Comply with the standards
  • Compliance Dates
    • Health Plans –April 21, 2005 or April 21, 2006 if a small health plan
    • Health care clearinghouse –April 21, 2005
    • Health care provider –April 21, 2005
Summary of Topics

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