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 June 2009 Issue

Hand Surgeon Beware… CMS may be after You!

Don’t be caught off guard if you receive a letter requesting documentation for a claim you submitted to Medicare.  CMS has doubled its efforts to recoup millions of dollars in overpaid claims… and have hired contractors who are paid based on the amount they collect to do so.   

There are two audit programs that you and your staff must be familiar with and prepared to respond to:

  1. Comprehensive Error Rate Testing (CERT) – program to monitor the accuracy of Medicare Fee-For-Service (FFS) payments and to determine which services are experiencing high error rates.
  2. Recovery Audit Contractors (RAC) – audit program to identify improper Medicare payments, specifically those that do not meet Medicare’s coding or medical necessity policies.

CERT 

Top 5 Incorrect Codes:

  1. Office/outpatient visit, est (99214)
  2. Office/outpatient visit, est (99215)
  3. Office consultation (99244)
  4. Office/outpatient visit, est (99213)
  5. Office/outpatient visit, new (99204)

Errors that CERT are measuring:

  • Incorrect Coding
  • Insufficient Documentation
  • No Documentation
  • Medically Unnecessary Services

Orthopaedic Surgery was in the Top 10 specialties for claims sampled for the 12 month period ending September 30, 2007 and yielded a 4.9% error rate. The goal is to reduce the National Medicare FFS Paid Claims Error Rate to 3.7%. Hand Surgery is not separately reported in the CERT reports. 

RAC

The RACs recouped $900 million in overpayments during a 3 year demonstration period in 5 states: California, Florida, New York, Massachusetts, South Carolina and Arizona.  Physicians accounted for $11.2 million of the total. Hospitals took the brunt in terms of dollars during the demonstration period, but physicians had by and far more claims sampled (think lots of claims with small dollar amounts).

Source:  The Medicare Recovery Audit Contractor (RAC) Program:  An Evaluation of the 3 Year Demonstration

Initially set to roll out nationwide in October 2008, the program was stalled by a legal dispute over who the contractors were going to be.  The stay was released in February 2009 and the program is moving forward, although behind schedule.

 

Know your Region and your RAC.  According to CMS, correspondence, websites and call centers will be in the name of the RACs below.

Region A

Region B

Region C

Region D

Diversified Collection Services, Inc.

Subcontractor:

PRG-Schultz, Inc

CGI Technologies and Solutions, Inc.

 

Subcontractor:

PRG-Schultz, Inc

Connolly Consulting Associates, Inc.

Subcontractor: Viant Payment Systems, Inc

HealthDataInsights, Inc.

 

Subcontractor:

PRG-Schultz, Inc

 

How to Protect Your Money from Being Taken Back

ASSH Members Receive Special Pricing on E&M Analyzer

  • Use the E&M Analyzer to review your coding patterns against state and national averages.  If you are an outlier, dig deeper.  It’s OK to be a outlier, just make sure your documentation supports it.  Be wary of undercoding too.  Not only do you leave money on the table, undercoding is considered an error and is subject to the audits.  And just because you follow the pack, doesn’t mean you’re off the hook either.       

  • Conduct an internal assessment to ensure that your chart documentation substantiates the claims submitted meet the Medicare rules.  Make sure your coding and documentation is rock solid.  Consider hiring a coding expert to conduct the assessment.

  • Discontinue the practice pattern of day 91, 92, 93 post-op visit scheduling. 

  • Provide refresher training to your billers, coders, and physicians.  When is the last time your staff attended a coding workshop?  Rules change constantly.  You all need to be current on coding rules. 

  • Update written policies and procedures to ensure your practice’s compliance with Medicare’s requirements.  

  • Be prepared to respond promptly to RAC or CERT requests for medical records.

  • Know your rights – if you don’t agree with an auditors conclusion, you have the right to appeal and should appeal.  Keep in mind, that overall 34% of appeals during the demonstration period were successful.  You can file an appeal with an RAC determination up to 120 days.

The Fine Print of a RAC review:

  • Auditors can review medical records from three years prior but not before October 1, 2007.
  • For 2009 limits for the number of medical records the RACS may request per National Provider Identifier (NPI) are:
    • 10 medical records per 45-day period for solo practitioners;
    • 20 medical records per 45-day period for two- to five-provider offices;
    • 30 medical records per 45-day period for groups of six to 15 providers; and
    • 50 medical records per 45-day period for groups of 16 or more providers.

  • You have 45 days to provide medical records to the RAC.
  • Keep track of denied claims and correct previous errors. 
  • Consult your health care lawyer if you find a problem.
  • You are responsible for copying medical charts but can submit them on a CD instead.  (pdf copies)


Pay Attention if you receive this letter.  Make sure all of your staff know what this letter is and does not discard it as “junk mail.”  It’s serious stuff!