Cirius Newsletter
Issue 10 January 2010
NUBC Updates UB04

Effective April 1, 2010
New Type of Bill Code 077X Federally Qualified Healthcare

_______________________________________________________
Effective July 1, 2010

Point of Origin (formerly Source of Admission)
Form Locator 15 of the UB04 or in CL102/Loop ID 2300 of the 837I. These changes become effective for discharges on or after July 1, 2010.
Three codes are eliminated will no longer be valid for use:
     Code 7 - Emergency Room
     (Replaced with new Condition Code P7)
     Code B - Transfer from Another Home Health Agency          
     (Replaced with new Condition Code 47)
     Code C - Readmission to Same Home Health Agency
The definitions to Code 7 and Codes B will be modified. The recommendation is that in replacement of Code 7 use Code 1 and support this with Form Locator 14 Priority Type of Visit 1 to further define patient's point of origin. Also in effect is new Condition Code P7 to indicate that the patient was admitted directly from this facility's Emergency Room/Department.
     Code E - Transfer from Ambulatory Surgical Center
     Code F - Transfer from Hospice and is Under Hospice
     Plan of Care or Enrolled in a Hospice Program.

 Learn more...NUBC Billing Alert
                       MLN6478
United Healthcare
Important News-Effective January 1, 2010
Consultation Code Update
CMS has determined that CPT codes 99241-99245 and CPT codes 99251-99255 will be given a status indicator of "I" meaning Not Valid for Medicare Purposes, no payment.
For United Healthcare commercial plans, there will be no change in reimbursement for CPT codes 99241-99245, nor 99251-99255 at this time.
For United Healthcare Medicare Solutions, including Secure Horizons, AARP, Medicare Complete, Evercare, and AmeriChoice Medicare Advantage benefit plans, these will follow CMS regulations and implement the change.
For AmeriChoice Medicaid health plans in state Medicaid plans that follow Medicare rules for fee schedules, AmeriChoice will align with CMS and implement the change. For all other Medicaid states UHC will follow the commercial plans and continue to pay for consultation codes.
Billing Directions here

ERA 835 Pre-Release Notice

Secure Horizons and Evercare Medicare Business-A change supporting overpayment recovery will be rolled out to non-participating/non-contracted and Private Fee-for-Service providers beginning with Utah, Alabama, Georgia and Louisiana markets with users noting actual change on February 1, 2010. See details here

Annual CPT and HCPCS Code Edits
All applicable medical policies will be updated to reflect the 2010 CPT and HCPC code additions and edits.

What should I submit as evidence of timely filing?
Electronic claims-include confirmation that UHC or one of its affiliates received and ACCEPTED your claim.
Paper claims-include a copy of a screen print from your accounting software to show the date you submitted the claim.
Network Bulletin 2009 here
Medicare Billing Update-Effective: April 1, 2010
Proper Billing of the Statement Covers From and Admission/Start of Care Dates on Institutional Claims
Medicare modifies system edits to review the Statement FROM and Through dates of an initial inpatient claim to be reported prior to the 'Admission/Start of Care: date, for those claims which require "Admission/Start of Care" dates. Medicare systems shall note the applicable bill types are 011x, 012x, 018x, 021x, 022x, 034x, 041x, 081x, 082x, 032x, and 033x.
CMS Transmittal 581OTN CR6584

Billing for Services Related to Voluntary Uses of ABN for Non-coverage
Modifier - GA has been redefined to mean "waiver of Liability Statement Issued as Required by Payer Policy" and should be used to report when a required ABN was issued for a service.
NEW Modifier - GX has been created with the definition "notice of Liability Issued, Voluntary Under Payer Policy" and is to be used to report when a voluntary ABN was issued for a services. Note: GX modifier must be submitted with non-covered charges only, and you MAC will deny the claim as a beneficiary liability.
MLN6563


IP Claims and processing of non-covered ICD-9-CM procedure codes
Hospitals MUST submit ICD-9-CM codes for non-covered procedures performed in the same inpatient stay with covered procedures on a SEPARATE CLAIM. Note that the Statement Covers Period should match on both the covered and the non-covered claim.
CMS Transmittal R1838CP CR6547
MLN6547
 
ESRD 50/50 Modifier Rule

Medicare will validate claims for AMCC ESRD-related tests provided to a beneficiary who is ESRD eligible to ensure your compliance with billing instructions regarding the use of the ESRD 50/50 rule modifiers CD, CE, AND CF.
CMS Transmittal 586OTN CR 6683
MLN6683
 
POS for Walk-In Retail Health Clinics
Effective March 11, 2010
The current place of service has been updated to add a new code of 17 (Walk-in Retail Health Clinic). The codes description is as follow: "a walk-in health clinic, other than an office,urgent care facility, pharmacy or independent clinic and not described by any other POS code, that is listed within a retail operation and provides on an ambulatory basis, preventative and primary care services."
CMS Transmittal 1869 CR6752
MLN6752
 
Medically Unlikely Edits (MUEs)
The MUE program was designed to reduce errors due to clerical entries and incorrect coding. An MUE is a unit of service (UOS) edit for a HCPCS/CPT code for services that a single provider/supplier rendered to a single beneficiary on the same date of service. In order to report medically reasonable and necessary services example CPT modifiers such as 76, 77, RT, LT, F1, F2, 91 and 59 may be used. Finally, a denial of services due to an MUE is a coding denial, not a medical necessity denial. An ABN is not allowed to be issued,nor can the beneficiary be billed for denied units.
CMS Transmittal 617 CR6712
 
Gender/Procedure Conflict
Report Condition Code 45 for Part A claims processing, institutional providers on inpatient or outpatient services that can be subjected to gender specific editing. Part B claim professional claims may use KX modifier on the detailed line item in question.
Modifiers PA, PB, PC
Some providers are using the PC modifier to represent the professional component of a service. This is incorrect. The PC modifier is defined as "Wrong Surgery on a Patient". The incorrect modifier is causing a significant number of denied claims.
CMS Transmittal R1867CP CR6718
MLN6718

RAC Medical Record Limits Defined
This week CMS announced limits on the number of medical records that may be requested contractors.

Read full guideline here
Commercial Plans Embrace the "Never Event"
Anthem, Aetna and United Healthcare
Will not reimburse physician's or other practitioner's services when surgical or other invasive procedures are performed erroneously. Types of Never Events are are; wrong patient, wrong body part, wrong surgeries and/or invasive procedures. These three situations are deemed NOT COVERED. Never events must be billed as non-covered services Modifiers to be used
 
Three new modifiers are to be used for this purpose:
PA: Surgery wrong body part
PB: Surgery wrong patient
PC: Wrong surgery on patient
 
In addition, these commercial plans are reviewing Serious Reportable events are identified as hospital errors that were  'reasonably preventable' but not always avoidable or if proper practices were adopted. These services should be billed as a covered service. All covered services use TOB 011X. Many providers assumed that the Serious Reportable event is a non-covered condition which is not the case. They should be billed as covered services with possible review pending.

Staggering Hospital Inefficiencies
More than $1 billion is lost to hospitals every year because of the need to reprocess accounts receivable.

About $20 billion is lost every year because of inaccurate and incomplete codes and changes.

Billing offices take more than 10 days, on average, to send out hospital bills.

Hospitals fail to collect as much as 80 percent of self-pay net revenue.

Hospital Accounts Receivable Analysis (HARA) Report, 4th quarter 2006

Imagine......Innovation that produced world-class revenue cycle and reimbursement results. With our industry leading solutions for high-production, maximum-efficiency revenue cycle and reimbursement software, you will streamline business operations and double staff efficiency. Cirius Group brings you powerful, results-oriented financial software solutions.

Regional Team:
Northwest and Midwest:  mark.ehnen@ciriusgroup.com
Southwest and East:  dougs@ciriusgroup.com
 
Warm regards,
 
Jayne Kroner
VP, Business Development
jaynek@ciriusgroup.com
Cirius Group, Inc.
925.685-9300
www.ciriusgroup.com
In This Issue
UnitedHealthcare
Medicare Billing
Commercial Plans
Hospital Inefficiencies
Washington Healthcare Reform
Self Pay Hospital Receivables
Top 10 Health Industry Issues
CMS Alphabet Audit Soup
5010 Timeline
Cirius Events

Washington Health Care Reform

January 8, 2010

What people are saying: National healthcare legislation in Congress could slow the growth of medical costs, allowing employers to create 250,000 to 400,00 new jobs a year over the next decade, economists from Harvard University and USC are predicting health insurance reform will do more than provide coverage to millions, make health more affordable, and slow long-term growth.


Self Pay Hospital
Receivables 


Nationwide

2006 Self Pay A/R

Bad Debt/Gross Patient Revenue=2.64%

Bad Debt & Charity Care Revenue as Total Gross Patient Revenue=5.55%

Days Cash on Hand
(All Sources)=105

Q4 2009 Self Pay A/R

1/3 of hospitals posted an increase=10%

After insurance self pay increased=10% overall

ED and unscheduled OP services= greatest service lines with self pay growth


How does your hospital measure up?

Top 10 Health Industry Issues in 2010 Report


 PRESS RELEASE
Cirius Group welcomes
Scripps Health
 
Learn More

Cirius alphabet soup

CMS
ALPHABET AUDIT SOUP

1. ZPIC=Zone Program Integrity Contractor     
         

2 . RAC=Recovery Audit Contractor 

3.CERT=Comprehensive Error Rate Testing

4. MIG=Medicaid Integrity Group

5.QIC=Quality Independent Contractor(Appeals)

6. QIO=Quality Improvement Organization(Clinical)

7. MSPRC=Medicare Secondary Payer Recovery Contractor

5010 Timeline

Level  I Compliance by: December 31, 2010

Level II Compliance by: December 31, 2011

All covered entities have to be fully compliant on:
December 31, 2011

837P
Mark Ehnen at Region 11 Cirius Grour exhibit booth

HFMA Region 11
Destination is the sunny and WARM city of Las Vegas Nevada for the HFMA Region 11 symposium. The education has proven to remain excellent over the past years and this year was no exception in providing an opportunity to share difficulties in leadership during these turbulent political and economic times.
CIRIUS EVENTS