Admin & Finance - Section 4: Provider Enrollment and Fee Schedule Flashcards
Fee schedules are kept in offices to determine ____ for services rendered.
Compensation
A list of charges for health care services
Fee schedule
Why do health care providers keep fee schedules in their offices?
To specify the amount of compensation they want for providing selected services
True or False:
The clinic can have multiple fee schedules.
False; the clinic should have one unique fee schedule
True or False:
Commercial, Medicare, Medicare Advantage, Medicaid, Medicaid MCO, and self-pay patients can be charged different amounts.
False; all commercial, Medicare, Medicare Advantage, Medicaid, Medicaid MCO, and self-pay patients should be charged the same amount.
True or False:
All commercial, Medicare, Medicare Advantage, Medicaid, Medicaid MCO, and self-pay patients should be charged the same amount.
True
Why can’t a clinic have different fee schedules for different types of patients?
Different fee schedules can be viewed as a form of discrimination
True or False:
Payers will have different payment rules, claim submission requirements, and service reporting rules, but all fees should be the same across payers.
True
True or False:
Even though payers will have different payment rules, claim submission requirements, and service reporting rules, fees do not have to be the same across payers.
False; payers will have different payment rules, claim submission requirements, and service reporting rules, but all fees should be the same across payers.
What is considered to be lynch pin of the revenue cycle?
The fee schedule
Fee schedules affect all financial aspects of an RHC. They are critical factors when:
1) Signing ____ agreements
2) ____ insurance companies
3) Offering charity care ____
4) Reporting ____ and adjustments
5) ____ the billing, coding, and documentation processes
1) Payer
2) Charging
3) Discounts
4) Revenue
5) Managing
The objective of setting fees is to set the fee high enough to ____ commercial payer reimbursement.
Maximize
The objective of setting fees is to set the fee high enough to maximize commercial payer reimbursement, but not so excessive that fees place an undue burden on what type of patients?
Private pay patients
What percent of the charge amount does coinsurance account for for RHC patients?
20%
True or False:
Provider-based RHCs cannot have a different fee schedule than the parent hospital.
False; provider-based RHCs may have a different fee schedule than the parent hospital
An agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms is known as ____
Price fixing
True or False:
Generally, antitrust laws required that companies work together to establish prices and other terms. Companies should seek to agree with their competitors on these items as well.
False; the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor
For price fixing to occur, the agreement must be written
False; an agreement can be written, verbal, or inferred from conduct
Setting fees based on what other providers are charging is considered to be what?
Illegal price fixing
True or False:
You should survey other providers to see what their fees are when setting your own fee schedule.
False; do not survey other area providers when setting fees
Many RHCs want to use the all-inclusive rate (AIR)/encounter rate as their Medicare charge amount. Is this correct or incorrect reporting for Medicare claims?
Incorrect
True or False:
Clinics should use their customary fees when converting from a fee-for-service clinic to an RHC.
True
Choose one:
1) RHCs should not match their clinic fees to their encounter rate.
2) RHCs should match their clinic fees to their encounter rate.
1
True or False:
A clinic should jack up their fees when they’re becoming an RHC
False; you don’t want to jack your fees up because you’re becoming an RHC
What is the main indicator of an artificially low fee schedule?
Commercial payer payments are 100% of the charge
If a large portion of payments are 100% of the charge, what is appropriate and necessary?
A fee schedule assessment
If a large portion of payments are 100% of the charge, why is a fee schedule assessment appropriate and necessary?
To ensure full reimbursement for the services rendered
True or False:
RHCs must follow a specific requirement when designating their fee schedule.
False; there is no specific requirement regarding what RHCs designate their fee schedule to be
True or False:
There is no specific requirement regarding what RHCs designate their fee schedule to be
True
When setting the fee schedule, it is required to use the ____ fees to set the fees.
Customary
What are the 2 common methods for setting fee schedules?
Medicare Allowable Multiplier and RBRVS
What does RBRVS stand for?
Resource-Based Relative Value Scale
Locality ____ can be used most often for “all other areas”.
99
What can locality 99 most often be used for?
“All other areas”
What is the zipcode to carrier locality file primary intended for?
To map zipcodes to CMS carriers/Medicare Administrative Contractors and Localities
True or False:
The zipcode to carrier locality files contains an urban, rural, or low density (qualified) area zip code indicator.
True
When setting the fee, what column should be looked at?
PAR Amount, stands for participating amount
When setting the fee, what does the # symbol indicate?
The reduced facility
True or False:
When setting the fee, you should use the entry that is denoted by the # symbol.
False; you should use the entry that is not denoted by #
When setting the fee, the Non-Par and Limiting Charge columns indicate what?
Non-participating providers. Can be disregarded.
When setting the fee, what is the lowest multiplier that our RHC consultant stated he would go?
150%
What is the multiplier range used when setting the fee schedule?
125%-200%
What is the most common and easiest method for setting fees?
Using the Medicare fee schedule
How do you use the Medicare allowable method to set fees?
Apply a multiplier to the Medicare allowable to create the clinic fee
The ____ system is being used by default when fees are based on a percentage of the Medicare allowable
RBRVS
What are the most common multipliers used?
150%, 175%, and 200%
The physician payment system used by the Centers for Medicare and Medicaid Services (CMS) and most other payers
Resource-Based Relative Value Scale (RBRVS)
Based on the principle that payments for physician services should vary within the resource costs for providing those services and is intended to improve and stabilize the payment system while providing physicians an avenue to continuously improve it
Resource-Based Relative Value Scale (RBRVS)
RBRVS is based on the principle that payments for physician services should ____ within the resource costs for providing those services
Vary
RBRVS is intended to ____ and ____ the payment system while providing physicians an avenue to continuously improve it
Improve and stabilize
Within RBRVS, how are payments determined?
By the resource costs needed to provide them
Within RBRVS, each service is divided into what 3 components?
1) Physician work
2) Practice expense
3) Professional liability insurance (PLI)
Within RBRVS, how are payments calculated?
By multiplying the combined costs of a service with a conversion factor (a monetary amount determined by CMS) and adjusting for geographical differences in resource costs
Within RBRVS, payments are calculated by multiplying what 2 things?
Combined costs of a service and a conversion factor (a monetary amount determined by CMS)
Within RBRVS, payments are calculated by adjusting for ____ differences in resource costs
Geographical
Within RBRVS, payments are calculated by adjusting for geographical difference in ____ costs
Resource
With RBRVS, a “____ ____” is set for each service based on the amount of physician work, work expense, and malpractice expense.
Relative value
With RBRVS, who publishes conversion factors for each CPT code?
CMS
The relative value, multiplied by the conversion factor, determines the payment for that service
RBRVS