Chapter 7 Flashcards
Medical Necessity
is defined differently by different entities.
Health Ins only covers services they define as medically necessary.
Medicare will NOT cover services that are not reasonable and necessary for the treatment..
The AMA
American Medical Association Policy defines medical necessity.
LOMN: Letter of Medical Necessity
*Services/product a prudent physician would provide for the following:
*Preventing
*Diagnosing or treating IID (illness, injury disease)
A:
in accordance with (GAS) generally accepted standards of medical practice.
B:
clinically appropriate in terms of type, frequency extent, site and duration
C:
NOT for economic benefit of health plan, purchaser, convenience of patient, physician, or other provider.
NCD: National Coverage Determination
Medicare NCD
MAC releases LCD
Local Coverage Determinations
LCD will consider if an item/service is considered medically necessary.
NCCI: aka CCI
National Correct Coding Initiative is released by CMS to indicate codes considered to be …
NCCI/CCI
shortened to CCI.
bundled for procedures/services deemed necessary to accomplish a major procedure.
MUE (number of units)
Medically Unlikely Edits
are released by CMS to indicate …
the number of units that can be reported for a service/procedure on the same day.
Objective of Chapter 7
*Purpose of NCCI/ CCI
*Recognize modifier w/ NCCI edits
*Medicaid uses NCCI differently than CMS
*Difference between LCD & NCD
National Correct Coding Initiative
NCCI aka CCI
National Correct Coding Initiative
*Implemented by CMS
*Promotes correct coding methods
*Controls improper assignment of codes that result in inappropriate reimbursement.
NCCI aka CCI
National Correct Coding Initiative
composed of two
provider-type choices of code pair edits.
- Practitioner
- Hospital
NCCI aka CCI
National Correct Coding Initiative
composed of three
provider-type choices of MUEs
(MUE is the number of units on P/S that can be reported on same day)
MUE (number of units)
Medically Unlikely Edits
Code Pair Edits
NCCI - Practitioners (including ASC)
NCCI - Hospital (including see card 12)
NCCI Edits
National Correct Coding Initiative
Practitioners
Code pair edits applied to claims submitted by physician, non-physician practitioner, ASCs Ambulatory Surgery Center
NCCI Edits
National Correct Coding Initiative
Hospital
Code pair edits applied to TOBs (Types of Bills) subject to OCE (Outpatient Code Editor) Hospitals, SNF, Home Health, Outpatient Physical Therapy, Speech-Language Pathology, Comprehensive OP Rehab Facilities.
NCCI Modifiers
Anatomic Modifiers
E1-E4
FA
F1-F9
TA
T1-T9
LT
RT
LC
LD
RC
LM
RI
Global surgery modifiers
24,25,57,58,78,79
Other modifiers
27,59,91, XE, XS, XP, XU
Modifiers 76
Modifiers 77
Are NOT NCCI associated modifiers and cannot…
Repeat procedure/service by same provider.
Repeat procedure by another provider
be used to bypass edits.
Modifier 25
Significant, separately id’ E/M service by same provider on the same day of procedure / service.
Modifier 25
Example
A pt. sees Dr. for HBP, high Lipids, depression… he also has a skin lesion
Provider performs hx exam w/ MDM (Medical Decision Making) of moderate complexity 99214 … for above reason.
In addition, provider looks at lesion. It’s benign neoplasm and removes it w/ excised diameter of 1.8cm (11402)
Basically, the National Correct Coding Initiative NCCI is a Form that looks like a Superbill with columns.
CCI short for NCCI
S/P: service or product.
99214-25 I10, E78.5, F32.A, etc
11402
would like this…
Column 1 Column 2 Etc Etc
11402 99214
Staged or related procedure/service by the same provider or other during post-op.
Example:
a pt is brought in for laparoscopic appendectomy. after procedure initiated, it’s converted to open appendectomy.
Code is 44950 Appendectomy only.
Code 44970 Laparoscopy, according to the NCCI edits would NOT be reported in addition.
Modifier 59
According to the NCCI (National Correct Coding Initiative)
Provider performs colonoscopy.
Removes one lesion from one place 44384-59 on Column 2
another lesion from different place. 45385 on Column 1
(45385) is considered inclusive in 44384
Modifier XU
NCCI
National Correct Coding Initiative
*This modifier is for non-overlapping services.
Example:
Provider performs a debridement of subcutaneous tissue front leg.. 5sqcm
(11042)
Second debridement on the left calf 7cm (11042)
In the Column1/Column 2 Edits Chart
it would be
Column 1 Column 2
11043 11042
*I don’t know where the heck 11043 came from, but that’s what it says.
Methodologies
1. PTP edits for
procedure-to-procedure edits for providers and ASC
(Ambulatory Surgical Center)
Methodologies
2. PTP edits
PTP: Procedure-to-Procedure
For
Outpatient Hospital Services
Methodologies
3. PTP edits
PTP: Procedure-to-Procedure
for DME
Durable Medical Equipment
Methodologies
4. PTP edits
PTP: Procedure-to-Procedure
For MUEs
(Medically Unlikely Edits) for
Practitioners and ASC
Ambulatory Surgical Centers
Methodology w/ MUEs for
(Medically Unlikely Edits)
Outpatient Hospital Services for Hospitals
Methodology w/ MUE for
(Medically Unlikely Edits: number of units that can be reported on the same day)
DME
durable medical equipment,
Each component for each methodology has the following.
1
2
3
4
A set of edits
Definitions of types of claims subject to edits.
Claim adjudication rules.
Rules for appeals of denied payment.
MUE table format on CMS website.
Medically Unlikely Edits
(Max. number of units that can be reported on the same day)
First column on table is:
HCPCS/CPT Code
Second Column of the MUE table format.
MUE: max. number of units reported same day.
Second column on table is:
Practitioner Services MUE values
(indicates number of units that may be billed for the HCPCS L11 or CPT.)
Third Column of the MUE table format.
MUE: max. number of units reported same day.
Third Column is MAI (Adjudication Indicator). This indicates the type of MUE and basis.
MAI: Adjudication Indicator.
MAI 2: indicates an edit based on regulation (policy) including code descriptor or its anatomy.
MAI 3: indicates an edit for which the MUE is based on clinical information, such as billing patterns, prescribing instruction, or other information.
MAI 3: is the most common per day edit.
Fourth Column of the MUE table format.
MUE: max. number of units reported same day.
Column 4:
MUE (number of units reported same day) Rationale. This specified the adjudication indicator as to whether it is due to anatomic consideration, nature of service, CPT, clinical data, or CMS policy.
Example:
CPT 40842 Unilateral
CPT 40843 Bilateral
(I’m still watching the video portion of the chapter)
The codes can only be reported once.
Bcuz 40842 indicates it is unilateral, if performed twice, the procedure becomes bilateral which is 40843.
First Column of table: codes 40842, 40843
Second Column on table: 1 and 1 (representing the above code one each)
Third Column: MUE Adjudication.
2 Date of Service
Edit: Policy (for each code)
Fourth Column: MUE Rationale
CPT Code Descriptor/CPT (on both codes columns)
NCDs
National Coverage Determination
Make policy when MAC will pay s/p
MAC:
Medicare Administrative Contractor
in CA it’s Noridian.
Interpret guidelines into regional policies. LCD only have jurisdiction within their regional area.
NCDs
National Coverage Determination
vs
LCD
Local Coverage Determination
NCD: there are no procedure or diagnosis codes. Info related to procedure and coverage or non-coverage of the procedure.
LCD: Goes into further detail, providing additional requirements that MUST be met for coverage.
NCD has generalized information about p/s
NCD: National Coverage Determination
Looks like a letter w/ the following heading.
Description Information
Benefit Category
Diagnostic Services
Diagnostic Test
The LCD starts by giving the
LCD: Local Coverage Determination
Jurisdiction
Effective dates for the policy
Where the regulatory can be found for policy.
On the LCD website you click on the button “Coverage Guidance” to find detailed information.
Gives you a list of documentation that must be included in the medical record.
It could be results of labs, xray, images etc. etc. depending on p/s
All previous notes are from the video on Chapter 7
I will now take notes on the script.
NCCI: National Correct Coding Initiative
shortened to CCI
is an automated edit system used to indicate CPT code pairs and whether they can be reported on the same DOS, on same beneficiary, same provider.
NCCI: National Correct Coding Initiative
aka: CCI
Policies are based on.
*analysis of standard medical & surgical practice.
*coding conventions included in CPT
*Coding guidelines
*local and national coverage determination
*a review of current ceding practices.
The edits are updated …
Quarterly by CMS
and policy manual yearly.
NCCI: National Correct Coding Initiative
aka: CCI
p/s: procedures and services.
Used by Billers, Coders to determine codes considered by CMS to be bundled for p/s
Bundled p/s are NOT
reported separately.
The components of a bundled p/s are included in the
comprehensive procedure code.
Billing Tip
Beware.
Reporting bundled procedure codes in addition to the major procedure code is characterized as unbundling and, if repeated with enough frequency, could be considered an act of fraud.
Local CMS carrier
MACs such as Noridian
MAC: Medicare Administrative Contractor
Began using NCCI aka CCI since 1996.
Incorporated by ACA
Affordable Care Act.
Many commercial plans also utilize the NCCI edits in their claims processing.