Reimbursement in Physical Therapy Practice - Week 5 Flashcards

1
Q

Retrospective method of Payment

A

• AFTER services are provided
(dependent on setting that PT services are provided)

• Known as “fee-for-service” or indemnity plans
–> Individual paid fee for health services provided similar to any other purchase of goods or services

  • Fees paid are based on what is “usual, customary and reasonable” (UCR) for that area and service.
  • Health care providers established their own fees (fee schedule) that specified the cost of their services.
  • Providers had little incentive to limit services or costs
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2
Q

Prospective method of Payment

A

• BEFORE services are provided
(dependent on setting that PT services are provided)

  • Rising costs of health care created need to set limits on what services would be covered and how much would be paid those services
  • Prospective payment system (PPS): payments are established before care is provided
  • Fees and services covered set by insurance companies to control payments for high costs of health care
  • Providers paid these amounts regardless of the costs they actually incur
  • Health care choices now being influenced by insurance companies
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3
Q

What were the driving forces behind The Health Maintenance Organization Act?

A

↑ control of the delivery of health care by third-party payers through government-mandated regulations of health care service = MANAGED CARE

• Predetermined payment schedule for covered services (discounted fee schedule)

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4
Q

Managed Care:

Predetermined payment schedule

A

payment schedule for covered services (discounted fee schedule)

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5
Q
Managed Care:
Provider network (panel)
A

Providers who sign a contract with insurance company and agree to the payment schedule

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6
Q

Managed Care:

Established managed care organizations (MCOs)

A

Restrict access to services by limiting the types of, number of, or payment for services covered

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7
Q

MANAGED CARE PROVISIONS

A

• Features within health plans that provide insurers with a way to manage the cost, utilization, and quality of health care services received by members

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8
Q

Pre-admission certification

A

MANAGED CARE PROVISIONS

- before being admitted have to be certified to receive service

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9
Q

Utilization Management/Review

A

MANAGED CARE PROVISIONS

  • medical necessity, appropriateness, and reasonableness of services proposed or provided services to a patient or group of patients to reduce the incidence of unnecessary +/or inappropriate provision of services
  • -> Prospective, Concurrent, Retrospective
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10
Q

Case Management

A

MANAGED CARE PROVISIONS

- Cost-control process for patients with high-cost medical conditions

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11
Q

Maximum plan dollar limit

A

MANAGED CARE PROVISIONS

- (caps) often combined with other rehabilitative services

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12
Q

↑cost-sharing

A

MANAGED CARE PROVISIONS

- amount copay ect. are often higher for pt w/ managed care plans

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13
Q

Health Maintenance Organization

HMO

A

Managed Care Organizations
• A health care system that assumes both the financial risks associated with providing comprehensive medical services (insurance and service risk) and the responsibility for health care delivery in a particular geographic area to HMO members, usually in return for a fixed, prepaid fee

• Subscriber sees a PCP, “Gatekeeper”, who coordinates all care including referrals for specialists

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14
Q

Preferred Provider Organization

PPO

A

Managed Care Organizations
• An indemnity plan which provides coverage to participants through a network of selected health care providers (such as hospitals and physicians). The enrollees may go outside the network, but would incur larger costs in the form of higher deductibles, higher coinsurance rates, or non-discounted charges from the providers.

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15
Q

Exclusive Provider Organization

EPO

A

Managed Care Organizations
• More restrictive PPO plan
• Enrollees must use providers from the specified network of physicians and hospitals to
receive coverage
• No coverage for care received from a non-network provider except in an emergency
situation

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16
Q

Point of Service POS

A

Managed Care Organizations
• HMO/PPO hybrid
• POS plans resemble HMOs for in-network services.
• Services by out of network providers are covered, but at a higher rate (similar to a PPO
plan)
• There are typically fewer choices for providers with a POS plan compared to a PPO plan

17
Q

CONSUMER-DRIVEN HEALTH PLANS

A

• Combines employer contributions with increased employee choice and responsibility and increased health plan and provider accountability
• High deductible health plan with a personal or health savings account (HSA) option
–> lower premiums & higher deductible’s

• An HSA is a type of savings account that lets you set aside money on a pre- tax basis to pay for qualified medical expenses

  • -> set amount each month to go to deductibles, copays etc
  • -> is a cap to amount of money you can contribute to HSA each year but does roll over to next year
18
Q

HSA

A

• An HSA is a type of savings account that lets you set aside money on a pre- tax basis to pay for qualified medical expenses

  • -> set amount each month to go to deductibles, copays etc
  • -> is a cap to amount of money you can contribute to HSA each year but does roll over to next year
19
Q

Health Reimbursement Arrangements (HRA)

A

CONSUMER-DRIVEN HEALTH PLANS

• employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year

  • -> unused can be rolled over to next years
  • -> employer funds & owns arrangement –> employee gets services & pays for it –> then asks for reimbursement from employer
20
Q

Flexible Spending Accounts (FSA)

A

CONSUMER-DRIVEN HEALTH PLANS

• a special account you put money into that you use to pay for certain out-of- pocket health care costs

  • -> don’t pay taxes
  • -> used for deductibles, copays, insurance
  • -> have to submit claim that service was not covered by insurance
  • -> limit of $2,750 each year
  • -> don’t roll over for each year
21
Q

Fee-for-Service

A

PAYMENT METHODOLOGIES

• Each procedure (CPT) that is delivered is billed with a specified fee
• Fee schedule is based on price/unit of care
• Incentive for providers to deliver as many services as possible
–> more codes billed = more money paid to provider

22
Q

Per-Visit (Per Diem)

A

PAYMENT METHODOLOGIES

  • One lump sum payment for each patient/client visit
  • Little regard for the specific type of procedures delivered during the visit
  • Incentive for providers to deliver fewer procedures per visit and more visits per episode
23
Q

Per Episode

A

PAYMENT METHODOLOGIES

  • Single payment for all services delivered to a patient/client for a given episode of care
  • Payments are based on a predetermined fixed amount for that condition (diagnosis code)

ex: bundle payment for care related to diagnosis

24
Q

Capitation

A

PAYMENT METHODOLOGIES

  • Fixed, pre-arranged payment each month for all the covered subscribers for which the provider is responsible
  • Payment is the same regardless of the number of interventions provided or volume of patients seen
  • if facility sees a lot of patients and charges more than the fixed amount = they loose money
  • if see fewer patients and charge fewer than fixed amount = they make money
25
Q

Multiple Procedure Payment

A

PAYMENT METHODOLOGIES

• Subsequent procedures performed during the same session by the same provider are reduced usually by a percentage of the allowable amount
• Payer will reduce payment by the number of units billed
–> payer pay full price for 1st procedure then they reduce payment for any more procedures in the same encounter

26
Q

PAY FOR PERFORMANCE

A
  • Aim: improve the quality, efficiency, and overall value of health care by linking payment to value (quality and efficiency) of care
  • The provider is paid based on a metric of desired outcome: meet or exceed agreed-upon quality or performance get financially rewarded
  • -> Episodic Care of Payments
  • -> Bundled Payment
  • -> Shared Savings: the provider(s) will receive a portion of the cost savings associated with managing a condition and achieving a desired outcome
27
Q

Shared Savings

A
the provider(s) will receive a portion of the cost savings associated with managing a condition and achieving the desired outcome
--> each facility forms an ACO and each receives a portion of the money that was saved by achieving the desired outcome sooner
28
Q

Prompt Payment Act

A

• Created for delayes in payments for services that are provided

  • Timely payment for health insurance claims
  • Determined by individual states
  • Clean claim rules: claims that are correctly and completely filled out with all required documents attached
  • Typically time limit for payment of clean claims gives insurers 30 working days to pay such claims before interest charges begin to accrue
29
Q

RETROACTIVE CLAIM DENIALS AND ADJUSTMENTS

A
  • Payers can retroactively deny, adjust or seek refund for an already processed claim
  • Payers conduct an audit to verify claims were paid appropriately and accurately (not medically necessary, service was coded incorrectly, service was not covered, inadequate documentation, prior authorization was not obtained)
  • Payers try to recoup payment from a provider for a claim the payer believes was paid in error
  • Reduce payments currently owed the provider, withhold future payments, or request refund from the provider
  • depends on state laws and regulations vary
30
Q

Reimbursement changes impact on physical therapy practice

A

• Discounted fee schedules

• ↑ documentation requirements (demonstrate medical necessity, functional gains after each PT session)
–> unpaid time (can’t do in front of patients)

  • Limitation on the number of visits and types of services covered
  • Limits visits by patients who cannot afford co- pays/coinsurance for each visit
  • Changes in service delivery: necessitated ↑ efficiency & cost- effectiveness of services
  • ↑ non-billable time to advocate for more visits and documentation requirements for proper reimbursement
31
Q

INCREASED SPENDING ON PT SERVICES

A
  • Aging population
  • ↑ consumer awareness of PT
  • Expansion of coverage for rehabilitation and habilitation services under the ACA
  • ↑ number of covered lives as a result of the ACA Exchanges and Medicaid expansion
  • Proven value of PT benefit compared with high-risk or invasive alternatives
32
Q

How can PT’s be proactive?

A
  • Developing effective collection strategies.
  • Using and building evidence-based practice to justify interventions.
  • Using a standardized documentation language that can be understood by multiple stakeholders in the reimbursement process.
  • Understanding costs to provide PT care.
  • Advocating to increase the profession’s role as primary care practitioners or practitioners of choice.
  • Supporting APTA in its efforts to influence payment and health care policy changes.