To ABN or not to ABN, that is the question…..

Medicare government building1 Proper Use of the Advance Beneficiary Notice for Non covered Services

Use the Medicare ABN Properly

To be sure, navigating the Medicare system and keeping up with changing rules and new forms and instructions can be time consuming and difficult!

Mandatory uses for the ABN

 The ABN instructions for mandatory uses of the ABN lists several scenarios or items for which the provision of the ABN form is required.  The first on the list is “item or service not reasonable and necessary”.    If the service is a covered Medicare benefit but is simply not covered for your patient’s current condition per a National or Local Coverage Determination, then the service is “not reasonable and necessary” per Medicare and the clinic is required to provide the ABN to the patient.

Voluntary ABN

 ABNs are not required for care that is either statutorily excluded from coverage under Medicare (i.e. care that is never covered).  However, the ABN can be issued voluntarily in these situations and we strongly encourage our clients to do so in order to maintain good patient relations and avoid misunderstandings regarding patient balances.

Specific examples

 An example of an item or service that is statutorily excluded from Medicare coverage, and thus does not meet the definition of any covered benefit, is hot/cold packs.  Providing hot or cold pack treatment to a patient would not be a service for which an ABN is mandatory.

 An example of a service that is not covered by Medicare, but does require an ABN, would be in the case of a Vitamin B-12 injection.  Many patients receive these injections for fatigue and general malaise.  While the injection is a covered Medicare benefit for certain conditions, it is not considered “reasonable and necessary” for the treatment of fatigue.  In this scenario, an ABN is required.

 Are you required to bill Medicare for this service? 

That depends on the patient.  The ABN form lists 3 options for the patient to choose from.  The patient may choose for the clinic to bill Medicare in Option 1.  If the patient chooses Option 1, then the clinic must bill Medicare for the services, even if the patient pays out of pocket for the service.  

 Another good reason to bill Medicare for non-covered services (be sure to append the GA modifier when you have a signed ABN) is to generate a denial indicating patient responsibility.  In these cases, patients with secondary coverage can often have these items not covered by Medicare, covered and paid by their secondary plan.

 A great Q &A document released from a Medicare webinar outlining the proper use of the ABN in a variety of scenarios can be found at:   http://www.medicarenhic.com/providers/seminars/abn-lcdqa_webinar0508.pdf

 HRS regularly consults with its providers and their support staff regarding the proper use of the ABN in their clinics.  If we may be of assistance to your clinic, please feel free to give us a call at 888-211-1118.

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Is Your Fee Schedule Defensible?

by Cheri Freeman on October 18, 2011

FAIR Health
FAIR Health calls for Transparency

As a healthcare provider, are you able to defend your fee schedule to both patients and insurance carriers?

 A 2009 settlement in a lawsuit filed by New York’s Attorney General against United Health Group has resulted in the formation of an independent nonprofit entity named FAIR HealthTM.   FAIR Health was called upon to create a database that uses a fair and open methodology for collecting and analyzing medical charges nationwide.

 The database is used by health insurers, healthcare providers, and patients alike in validating UCR (Usual Customary and Reasonable) charges.

 In these tough economic times, we are seeing more patients challenging provider fees.  In the past, it has been difficult for providers and their staff to defend their fees to patients other than to state that “our charges are in line with the fees of other similar providers in our geographic area”.  

 Now, we have a wonderful tool out there called the FAIR Health Consumer Cost Lookup where we can direct patients to validate provider fees for themselves.   Patients are able to lookup both dental and medical costs by zip code, procedure, and other search criteria to determine the average charge and out of pocket costs for treatment.

 In addition, providers may use this tool to verify their own fee schedules to be sure that they are in line with the average estimated charges for their fees in a given geographic area.  As more and more patients become aware of this new tool and begin utilizing it, it would serve providers well to review their fees against the database.

 To learn more, please visit the AMA website to view a pre-recorded webinar about the new database as well as a Powerpoint slide presentation explaining the impact of the New York AG’s lawsuit which resulted in the FAIR Health database formation. 

 Healthcare Reimbursement Services regularly assists its clients in setting fees and collecting every dollar that is rightly owed.  If we may be of assistance, please call 888-211-1118 today!

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Texas Department of Insurance Imposes Fines on Payers, Doctors, Clinics

August 10, 2011

The Texas Department of Insurance, Workers’ Compensation Division (TDI-DWC) has just released a list of payers, clinics, and doctors for whom disciplinary measures have been imposed due to violations of the Texas Labor Code and DWC rules.
A brief review of the Enforcement Actions posted for 2011 reveals that roughly half of the entities who received [...]

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National Insurer Report Card Reveals Ways for Providers to Improve Collections

June 29, 2011

According to the AMA’s latest findings, commercial health insurers have an average claims processing error rate of 19.3 percent, an increase of two percent compared last year.

National Health Insurer Report Card

“Unacceptable!”  May be the first thought that comes to mind.  While there is absolutely no doubt that insurers have a long way to go to [...]

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Department of Insurance Helps Increase Clinic Bottom Line

June 8, 2011

What could your clinic do with an additional $6000?  Or much more?
 What if you had an ally in the government who could and would be willing to assist you?
  An often forgotten or under-utilized ally is your state’s Department of Insurance.  We are HRS have had great success by relying on our allies at the DOI [...]

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The New MPPR for Therapy Providers Explained

April 26, 2011

Have you noticed additional adjustments on your Medicare remittance advice this year? 
I have received many questions from therapy providers this year regarding the new MPPR  (Multiple Procedure Payment Reduction) and what it means for their clinics.  
In a nutshell, Medicare is applying a reduction to the practice expense portion of the payment for a therapy procedure [...]

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Healthcare Providers Exempted from Red Flag Rules!

December 9, 2010

Both the House and the Senate have now passed the Red Flag Program Clarification Act of 2010 in which healthcare providers, attorneys, and other entities are exempted from Red Flag Rules requirements for creditors.

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Alert: Big Changes Coming for Medicare Therapy/Rehab Providers

November 17, 2010

Changes Ahead for Therapy Providers

The 2011 Medicare Physician Fee Schedule Final Rule has been released—all 2023 pages of it.  How does the final rule affect physical therapy and rehab providers?  Here is the breakdown:
Therapy caps:

2011 outpatient therapy cap will be $1870 (page 382)
The exceptions process to the therapy caps will expire on December 31, 2010 unless Congress [...]

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November is Heal that Claim Month

November 8, 2010

Do you wish you and your staff had more time and resources to focus on caring for your patients?
 November is the third annual “Heal that Claim”TM month, and physician practices are being urged to take a stand against flawed and inefficient claims processing. One in five medical claims is processed inaccurately by commercial health [...]

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Would Your Documentation Stand Up to a Medicare Audit?

August 18, 2010

Documentation under the Magnifying Glass

Facts & findings from recent Medicare audits reveal 3 main areas where payment errors were identified.  The  results?  Charges denied as “Insufficient Documentation” ….leading to recoupment.
The 3 most common deficiencies were:

Illegible or missing signatures on documentation or orders

Signature requirements are nothing new–but CMS and its audit contractors are now strictly enforcing [...]

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