Surviving an Insurance Audit April 24, 2015 (PM

2015 User Conference
Surviving an Insurance Audit
April 24, 2015 (PM-290)
Presented by:
Susan J. Kressly, MD, FAAP
Medical Director
PM Session
Learning Objectives
▪ Review who gets audited
▪ Understand the implications of an insurance
audit
▪ Identify 3 ways you can use best practices to
decrease audit vulnerability
▪ Outline important steps to take in response to
an insurance audit
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Who gets audited?
▪ Coding “outliers”
▪ Higher use of 99214 or 99215 compared to peers
▪ Higher use of modifiers
▪ Higher use of other CPTs
▪ Random selection
▪ Some payers have mandatory random audit quotas
▪ Allegations of fraud
▪ ANYONE can be audited at ANY time
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Why do audits happen?
▪ Public insurance companies
▪
▪
▪
▪
(Medicare/Medicaid) have oversight
mandates
Attempts to identify/eliminate fraud
All payers attempting to decrease/eliminate
overpayment
The bottom line
Technically under-coding is also subject to
corrective action (have never seen it happen)
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What are the implications of an audit?
▪ Commonly ask for a review of a finite number
▪
▪
▪
▪
of charts (example 40)
Example: if they believe you inappropriately
coded ten 99214s they feel should have been
99213s (25%) and…
The difference in payment for your practice is
$35 for this payer…..
And your practice submitted claims using
99214 a total of 3,000 times over past 2 years
They assume they overpaid you $26,250 and
want the $$$ back
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Take-backs
▪ Length of time they can pursue for
take-backs depends on state
regulations
▪ Can ask for check immediately or take
from claims submitted going forward
▪ Can be subject to additional
interest/penalties
▪ Many payers use third-party
companies which get to keep a % of
monies collected
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Who is ultimately responsible?
▪ The owners
▪ The billing providers
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E/M coding distribution
▪ Is not a bell shaped curve
▪ In Pediatrics most providers should be billing
>30% 99214s or you are likely leaving $$$ on
the table
▪ Some pediatricians bill > 50% 99214s
▪ 99215 is underutilized
▪ Few pediatricians bill a large # of 99212s
▪ Exception is well/sick at the same time
▪ 99211 should not be used for vaccine only
appointments unless additional separately
identifiable reason for visit
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E/M coding distribution
Procedures
▪ Make sure you are using the appropriate CPT
code for commonly used codes such as:
▪ Hearing/Vision
▪ In house lab tests
▪ Wart treatments
▪ Burn/wound care
▪ Chemical cautery of skin lesions
▪ Frenulotomy
▪ Urinary bladder catheterization
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Best Practices to Limit Vulnerability
▪ Coding education
▪ Providers
▪ Billing staff
▪ Periodic internal coding surveillance audits
▪ Internal if have expertise
▪ Hire outside consultant if internal expertise lacking
▪ Track E/M coding distribution by provider
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Cardinal Rules of Coding
▪ Do what is indicated by the patient’s
presenting complaint(s) and
conditions
▪ Document what you do (including
thought processes in medicaldecision-making)
▪ Code appropriately as supported by
your documentation
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OP Coding Decision Support
▪ Is based on the 1997 CMS coding guidelines
▪ While the 1995 guidelines may be more
“pediatric friendly” they do not lend
themselves to “bullet counting” by a computer
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Keys to Coding Success in OP
▪ Understand how
“suggested”
coding occurs
▪ Use the coding
calculator to
make sure your
documentation
supports your
coding choice
▪ Medical-decisionmaking is a
manual process
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Help, I’m being audited! What now?
▪ BREATHE……..
▪ If you have documented and coded
appropriately, you have nothing to fear
▪ Look at your time line
▪ Read the request for ‘gotchas’
▪ May state only the first response will be used for the audit,
supporting documents will not be counted
▪ Details about how far back they may extrapolate
▪ Consider response that you want the opportunity to do
more extensive review/submission with more charts
▪ Review all documentation before you send!
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New OP 14 Audit Notes
▪ Available from the chart itself
▪ Encounter notes and Well Visits
▪ OP 14 upon finalization of note:
▪ automatically builds and saves a note summary
based on practice report rules
▪ automatically builds and saves an audit report note
(criteria not customizable)
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Audit Note Contents
▪ Confidential
disclaimer with
all notes
▪ MU
Information
▪ Location
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Audit Note Contents (continued)
Plan and Patient Instructions (if available) included
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Audit Note Contents (continued)
▪ New section for
coding/audit support
▪ Contains summary on
what was used to
calculate code
▪ Note started time: first
time any user opened
note
(nurse/MA/provider)
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Medical Decision Making
▪ Computer cannot compute what
provider is thinking (nor can billing
staff)
▪ Provider must go to coding decision
tab and select appropriate levels
▪ MDM must have documentation
within the body of the note to
support choosing level
▪ Must check box for Coding Count
Override to be included in audit note
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MDM Audit Note
MDM Information in Audit Note
▪ MDM only appears if user checks “coding
override” box
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Overriding Suggested Code
▪ May put PMH or SH in HPI or other section
▪ May feel ROS/exam elements not counted
correctly by OP (would document why you
think this somewhere in note)
▪ Must pay attention to MDM section if choose
to override as these details will be included in
audit note
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Coding Based on Time
▪ Best practice is to insert wording: “spent x
minutes face to face with patient/parent”
discussing/counseling on concerns and
diagnosis”
▪ Can be put in plan section, counseling/care
coordination section or both
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Time Coding Decision Support
▪ Key component:
time
▪ Record total visit
length
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Audit Note for Time Based Coding
▪ Total visit time
included in visit
information
▪ Counseling duration
included (with
confidential
information withheld)
▪ Audit support
reinforces
counseling is key
factor
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What about my old notes?
▪
▪
▪
▪
▪
Can reconstruct using new audit note rules
Go to alternate note tab
Choose summary report criteria: Audit Report Note
Use edit pencil to enter comments/purpose
Click on Rebuild Summary
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Review Before Releasing Documentation
▪ Have internal/external expert review notes to
do an assessment whether documentation fits
coding level put on claim
▪ Include additional print outs of surveys, etc.
▪ If you feel there is missing information, call
OP before you send!
▪ there may be additional information that can be
added to your documentation to support your claim
▪ OP may be able to provide a letter regarding how
reports are constructed or changes in versions
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Looking for more education/consulting?
▪ AAP coding resources
▪ E/M University has coding
videos, pediatric specific
learning modules, and auditing
tools *
▪ The Verden Group*
▪ Pediatric Management Institute*
* Office Practicum does not specifically
endorse this product/group
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Questions
?
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We want your feedback!
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