Coding and Billing for Internists’ Services Challenges and Opportunities June 2010 Foundation on which Billing and Coding is Based  AMA maintains CPT book.

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Transcript Coding and Billing for Internists’ Services Challenges and Opportunities June 2010 Foundation on which Billing and Coding is Based  AMA maintains CPT book.

Slide 1

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 2

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 3

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 4

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 5

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 6

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 7

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 8

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 9

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 10

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 11

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 12

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 13

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 14

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 15

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 16

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 17

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 18

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 19

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 20

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 21

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 22

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 23

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 24

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 25

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 26

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 27

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 28

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 29

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 30

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 31

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 32

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 33

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 34

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]


Slide 35

Coding and Billing for Internists’ Services
Challenges and Opportunities

June 2010

Foundation on which Billing and Coding is Based
 AMA maintains CPT book of codes that describe physician services
 CMS supplements the CPT book as needed
 RBRVS, managed by CMS, determines payment for each physician
service

 Each service has a relative value for each of three main components—
work, practice expense, and professional liability insurance, with each
being adjusted to reflect geographic input price differences

 Medicare multiplies total, adjusted relative value for each service by a
dollar multiplier, or conversion factor

 Medicaid, other government, and private payers generally use RBRVS as
basis for payments

Medicare Payment Uncertainty


Medicare annual payment updates lag behind medical
inflation



Flawed sustainable growth rate formula regularly calls for
unsustainable cuts in Medicare physician payments

 Congress typically acts to replace an impending cut with
a freeze or small increase around time it is to take effect



Congress almost certainly will act to avoid large cut but is
avoiding a complete long-term fix because it’s costly



ACP participating in this messy process to represent the
interest of its members

Focus on What You Control


General coding and billing guidance







Do what is medically necessary
Document what you did according to guidelines
Use up-to-date CPT and diagnosis codes
Investigate payment denials
Conduct periodic self audits
Engage in continual coding and billing education



Understanding coding and billing rules is vital to health of
practice



Coding and Billing Challenges and Opportunities

Challenge:
“Welcome to Medicare” Exam Benefit
 Changes in 2009 resulting from 2008 law implementation:
• Patients now eligible 12 months after enrollment, instead of 6 months
• No longer required to perform EKG, but must advise/refer as needed
• Now required to conduct BMI and discuss advance directive
• Use new HCPCS G0402, instead of old G0344
 Can bill medically necessary E/M on same date as appropriate—use
modifier -25

 ACP has contended pay too low; CMS increased pay for service for 2010 to
$154, up from $92

 CMS working to establish details of an annual wellness visit/preventive

care plan benefit for 2011 as required by March 2010 federal health reform
law

Challenge:
Billing for Consultations


Requirements for a billing a CPT consultation service code:

• Furnished at the request of another physician seeking opinion or advice
• Must make a treatment option(s) decision/recommendation
• Must provide opinion or advice in a written report back to the
requesting physician



Consulting physician can initiate treatment, e.g., diagnostic or
therapeutic tests or procedures, during consultation visit

 On-going care furnished by the consultant after initially
providing opinion or advice is billed using office, subsequent
hospital, nursing facility visit codes

Dramatic Medicare Consult Policy Change


CMS no longer recognizes CPT consult codes for
Medicare payment purposes beginning in 2010



CMS rationale for change:

• Agency long-expressed concern that physicians did not bill
consults correctly

• Reviews determined that Medicare overpaid as many consults
billed were not supported by documentation

• Agency believes consult service work is “clinically similar” to
office, hospital, NF visits

Dramatic Medicare Consult Policy Change


Consults to be billed using CPT codes for:

• Office visits, 99201-99215
• Initial hospital care (admit). 99221-99223
• Initial NF care, 99304-99306



Change was unexpected and has far-reaching implications



ACP position on Medicare consult payment policy is at
http://www.acponline.org/running_practice/practice_ma
nagement/payment_coding/medicare/changes2010/feesc
hedule.htm#advocacy

Documentation Implications of Consult Change


Documentation rules for “replacement” codes apply based
on code used, thus:

• No requirement that the requesting and consulting physician
document request in medical record

• Consultant not required to send a written report with opinion /advice
back to requesting physician

• No need for auditors to distinguish a request for a consult from a
referral that constitutes a transfer of care

 Admitting physician bills initial hospital care code with a
“AI” modifier to distinguish service from consultant(s)

Payment Implications of Consult Change



To redistribute the money that Medicare paid for the
no-longer-recognized CPT consult codes:



Payment for each office visit increased about 3%

• Payment for initial hospital and initial NF care services
increased about 1%



In general, payments for consult services will be
lower as a result of use of CMS-required
replacement codes

Payment Implications of Consult Change
Consult
Code
99241

2009
Payment
$48.69

Replacement
2010
Code
Payment
99201
$38.96

99242

$90.90

99202

$67.45

99423

$124.80

99203

$97.75

99244

$184.32

99204

$151.49

99245

$226.52

99205

$190.45

Payment Implications of Consult Change
Consult Code

2009
Payment

Replacement 2010 Payment
Code

99251

$48.69

99252

$75.75

99253

$114.70

99221

$94.14

99254

$165.56

99222

$127.33

99255

$201.99

99223

$186.84

Payment Implications of Consult Change


No clear guidance on how to bill low-level hospital
consults as no initial hospital code match for 99251-99252



Consults furnished to established outpatients, 99211-99215,
experience biggest payment hit

• Consult for pre-op clearance on known beneficiary dictates billing
established patient office visit



Physicians who do a significant number of consults will
see overall revenue decline; those who do few see revenue
rise



Confusion when a secondary payer is involved

Payment Implications of Consult Change
 Can bill prolonged service code in addition to an office or
hospital visit code (as appropriate and if documented)



Consult can be billed as critical care service if it meets the
CPT definition of critical care



Coordination of care could suffer if consultants feel less
compelled to send a written report to requesting physician



Most private payers initially decided to continue to pay the
CPT consult codes but more are adopting the Medicare
policy

Tips for Billing Private Payers Consults


Consultants can receive higher payments from private payers still
recognizing CPT consult codes



Consult can be furnished by a physician in the same group as the
requesting physician—consultant is expected to practice a different
specialty but exceptions are made for same-specialty expertise



The service resulting from a surgeon’s request to clear a patient as
being fit for surgery can be billed as a consultation for major
procedures



Check if private payer follows the old Medicare rule that allows
billing a consult for patient-initiated second opinions before major
surgery or test

Challenge:
Medicare Teaching Physician Regulations


Medicare pays teaching/attending physician for services
furnished involving a resident when:

• Services performed by teaching physician—duplicates resident
service

• Services performed by teaching physician jointly with resident
• Services performed solely by resident under Primary Care
Exemption



For first two scenarios, teaching physician must
personally see the patient, perform the critical/key
portion of the service, and participate in the management

Teaching Physician Regulations
 Teaching physician must tether/link note to resident’s note


Billing is based on the combination of the teaching
physician’s and resident’s documentation

 Examples of acceptable documentation:





I saw and evaluated the patient. Discussed /w resident and agree
w/resident’s findings and plan as documented in the resident’s note.



See resident’s note for details. I saw and evaluated the pt and agree with the
resident’s findings and plan as written.

Examples demonstrate saw patient, performed key portion,
and participated in management

Teaching Physician Regulations



Examples of unacceptable documentation:
• “Agree with the above.”
• “Rounded, reviewed, agree.”
• “Discussed with resident. Agree.”
• Signature alone



Other documentation tips:
• There is no royal “we”; use “I” to demonstrate involvement
• Can use template/macro, such as through EHR, but must
sufficiently modify to reflect specific encounter/scenario

Suggested Teaching Physician Documentation
I saw and evaluated the patient and reviewed
(Resident’s Name) notes. I agree with the history,
physician exam and medical decision making with
the following additions/exceptions/observations :
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Attending’s Signature

Date

Teaching Physician Primary Care Exception


Teaching physicians can be paid for certain services
furnished solely by a resident when they are provided in
outpatient facilities for which resident time is counted
toward the direct GME payment to the facility

 Teaching physician can only be paid for resident low-level
outpatient E/M visit services, 99201-99203 and 99211-99213



Resident must have completed at least six months of
training program



Teaching physician cannot supervise more than four
residents and must be immediately available to assist

Challenge:
Billing for “Incident-to” Services


Medicare allows physicians to bill for outpatient services
performed by personnel that are “incidental” but integral and
be paid as if the physician performed the service



Incident to rules enable physician to bill 99211 when service
furnished by office staff

• This minimal service can be performed by any clinical staff member,
e.g., medical assistant, RN, PA



More complicated incident-to rules pertain to billing of 9921299215

• Service must be performed by CMS designated clinical staff PA, NP,
CNS

Billing for “Incident-to” Services


Conditions must be met to bill for higher-level PA, NP, CNS
services

• Physician must perform the initial visit and establish the care plan for
patient/condition

• Physician must provide direct supervision, defined as in the office

suite but not necessarily in the same exam room, and be immediately
available to assist




Medicare pays 100% of its normal physician fee schedule amount
PA, NP, CNS can provide services that fail to meet the incident-to
rules

• The practitioner furnishing the service must be listed on the
claim/bill

• Medicare pays the practice 85% of its normal fee schedule amount

Challenge:
Billing Anticoagulation Management Services


Medicare payment policy makes it challenging to be
adequately paid for managing patients receiving longterm, outpatient anticoagulant drug, i.e., warfarin therapy



ACP helped establish new CPT codes in 2007 to provide a
more rationale way for physicians to bill and be paid for
anticoagulation management services

• A code to report an initial 90-day period that involves at least 8
INRs, CPT 99363

• A code to report each subsequent 90-day period that involves at
least 3 INRs, CPT 99364



Codes encompass physician review and interpretation of
each INR, patient instructions, dosage adjustments, and
ordering additional tests

Billing Anticoagulation Management Services


CMS refuses to pay for these new CPT codes, which would
generally increase amount Medicare pays physician



The agency retained its policy that the practice can bill a
99211 when office personnel has a face-to-face encounter
with the patient, higher level when physician has direct
contact



ACP is concerned that some Medicare contractors may
prohibit billing 99211 unless there is a change in drug
regimen, treatment plan

• This compounds the problem by making an inadequate billing
policy more restrictive



Check with private insurers to see if they pay for CPT 99363
and 99364

Opportunity:
E/M Counseling Exception


Have option to select an E/M level of service based on time
when counseling and/or coordination of care accounts for
more than 50% of physician face-to-face time with patient



Compare total physician time for encounter to CPT “typical
time”




Not subject to 1995 or 1997 E/M documentation guidelines



List counseling time as fraction of total, e.g. “ccc 15/25” in
addition to describing pertinent issues discussed

Documentation should note amount of time counseling and
what was discussed (must be medically necessary)

Opportunity:
Home Health Care Plan Certification/Re-certification


Bill HCPC G0180 for certification of the initial home health care
plan





Medicare pays $58

Bill HCPCS G0179 for re-certification of care plan




Use if patient has received home health services within past 60 days

Medicare pays $44



Document thought-process in agreeing with plan and/or in
changing to better meet patient’s needs



Keep copy of approved care plan in record or be able to access it if
needed



CMS goal is incentive to physician to carefully review home health
agency care plans to ensure appropriate utilization

Opportunity:
Smoking Cessation Counseling
 Medicare covers for:



Patients with disease caused or exacerbated by tobacco use; or
Patients taking medications complicated by tobacco use

 Covers 2 attempts to quit per year
 Each attempt can involve up to 4 counseling sessions
 Bill CPT 99406 for 3-10 minutes of counseling


Pays $13

 Bill CPT 99407 for >10 minutes of counseling


Pays $25

 Append modifier -25 to office visit (or other service) done on same date

Opportunity:
Screening Pelvic/Breast Exam



G0101 - cervical or vaginal cancer screening; pelvic and
clinical breast examination



Medicare covers annually for women at high risk or of
childbearing age with abnormal Pap in last three years, and
every two years for all other female beneficiaries



Pays $35



Can bill in addition to other same-visit/date services:


Obtaining a smear for screening Pap test Q0091—pays $40



Acute/chronic “medically necessary” service, e.g., 99213



Medicare non covered comprehensive preventive billed to patient, e.g., 99397

Opportunity:
Use CPT Modifiers as Appropriate


Modifier -25 – significant, separately identifiable E/M service
furnished by the same physician on the same date as procedure
or other service



Can be used to bill an E/M service on the same date as a minor
procedure, e.g., joint injection



Can be used to bill an E/M service on the same date as a
number of Medicare-covered preventive services, e.g.,
Medicare-covered screening pelvic/breast exam, HCPCS G0101



Can be used to bill an E/M service on the same date as another
E/M service in limited circumstances, e.g., critical care service
in addition to initial hospital if patient crashes

Opportunity:
When a Patient is “New” Again


You can bill a “new patient” service when neither you or
a physician of the same specialty in your group practice
have furnished a face-to-face professional service within
the past three years

• Patient you provided a flex sig two years ago, not a new patient
• Patient for whom you read an x-ray two years ago (without seeing
the patient) is a new patient



Pay attention when providing office visits, new patient
visits receive higher payment

• 99204 – pays $151
• 99214 – pays $98

Opportunity:
Non-covered Medicare Services That
Can Be Billed to Patients




Telephone services



99441 - 5-10 min. medical discussion



99442 – 11-20 min. medical discussion



99443 – 21 -30 min. medical discussion



Must be initiated by established patient call to physician



Cannot be billed if face-to-face service results within 24 hours or if related to
face-to-face service provided within past 7 days

E-service



99444 – on-line service to established patient



Physician’s personal, timely response to patient inquiry that involves
permanent storage of documentation pertaining to exchange

Non-covered Medicare Services that Can be Billed
to Patients


E-service (cont.)

• Can only be reported once during same episode of care over 7 days
• Not related to face-to-face E/M service within past 7 days



Preventive Medicine Services, e.g. 99397 – periodic
comprehensive preventive medicine evaluation, established
patient, 65 years and older



Medicare considers above services to be “non covered,” meaning
that physician can bill patient his/her usual charge



Not necessary to have patient sign an ABN form but good idea to
discuss situation with patients in advance of billing them

Opportunity:
Medicare Bonus Payment – PQRI



Medicare pay-for-reporting program, the Physician
Quality Reporting Initiative (PQRI)



Report on how care furnished compares to evidence-based
clinical guidelines for a variety of medical conditions, e.g.
diabetes, heart disease



Earn a 2% bonus for 2010 for reporting on how care
provided aligns with quality measures, selecting from a
variety of reporting methods

 ACP resources available at

http://www.acponline.org/running_practice/practice_m
anagement/payment_coding/pqri.htm

Opportunity:
Medicare Bonus Payment – E-Rx



Earn a 2% bonus for 2010 for reporting e-prescribing events
using a qualified e-prescribing system



List code G8553 on claim form to indicate an e-prescribing
event associated with eligible encounters, primarily office
visits



Receive bonus if correctly report code a minimum of 25 times
in 2010




Other reporting options, e.g., through an EHR, are available
ACP resources available at
http://www.acponline.org/running_practice/technology/ep
rescribing/medicare_program.htm

ACP Contacts for Questions/Comments


Regulatory and Insurer Affairs Department



Brett Baker - [email protected]



Debra Lansey - [email protected]

• Tenita Richards - [email protected]



Center for Practice Improvement and Innovation

• Margo Williams - [email protected]