Billing Guidelines

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Hierarchy of providers

NPPs - Non Physician Providers or MLP - Mid Level Providers or PE - Physician Extenders

Eg - PA - Physiciann Assistants, Nursing Practitioners.

NPPs are reimbursed lesser than the Physicians.

Types of Insurance Companies

Commercial and Government

Private Insurance - Blue cross blue shield, Aetna

Government Insurance - Medicare administered by CMS, Medicaid

Patient age over 65

Disablity

Permanent Kidney failure or ESRD

Medicare Part A -

Covers IP hospital care, SNF, Hospice care and home healthcare

Medicare Part B -

Covers OP, Preventative care, Physician Services

Its an optional benefit and patient has to pay premium every year which
requires deductable and Co insurance

Medicare Part C -

Plan managed by private payers and approved by Medicare

Plan may charge different copayments, coinsurance, deductable for


services

Combines the benefits of part A and part B sometimes Part D also

Also called as Medicare Advantages

Medicare Part D -

Prescription drug program for all medicare beneficiaries

Medicaid
Health Insurance program for Low Income people especially for children and
pregnant women

Sponsored by state government

State funded insurance programs providing coverage for children upto 21


years includes Children medical services, Childrent Indigent disability
services and children with special healthcare needs

RBRVS - Resource Based Relative Value Scale

Resource cost divided into 3 components

Physician work (52%), Practice expense (44%) and professional liability insurance (4%)

Medical Necessity

Given services should be appropriate for the Diagnosis

NCDs -National Coverage Determinations explains when Medicare will pay for the service
or item.

MAC - Medicare Administrative contractors is reponsible for interpreting national policies into
regional policies called LCDs - Local Coverage Determinations

ABN - The Advanced Beneficiary Notice explains patient liable to pay if Medicare denied the services
and before proceeding to the procedure patient should be provided with the cost estimation for that
particular procedure

No ABN for non Medicare Patients

HIPAA - Health Insurance Portability and Accountability Act

Healthcare Providers

Doctors, Dentists, Chiropractors, Psychologists, Clinics, Nursing homes & pharmacies

Key provision of HIPAA is to share PHI to satisfy a particular purposes


HITECH (Health Information Technology for Economic and Clinical Health) Act of 2009

HITECH allows patient to request audit trail on where their health information have been shared
electronically

FRAUD - (knowingly or willfully doing)purposefully bill for services that never given or bill for service
that has higher reimbursement than the service provided

ABUSE - payment for services billed by the provider in error that should not be paid by medicare

Need for Compliance Rules and Audits


The OIG Work Plan - sets forth a plan outlining its priorities for the fiscal year. Posts continuing work
planning on its website and updates the project monthly. It announces the potential problem area in the
claim submission.

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