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RACs are Gearing Up to Audit Medicare Advantage, Part D, and MEDICAID

Friday, February 11th, 2011

And yet another RAC audit…

Section 1902(a)(42)(B)(i) of the Social Security Act requires states to contract with Recovery Audit Contractors (RACs) to identify underpayments and to recoup overpayments as part of the state plan. The Patient Protection and Affordable Care Act required the states to have contracted with one or more RACs by December 31, 2010.  Scheduled to begin April 1, 2011, the Medicaid RACs will be a bit different because of the different focus that could be seen by each state. There will be a large list of Medicaid auditors approved by each state.

In the September, 2010 Federal Register, CMS posted an “information collection request” about Medicaid RACs. They identified that contracts should be similar to those of the Medicare program. However, states may tailor the Medicaid RAC activities to the specific aspects of the Medicaid program in each state and collectively “propose targeted areas of susceptibility regarding improper payments.” Each state was required to amend their state plans reflecting the RAC program and attesting to a plan in place. This plan must also include Medicaid waiver contracts.

The RAC Medicaid requirements remain separate from the Medicaid Integrity Program (MIC) audits, which will continue. The RAC audits are additional Medicaid audits that the law requires to ensure plans under Parts C and D  have claims examined for reinsurance payments to determine if the claims costs are in excess of allowable reinsurance costs.  RACs are also to look at prescription drug plans for high cost beneficiaries.

New York State Medicaid Inspector General is leading the charge in attacking waste, fraud, and abuse, recently reminding home health agencies they “cannot bill for excluded providers or accept orders from excluded providers.” He has identified that many agencies were not appropriately verifying physicians approved for Medicaid payment.

In addition, the pressure is on to be certain that diagnosis codes, hospital admission and discharge codes, and procedure codes are all in order in all areas of health care. Coding, once again is at the forefront of audit review for all areas of healthcare.

Health care entities should review the annual OIG workplan, and besides the understood areas of risk; diagnoses coding, rehabilitation services, medical necessity, and adequate documentation, they might wish to add Medicaid Hospice services and being certain a process is in place to verify physician orders are not taken from Medicaid excluded physicians. How frequently is the exclusion list reviewed?

Risk areas identified by corporate compliance necessitate a policy and procedure to be in place with a method of verifying compliance to reduce corporate risk. Mandated corporate compliance programs are to become a reality in all areas of health care within the next few years. However, more and more organizations realize they need a corporate compliance program in place now. In case of a RAC, MAC, MIC, and especially in case of a Z-PIC or HEAT audit, establishing the view that you are compliance oriented with a compliance plan in place sends a far stronger positive message than you are waiting until a plan is actually mandated.

The OIG recently announced they will be reviewing “Medicaid Program Integrity Best Practices” in state Medicaid agencies especially in the areas of coding and payment risks. You may well have Best Practices in clinical areas but do you know that your billing practices follow Best Practices in Medicaid billing? You need to have this assurance.

For additional information:

www.hhs.cms.gov/medicaid

www.cms.gov/RAC/01-Overview.asp

www.RACmonitor.com

www.oig.hhs.gov

Reminder: RAC facts

RACs can review via automated review (no medical record from the agency required) or a complex review which entails a medical record request.

The four present CMS approved RACs include:

RAC A: Diversified Collection Services

www.dcsrac.com info@dcrac.com

RAC B: CGI Federal

http://racb.cgi.com racb@cgi.com

RAC C: Connolly, Inc

www.connollyhealthcare.com/RAC RACinfo@connollyhealthcare.com

RAC D: HealthDataInsights

http://racinfo.healthdatainsights.com racinfo@emailhdi.com

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Coding Whitepaper

Monday, January 31st, 2011

“Industry Changes are Driving Increased Coding and Financial Complexity.”

Every home health agency wants their deserved reimbursement for the care delivered to their patient and just as importantly, they want to retain that revenue. A good start toward achieving that goal is having coding team expertise.

According to one source, the average loss on a miscoded record is hovering around $1200+. The reasons for the errors vary; experience of the coding team, training level, maintaining competency and adherence to coding guidelines and conventions with the hundreds of changes that occur annually and not to mention the over 100,000 changes coming with ICD-10. A coding team needs to be dedicated to just that: coding, not other distracting duties. The team needs coders and clinicians so the full prospective of the patient portrait is accurately presented and the proper codes are compliantly assigned.

With tighter reimbursement, outcomes affecting future reimbursement, and coding driving certain audit alerts, coding is the area that requires emphasis.

Select Data has written a white paper on this subject. Looking at industry complexity and how coding importance came to the forefront to identifying the relationship of case-mix profile and case-mix adjustment models to coding. In addition, understanding the components of the HIPPS Codes as well as how supplies must link to diagnostic codes is included.

Success in this industry usually means the home health leaders have a good understanding of why the change in CMS focus as well as what is expected from that focus. Included in this white paper, you will also find the documentation requirements for coding in general as well as examples of the therapy risk areas. Documentation must be objective and specific. Just what does that mean? Clear examples are presented.

Being alert for “alerts.” Do you know what MAC alert 5023T means? You need this kind of information from your coding team.

The value of compliant coding is proper payment and peace of mind. This is not a trite statement. It is a desire of agency leaders who are working diligently to comply with quality parameters, best practices, and regulatory statutes and law.

To read the full white paper, please go to: Coding Whitepaper PDF

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What is Management and Evaluation?

Friday, January 21st, 2011

Since the new G-Codes have been implemented, G-162 has raised questions once again.

Management and evaluation is the Medicare covered qualifying skilled nursing service, introduced in 1989.  Even though it has been around for over two decades, it remains a complex and confusing service, with a history of denials.

In the mid 1990s, during Operation Restore Trust (ORT), many agencies suffered costly denials when the ORT surveyors determined that the service was not properly documented with inadequate reflection of a beneficiary need that was reasonable and necessary. The Recovery Audit Contractors (RAC) are now honing in on medical necessity interventions provided by homecare agencies. Once again there is risk.

To read the coverage criteria, refer to the Medicare Benefit Policy Manual (MBPM)- Chapter 7, Home Health Services §40.1.2.2, to identify specific concepts and examples of management and evaluation, including the following:

  • Underlying conditions or potential exacerbation of complications.
  • Complexity of the necessary unskilled services (Places the patient at risk for hospitalization or health problem exacerbation).
  • Essential nonskilled care (The plan is complex but, unskilled).
  • Is part of a Medical Plan of Care.
  • Only an RN can assure that the care is followed (No LVN care is permitted).
  • Promote patient’s recovery and medical safety (There is an unstable caregiving situation).

Management and evaluation focuses on the implementation, by an RN, of a complex, unskilled care plan for a patient who is at risk because of underlying conditions or complications. that may be manifested in multiple medical diagnoses, limitations physically or mentally, or with other risk factors including safety and environmental.

Underlying complications, at risk of hospitalization

1. The patient must have underlying conditions or complications that place them  at risk for hospitalization or exacerbation of a health problem if the plan is not implemented properly.

Documentation should include:

  • Multiple medical diagnoses, co-morbidities, or cultural, physical, or mental health problems
  • Limitations in activities of daily living, mental status, etc.
  • The examples identified by CMS includes “an aged patient with a history of DM and angina pectoris is recovering from an open reduction of the neck of the femur. He requires, among other services, careful skin care, appropriate oral medications, a diabetic diet, a therapeutic exercise program to preserve muscle tone and body condition, and observation to notice signs of deterioration in his condition  or complications resulting from his restricted, but increasing mobility.”

No example in the manual shows a patient with a single primary diagnosis, thus, HTN or COPD alone does not seem to fit the requirements for this service.

The plan of care MUST be COMPLEX and UNSKILLED.

2. The plan must be complex, unskilled, requiring RN oversight.

Complex care means there are many facets involved in the patient’s care, which is unskilled. There may be many medications, treatments, or pieces of equipment that do not require the skills of a nurse to deliver if each is taught individually but, with another condition that adds risk, an RN is vital to coordinate and oversee a plan to minimize risk for hospitalization.

An example given in the MBPM includes a patient with mild dementia recovering from pneumonia, suffering from an increase in disorientation “has residual chest congestion, decreased appetite, and has remained in bed, immobile, throughout the episode with pneumonia.” In this situation, “skilled oversight of the nonskilled services would be reasonable and necessary pending the elimination of the chest congestion and resolution of the persistent disorientation to ensure the patient’s medical safety.”

The assessing RN must ask herself,  what would happen if the RN was not involved in the careplan oversight?

There is an unstable caregiving situation

3. The caregiving situation is unstable.

An unstable caregiving situation can result from ongoing changes in the plan, the involvement of many services or caregivers, or an unsafe environment that does not provide adequate support. The RN will anticipate caregiver needs or identify potential factors in the  environment that could complicate the patient’s safety or care.  Because of complex situations, multiple diagnoses, and several caregivers, it is frequently the patient’s caregivers who cause or exacerbate the instability. In order to adequately provide the unskilled care, caregivers are needed. They are frequently not readily available or capable of managing a complex plan of care.

It takes the skills of the RN to manage the multiple complex diagnoses or factors and ensure that caregivers implement the complex, unskilled plan properly. Per the Medicare Benefits Policy Manual, “skilled nursing visits for management and evaluation of the patient’s care plan are also reasonable and necessary where underlying conditions or complications require that only a registered nurse can ensure that essential nonskilled care is achieving its purpose.”

Summary:

  • Management and evaluation is a qualifying skilled service provided by an RN only.
  • Management and evaluation focuses on safe and effective implementation of a complex, unskilled care plan for a patient who is at increased risk for problem exacerbation or hospitalization.
  • Management and evaluation services can be provided along with other skills such as assessment and teaching of patients (beneficiaries), education of caregivers, and direct procedures.

Remember, in the 1990s this skilled qualifying service was scrutinized heavily. There is reason to believe that this could occur again under MAC or RAC review.

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G-Code Transmittal – The New and Revised G-Codes

Wednesday, December 29th, 2010

The New and Revised G-Codes and More Specific Information Sought by CMS Effective 1/1/11

http://www.coms.gov/transmittals/downloads/R824OTN.pdf

CMS is seeking more specific information regarding who is visiting the patient, ie; a PT or a PTA or an OT or COTA. In addition, they are seeking to categorize skilled nursing visits into four categories: direct skilled nursing care, management and evaluation, observation/assessment, and training/education.

What Could This Mean to a Home Health Agency?

It means that now more than ever documentation MUST support the visit TYPE and that visit TYPE had best support the POC. If a patient’s visit required education and training and this is the fifth education/training visit, it begs the question: “when is the clinician going to modify the teaching; content or method?” Visit notes will need to clearly justify the visit and show the value as it relates to the orders/goals of the POC. Now, for an auditor, it will be easier to see two or three recertifications of a chronic disease and pull out visits by type and ask specific questions. It will make it easier to deny visits. Remember, an episode doesn’t need to be fully denied, just having  5 of 14 visits denied could realize a $1000 episodic loss, depending on the patient HIPPS/HHRG.

As to therapy, now agencies can no longer have a qualified PT open a case and in effect turn it over to an assistant.  Most agencies do not do this but, there have been cases. In addition, in specific cases, would having a qualified therapist vs an assistant have made a difference in patient outcome? This will be reviewed. CMS believes it is paying for qualified therapy and expects to see the results of having the higher educated therapist actively involved with the patient’s care. (This is one reason for the mandated qualified therapist to functionally assess the patient on the 13th and 19th therapy visit.  This is set to go into effect 4/1/2011).

The clinician is to report the G-code that reflects the service provided for most of the visit.

  • Per the transmittal, “In order for CMS to collect more specific information regarding the sort of services provided to home health patients, we are revising the current descriptions for existing G Codes for physical therapists (G0-151), occupational therapists (G0-152), and speech language pathologists (G0-153), to include the descriptions that they are intended for the reporting of services provided by a qualified physical or occupational therapist or speech/language pathologist.”

“In addition, we are adding two new G-codes (G0-157 and G0-158) for the reporting of physical therapy and occupational therapy services provided by qualified therapy assistants”

  • G0-151 Services performed by a qualified physical therapist in the home health or hospice setting, each 15 minutes.
  • G0-152 Services performed by a qualified occupational therapist in the home health or hospice setting, each 15 minutes.
  • G0-153 Services performed by a qualified speech-language pathologist in the home health or hospice setting, each 15 minutes.
  • G0-157 Services performed by a qualified physical therapy assistant in the home health or hospice setting , each 15 minutes.
  • G0-158 Services performed by a qualified occupational therapy assistant in the home health or hospice setting, each 15 minutes.

“We are also adding and requiring three new G-codes for the reporting of the establishment or delivery of therapy maintenance programs by qualified therapists. The following are descriptions for those new G-codes, for the reporting of the establishment or delivery of therapy maintenance programs by therapists:”

  • G0-159 Services performed by a qualified physical therapist, in the home health setting, in the establishment or delivery of a safe and effective physical therapy maintenance program, each 15 minutes.
  • G0-160 Services performed by a qualified occupational therapist, in the home health setting, in the establishment or delivery of a safe and effective occupational therapy maintenance program, each 15 minutes.
  • G0-161 Services performed by a qualified speech-language pathologist, in the home health setting, in the establishment or delivery of a safe and effective speech-language  pathology maintenance program, each 15 minutes.

So, what does the Medicare Benefit Policy Manual Chapter 7 have as outlined Skilled Therapy Services?

  • Section 40.2.1 General Principles Governing Reasonable and Necessary Physical Therapy, Speech-Language Pathology Services, and Occupational Therapy identifies that skilled therapy services must be reasonable and necessary to the treatment of the patient’s illness or injury or to the restoration or maintenance of function affected by the patient’s illness or injury. “It is necessary to determine whether individual therapy services are skilled and whether, in view of the patient’s overall condition, skilled management of the services provided is needed although many or all of the therapeutic services needed to treat the illness or injury do not require the skills of a therapist.” Chap 7, 40.2,1

Section 40.2.2 Application of the Principles to Physical Therapy Services:

  • A. Defines Assessment,
  • B. Identifies Therapeutic Exercises and supervision,
  • C. Gait Training defined,
  • D. Range of Motion as treatment of an active disease process
  • E. Maintenance therapy to maintain function,
  • F. Ultrasound, Shortwave, and Microwave Diathermy Treatments
  • G. Hot Packs, Infra-Red Treatments, Paraffin Baths, and Whirlpool Baths
  • H. Wound Care Provided Within Scope of State Practice Acts
  • 40.2.3 Application of the General Principles to Speech-Language Pathology Services. Specific requirements for reevaluation are well defined to include: a change in functional speech, clearing of confusion, remission of another condition, where the services are expected to materially improve a condition, to establish a hierarchy of speech-voice-language communication goals, train the patient or family member, assist with aphasia, and assist with voice disorders.
  • 40.2.4 Application of the General Principles to Occupational Therapy.
  • 40.2.4.1 Assessment and to reassess.
  • 40.2.4.2 Planning, Implementing, and Supervision of Therapeutic Programs to include: Teaching task oriented therapeutic activities designed to restore physical function, plan, implement, and supervise therapeutic tasks and activities designed to restore sensory-integrative function, plan and implement “Active Treatment“ programs. In addition, teaching compensatory techniques to improve the level of independence in ADLs and designing, fabricating, and fitting orthotic self-help devices, as well as prevocational assessment and training.
  • 40.2.4.3 Illustration of Covered Services

Example 1: “A physician orders OT for a patient who is recovering from a fractured hip and who needs to be taught compensatory and safety techniques with regard to lower extremity dressing, hygiene, toileting, and bathing. The OT will establish goals for the patient’s rehabilitation (to be approved by the physician), and will undertake teaching techniques necessary for the patient to reach the goals. OT services would be covered at a duration and intensity appropriate to the severity of the impairment and the patient’s response to treatment.”

What about skilled nursing? CMS is requiring classification of each home health visit into a specific category. The transmittal states:

“Lastly, we are revising the current definition for the existing skilled nursing services (G0-154), and requiring home health agencies (HHAs) to use G0154 only for the reporting of direct skilled nursing care to the patient by a licensed nurse (licensed practical nurse or registered nurse).”

Additionally, we are adding and requiring three new G-codes: One for the reporting of the skilled services of a licensed nurse in the management and evaluation of the care plan; another for the observation and assessment of a patient’s conditions when only the specialized skills of a licensed nurse can determine the patient’s status until the treatment regime is essentially stabilized, and another for the reporting of the training and education of a patient, a patient’s family, or caregiver:

  • G0-154 Direct skilled services of a licensed nurse (LPN or RN) in the home health or hospice setting, each 15 minutes. Includes Injections, wound care, infusion, catheter changes.
  • G0-162 Skilled services by a licensed nurse (RN only) for the management and evaluation of the plan of care, each 15 minutes (the patient’s underlying condition or complication requires an RN to ensure that essential non skilled care achieves its purpose  in the home health or hospice setting).
  • G0-163 Skilled services of a licensed nurse (RN or LPN) for the observation and assessment of the patient’s condition, each 15 minutes (the change in the patient’s condition requires skilled nursing personnel to identify and evaluate the patient’s need for possible modification of treatment in the home health or hospice setting).
  • G0-164 Skilled services of a licensed nurse (LPN or RN) in the training and/or education of a patient or family member, in the home health or hospice setting, each 15 minutes.”

CMS continues with the following statement:

  • “We recognize that, in the course of a visit, a nurse or qualified therapist could likely provide more than one of the nursing or therapy services reflected in the new and revised codes. HHAs must not report more than one G-code for the nursing visit regardless of the variety of nursing services provided during the visit. Similarly, the HHA must not report more than one G-code for the therapy visit, regardless of the variety of therapy services provided during the visit. In cases where more than one nursing or therapy service is provided in a visit, the HHA must report the G-code which reflects the services for which the clinician spent most of his/her time.”
  • G0-154 Direct skilled services of a licensed nurse (LPN or RN) in the home health or hospice setting, each 15 minutes. Includes Injections, wound care, infusion, catheter changes.
  • For coverage criteria see MBPM Chapter 7:
  • See section 40.1.2.4 Administration of Medications
  • See section 40.1.2.5 Tube Feedings
  • See section 40.1.2.6 Nasopharyngeal/Trach Aspiration
  • See section 40.1.2.7 Catheters
  • See section 40.1.2.8 Wound Care
  • See section 40.1.2.9 Ostomy Care
  • G0-162 Skilled services by a licensed nurse (RN only) for the management and evaluation of the plan of care, each 15 minutes (the patient’s underlying condition or complication requires an RN to ensure that essential non skilled care achieves its purpose  in the home health or hospice setting).
  • Management and Evaluation is a skilled nursing program introduced in 1989. The coverage criteria is found in CMS Publication 100-2, MBPM Chapter 7, 40.1.2.2 for several concepts of M&E including:
  • Underlying Conditions/Complications (Patient must be at risk for hospitalization or health problem exacerbation)
  • Complexity of necessary unskilled services (Plan must be complex)
  • Essential Nonskilled Care (Caring situation is unstable)
  • Necessary Part of Medical Care
  • Only an RN Can Ensure (An RN must be involved with care)
  • Promote Patient’s Recovery and Medical Safety
  • G0-163 Skilled services of a licensed nurse (RN or LPN) for the observation and assessment of the patient’s condition, each 15 minutes (the change in the patient’s condition requires skilled nursing personnel to identify and evaluate the patient’s need for possible modification of treatment in the home health or hospice setting).

See the Medicare Benefit Policy Manual Chapter 7 40.1.2.1 outlines “Observation and Assessment of the Patient’s Condition When Only the Specialized Skills of a Medical Professional Can Determine Patient’s Status.”

From the segmentation of the visit types, one can see that documentation becomes even more important. Documentation needs to be specific and congruent with the POC orders and goals based on the SOC OASIS integrated assessment. There needs to be adequate support for the visit type in relation to the expected and achieved outcomes.

Summary Sheet

  • G-154 SN (LPN and RN) Direct Care
  • G-162 SN (RN Only) Management and Evaluation
  • G-163 SN (LPN and RN) Observation and Assessment
  • G-164 SN (LPN and RN) Training and Education
  • G-151 Qualified PT Direct Care
  • G-159 Qualified PT Therapy Maintenance Program
  • G-157 PT Assistant
  • G-152 Qualified  Occupational  Therapy  Direct Care
  • G-160 Qualified Occupational Therapy  Maintenance Program
  • G-158 Occupational Therapy Assistant
  • G-153 Qualified S/LP Direct Care
  • G-161 Qualified S/LP Maintenance Program

These G-codes remain the same:

  • G-155 Clinical Social Worker
  • G-156 Home Health Aide

If you would like to purchase for your convienence a laminated two sided Nursing and Therapy G Code Reference Guide. Visit the links below.

G Code Therapy Guide

G Code Nursing Guide

G Code Video Link

Select Data
YouTube

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CY 2011 Updates FAQ

Tuesday, December 28th, 2010

Over the past few weeks, many of our clients have called with questions regarding the CY2011 Final Rule. We have collected several of the most frequently asked questions for you to review.  Answer sources: November 17, 2010 Federal Register Final Rule, CMS: www.cms.gov/center/hha.asp,  NAHC: teleconferences and written medium, CMS12/20 Bulletin, and MLN Matters Articles at the following site: www.cms.gov/MLNMattersArticles/downloads/SE1038.pdf.

Question: “Does CY2011 Final Rule cover all Medicare and Medicaid beneficiaries?”

Answer: The Rule is effective for fee-for-service Medicare patients admitted/SOC on or after January 1, 2011. (SOC only).

Question: “If an agency provides care and the patient keeps promising to see a physician but does not can the patient be held liable for payment to the home health agency?”

Answer: No, states CMS. HHABNs are not appropriate when non-coverage is due to failure to complete the face-to-face encounter. Agencies must give the patient advance notice of their responsibility to have the physician face-to-face encounter. Home health agencies may NOT hold the Medicare beneficiary liable for payment due to non-compliance with the face-to-face encounter.

Question: ”Can the physician sign the POC before completing the face-to-face encounter.”

Answer: The POC may be signed prior to a face-to-face encounter as may occur if the patient sees the physician within 30 days of admission to care by a home health agency. However, both the POC and the face-to-face certification statement signatures MUST be present prior to submission of the final claim.

Question: “What if the physician does not complete all required items on the face-to-face encounter form?”

Answer: If the face-to-face encounter statements do not meet the requirements of CMS, as addressed in the CY 2011 Final Rule, agencies run the risk of having their claims denied. The agency must educate the physicians to the requirements.

Question: “Since the face-to-face encounter occurs at the SOC for home health, does it only occur at the recertification for a second, 90 day benefit period for Hospice?”

Answer: The face-to-face encounter requirement will track the benefit period status, no matter the number of days of hospice care delivered. For Hospice, the face-to-face encounter occurs at the start of the third benefit period, the 180th day recertification (the benefit period following the certification for the second 90 day benefit period). For Hospice the face-to-face encounter must occur at every subsequent recertification.

Question: “As to the new G-Codes, do therapy G-Codes go into effect January 1, 2011 or April 1, 2011?”

Answer: All G-Codes, per CMS, are effective January 1, 2011. (However, many advocacy organizations are requesting a delayed implementation date). A Transmittal from CMS is due out soon.

Question: “Which G-Code should be used for skilled nursing wound care, infusion, and catheter changes?”

Answer: G-Code “154 Direct skilled nursing services of a licensed nurse (LPN or RN) in the Home Health or Hospice setting, each 15 minutes.”

Question: “How does an agency calculate the reassessment 13th and 19th visits? Should each discipline count their own visits individually or should we count all therapy visits? When does this go into effect?”

Answer: Per CMS and NAHC “CMS goal is to ensure that the qualified therapist for EACH discipline providing services assess the patient before the TOTAL number of therapy visits reaches the 14th and 20th visit therapy threshold. Therefore, this is a combined therapy count.”

There has been speculation re “flexibility,” re reassessment visits and  days, but, agencies should read the soon to be released transmittal regarding this before finalizing policy.  CMS is to identify SPECIFICALLY how much flexibility will be given as to ranges of time for the qualified visit.

Before the episode completion, the qualified therapist must document progress toward goals established to justify continued therapy. The therapy requirements, other than therapy G-Codes, go into effect April 1, 2011.

Question: “Can a therapy assistant provide maintenance therapy visits?”

Answer: No. The PPS Update Notice stated, “Maintenance therapy will continue to be covered in the home health setting when the unique condition of the patient requires the complex services, which can only be provided effectively and safely by a qualified therapist. Furthermore, the maintenance therapy G-Codes are defined as provided by the qualified therapist.” (p.124)

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