nyc 2004 maintaining and expanding reimbursement opportunities in psychology: medicare as a...
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nyc 2004
Maintaining and Expanding Reimbursement Opportunities
in Psychology: Medicare as a Benchmark
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nyc 2004
New York, New YorkMarch 14, 2004
Antonio E. Puente, Ph.D.
Department of Psychology
University of North Carolina at Wilmington
Wilmington, NC 28403
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Contact Information
• Websites– Univ = www.uncw.edu/people/puente– Practice = www.clinicalneuropsychology.us
• E-mail– University = [email protected]– Practice = [email protected]
• Telephone– University = 910.962.3812– Practice = 910.509.9371
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AcknowledgmentsDepartment of Psychology, UNC-WilmingtonNCPA Board of Directors, Practice Division, & StaffNAN Board of Directors, Executive Directors’
Office, Policy and Planning Committee, & Professional Affairs and Information Office
Division 40 Board of Directors & Practice Committee
Practice Directorate of the American Psychological Association
American Medical Association’s CPT StaffCMS Medical Policy StaffSelected Individuals (e.g., Jim Georgoulakis)
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Background(1988 – present)
North Carolina Psychological Association (e) APA’s Policy & Planning Board; Div. 40 (e) American Medical Association’s Current Procedural
Terminology Committee (IV/V) (a) Health Care Finance Administration’s Working Group
for Mental Health Policy (a) Center for Medicare/Medicaid Services’ Medicare
Coverage Advisory Committee (fa) Consultant with the North Carolina Medicaid
Office;North Carolina Blue Cross/Blue Shield (a) NAN’s Professional Affairs & Information Office (a)(legend; a = appointment, fa = federal appointment, e =
elected)
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Purpose of Presentation
• Increase Reimbursement• Increase Range, Type & Quality of Services• Decrease Fraud & Abuse• Provide Guidelines for Professional Services• Maintain Professional Stature Within Psychology• Increase Professional Stature in Health Care, in
general
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Outline of Presentation
• Medicare• Current Procedural Terminology: Basic • Current Procedural Terminology: Related• Relative Value Units• Current Problems & Possible Solutions• Future Directions & Problems• Resources• Independent Audit
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Outline: Highlights
• New Codes
• Expanding Paradigms
• Fraud, Abuse; Coding & Documentation
• The Problem with Testing
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Medicare: Overview
• Why Focus on Medicare
• The Medicare Program
• Local Medical Review (policy & panels)
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Medicare: Why
• The Standard – Coding– Value– Documentation
• Approximately 50% for Institutions• Approximately 33% for Outpatient Offices• Becoming the Standard for Workers
Comp.• Increasing Percentage for Forensic Work
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Medicare: Overview
• New Name: HCFA now CMS– Centers for Medicare and Medicaid Services
• New Charge: Simplify
• New Organization: Beneficiary, Medicare, Medicaid
• Benefits– Part A (Hospital)– Part B (Supplementary)– Part C (Medicare+ Choice)
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Medicare: Local Review
• Local Medical Review Policy– LMRP vs National Policy– Location of LMRPs
• Carrier Medical Director– A Physician-based Model
• Policy Panels– Lack of Understanding of Their Roles– Lack of Representation on Such Panels
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Medicare Payment(since 1993)
• Surgical – Higher Reimbursement than Cognitive
• Cognitive– Physician Cognitive Work– Supporting Equipment & Staff
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Medicare Payment
• When to Bill– inpatient - discharge, monthly– Outpatient – therapy = after visit; testing = ?
• Participating Vs. Nonparticipating– 95 vs. 100%
• Specialty, Provider & Revenue Codes– Specialty = 62– Provider type = 35– Revenue = facility based
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Current Procedural Terminology: Overview
• Background
• Codes & Coding
• Existing Codes
• Model System X Type of Problem
• Medical Necessity
• Documenting
• Time
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CPT: Background
• American Medical Association– Developed by Surgeons (& Physicians) in
1966 for Billing Purposes– 7,500+ Discrete Codes
• CMS– AMA Under License with CMS– CMS Now Provides Active Input into CPT
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CPT: Background/Direction
• Current System = CPT 5
• Categories– I= Standard Coding for Professional Services– II = Performance Measurement– III = Emerging Technology
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CPT: Applicable Codes
• Total Possible Codes = Approximately 7,500• Possible Codes for Psychology = Approximately
40 to 60• Sections = Five Separate Sections
– Psychiatry– Biofeedback– Central Nervous Assessment– Physical Medicine & Rehabilitation– Health & Behavior Assessment & Management– Possibly, Evaluation & Management
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CPT: Development of a Code
• Initial– Health Care Advisory Committee (non-MDs)
• Primary– CPT Work Group– CPT Panel
• Time Frame– 3-5 years
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CPT: Psychiatry
• Sections– Interview vs. Intervention– Office vs. Inpatient– Regular vs. Evaluation & Management– Other
• Types of Interventions– Insight, Behavior Modifying, and/or Supportive
vs. Interactive
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CPT: Psychiatry (cont.)
• Time Value– 30, 60, or 90
• Interview– 90801
• Intervention– 90804 - 90857
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CPT: Biofeedback
• Psychophysiological Training– 90901
• Biofeedback– 90875
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CPT: CNS Assessment
• Interview– 96115
• Testing– Psychological = 96100; 96110/11– Neuropsychological = 96117– Developmental = 96111 (not per hour)– Other = 96105, 96110/111
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CPT: 96117 in Detail
• Number of Encounters in 2000 = 293,000
• Number of Medical Specialties Using 96117 = over 40
• Psychiatry & Neurology = Approximately 3% each
• Clinics or Other Groups = 3%
• Unknown Data = Use of Technicians
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CPT: Physical Medicine & Rehabilitation
• 97770 now 97532
• Note: 15 minute increments
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CPT: Health & Behavior Assessment & Management
• Purpose: Medical Diagnosis
• Time: 15 Minute Increments
• Assessment
• Intervention
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Rationale: General
• Acute or chronic (health) illness may not meet the criteria for a psychiatric diagnosis
• Avoids inappropriate labeling of a patient as having a mental health disorder
• Increases the accuracy of correct coding of professional services
• May expand the type of assessments and interventions afforded to individuals with health problems
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Rationale: Specific Examples
• Patient Adherence to Medical Treatment
• Symptom Management & Expression
• Health-promoting Behaviors
• Health-related Risk-taking Behaviors
• Overall Adjustment to Medical Illness
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Overview of Codes
• New Subsection
• Six New Codes– Assessment– Intervention
• Established Medical Illness or Diagnosis
• Focus on Biopsychosocial Factors
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Assessment Explanation
• Identification of psychological, behavioral, emotional, cognitive, and social factors
• In the prevention, treatment, and/or management of physical health problems
• Focus on biopsychosocial factors (not mental health)
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Assessment (continued)
• May include (examples);– health-focused clinical interview– behavioral observations– psychophysiological monitoring– health-oriented questionnaires– and, assessment/interpretation of the
aforementioned
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Intervention Explanation
• Modification of psychological, behavioral, emotional, cognitive, and/or social factors
• Affecting physiological functioning, disease status, health, and/or well being
• Focus = improvement of health with cognitive, behavioral, social, and/or psychophysiological procedures
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Intervention (continued)
• May include the following procedures (examples);– Cognitive– Behavioral– Social– Psychophysiological
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Diagnosis Match
• Associated with acute or chronic illness
• Prevention of a physical illness or disability
• Not meeting criteria for a psychiatric diagnosis or representing a preventative medicine service
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Related Psychiatric Codes
• If psychiatric services are required (90801-90899) along with these, report predominant service
• Do not report psychiatric and these codes on the same day
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Related Evaluation & Management Codes
• Do not report Evaluation & Management codes the same day
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Code X Personnel (examples)
• Physicians (pediatricians, family physicians, internists, & psychiatrists)
• Psychologists• Advanced Practice Nurses• Clinical Social Workers Excluded• Other health care professionals within their
scope of practice who have specialty or subspecialty training in health and behavior assessments and interventions
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Health & Behavior Assessment Codes
• 96150– Health and behavior assessment (e.g., health-
focused clinical interview, behavioral observations, psychophysiological monitoring, health-oriented questionnaires)
– each 15 minutes– face-to-face with the patient– initial assessment
• 96151– re-assessment
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Health & Behavior Intervention Codes
• 96152– Health and behavior intervention
– each 15 minutes
– face-to-face
– individual
• 96153– group (2 or more patients)
• 96154– family (with the patient present)
• 96155– family (without the patient present)
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Relative Values for Health & Behavior A/I Codes
• 96150 = .50
• 96151 = .48
• 96152 = . 46
• 96153 = .10
• 96154 = .45
• 96155 = .44
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Expected Payment for Health & Behavior Codes
• Individual (per hour)– Range $98-106
• Group (per person/ per hour)– Approximately $22
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96150 Clinical Example• A 5-year-old boy undergoing treatment for
acute lymphoblastic leukemia is referred for assessment of pain, severe behavioral distress and combativeness associated with repeated lumbar punctures and intrathecal chemotherapy administration. Previously unsuccessful approaches had included pharmacologic treatment of anxiety (ativan), conscious sedation using Versed and finally, chlorohydrate, which only exacerbated the child’s distress as a result of partial sedation. General anesthesia was ruled out because the child’s asthma increased anesthesia respiratory risk to unacceptable levels.
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96150 Description of Procedure
• The patient was assessed using standardized tests and questionnaires (e.g., the Information-seeking scale, Pediatric Pain Questionnaire, Coping Strategies Inventory) which, in view of the child’s age, were administered in a structured format. The medical staff and child’s parents were also interviewed. On the day of a scheduled medical procedure, the child completed a self-report distress questionnaire.Behavioral observations were also made during the procedure using the CAMPIS-R, a structured observation scale that quantifies child, parent, and medical staff behavior.
• An assessment of the patient’s condition was performed through the administration of various health and behavior instruments.
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96151 Clinical Example• A 35-year-old female, diagnosed with chronic asthma,
hypertension and panic attacks was originally seen ten months ago for assessment and follow-up treatment. Original assessment included extensive interview regarding patient’s emotional, social, and medical history, including her ability to manage problems related to the chronic asthma, hospitalizations, and treatments. Test results from original assessment provided information for treatment planning which included health and behavior interventions using a combination of behavioral cognitive therapy, relaxation response training and visualization. After four months of treatment interventions, the patient’s hypertension and anxiety were significantly reduced and thus the patient was discharged. Now six months following discharge, the patient has injured her knee and has undergone arthroscopic surgery with follow-up therapy
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96151 Description of Procedure
• Patient was seen to reassess and evaluate psychophysiological responses to these new health stressors. A review of the records from the initial assessment, including testing and treatment intervention, as well as current medical records was made. Patient’s affective and physiological status, compliance disposition, and perceptions of efficacy of relaxation and visualization practices utilized during previous treatment intervention are examined. Administration of anxiety inventory/questionnaire (e.g., Burns Anxiety Inventory) is used to quantify patient’s current level of response to present health stressors and compared to original assessment levels. Need for further treatment is evaluated.
• A reassessment of the patients condition was performed through the use of interview and behavioral health instruments.
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96152 Clinical Example
• A 55-year-old executive has a history of cardiac arrest, high blood pressure and cholesterol, and a family history of cardiac problems. He is 30 lbs. overweight, travels extensively for work, and reports to be a moderate social drinker. He currently smokes one-half pack of cigarettes a day, although he had periodically attempted to quit smoking for up to five weeks at a time. The patient is considered by his physician to be a “Type A” personality and at high risk for cardiac complications. He experiences angina pains one or two times per month. The patient is seen by a behavior medicine specialist. Results from the health and behavior assessment are used to develop a treatment plan, taking into account the patient’s coping skills and lifestyle.
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96152 Description of Procedure
• Weekly intervention sessions focus on psychoeducational factors impacting his awareness and knowledge about his disease process, and the use of relaxation and guided imagery techniques that directly impact his blood pressure and heart rate. Cognitive and behavioral approaches for cessation of smoking and initiation of an appropriate physician-prescribed diet and exercise regimen are also employed.
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96153 Clinical Example
• A 45-year-old female is referred for smoking cessation secondary to chronic bronchitis, with a strong family history of emphysema. She smokes two packs per day. The health and behavior assessment reveals that the patient uses smoking as a primary way of coping with stress. Social Influences contributing to her continued smoking include several friends and family members who also smoke. The patient has made multiple previous attempts to quit “on her own”. When treatment options are reviewed, she is receptive to the recommendation of an eight-session group cessation program.
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96153 Description of Procedure
• The program components include educational information (e.g., health risks, nicotine addiction), cognitive-behavioral treatment (e.g., self-monitoring, relaxation training, and behavioral substitution), and social support (e.g., group discussion, social skills training). Participants taper intake over four weeks to a quit date and then attend three more sessions for relapse prevention. Each group sessions lasts 1.5 hrs.
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96154 Clinical Example
• Tara is a 9-year-old girl, diagnosed with insulin dependent diabetes two years ago. Her mother reports great difficulty with morning and evening insulin injections and blood glucose testing. Tara whines and cries, delaying the procedures for 30 minutes or more. She refused to give her own injections or conduct her own blood glucose tests, claiming they “hurt”. Her mother spends many minutes pleading for her cooperation. Tara’s father refuses to participate, saying he is “afraid” of her needles. Both parents have not been able to go to a movie or dinner alone, because they know of no one who can care for Tara. Tara’s ten year old sister claims she never has any time with her mother, since her mother is always occupied with Tara’s illness. Tara and her sister have a very poor relationship and are always quarreling. Tara’s parents frequently argue; her mother complains that she gets no help from her husband. Tara’s father complains that his wife has no time for anyone except Tara.
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96154 Description of Procedure
• A family-based approach is used to address the multiple components of Tara’s problem behaviors. Relaxation and exposure techniques are used to address Tara’s father’s fear of injections, which he has inadvertently has been modeling for Tara. Tara is taught relaxation and distraction techniques to reduce the tension she experiences with finger sticks and injections. Both parents are taught to shape Tara’s behavior, praising and rewarding successful diabetes management behaviors, and ignoring delay tactics. Her parents are also taught judicious use of time-out and response cost procedures. Family roles and responsibilities are clarified. Clear communication, conflict-resolution, and problem-solving skills are taught. Family members practice applying these skills to a variety of problems so that they will know how to successfully address new problems that may arise in the future.
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96155 Clinical Example
• Greg is a 42-year-old male diagnosed with cancer of the pancreas. He is currently undergoing both aggressive chemotherapy and radiation treatments. However, his prognosis is guarded. At present, he is not in the endstage disease process and therefore does not qualify for Hospice care. The patient is seen initially to address issues of pain management via imagery, breathing exercises, and other therapeutic interventions to assess quality of life issues, treatment options, and death and dying issues.
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nyc 2004
96155 Description of Procedure
• Due to the medical protocol and the patient’s inability to travel to additional sessions between hospitalizations, a plan is developed for extending treatment at home via the patient’s wife, who is his primary home caregiver. The patient’s wife is seen by the healthcare provider to train the wife in how to assist the patient in objectively monitoring his pain and in applying exercises learned via his treatment sessions to manage pain. Issues of the patient’s quality of life, as well as death and dying concerns, are also addressed with assistance given to the wife as to how to make appropriate home interventions between sessions. Effective communication techniques with her husband’s physician and other members of his treatment team regarding his treatment protocols are facilitated.
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nyc 2004
CPT: Modifiers
• Acceptability– Medicare = about 100%– Others = approximating 90%
• Modifiers– 22 = unusual or more extensive service– 51 = multiple procedures– 52 = reduced service– 53 = discontinued service
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nyc 2004
CPT: Possibilities
• Telephone contact– Established– Very well defined– Telephone web– Telephone with documentation
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nyc 2004
CPT Possibilities
• Work Related or Medical Disability Evaluation Services– 99450 Basic life and/or disability evaluation– 99555 Evaluation by treating physician– 99456 Evaluation by non-treating physician
would include;historyevaluationdiagnosisfuture treatment planscompletion of documentation/certificates
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nyc 2004
CPT: Model System
• Psychiatric
• Neurological
• Non-Neurological Medical
• Possibly, Evaluation & Management
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nyc 2004
CPT: Psychiatric Model(Children & Adult)
• Interview– 90801
• Testing– 96100, or– 96110/11
• Intervention– e.g., 90806– The challenge of New Mexico
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nyc 2004
CPT: Neurological Model(Children & Adult)
• Interview– 96115
• Testing– 96117
• Intervention
– 97532
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nyc 2004
CPT: Non-Neurological Medical Model
(Children & Adult)
• Interview & Assessment– 96150 (initial)– 96151 (re-evaluation)
• Intervention– 96152 (individual)– 96153 (group)– 96154 (family with patient)– 96155 (family without patient)
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nyc 2004
CPT: New Paradigms
• Initial Psychiatric
• Next Neurological
• Now Medical
• Medical as Evaluation & Management
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nyc 2004
CPT: Evaluation & Management
• Role of Evaluation & Management Codes– Procedures– Case Management
• Limitations Imposed by AMA’s House of Delegates for CMS but not for Private Payers
• Health & Behavior Codes as an Alternative to E & M Codes
• The Use of E & M Codes is Accepted by Some Third Party Reimburses (e.g., MedCost)– Example; 99201 New Patient
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nyc 2004
CPT: Diagnosing
• Psychiatric– DSM
• The problem with DSM and neuropsych testing of developmentally-related neurological problems
• Neurological & Non-Neurological Medical– ICD (or see NAN Paio web page; membership
directory)– Neurological Code Updates Available by
01.01.03
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nyc 2004
CPT: Medical Necessity
• Scientific & Clinical Necessity• Local Medical Review or Carrier
Definitions of Necessity• Necessity = CPT x DX• Necessity Dictates Type and Level of
Service• Necessity Can Only be Proven with
Documentation
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nyc 2004
CPT: Coding Matrices
• EMSCO & Fraud
• Underlying Problem = Medical Decision Making
• Do not use:– Coding Matrices– Grids– Related Shortcuts
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nyc 2004
CPT: Documenting
• Purpose
• Payer Requirements
• General Principles
• History
• Examination
• Decision Making
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nyc 2004
Documentation: Purpose
• Medical Necessity
• Evaluate and Plan for Treatment
• Communication and Continuity of Care
• Claims Review and Payment
• Research and Education
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nyc 2004
Documentation: Payer Requirements
• Site of Service
• Medical Necessity for Service Provided
• Appropriate Reporting of Activity
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nyc 2004
Documentation: General Principles
• Rationale for Service
• Complete and Legible
• Reason/Rationale for Service
• Assessment, Progress, Impression, or Diagnosis
• Plan for Care
• Date and Identity of Observe
• Timely
• Confidential
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nyc 2004
Documentation: Basic Information Across All Codes
• Date• Time, if applicable• Identify of Observer (technician ?)• Reason for Service• Status• Procedure• Results/Finding• Impression/Diagnoses• Disposition• Stand Alone
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nyc 2004
Documentation: Chief Complaint
• Concise Statement Describing the Symptom, Problem, Condition, & Diagnosis
• Foundation for Medical Necessity
• Must be Complete & Exhaustive
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nyc 2004
Documentation: Present Illness
• Symptoms– Location, Quality, Severity, Duration, timing,
Context, Modifying Factors Associated Signs
• Follow-up– Changes in Condition– Compliance
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nyc 2004
Documentation: History
• Past
• Family
• Social
• Medical/Psychological
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nyc 2004
Documentation:Mental Status
• Language• Thought Processes• Insight• Judgment• Reliability• Reasoning• Perceptions
• Suicidality• Violence• Mood & Affect• Orientation• Memory• Attention• Intelligence
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nyc 2004
Documentation:Neurobehavioral Status Exam
• Attention
• Memory
• Visuo-spatial
• Language
• Planning
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nyc 2004
Documentation: Testing
• Names of Tests (including edition/version)• Interpretation of Tests (narrative; possibly
quantitative)• Disposition• Time/Dates
– In Hours (rounded to nearest hour)– Document on Day Service is Provided– Might be Best to Separate from Interview
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nyc 2004
Documentation: Intervention
• Reason for Service
• Status
• Intervention
• Results
• Impression
• Disposition
• Time
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nyc 2004
Documentation for Workers Compensation/Disability
• Completion of comprehensive history• Performance of appropriate examination• Assessment of functional capacities• Referral for appropriate further testing• Recommendation for treatment• Preparation of report• Analysis of causation• Determination of impairment• Review of records• Review of prior treatment for medical necessity• Discussion with appropriate parties• Other case management activities
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nyc 2004
Documentation:Suggestions
• Avoid Handwritten Notes
• Do Not Use Red Ink
• Avoid Color Paper
• Document On and After Every Encounter, Every Procedure, Every Patient
• Review Changes Whenever Applicable
• Avoid Standard Phrases
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nyc 2004
Documentation: Ethical Issues
• How Much and To Whom Should Information be Divulged
• Medical Necessity vs. Confidentiality
• HIPAA vs. Documentation
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nyc 2004
Time
• Defining– Professional (not patient) Time Including:
• pre, intra & post-clinical service activities
• Interview & Assessment Codes– Generally use hourly increments– For new codes, use 15 minute increments
• Intervention Codes– Use 15, 30, or 60 minute increments
![Page 82: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/82.jpg)
nyc 2004
Time: Definition
• AMA Definition of Time
• Physicians also spend time during work, before, or after the face-to-face time with the patient, performing such tasks as reviewing records & tests, arranging for services & communicating further with other professionals & the patient through written reports & telephone contact.
![Page 83: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/83.jpg)
nyc 2004
Time (continued)
• Communicating further with others
• Follow-up with patient, family, and/or others
• Arranging for ancillary and/or other services
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nyc 2004
Time: Defined Further
• Evaluation Versus Therapy Time– Therapy is Essentially Face to Face– Testing is Essentially Professional Time
• Inpatient Versus Outpatient
- If Outpatient: face to face only for E & M
- If Inpatient: time on floor for E & M
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nyc 2004
Time: Testing
• Quantifying Time– Round up or down to nearest increment– Testing = 15 or 60 (probably soon 30)
• Time Does Not Include– Patient completing tests, forms, etc.– Waiting time by patient– Typing of reports– Non-Professional (e.g., clerical) time– Literature searches, learning new techniques, etc.
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nyc 2004
Time (continued)
• Preparing to See Patient• Reviewing of Records• Interviewing Patient, Family, and Others• When Doing Assessments:
– Selection of tests– Scoring of tests– Reviewing results– Interpretation of results– Preparation and report writing
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nyc 2004
Time: Example of 96117
• Pre-Service– Review of medical records– Planning of testing
• Intra-Service– Administration
• Post-Service– Scoring, interpretation, integration with other
records, written report, follow-up...
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nyc 2004
Reimbursement History
• Cost Plus
• Prospective Payment System (PPS)
• Diagnostic Related Groups (DRGs)
• Customary, Prevailing & Reasonable (CPR)
• Resource Based Relative Value System (RBRVS)
![Page 89: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/89.jpg)
nyc 2004
Relative Value Units: Overview
• Components
• Units
• Values
• Current Problems
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nyc 2004
RVU: Components
• Physician Work Resource Value
• Practice Expense Resource Value
• Malpractice
• Geographic
• Conversion Factor (approx. $37)
![Page 91: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/91.jpg)
nyc 2004
RVU: Values
• Psychotherapy:– Prior Value =1.86– New Value = 2.0+ (01.01.02)
• Psych/NP Testing: – Work value= 0– Hsiao study recommendation = 2.2– New Value = undetermined
• Health & Behavior– .25 (per 15 minutes increments)
![Page 92: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/92.jpg)
nyc 2004
RVU Values
• Practice Expense = 43.60%
• Work Value =52.47%
• Liability = 3.80%
![Page 93: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/93.jpg)
nyc 2004
RVU: Acceptance
• Medicare• Blue Cross/Blue Shield 87%• Managed Care 69%• Medicaid 55%• Other 44%• New Trends:
– RVUs as a Model for All Insurance Companies– RVUs as a Basis for Compensation Formulas
![Page 94: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/94.jpg)
nyc 2004
CPT x RVU
CPTCode
WorkValue
PracticeExpense
MalpracticeExpense
TotalRVU
MutuallyExclusive
90801 2.80 1.14 0.06 4.00 90802, 90846, 90847,90853, 99291, 99292
90806 1.86 0.75 0.04 2.65 90801 (?)
96100 0 1.67 0.15 1.82 96110, 96 115
96115 0 1.67 0.15 1.82 - // -
96117 0 1.67 0.15 1.82 96110, 96111
96150 0.5 0.2 0.02 0.72 96151, 96152, 96153,96154, 96155
96152 0.46 0.18 0.02 0.66 96150, 96151, 96153,96154, 96155
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nyc 2004
Current Problems • Definition of Physician• Incident to• Supervision• Face-to-Face• Time• RVUs• Work Values• Qualification of Technicians• Practice Expense & Testing Survey• Payment• Prospective Payment System• Skilled Nursing & Rehabilitation Facilities• Provider Based Facilities• Focus for Fraud & Abuse
![Page 96: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/96.jpg)
nyc 2004
Current Problems: Highlights
• Work Value for Testing Codes
• Provision & Coding of Technical Services (e.g., who is qualified to provide them)
• Mental vs. Physical Health
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nyc 2004
Problem: Defining Physician
• Definition of a Physician– Social Security Practice Act of 1980– Definition of a Physician– Need for Congressional Act– Likelihood of Congressional Act– The Value of Technical Services of a
Psychologist is $.83/hour (second highest after physicist)
– Consequence of the preceding; grouping with non-doctoral level allied health providers
![Page 98: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/98.jpg)
nyc 2004
Problem: Incident to
• Rationale for Incident to– Congress intended to provide coverage for services not
typically covered elsewhere
• Definition of Physician Extender– How– Limitations
• Definition of In vs. Outpatient– Geographic Vs Financial
• Why No Incident to (DRG)• Solution Available for Some Training Programs• Probably no Future to Incident to
![Page 99: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/99.jpg)
nyc 2004
Problem: More Incident to
• When is “Incident to” Acceptable:– Testing – Cognitive Rehabilitation; Biofeedback– Psychotherapy
• Definition– Commonly furnished service– Integral, though incidental to psychologist– Performed under the supervision– Either furnished without charge or as part of the
psychologist’s charge
![Page 100: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/100.jpg)
nyc 2004
Problem: Incident to & Site of Service
• Outpatient vs. Inpatient– Geographical Location– Corporate Relationship– Billing Service– Chart Information & Location
![Page 101: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/101.jpg)
nyc 2004
Problem: Incident to versus Independent
Service• When Does Incident to Become
Independent Service– Appearance of No Supervision– Clinical Decisions are Made by Staff– Ratio of Physician to Staff Time Becomes
Disproportionate– Distance Difficulties– Supervision Difficulties
![Page 102: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/102.jpg)
nyc 2004
Problems:Recent Difficulties with Incident
to
• Who Bills Incident to– Treating Physician Bills not the Supervising
Physician– Then, Who is the Responsible Party
• The Physician Must Treat the Patient First• Physician Bonuses Must Tied to a Groups’
Overall Pool of Income (e.g., not referral or possibly individual productivity)
![Page 103: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/103.jpg)
nyc 2004
Problem:Supervision
• Supervision– 1.General = overall direction– 2.Direct = present in office suite– 3.Personal = in actual room– 4.Psychological = when supervised by a
psychologist
![Page 104: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/104.jpg)
nyc 2004
Problem: Face-to-Face
• Implications
• Technical versus Professional Services
• Surgery is the Foundation for CPT (and most work is face-to-face)
• Hard to Document & Trace Non-Face-to-Face Work
![Page 105: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/105.jpg)
nyc 2004
Problem: Time
• Time Based Professional Activity
• Current =15, 30, 60, & 90
• Expected = 15 & 30
![Page 106: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/106.jpg)
nyc 2004
Problem: RVUs
• Bad News– 2000 = 5.5% increase– 2001 = 4.5% increase– 2002 = 5.4% decrease– 2003 = 4.4 to 5.7% decrease ($34.14)– 2004 = 1.5% increase ($37?)
• Really Bad News– Bush Administration not supportive of changing the
conversion formula– Change Continued to Probably 2005 Depending on
Such Factors as the Stock Market (e.g., 5000)
![Page 107: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/107.jpg)
nyc 2004
Problem: Work Value
• Physician Activities (e.g., Psychotherapy) Result in Work Values
• Psychological Based Activities (i.e., Testing) Have no Work Values
• RVUs are Heavily Based on Practice Expenses (which are being reduced)
• Net Result = Maybe Up to a Half Lower
![Page 108: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/108.jpg)
nyc 2004
Problem:An Artificial Practice Expense
• Five Year Reviews• Prior Methodology• Current Methodology• Current Value = approximately 1.5 of 1.75 is
practice• Deadline for New Practice Expense = 2002
– Currently in Check Due to the Ongoing Survey
• Expected Value = closer to 50% of total value at best
![Page 109: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/109.jpg)
nyc 2004
Problem: Work Value of Testing
• First Round• Second Round• Current Round
![Page 110: Nyc 2004 Maintaining and Expanding Reimbursement Opportunities in Psychology: Medicare as a Benchmark](https://reader035.vdocuments.us/reader035/viewer/2022070323/56649dd15503460f94ac76dd/html5/thumbnails/110.jpg)
nyc 2004
Problem: Qualification of Technician
• What is the Minimum Level of Training Required for a Technician?– Bachelor’s vs. Masters– Intern vs. Postdoctoral
• Will a Registry be Available?– Is This Something NAN and Division 40
Should Consider?
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nyc 2004
Problem:Who is a Neuropsychologist?• APA and Accreditation
– www.apaoutside.apa.org/accreditation
• APA and Psychological Specialities &Proficiencies- www.apa.org.crspp/reviseddocs.html.
• Definition of a Clinical Neuropsychologist; the old and the new– Division 40– National Academy of Neuropsychology
• Board Certification
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nyc 2004
Problem: Payment
• Origins of the Problem– Balanced Budget Act of 1997– Employer’s Cost for Health Care in 2002 =
$5,000 per employee
• What Should Your Code Be Payed at?– www.webstore.ama-assn.org-
• State Legislation– www.insure.com/health/lawtool.cfm
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nyc 2004
Problem:Payment Problems
• Payment Reduction Software Programs– Claimcheck (McKesson product; Cigna, PacifiCare)– Patterns (McKesson product; United)
• Refilling– 51% require refilling of original forms– But, up to 60% do not follow up
• Errors– 54% = plan administrator– 17% = provider– 29% = member
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nyc 2004
Problem: Payment
• Use of HMOs & Third Party– Shift in Practice Patterns by Psychiatry (14%
increase)– Exclusion of MSW, etc.– Worst Hit Are Psychologists (2% decrease)
• Compensation– Gross Charges– Adjusted Charges– RVUs– Receivables
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nyc 2004
Problem: Payment of Health & Behavior Codes
• Medicare Almost all Resolved• Non-Medicare Resolving
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nyc 2004
Problem: PPS
• Application of PPS (inpatient rehab)
• Traditional Reimbursement
• Current Unbundling
• Potential Situation
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nyc 2004
Problem:Skilled Nursing Facility
• Consolidated Billing
• BBA 1997– $1,500 total for outpatient services
• Excluded Codes in Consolidated Billing– 96115 (Neurobehavioral Status Exam)– 90901 & 90911 (Biofeedback)
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nyc 2004
Problem: 65/75 Split for Rehabilitation Facilities
• 75% Rule – Stroke– Spinal Cord Injury– Congenital Deformity– Amputation– Multiple Trauma– Hip Fracture– Brain Injury– Arthritis
» Changing to 75% pf 20 of 21 Rehabilitation Impairment Categories
» Possibly changing to 65%
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nyc 2004
Problem:Provider-Based Facilities
• Is Facility Located on Main Hospital Campus or Within 35 Miles of it
• Appropriate Reporting Relationship Exists Between Hospital and Clinical Staff
• Medicare Cost Report Includes Facility
• Records are Fully Integrated
• Facility is Presented to the Public as Part of the Hospital
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nyc 2004
Problem: Expenditures & Fraud
• Projections– Current
• 14%
– By 2011;• 17% ($2.8 trillion)
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nyc 2004
Problems: Expenditures & Fraud
• Examples– New York (08.2003)
• Sharing a provider number • Physical therapy services provided under provider number
– New York (05.2003)• Falsifying services that were not rendered
– West Virginia (02.2003)• Presigned on Saturdays, services performed during week
– Nadolni Billing Service (Memphis)• $5 million in claims to CIGNA for psychological services• $250,000 fine (& tax evasion)
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nyc 2004
Defining Fraud
• Fraud– Intentional– Pattern
• Error– Clerical– Dates
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nyc 2004
Problem: Fraud & Abuse • 26 Different Kinds of Fraud Types
• Mental Health Profiled
• Estimates of Less Than 10% Recovered
• Psychotherapy Estimates/Day = 9.67 hours– Review Likely if Over 12 Hours Per Day
• Problems with Methodology;– MS level and RN– Limited Sampling
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nyc 2004
Problem: FraudOffice of Inspector General
• Primary Problems– Medical Necessity (approximately $5 billion)– Documentation
• Psychotherapy (oig.hhs/gov/reports/region5/50100068)– Individual– Group– # of Hours– Who Does the Therapy
• Psychological Testing– # of Hours– Documentation
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nyc 2004
Problem: Fraud & “The Orange Book”
• Contractor Operations– Strengthen Regional Offices Oversight– Improve Evaluation of Fraud Unit– Prevent Duplicate Payments for Same Service
• Hospital Operations– Identify Patterns of Aberrant Overpayment– Improve External Review of Psychiatric Hospitals
• Managed Care– Retool Medicaid Programs for Managed Care
• Nursing Homes– Improve Assessments of Mental Illness– Identify Patients with Mental Illness
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nyc 2004
Problem:The “Orange Book” (continued)
• Physicians/Allied Health Professionals– Improve Oversight of Rural Health Clinics– Eliminate Inappropriate Payments for Mental
Health Services– Yet, Improve Medicaid Mental Health
Programs
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nyc 2004
Problem: Fraud (cont.)
• Nursing Homes– Identification – Overuse of Services
• Children• Experience
– California; Texas– Corporation Audit– Company Audit– Personal Audit
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nyc 2004
Problem: Fraud (cont.)
• Estimated Pattern of Fraud Analysis– For-profit Medical Centers– For-profit Medical Clinics– Non-profit Medical Centers– Non-profit Medical Clinics– Nursing Homes– Group Practices– Individual Practices
• Outliers• Specialists
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nyc 2004
Problem: Mental vs. Physical
• Historical vs. Traditional vs. Recent Diagnostic Trends
• Recent Insurance Interpretations of Dxs • Limitations of the DSM • The Endless Loop of Mental vs. Physical
• NOTE: Important to realize that LMRP is almost always more restrictive than national guidelines
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nyc 2004
Problem: HIPAA
• Health Insurance Portability and Accountability Act
• Ethics versus Practicality
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nyc 2004
Possible Solutions:General Approaches
• Better Understanding & Application of CPT• More Involvement in Billing (especially in large, medical,
multidisciplinary, and academic settings)• Comprehensive Understanding of LMRP• More Representation/Involvement with AMA, CMS,
& Local Medical Review Panels• Meetings with CMS• Survey for Testing Codes• APA: Increased Staff & Relationship with CAPP
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nyc 2004
Possible Solutions:Ratio of New to Returning
• Ratio of New vs. Returning Patients– Varies, specialists more…– Across all physicians, 13.2%
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nyc 2004
Possible Solutions: Defining Payers
• Defining Payers– Review contracts– Compare relative values of contracts– Determine what each payer actually pays per
CPT code– Determine hassle factor– Determine current payer’s mix– Determine a desired payer’s mix
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nyc 2004
Possible Solutions: Value of Contracts
• Face vs. Net Value of Contracts– Referrals – Authorizations– Medical Necessity– Coding– Coverage– Post-Service Audit
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nyc 2004
Possible Solutions: Fees
• Setting Your Fees– Usual Rate– Maximum Allowable– RBRVS– Fees Across Drs but Within a Practice
• Fees can vary across and within
– Standard Physician Fees• Between 200 and 400% of Medicare• Typical multiplier is RVRVS x 2.5
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nyc 2004
Possible Solutions: Compensation for Administration
• Compensation for Administration– Divide total annual compensation by 2080,
multiply by number of hours of tasks, and add this to compensation
– MD salary average = $181, 560– Stipends = $2,000 to $15,000
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nyc 2004
Possible Solutions: Resources
• General Web Sites– www.cms.org (medicare/medicaid)– www.hhs.org (health & human services)– www.oig.hhs.gov (inspector general)– www.ahrq.gov (agency for healthcare research)– www.medpac.gov (medical payment advisory comm.)– www.whitehouse.gov/fsbr/health (statistics)– www.healthcare.group.com (staff salaries)– www.qualitytools.ahrq.gov (quality control)– www.div40.org (clinical neuropsychology div of apa)– www.nanonline.org/paio (nan)
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nyc 2004
Resources (continued)
• LMRP Reconsideration Process– www.cms.gov/manuals/pm_trans/R28PIM.pdf
• Coding Web Sites– www.aapcnatl.org (academy of coders)– www.ntis.gov/product/correct-coding (coding edits)
• Compliance Web Sites– www.apa.org (psychologists & hipaa)– www.cms.hhs.gov/hipaa. (hipaa)– www.hcca-info.org (health care compliance assoc.)
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nyc 2004
Future Perspectives• Income
– Steadier (if economy does not further erode)
– Probable incremental declines, up to 10-20%
– If Medicaid dependent (25% or more), then declines could be even higher
– Possible “final” stabilization by 2005
• Recognition– Mental to Physical Health to…
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nyc 2004
Future Perspectives: Medicare
• Conversion Factor– $37.3374– Increases of approximately 1.5%
• New Paradigms– Written response within 45 days– Toll-free telephone number– Training to providers– ALJs and appeals process in place– Prepayment audits limited– Extrapolation may not be used to determine
overpayment
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nyc 2004
Future Perspectives(continued)
• Paradigms– Industrial vs. Boutique/Niche– Clinical vs. Forensic– Mental Health vs. Health– Existing vs. Developing
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nyc 2004
Future Perspectives
• Evolving Paradigm = Continued and Significant Change
ARE YOU READY?…