Essentials of HIM - Ch 10: Coding and Reimbursement

nomenclature, classification systems

Providers and third party payers use _____ and _____ to collect, store, and process data.

payment systems, fee schedules, exclusions

Typically, third party payers adopt ____, _____, and _____ after Medicare has implemented them.

medical nomenclature

Vocabulary of clinical and medical terms.

coding system

Organizes medical nomenclature according to similar conditions, diseases, procedures, and services.

codes

Numeric and alphanumeric characters.

reimbursement, data collection, education, research

Codes are reported for _____, _____, _____ and _____.

diagnosis, procedure

Administrative simplification provisions of HIPAA required adoption of two types of code sets: _____ and _____ codes.

diseases, injuries, impairments, causes, actions

Large code sets include: (1) _____, _____, or _____; (2) ____ of the previous; (3) _____ taken to prevent, diagnose, treat or manage the previous.

race/ethnicity, type of facility, type of unit

Small code sets include: ______, _____, and ____.

ICD 9 CM, CPT, HCPCS II, CDT, NDC

Codes sets proposed by HIPAA and already in use by most health plans, clearinghouses, and provider include: _____, _____, _____, _____, and _____.

simplify, claims submission, third party payers, data quality

The intent of standard coding guidelines is to ______ _________ for health care providers who deal with multiple _____ and to improve _____

modify, system, valid codes, clearinghouse

Payers that do not follow official coding guidelines will be required to ______ their _______ to accept all _____ or contract with a ______ to process transactions.

clearinghouse

A public or private entity (billing service, repricing company) that processes or facilitates the processing of health information received from another entity.

basale nomina anatomica

Nomenclature developed in late 1800s by the Anatomical Society.

1929, New York Academy of Medicine, SND

Developed in ______ by the _____, this was the first medical nomenclature to be universally accepted in the U.S.

standardized nomenclature of disease

SND

SND

This nomenclature system introduced the concept of multi-axial coding.

Standardized nomenclature of diseases and operations

SNDO

1936, AMA, SNDO

Developed in _____ by the _____, this was based on SND and added an axis for operations

Systematized Nomenclature of Pathology

SNOP

1965, College of American Pathologists, SNOP

Published in _____ by the _____, this nomenclature consisted of a four axis system of terms and related codes used by pathologists interested in storage and retrieval of medical data.

Systematized Nomenclature of Medicine

SNOMED

1974, College of American Pathologists, SNOMED

Developed in _____ by _____, this nomenclature codifies all activities within the patient record including medical diagnoses and procedures, nursing diagnoses and procedures, patient signs and symptoms, occupational history, and many causes of disease.

Logical Observation Identifiers Names and Codes

LOINC

LOINC, SNOMED RT

This is a universal standard medical vocabulary for identifying laboratory and clinical observations. It is integrated into ______.

Unified Medical Language System

UMLS

Current Medical Information Terminology

CMIT

1981, AMA, CMIT

Developed in _____ by _____, this nomenclature is used for naming and describing diseases and conditions in practice and in areas related to medicine.

National Library of Medicine, 1986, UMLS

Developed by the ________ beginning in _____, the purpose of this system is to aid in the development of systems to help health professionals and researcher retrieve and integrate electronic biomedical information from a variety of sources and make it eas

16th Century, London Bills of Morality

Developed in _____, this is considered the first classification system.

world health organization

What organization is responsible for reviewing and revising the International Classification of Diseases Manual every 10 years?

1975

ICD 9 came out in _____.

1989, 1994

ICD 10 came out in _____ with WHO member states adopting it in _____.

detailed, 8000, 4000, alphanumeric, numeric, three, three, two, cause of death titles, conditions, coding rules

ICD 10 differs from ICD 9 in the following ways: (1) more ______ (______ categories vs _____); (2) uses three digit _____ codes (vs. three-digit _____ codes); (3) contains _____ additional chapters; (4) published in _____ volumes (vs. _____ volumes); (5)

diagnostic and statistical manual of mental disorders

DSM

DSM

Published by the _________, this is the standard classification system of mental disorders used by mental health professionals

five

DSM III has ____ axes.

current procedural terminology

CPT

AMA, 1966, CPT

Originally published by the _____ in _____, this is the national standard code set for physician services.

procedures, services, physicians, ambulatory care

CPT classifies _____ and _____, _____ and _____ settings use CPT to report procedures and services.

international classification of diseases for oncology

ICD-O

ICD O 3, 2001

_____ was implemented in _____ and uses ten digit codes to describe tumor's primary site, topography code, histology, behavior, and aggression

international classification of injuries, disabilities, and handicaps

ICIDH

1980, ICIDH

Published in _____, this classified health and health related domains that describe body functions, structures, activities, and participation

CMS, HCPCS Level II, public domain

Published by a variety of vendors, this is the coding system is managed by _____ and classifies medical equipment, injectable drugs, transportation services and other services not classified in CPT. The coding system is in the _____.

current dental terminology

CDT

ADA, CDT

Published by the _____, this classifies dental procedures and services.

National Drug Codes

NDC

FDA, NDC, public domain

Published by a variety of vendors and managed by the _____, this serves as a universal product identifier for human drugs. The coding system is in the_____.

Alternative Billing Codes

ABCodes

ABCodes

This classifies services not included in the CPT manual to describe the service, supply, or therapy provided. They may also be assigned to report nursing services and alternative medicine.

third party payer

An organization that processes claims for reimbursement covered by a health care plan.

B

Claims processed by Medicare for physician services fall under Medicare Part _____.

A

Claims processed by Medicare for health care facilities fall under Medicare Part _____.

Medicare Administrative Contractors

Payers may serve as ________ by processing both Medicare Part A and B claims.

carriers, fiscal intermediaries

Payers serve as _____ and _______ for Medicare by processing claims.

Blue Cross and Blue Shield

This third party payer covers the costs of full range of hospital and physician services.

blue cross, blue shield

With regard to BCBS, _____ initially covered just hospital care, and _____ covered just physicians' services.

commercial payers

This type of payer includes private health insurance and employer based group health insurance.

indemnity, reimburses, premiums

Private health insurance usually consists of an ______ plan which covers individuals for ____ health care expenses. The insurance company ____ the patient or the provider and individuals pay annual _____.

benefit, 80 percent, commercial health insurance plan

Employer based group health insurance is often provided as an employee ____ in which the employer pays _____ of insurance premiums and contracts with a ________.

employer self insurance plans

Type of payer. An employer accepts direct responsibility for paying employee's health care without purchasing health insurance .

third party administrator, TPA

An employer self insurance plan usually contracts with a ________ or _____.

third party administrator

An organization that provides benefit design, claims administration and utilization review to employers who use a self insurance plan.

benefit design

Medical services covered by the plan.

claims administration

Processing claims to reimburse services.

utilization review

Reviewing medical care for appropriateness, necessity, and quality.

Civilian Health and Medical Program of the Department of Veterans Affairs

CHAMPVA

CHAMPVA

Provides health care benefits to dependents of veterans rated as 100 percent permanently and totally disabled as a result of service connected conditions, veterans who died as a result of service connected conditions, and veterans who died on duty with le

Federal Employee Health Benefits Program

FEHBP

FEHBP

Voluntary health care program that covers federal employees, retirees, and their dependents and survivors.

Indian Health Service

DHHS agency that provides federal health care services to American Indians and Alaska Natives

Medicaid

A joint federal and state program that provides health care coverage to low-income populations and certain aged and disabled individuals.

Medicare

Provides health care coverage to elderly and disabled persons.

Military Health System

MHS

MHS

Provides and maintains readiness to provide health care services and support to members of the Uniformed Services during military operations and to members of Uniformed Services, family members, and other entitled to DoD health care.

TRICARE, military health care resources, civilian health care professionals

Military health plan that covers active duty and retired members of the uniformed services and their dependents. Combines _____and networks of _____.

Programs of All Inclusive Care for the Elderly

PACE

PACE

Community based Medicare and Medicaid programs that provide integrated health care and long term care services to elderly persons who require a nursing facility level of care.

State Children's Health Insurance Plan

SCHIP

SCHIP

Established to provide health assistance to uninsured, low income children either through separate programs or through expanded eligibility under state Medicaid programs.

Managed Care, capitation

Type of payer. Provider accepts a predetermined payment for each subscriber for a specific period of time. Appropriate care must be provided to subscriber even if costs exceed _____.

closed panel staff, PPOs

Managed care plans range from structured _____ model HMOs to less structured ______.

consumer directed health plans

Define employer contributions and ask employees to be more responsible for health are decisions and cost sharing.

customized sub capitation plan, flexible spending account, health savings account, health care reimbursement account, health reimbursement arrangement

Consumer Directed Health Plans include: (1) _____; (2) _____; (3) _____, (4) ______, (5) _____.

workers compensation

State mandated insurance program that reimburses health care costs and lost wages if an employee suffers a work related disease or injury.

inpatient prospective payment system

TEFRA of 1983 legislated the _________.

diagnosis related groups, predetermined, Medicare

The prospective payment system uses _____ to reimburse short term hospitals at a _______ rate for _____ inpatient services.

grouper

DRG ______ software is used to assign each DRG according to data input for each inpatient stay.

Medical Severity DRG

This was implemented by CMS in 2007 to classify inpatient hospital cases into groups according to similar resource utilization.

cost outlier

Inpatient cases that qualify for additional reimbursement is categorized as a _____

high costs

Cost outliers adjust the DRG rate when a case results in unusually ______ when compared with other cases in the same DRG

outpatient preadmission, diagnostic, therapeutic

IPPS three day payment window requires that _____ services provided by a hospital up to three days prior to a patient's inpatient admission be covered by PPS DRG payment for ______ and _____ services.

balanced budget act, 1997, resource utilization groups

______ of _____ legislated the implementation of a Skilled Nursing Facility PPS which is called ______.

RUGs, per diem, case mix

_____ reimburse Medicare SNF services according to a ________ prospective rate adjusted for _____.

OCESAA, 1999, home health resource groups

________ of _____ called for the implementation of a Home Health Prospective Payment System for Medicare home health services called ______.

HHRGs, prospectively determined, 60 days

_____ reimburse Medicare home health care services according to a ______ rates and require recertification every _____ by the physician who reviews the plan of care.

ambulatory payment classifications

______ of _____ legislated implementation of an outpatient prospective payment system (OPPS) called _____.

APCs, payment rate, more than one

_____ organize similar outpatient health care services clinically and according to resources required. A _____ is established for each, and depending on the services provided, hospitals can be paid for _____ per encounter.

inpatient rehabilitation facility prospective payment system

______ of _____ authorized implementation of a per discharge ______ for rehabilitative services.

IRFPPS

______ utilizes information from a patient assessment instrument to classify patients into distinct groups based on _____ and expected _____ needs for rehabilitative services.

Balanced Budget Refinement Act, 1999 long term care DRGs

_____ of _____ mandates implementation of a LTC PPS which uses information from long term care hospital patient records to classify patients into distinct _______ based on clinical characteristics and resource needs.

deficit reduction act, 1984, clinical laboratory fee schedule, national limitation amount

The _____ of _____ established the _____ as a methodology for determining fees for existing tests. One year later COBRA established a _____ which serves as a payment ceiling or cap on amount Medicare will pay for each test.

durable medical equipment, prosthetics/orthotics, and supplies fee schedule

_____ is a payment methodology mandated by OBRA of 1987, It was implemented to set fees for medical equipment and supplies.

OBRA, 1989, resource based relative value scale system, Medicare physician fee schedule

_____ of _____ implemented _____ which is used to reimburse physician services covered by Medicare Part B. It is now commonly called the _____.

OBRA, 1980, conditions, prospective, APCs, OPPs, relative payment weights

_____ of _____ mandated that an ambulatory surgical center could participate in Medicare if certain _____ were met and stated that the ASC payment rate is expected be calculated on a ______ basis. In 2008, Medicare implemented use of _____, _____, and ___

balanced budget act, 1997, ambulance fee schedule, relative value, deductible, 20%

_____ of _____ required implementation of an _____ which reimburses ambulance service providers a pre-established fee for each service provided. Payment for each category is based on the ______ assigned to the service. Ambulance providers will not be allo

MMA, 2003, end stage renal disease composite payment rate system, case mix adjusted composite, vary.

_____ of _____ established the _____ for services related to dialysis. The system for dialysis services is based on a _____ rate, which is a ______ rate that does not _____ according to characteristics of the beneficiary

fee for service

Most payers initially reimbursed providers according to _________.

retrospective, after, per diem

Fee for service is a _____ payment system that billed payers _____ health care services were provided to the patient. Hospital reimbursement was generated as _____ a payment system based on daily charges.

increased, prospective payment systems

Health care costs ____ dramatically with implementation of government sponsored health programs leading to the creation of _______.

prospective payment systems

______ pre-establish reimbursement rates for health care services.

case mix

Types and categories of patients

case mix analysis

When facilities analyze types and categories of patients to forecast health care trends in their facilities, ensure appropriate services are provided, and recognize different resource needs for patients.

health care trends, appropriate services, resource needs

Facilities conduct case mix analysis to forecast _____, in their facilities, ensure _______ are provided, and recognize different ______ for patients.

case mix data

Medicare and other payers review _____ because they recognize that some facilities may serve caseloads that include disproportionate shares of patients with above or below average needs.

case mix adjustment

This involves decreasing the average difference between the pre-established payment and each patient's actual cost to the facility.

average difference, pre established payment, actual cost

Multiple possible payment rates based on patients' anticipated care needs allow payment systems to decrease the _____ between _____ and each patient's ______.

high resource, low cost, low need

Case mix adjustment results in encouraging facilities to admit _____ cases and discouraging admission of _____, _____ patients.

severity of illness

The physiologic complexity that comprises the extent and interactions of a patient's disease as presented to medical personnel.

physiologic measures, signs, symptoms

Severity of illness scores are based on _____ of the degree of abnormality of individual _____ and _____ of a patient's disease.

case mix data, severity of illness scores

_____ and _____ are calculated to analyze and measure standards of patient care and assess quality.

critical pathways

Interdisciplinary guidelines developed by hospitals to facilitate management and delivery of quality clinical care in a time of restrained resources.

clinical services, time frames, resources, diagnoses, procedures

Critical pathways allow for the planning of provision of _____ that have expected _____ and ____ targeted to specific _____ and _____.

high in volume, resource use, costly

With clinical pathways, targeted clinical services are frequently those that are _____ and _____ and therefore _____.

chargemaster

This lists all of the procedures, services, and supplies provided to patients by a hospital (charges may also appear).

encounter form, superbill

An _______ (or _____) list procedures and services and supplies provided to patients by a physician (charges may also appear).

accounting code, CPT/HCPCS code number, narrative description

On chargemaster and encounter forms, each item includes _____, _____, and brief _____.

chargemasters

______ play a crucial role in data capture for hospital billing purposes.

cms 1450

Standard institutional claim form submitted by hospitals, skilled nursing facilities, and other institutional based providers to payers to obtain reimbursement for health care services provided to patients.

ub 04

Form otherwise known as CMS 1450

revenue codes

_____ classify hospital categories of service by revenue cost center (ICU, ED, etc).

cms 1500

A universal claim form developed by CMS and used by providers of services to bill professional fees to health carriers.

IRS federal tax employer identification number

The National Employer Identifier is the _______.

national provider identifier, electronic claims, 10

The _____ is a number assigned to hospitals, doctors, nursing homes and other providers in order to file _____ with insurance programs. It is a unique identifier consisting of ____ numeric digits.

national health plan identifier, 10

The _____ is assigned to third party payers, and it contains _____ numeric digits.

electronic data interchange

The computer to computer transfer of data between provider and payer via a data format agreed upon by the sending and receiving parties.

national electronic standards, payers, plans, providers

Administrative simplification provisions of HIPAA direct the federal government to adopt _____ for automated transfer of certain health care data between health care _____, _____, and _____.

hipaa format

After 2003, electronic claims will not be processed if they are in format other than the _____.

fraud

Act that represents a crime against payers or other health care programs, or attempts or conspiracies to commit those crimes.

abuse, unnecessary costs, medically necessary, recognized standards

_______ is the pattern of practice that is inconsistent with sound business, fiscal, or health service practices. It results in _____ to payers and government programs, reimbursement for services not _____, or failure to meet professionally _____ health s

documentation, proper, needed, diagnosis, direct care, treatment, good medical practice, convenience

Medical necessity requires the _____ of services or supplies that are _____ and _____ for the diagnosis or treatment of medical condition; are provided for ____, _____, and _____ of the medical condition; meet the standards of _______ in the local area; a

10000, 3, government programs

The civil monetary penalties act imposes a maximum of up to _____ dollars plus a maximum assessment of up to ____ times the amount claimed by providers who knew the procedure was not rendered and submitted on the claim. Violators can also be excluded from

compliance guidelines

The DHHS OIG developed a series of provider specific _____ which identify risk areas and offer concrete suggestions to improve and enhance an organization's internal controls to billing practices and business arrangement are in order.

national correct coding initiative

Developed by CMS to promote national correct coding methodologies and to eliminate improper coding.

false claims act

Imposes civil liability on those who submit false claims to government for payment and can exclude violators from participating in government programs.

qui tam

Provisions of federal False Claims Act that encourages and rewards private individuals who are aware of fraud being committed against government.

federal antikickback statute, 25000, 5

Prohibits the offer, payment, or solicitation of compensation for referring Medicare/Medicaid patients. Imposes a ______ dollar fine per violation, plus imprisonment for up to ____ years.

safe harbor regulations

Specifies various payment and business practices that, although potentially capable of inducing referrals of business reimbursement under federal health care programs, would not be treated as criminal offenses under the antikickback statute.

subtitle A

______ of HIPAA authorized implementation of a fraud and abuse control program, which coordinates federal, state, and local law enforcement programs to control fraud and abuse with health plans and health care delivery.

payment error and prevention program

Identifies and reduces improper Medicare payments resulting in a reduction in the Medicare payment error rate. Participates in overpayment recovery.

stark I physician self referral law

Prohibits a physician from referring Medicare patients to clinical laboratory services where they or a member of their family have a financial interest.

stark II physician self referral law

Prohibits a physician from referring Medicare patients to clinical laboratory services or other services (e.g., home health, outpatient prescription drugs, radiation therapy) where they or a member of their family have a financial interest.

physicians at teaching hospitals

Requires a national review of teaching hospitals compliance with reimbursement rules and training of physician who provide services at teaching hospitals. Danger of some organizations billing Medicare part B for services paid under part A.

recovery audit contractor program, overpayments, underpayments

Mandated by MMA to find and correct improper Medicare payments paid to providers participating in fee for service Medicare. Goal is to identify _______ and _______.

overpayments

Occurs when health care providers submit claims that do not meet Medicare's NCCI or medical necessity policies.

underpayments

Occur when health care providers submit claims for a simple procedure but upon review of the record a more complicated procedure was documented as being done.

clinical circumstances, correctly coded, correct claims

LCDs and NCDs specify under what _____ a service is covered and _____. They assist providers in submitting _____ for payment.

LCDs

These outline how contractors will review claims to ensure that they meet Medicare coverage requirements. They are published to provide guidance within a specified geographic area.

local coverage determinations, national coverage determinations

LCDs, NCDs

CMS

Who publishes NCDs?

NCDs

LCDs need to be consistent with ______.

never events

Errors in medical care that are clearly identifiable, preventable, and serious in their consequences for patients.

never events

These indicate a real problem in the safety and credibility of a health care facility.

never events

Surgery on the wrong body part, foreign body left in the patient, mismatched blood transfusion are all examples of _____ .

provider groups

In recent years, CMS began working with ______ to identify quality standards that can serve as a basis for public reporting and payment.

reimbursement, quality measures

Federal legislation provides increased _____to hospitals that publicly report _____.

not consistent, preventing

Paying for never events is _____ with goals of Medicare payment reforms. Eliminating payments for never events will result in resources being directed toward _____ such events.

deficit reduction act

This allows CMS to adjust payments for hospital acquired infections.

hospital acquired conditions

The Deficit Reduction Act resulted in a quality adjustment in MS DRG payments to hospitals eligible for reimbursement under IPPS for certain _____.

hospital acquired conditions

Catheter associated urinary tract infections, air embolism, falls and trauma are examples of _____.

high cost, high volume, higher payment, secondary diagnosis, prevented

HACs include those that are (1) ____ or _____; (2) result in the assignment of case to MS DRG that has a _____ when present as ______; (3) could reasonably have been _____.

not reimbursed, secondary diagnosis

IPPS hospitals are ______ additional amounts in the case of HACs as if the reported _______ was not present.

present on admission

CMS also requires hospitals to report _____ indicators for principal and secondary diagnoses.

POA

______ conditions are present at the time the order for inpatient admission occurs. Include those conditions that develop during an outpatient encounter, including emergency department, observation, or outpatient surgery.