Anesthesia Coding Alert

“You can often avoid having to submit an appeal if you make sure that the required diagnosis code or codes are present on the claims you submit,” adds Swandra Miller, senior provider relations representative with Palmetto. “Some services must be billed with both a primary and a secondary diagnosis to be covered by Medicare, so it’s important that you look to see if the secondary diagnosis is included on the claim,” she explains.

Step 2: Investigate Whether Medicare Is Primary

Some denials are due to Medicare Secondary Payer (MSP) issues, so always check to make sure Medicare is the primary payer before you submit your claims. This is another step that could help you cut down on denials later.

“MSP provisions prevent Medicare from paying for items and services when other health insurance coverage is primary,” Miller says. “When Medicare is secondary, the primary payer must pay first.”

Before submitting a claim, verify whether Medicare is a primary or secondary insurance for the patient, and that way you’ll know which insurer will pay first and which should receive the claim second.

Step 3: Know Why You’re Appealing

Don’t allow yourself to have a knee-jerk reaction to a denial in which you send off an appeal asking the payer to reconsider payment before really scrutinizing the reasons for denial. Instead, take a methodical approach once you understand exactly why your claim was denied, and therefore why you’re appealing.

“Read the remittance advice before you submit an appeal,” Miller advises. “Make sure that you know why the claim was denied before submitting your appeal request. It’s difficult to provide favorable appeal decisions when the provider thinks they’re appealing a duplicate denial, when the service was actually denied due to excessive frequency. The documentation you submit needs to address the reason that the service was denied.”

Step 4: Clarify What You’re Appealing in Overpayment Requests

If a payer indicates that you were overpaid and requests money back, you may not always agree — but you have a right to appeal that. If you do pursue this route, always include a copy of the overpayment letter with your overpayment appeal, Miller says.

“If there are multiple claims included in the overpayment letter, please make it clear which claims you’re appealing,” she says. “If you’re appealing all of the claims of an overpayment letter, say so in your appeal request. The appeals department must be able to identify all of the overpayments being appealed to stop collection activities on those receivables.”

Step 5: Prepare for Documentation Requests for Code Changes

In some cases, you may believe you submitted the wrong code, and that in actuality your records represented a higher-level code than what you initially reported. In these cases, you should submit documentation to support your claim, Miller recommends.

“If you requested the appeals department to change a lower-level code to higher-level code, like going from 99213 to 99214, please attach the medical records,” she says. “Upcoding requests are handled as appeals, even when they’re sent with the reopening request form. They are subject to the appeals time limits and must be reviewed to determine if the higher-level code is appropriate.”

In addition, don’t forget to change the billed amount on an upcode request, Miller adds. “If you’re asking to change the HCPCS code to one that has a higher allowed amount, don’t forget to request that the billed amount also be changed. The appeals department will not change the billed amount, unless they are specifically asked to do so.”