Medicare Compliance & Reimbursement

Industry Notes:

CMS Identifies the 4 Biggest Errors among Therapy Claims

When it comes to Medicare's Comprehensive Error Rate Testing (CERT) reports, the agency tells it like it is -- and CMS found four major errors among outpatient rehabilitation therapy service claims.

According to the new fact sheet entitled, "Comprehensive Error Rate Testing (CERT) -- Outpatient Rehabilitation Therapy Services," the main issues found among these claims are the following:

  • Missing/incomplete plan of care/treatment plan
  • Missing physician/non-physician practitioner (NPP) signature and dates
  • Missing modality time
  • Missing certification and recertification.

Tip: When you report a CPT® code for therapy services, double-check to determine whether CPT® classifies it as a time-based code or not. Many therapy modalities are billed in 15-minute increments, and "the last unit may be counted as a full unit of service if at least eight minutes of additional service has been furnished," CMS says in the document. You should also document the total treatment time, as well as the time spent administering services represented by the untimed codes.

To read the complete fact sheet, visit www.cms.gov/MLNProducts/downloads/Outpatient_Rehabilitation_Fact_Sheet_ICN905365.pdf.

CMS Finds 'Significant' Portion of Chiropractic Claims Paid Inappropriately

CMS has revealed the results of the OIG's recent audits of chiropractic claims, and the outcome is dismal. The agency found that "a significant portion of the claims" were paid inappropriately, with the following among the most common errors, according to MLN Matters article SE1101:

  • Technical errors such as missing signatures or dates of service in the record
  • Insufficient or absent documentation that all procedures reported were performed (for instance, no documentation regarding where the manipulation occurred or whether it was relevant to the symptomatic spinal level)
  • Insufficient or absent documentation that all procedures and services were medically necessary. (For instance, some records were missing treatment plans, or the practitioners performed "maintenance" treatment).

CMS stresses in the article that "When further improvement cannot reasonably be expected from continuing care, the services are considered maintenance therapy, which is not medically necessary and therefore not payable under Medicare." In addition, Medicare only reimburses chiropractic treatment for patients with documented subluxations. "You must place the AT modifier [Acute treatment] on a claim when providing active/corrective treatment to treat acute or chronic subluxation," CMS adds.

To read the document in its entirety, visit www.cms.gov/MLNMattersArticles/downloads/SE1101.pdf.

Look for RAC Demand Letters Directly From Your MAC

You've been waiting for years to hear the good news that recovery audit contractors (RACs) will cease sending demand letters to providers, and that time has finally come -- with a catch. Although RACs will no longer send out demand letters, CMS has simply transferred the responsibility of that task to processing contractors.

"When a recovery auditor finds that improper payments have been made to you, they will submit claim adjustments to your Medicare (claims processing) contractor," CMS says in new MLN Matters article MM7436. "The Medicare contractor will follow the same process as is used to recover any other overpayment from you."

Once you get word from your MAC that it is seeking RAC monies, you'll stay in touch with the MAC regarding any issues about time frames and appeals. However, if you have audit-specific questions "such as the rationale for identifying the potential improper payment," you'll contact the recovery auditor personally, CMS notes.

For more information about this change, visit www.cms.gov/MLNMattersArticles/Downloads/MM7436.pdf.

RACs collected $233.4 million in overpayments during the third quarter and returned $55.9 million in underpayments, CMS says in the report at www.cms.gov/Recovery-Audit-Program/Downloads/FFSUpdate.pdf.

Physician + Ministers + Supplier = Medicare Fraud?

A Louisiana church health fair may have offered more than medical flyers -- it also was accused of being bait for a Medicare scammer. A physician, two former ministers, and a medical equipment business owner went on trial this week for their role in an alleged $2.5 million Medicare scheme. As part of the plan, the ministers hosted church health fairs, where the physician would prescribe unneeded equipment for patients, and the medical equipment supplier would provide that equipment.

The defendants are accused of bilking about $2.5 million out of Medicare over a six-year period from 2003 through 2009. The trial, which began on August 1, is expected to last several weeks.

Revalidate Your Medicare Enrollment Soon

"Between now and March 23, 2013, MACs will send out notices on a regular basis to begin the revalidation process for each provider and supplier," HHH MAC Palmetto GBA notes in an Aug. 8 post to its website. The post reviews revalidation information contained in MLN Matters Article No. SE1126. "Please note that 42 CFR 424.515(d) provides CMS the authority to conduct these off-cycle revalidations," the post says.