Pulmonology Coding Alert

Want to Cash In on the 94014 Reimbursement Increase? Heres How

Medicare will pay you twice as much for billing global code 94014 starting in July. But that's if you know how to prove medical necessity for at-home oxygen testing a more difficult task than you might think.
 
Because of inconsistencies in the 2003 Medicare Physician Fee Schedule database, Medicare will increase payment for 94014 and 94015, according to CMS memorandum AB-03-070. Payment for the codes will vary based on locality, so check with your local carrier. On average, Medicare will now pay $55.14 for 94014 (Patient-initiated spirometric recording per 30-day period of time; includes reinforced education, transmission of spirometric tracing, data capture, analysis of transmitted data, periodic recalibration and physician review and interpretation), up from $36.02. In addition, CMS is raising the reimbursement for 94015 (... recording [includes hook-up, reinforced education, data transmission, data capture, trend analysis, and periodic recalibration]) to $29.77 from $10.66. CMS didn't increase rates for 94016 (...  physician review and interpretation only).
 
Keep in mind that some carriers, such as HGSAdministrators in Camp Hill and Williamsport, Pa., reimburse only for 94014 and will not allow either 94015 or 94016 to be billed, says Carol Pohlig, BSN, CPC, RN, senior coding and education specialist at the University of Pennsylvania department of medicine in Philadelphia.

Use 94014 for Extreme Cases

At-home spirometry is not intended for the average asthmatic, Pohlig says.
 
A pulmonologist performs home-based spirometry as a surveillance method to prevent acute situations in patients with chronic asthma (493.xx) or intercurrent upper respiratory infections (465.9) or following lung transplants (V42.6), Pohlig says. The patient must have been hospitalized twice or visited the emergency room three times in the past 90 days. "In order for home spirometry to be medically necessary, the patient's condition is quite unstable," she adds.
 
Your pulmonologist must meet several requirements from which he or she can select secondary diagnoses (asthma or lung transplant status should be listed first):
 

  •  The patient must have severe asthma with dyspnea (786.00, Dyspnea; respiratory abnormality, unspecified) at rest.
     
  •  Forced expiratory volume in the first second (FEV-1) of less than 40 percent, predicted after bronchodilator administration (measured 14 days before or after emergency department visit or hospitalization).
     
  •  Evidence of end-stage disease by any one of the following: hypoxemia (799.0) at rest, secondary polycythemia (289.0), or cor pulmonale (416.9)/right heart failure (428.0) determined by electrocardiogram, echocardiogram or cardiac catheter.
     
    If the patient is not an asthmatic with the above conditions, codes in the 94014-94016 range would be considered medically necessary only for a lung transplant patient, Pohlig adds.

    Submit Bills Consistently to Avoid Denials

    Higher reimbursement rates for 94014 may mean pulmonologists will use at-home monitoring more frequently than in the past.
     
    Before the payment increase, most physicians didn't use 94014, says Charlie Strange, MD, associate professor of pulmonary medicine at the Medical University of South Carolina in Charleston. That's because the at-home codes paid about the same as a routine, monthly spirometric interpretation (94010, Spirometry, including graphic record, total and timed vital capacity, expiratory flow rate measurement[s], with or without maximal voluntary ventilation) and yet required more work.
     
    For example, if your pulmonologist decides to monitor a patient with at-home spirometric testing, the results will be transmitted daily through the Internet from the spirometer's computer to a remote terminal at a medical center or physician's office, where your physician analyzes the data. Such frequent testing lets both the pulmonologist and patient know how well the treatments are working and how well the patient forces air out of the lungs. By contrast, patients on routine spirometry have less severe symptoms, which allows for in-office testing once a month.
     
    And even though you may report at-home spirometry codes once per month to your carrier, the interpretations occur on several dates. Physicians will now receive money for that additional work more than they would if you reported 94010 so the payment increases make sense, Strange says.
     
    Medicare and other carriers, however, could continue to deny payment if you don't know how to bill correctly for the procedure, Pohlig says. Your pulmonologist should perform each component within a 30-day period to bill for 94014. If you miscalculate and submit a bill twice in the 30-day period, you will be hit with denials, she says.
     
    You can also avoid denials by submitting bills for these codes at the same time each month. Reporting these services at scheduled intervals helps to prevent overlapping claims that could result in denials, Pohlig says. For example, avoid billing on the last day of one month and then following that with a bill in the middle of the next month.
     
    You could run into problems with private carriers, regardless of how consistently and accurately you bill. For example, Aetna states that it does not cover home oxygen testing, citing inadequate evidence that such monitoring will improve patient care.
     
    According to Strange, medical specialists rely on at-home spirometry for assisting with patient care. "We've recognized for many years that people who have a lung transplant can deteriorate pretty quickly," he says. Therefore, daily testing for these patients is crucial.
     
    Still, most carriers simply want to ensure proper payment, Pohlig says. Because so many requirements have been placed on 94014, carriers want to make sure that physicians properly understand how to use the code, she says.
     
    Editor's note: To read CMS memorandum AB-03-070, log on to http://cms.hhs.gov.

  • Other Articles in this issue of

    Pulmonology Coding Alert

    View All