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MED112 Chapter 6

QuestionAnswer
Code linkage the connection between a service and a patient’s condition or illness
CCI Correct Coding Initiative
Correct Coding Initiative (CCI) computerized Medicare system that controls improper coding that would lead to inappropriate payment for Medicare claims
Edits used in software programs to identify improper or incorrect codes.
OIG Office of inspector general
CCI edits code combinations used by computers in the Medicare system to check claims
CCI column 1/column 2 code pair edit Medicare code edit where CPT codes in column 2 will not be paid if reported on the same day as the column 1 code
CCI mutually exclusive code (MEC) edit both services represented by MEC codes that could not have been done during one encounter
CCI modifier indicator number showing if the use of a modifier can bypass a CCI edit
MUE Medical Unlikely Edits
MUE value are based on he maximum units of service
MUE are designed to reduce errors on claims due to clerical entries
Correct coding mistakes based on anatomic considerations • An example of an MUE edit is one that rejects a claim for a hysterectomy on a male patient.
OIG Work Plan OIG’s annual list of planned projects.
Advisory opinion opinion issued by CMS or the OIG that becomes legal advice.
Excluded parties Individuals or companies not permitted to participate in federal healthcare programs (after being found guilty of fraud)
Frequent reasons claims are rejected Errors relating to code linkage and medical necessity Errors relating to the coding process Errors relating to the revenue cycle
External audits Prepayment, post-payment, RAC audits
Internal audits Prospective, retrospective
Auditing tools are used to verify E/M code selection
Physician Fee Schedules Physicians set their fee schedules in relation to the fees that other providers charge for similar services.
Usual fee Normal fee charged by a provider.
two main methods used by payers to establish the rates they pay providers 1. charge-based fee structure. 2. resource-based fee structure.
RVS Relative Value Scale
Relative value scale (RVS) system of assigning unit values to medical services based on their required skill and time.
First part of RBRVS fees The nationally uniform RVU
The nationally uniform RVU The relative value is based on three cost elements—the physician’s work, the practice cost (overhead), and the cost of malpractice insurance.
Second part of RBRVS fees A geographic adjustment factor
A geographic adjustment factor The geographic practice cost index (GPCI) is a Medicare factor used to adjust providers’ fees in a particular geographic area.
Third part of RBRVS fees nationally uniform conversion factor
nationally uniform conversion factor: Medicare uses this factor to make adjustments according to changes in the cost of living index.
Formula for calculating a Medicare payment Step 1: Determine the procedure code for the service
Formula for calculating a Medicare payment Step 2: Use the Medicare Fee Schedule to find the three RVUs
Created by: user-1990156
 

 



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