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Abbreviations used in Medical Coding and Billing

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Term
Definition
RBRVS   Resource-Based Relative Value Scale  
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MEI   Medicare Economic Index  
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OBRA   (Medicare) Omnibus Budget Reconciliation Act of 1989  
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RVU   Relative Value Unit  
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Three Part of RVU   Work, Overhead, Malpractice  
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Work   Part of RVU that addresses the amount of time, intensity of effort, and technical expertise required to provide service.  
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Overhead   Part of RVU that addresses the practice expenses  
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Malpractice   Part of RVU that addresses the risk associated with providing the service.  
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CF   Conversion Factor  
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Annually   How often is the CF updated?  
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Annual Updates to CF   Percent change to MEI, physician expenditures, relationship of expenditures to volume performance standards, and change in access and quality  
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Changes to CF varies according to these   type of service provided (medical, surgical, non-surgical)  
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MVPS   Medicare Volume Performance Standards  
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MVPS   government's estimation of how much growth is appropriate for nationwide physician expenditures paid for by Part B of Medicare.  
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Medicare claims must be paid by when?   within one year  
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Are providers allowed to charge for filing claims for Medicare patients?   No  
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If a claim is filed later than required, will the claim be paid?   No  
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Beneficiary Protection requires that participating providers accept payment how?   Accept the amount paid for eligible Medicaid services as payment in full.  
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Accepting Medicaid payment as payment in full was mandated by which law?   OBRA act of 1989  
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MAAC   Maximum Actual Allowable Charge  
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What does the MAAC limit?   Limitations are placed on nonparticipating physician charges -- in that the amount charged to Medicare beneficiaries cannot be more than the stated limiting charge.  
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Beneficiary Protections   1. Claims must be filed within 12 months; 2. Accept Medicaid as payment in full; 3 Limiting Charges to Medicare beneficiaries by nonparticipating providers  
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Limiting Charge does NOT apply to what types of services?   When a nonphysician performs the technical component of a service that is on the Medicare Physician Fee Schedule, the Limiting Charge does not apply. Use Modifier TC.  
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What is included under Limiting Charges?   Global, Professional, & Technical Services performed by any nonparticipating provider.  
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To whom do the Limiting Charges apply?   Non-participating physicians  
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How much is the Limiting Amount currently?   115% of the Allowable amount  
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What does the Limiting Amount mean to the beneficiary?   That is the maximum amount that a nonparticipating provider can charge the Medicare beneficiary. The max of the balance-billing after M'care pays.  
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What percentage of the Allowable Amount will Medicare pay to participating providers?   80% of the Fee Schedule amount  
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What is the maximum payment to non-participating providers?   95% of the Fee Schedule amount  
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Where are Adjustments listed?   In the Physician Disclosure provided to all physicians during the participating enrollment period each year.  
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Are Participating Providers allowed to balance bill the Medicare beneficiary?   No.  
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Are Non-participating providers allowed to balance bill the Medicare beneficiary?   Yes, up to 115% of the Allowed Amount  
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