Fight Back Against Payor Downcoding to Protect Your Revenue
Payer downcoding occurs when the payer assigns a lower-level code to a medical service or procedure than what was submitted to the payer for the patient without review of the medical record. This results in lower reimbursements that can significantly impact a physician’s bottom line. Providers can take certain steps to avoid payer downcoding, such as using the correct code set. Providers and payers are required to use standard code sets designated by the U.S. Department of Health and Human Services (HHS) such as CPT’s evidence-based codes, which accurately encompass the full range of health care services.
The American Medical Association (AMA) created new Evaluation and Management (E/M) guidelines, to reduce the documentation burdens placed on providers. Following the changes, several payors began implementing algorithms, within their systems, that inappropriately down-coded claims, causing payment reductions. To the frustration of providers, payers are increasingly implementing E/M downcoding programs that inappropriately reduce payment for claims billed. Often, these reduced payments, go un-noticed, as staff is looking for full denials, and not claim payment reductions.
Most often, a claim is down-coded because the payer disputes the use of a higher-level E/M code or states that the diagnosis code submitted on the claim does not warrant a high-level service code. An increasing number of payers are downcoding claims automatically using software algorithms, without first requesting and reviewing clinical records. Inappropriate downcoding by payers can significantly reduce revenue for physician practices, especially when it becomes routine or when a physician becomes subject to global prepayment review. Facilities will need to implement guidance to staff on how to review remittance advices to identify downcoding, provide proper education to staff on documentation guidelines, and educate staff on how to obtain successful appeals when downcoding occurs.
Learning Objectives
Learn how to discover if your claims are being paid at a lesser value than what was submitted (down-coded)
Review the examples of downcoding scenarios
Understand how to appeal these claims with sample appeal letters
Review Sample downcoding-appeal letter (DOC)
Effective documentation tips to support successful appeals
Issue tips for educating providers on key documentation guidelines to avoid payor downcoding
Areas Covered in the Session
E/M documentation guideline changes
Documentation
“MEAT” and “TAMPER” approach
Specificity-Asthma
Specificity – Diabetes
E/M Changes-EMR
Payer Downcoding
Payer Downcoding Programs
Data Analytics
Algorithms
Examples of payer Downcoding
Example 1: Emergent primary care physician (PCP) office visit with high level of MDM Scenario
Example 2: Office visit with moderate level of MDM, diabetes Scenario
Payer Policies
Payor Verbiage in Contracts
New Verbiage-Contracts
Claims Denials/ Improper Payments
Specific Payor Policies
Example of specific payer policies-Wellmark
Examples of specific payor policies-Cigna
Examples of specific payor policies-UHC
Examples of specific payor guidelines-Anthem
Examples of specific payer policies- MODA Health
AMA Policy on Downcoding
Recognizing Downcoding
Recognition-What Your Facility Can Do
Appeals
Appeal Checklist
No Surprises Act (NSA)
Prior Authorizations
Prior Authorization Denials
Current Cases and Examples
Facility Actions - Next Steps for Facilities
Live Q&A Session
Suggested Attendees
Healthcare Providers or Physicians
Administrators
Medical Billers
Claims Coders
Revenue Cycle Managers
Billing Staff and Companies
Physicians and Other Providers
Healthcare Consultants
Compliance Officers
Office Managers
Practice Manager
Chief Financial Officers
In and Out of Network Providers
Medical Billing Companies
Hospitals and Facilities
Insurance Companies
Healthcare Attorneys
About the Presenter
Susan Rohde, RHIT, CCS-P, CPC, has more than 28 years of experience in health care industry with an emphasis in coding, health information management, medical necessity and documentation. Susan is currently serving on the education committee for NSCHBC. Her other memberships include AHIMA, NDHIMA, AAPC, NSCHBC, HFMA and MGMA. She specializes in reviewing documentation for accurate reimbursement within Evaluation and Management (E/M) and all surgical specialties, including Interventional Radiology, Anesthesia, Neurosurgical, and Orthopedics, for both ICD-10-CM and CPT codes. Susan helps navigate the ever-changing coding and documentation world and can help your organization in maximizing its coding potential via proper documentation, provider and coding staff education, and understanding of guidelines and regulations.
Additional Information
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