Knowledge Base Category -

“Sepsis is defined as life-threatening organ dysfunction caused by a dysregulated host response to infection.”

• The Third International Consensus Definitions for Sepsis and Septic Shock (Sepsis-3)

U.S. Department of Health and Human Services (HHS) Study

According to a February 14, 2020 HHS News Release, an HHS study of sepsis cases found that “U.S. hospitals saw a 40 percent increase in the rate of Medicare beneficiaries hospitalized with sepsis over the past seven years, and in just 2018 had an estimated cost to Medicare of more than $41.5 billion.”

About the Data

• Data analyzed was for claims from 2012 through 2018.
• Data analysis included traditional Fee-for-Service and Medicare Advantage enrollees “to explore the burden of sepsis in highly impacted populations including older Americans, those with end-stage renal disease, and those who depend on both Medicare and Medicaid.”
• Data included more than 9.5 million inpatient hospital admissions.
• This is the largest sepsis study based on contemporary Medicare data to be published in the United States.

Study Findings

• Researchers found no correlation between the rise in sepsis cases and the number of American seniors enrolling in Medicare. In fact, the 40% increase in sepsis-related hospital admissions among beneficiaries was almost double the 22% increase in Medicare enrollment rates.
• More patients presented to a hospital with sepsis than developed sepsis after being admitted. The news release noted this to be “a possible indicator of success for CMS efforts to reduce hospital-based cases of sepsis.”
• However, two-thirds of the patients had had a medical encounter in the week prior to presenting for hospitalization which “represents an opportunity for improved education and awareness among patients and healthcare providers, as well as the need for diagnostics to detect sepsis early.”
  

The Cost of Treating Sepsis

The cost per Medicare beneficiary decreased between 2012 and 2018. However, due to the increasing volume in cases of sepsis, HHS estimated an overall increase in Medicare spending from $27.7 billion in 2012 to greater than $41.5 billion in 2018 for inpatient hospitalizations and subsequent skilled nursing facility (SNF) care. Researchers found overall costs rose 12-14% every two years and subsequently anticipated inpatient and SNF care for sepsis in 2019 may exceed $62 billion.

Steps to Improved Identification and Treatment of Sepsis

According to Rick Bright, Ph.D., a study author, HHS deputy assistant secretary for preparedness and response (ASPR) and director of the Biomedical Advanced Research Development Authority (BARDA) at ASPR, “to save lives in public health emergencies, we must solve sepsis…solving sepsis requires working together. Because of the health security implications, we are taking a holistic approach to this national threat.” Examples cited in the news release of what is being done includes:

• A partnership to develop adoption of new technologies to detect sepsis earlier as well as to predict and identify the severity of the infections.
• Implementation of the CMS inpatient bundled sepsis measure as part of the Inpatient Quality Hospital Reporting Program.
• The 2019 IPPS Final Rule finalized “an expanded pathway for certain new antibiotics to more quickly receive additional Medicare payments and to increase payments for them.”
• The Centers for Disease Control and Prevention (CDC) has a Get Ahead of Sepsis Campaign and has made available educational information for healthcare professionals, patients and the general public. https://www.cdc.gov/sepsis/index.html

New Pediatric Sepsis Guidance

Earlier this month the Surviving Sepsis Campaign made available the first edition Guidelines for Pediatric Patients. This guidance includes an initial resuscitation algorithm that provides a guide for systematic screening for sepsis in children and guidance for care in settings both with and without intensive care services. 

Sepsis in the Spotlight

The HHS study validates the growing number of Medicare Contractors auditing sepsis inpatient claims including the following:

• Medicare Administrative Contractors: Earlier this month Palmetto GBA, the Jurisdiction M MAC, added DRGs 871 and 872 (Septicemia or Severe Sepsis without Mechanical Ventilation 96+ Hours with and without MCC respectively). An article titled Diagnosing Sepsis and Related Conditions provides tips when coding sepsis is available on their website.
• Comprehensive Error Rate Testing (CERT): The 2019 CERT Report lists Septicemia (DRGs 871 and 872) as being in the Top 20 Service Types with the highest improper payment rates for Part A IPPS Hospitals. While the improper payment rate was relatively low at 3.1%. All of the errors were due to incorrect coding.
• Recovery Auditors: RAC approved issue 0001 – Inpatient Hospital MS-DRG Coding Validation allows the RACs to review all MS-DRGs to validate MS-DRGs for principal and secondary diagnosis and procedures affecting or potentially affecting the MS-DRG assignment. Note, clinical validation is not permitted as part of this approved issue.

Moving Forward

Do you know how well your hospital is managing this patient population? Have you looked at the sepsis measure available on Hospital Compare to see how you rank against your state and the nation? In spite of the Sepsis 2 and Sepsis 3 definitions, this information is available for the public to view, you need to know how you compare.

Sepsis is also a Target Area on the PEPPER Report. Is your hospital an outlier? If so, have you performed internal reviews to validate that documentation in your records supports the diagnosis of sepsis?

The data shows sepsis is a growing and expensive problem. It is imperative for hospitals to provide timely care and code the claim correctly.

Vaping-Related Disorder ICD-10-CM Guidance Timeline

As of January 14, 2020, a total of 2,668 hospitalized EVALI (E-Cigarette or Vaping product use-Associated Lung Injury) cases or deaths have been reported to the CDC from all 50 states, the District of Columbia, and two U.S. territories (Puerto Rico and U.S. Virgin Islands). Sixty deaths have been confirmed in 27 states and the District of Columbia.

In last month’s Coding Corner we shared a timeline to date for EVALI (E-Cigarette or Vaping product use-Associated Lung Injury) specific ICD-10-CM guidance. Since then CMS has updated its MS-DRG Grouper Version 37.1 software to include the new Vaping-related disorder code U07.0 effective April 1, 2020.

Diagnosis code U07.0 will be assigned as follows:

• The code is not a CC,
• It falls in Major Diagnostic Category (MDC) 4: Diseases and Disorders of the Respiratory System, and
• This code has been assigned to MS-DRGs 205 and 206: Other Respiratory System Diagnoses with MCC and without MCC respectively.

Additionally, if diagnosis code U07.0 is reported as a principal diagnosis there are five diagnosis codes that will be excluded from acting as a MCC when reported as a secondary diagnosis under the CC Exclusion list. You can read the entire announcement at https://www.cms.gov/files/document/icd-10-ms-drgs-version-371-effective-april-1-2020.pdf.

 

National Correct Coding Initiative Edits

CMS posted the following notice to their National Correct Coding Initiatives Edits webpage on February 2, 2020:

 

Replacement Files

The CMS issued replacement files with the following changes:

• Healthcare Common Procedure Coding System (HCPCS) codes G2061, G2062, and G2063 replaced G2029, G2030 and G0231 respectively, effective January 1, 2020.
• CMS made the decision to retain the edits that were in effect prior to January 1, 2020, and to delete the January 1, 2020 PTP edits for Current Procedural Terminology (CPT) code pairs 97530 or 97150/97161, 97530 or 97150/97162, 97530 or 97150/97163, 97530 or 97150/97165, 97530 or 97150/97166, 97530 or 97150/97167, 97530 or 97150/97169, 97530 or 97150/97170, 97530 or 97150/97171, and 97530 or 97150/97172

Updated files are available on the PTP Coding Edit webpage and the Quarterly PTP and MUE Version Update Changes webpage.

 

February 13, 2020 CMS Press Release: Public Health News Alert: CMS Develops New Code for Coronavirus Lab Test

The February 20, 2020 MLNConnects e-newsletter provides highlights from a CMS Press Release issued on February 13, 2020. CMS has developed a new Healthcare Common Procedure Coding System (HCPCS) code for providers and laboratories testing patients for SARS-CoV-2. This will allow labs to bill for the specific test instead of an unspecified code. 

When a patient is tested using the CDC 2019 Novel Coronavirus Real Time RT-PCR Diagnostic Test panel, the provider may bill for the test using the new HCPCS code (U0001). The Medicare claims processing system will be able to accept this code on April 1, 2020, for dates of service on or after February 4, 2020.

Link to CMS Press Release: https://www.cms.gov/newsroom/press-releases/public-health-news-alert-cms-develops-new-code-coronavirus-lab-test.

Caring for Medicare Patients is a Partnership

This monthly article highlights information from Medicare Administrative Contractor (MAC) daily e-newsletters and alerts. Before delving into MAC highlights, I want to highlight the December 2019 MLN Fact Sheet (MLN 909340) Caring for Medicare Patients is a Partnership.

This fact sheet reminds Physicians and other health care providers and suppliers providing services to Medicare patients that “understanding the applicable Medicare coverage criteria (for example, medical necessity) and documentation guidelines for those services is extremely important for the accurate and timely processing and payment of both your claims and the claims of other entities, including physicians, other health care providers and suppliers who give services for your patient.”

The fact sheet also includes the Social Security Act definition of medical necessity, what documentation is needed to support medical necessity of services provided, and endorsements from Medical Directors at all of the MACs.

MAC Highlights

January 23, 2020 Palmetto GBA Article: DRG 470 – Major Joint Replacements or Reattachments of Lower Extremity

Palmetto notes that CMS has had multiple auditing entities reviewing claims, including Recovery Auditors, CERT and MACs. Findings have demonstrated very high paid claims error rates for hospitals and professional claims. This article provides Top Denial Reasons, Ways to Avoid Denials, and CMS Resources. https://www.palmettogba.com/palmetto/providers.nsf/DocsR/Providers~JJ%20Part%20A~Medical%20Review~General~BL4KTJ5777?open

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January 27, 2020: NGS Self-Service Pulse Newsletter: What, When and How: Advanced Beneficiary Notice of Non-coverage

NGS has a five-video series on YouTube “to get you up to speed or refresh your knowledge on everything you need to know about ABNs.

https://www.youtube.com/playlist?list=PLw4-yeXdND_qzKAMfWEdvKI1lK4Zmne8x

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January 31, 2020: Palmetto GBA Daily Newsletter: DRG 056 Degenerative Nervous System Disorders with MCC and DRG 057 – Degenerative Nervous System Disorders without MCC

This article highlights conditions that can cause a neuropathic condition as well as the FY 2020 relative weights and length of stays assigned to MS DRGs 056 and 057.  https://www.palmettogba.com/palmetto/providers.nsf/ls/JJ%20Part%20A~BDAJ6A3806?opendocument

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February 3, 2020: WPS J5 Hospital Discharge Status Codes – CERT Errors

The Comprehensive Error Rate Testing (CERT) contractor issues errors related to the incorrect use of patient discharge status codes. Incorrect use of these codes may result in the overpayment or underpayment of a Medicare claim. In situations where use of an incorrect code affects claim payment, the Jurisdictional and National CERT error rates for facilities reflect these errors.

For information about the appropriate use of patient discharge status codes, refer to MLN Matters article SE1411, "Clarification of Patient Discharge Status Codes and Hospital Transfer Policies."

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February 4, 2020: Noridian Medical Review Frequently Asked Questions

Question: Does Medical Review have review results with trending errors posted for providers to see?

Answer: Part A medical Review will soon be posting review results on the top 2 services with errors notes on our Medical review webpage at med.noridian.com.

https://med.noridianmedicare.com/web/jea/fees-news/faqs/mr

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February 5, 2020: Palmetto GBA Medicare Advantage (MA) Plan Overpayments – Update

On February 5th, Palmetto GBA reminded providers who received the Phase III Settlement Offer letters that wish to accept the settlement offer must return their signed and dated settlement letter no later than March 3, 2020.

https://www.palmettogba.com/palmetto/providers.nsf/ls/JJ%20Part%20A~AZ9J8M2780?opendocument

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CGS J15 Posts Quarterly TPE Update for Probes Completed July 1, 2019 – September 30, 2019

Round 1 Spinal Injections/Epidural Steroid Injections (ESI) (HCPCS code 62323)

• Three probes were completed with one provider found to be “non-compliant” after Round 1 Completion.
• CGS noted the documentation should include the following to prevent denials:
• ADL impairment,
• Documentation to support subsequent injections,
• Documentation of conservative pain treatments attempted and response to treatment prior to decision to utilize steroid injection,
• Documentation to support the patient failed four weeks of non-surgical, non-injection care or an exception to the four week wait per LCD L34807,
• Preoperative H&P,
• Imaging Requirements – preoperative lumbar imaging/radiology reports. Imaging must be included and not referenced with the first injection.

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This post also includes findings from the following Probe types:

• Review of Cardiac Rehabilitation with continuous ECG Monitoring,
• Review of Skilled Nursing Facility (SNF) RUG codes,
• Review of Inpatient Rehabilitation Facility (IRF) CMGs,
• Outpatient claims for Pulmonary Rehabilitation,
• Review of Inpatient Spinal Fusion Claims, and
• Review of Inpatient Claims for Major Hip and Knee Joint Replacement.

https://www.cgsmedicare.com/parta/mr/tpe_updates/q3_19.html

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February 14, 2020: Palmetto GBA OIG Audit Adjustment Process Announcement

The OIG adjustments were incorrectly processed as full denials instead of partial adjustments.  

Further review of the OIG report revealed that the adjustment was intended to be a partial adjustment where the patient discharge status code would be updated. This partial adjustment would change the full DRG reimbursement to a per diem reimbursement.

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Palmetto GBA is rescinding the demand letters associated with denials that were processed in error. Any collections associated with these overpayments will be issued with payments dated February 18, 2020. New demand letters will be issued based on the patient discharge status change.

https://www.palmettogba.com/palmetto/providers.nsf/ls/JJ%20Part%20A~BLSS3C6531?opendocument

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Noridian Outpatient Therapy A/B – Medical Review Top Errors Webinar – March 24, 2020

The Noridian Provider Outreach and Education (POE) staff is hosting this webinar. The event will include examples of errors, how to view and submit Additional Documentation Requests (ADRs), and provide CMS and Noridian resources.

Link to Announcement: https://med.noridianmedicare.com/web/jea/article-detail/-/view/10521/outpatient-therapy-a-b-medical-review-top-errors-webinar-march-24-2020

In a January 23, 2020 CMS Blog, CMS Administrator Seema Verma shared CMS’ plans to improve tools found at Medicare.gov (Hospital, Nursing Home, Home Health, Dialysis Facility, Long-term Care Hospital, Inpatient Rehabilitation Facility, Physician and Hospice Compare Tools). Administrator Verma notes while the Compare tools are among the most popular, “each one functions independently with varying user interfaces that make them difficult to understand and challenging to navigate.”

CMS plans to improve the customer experience by combining and standardizing the eight existing Compare tools. “The new “Medicare Care Compare” on Medicare.gov will offer Medicare beneficiaries and their caregivers and other users a consistent look and feel, providing a streamlined experience to meet their individual needs in accessing information about health care providers and care settings. In the new, unified experience, patients will be able to easily find the information that is most important to help make health care decisions, like getting quality data by the type of health care provider.”

CMS plans to launch “Medicare Care Compare” this spring, kicking off with a transition period allowing the public to use the new combined Compare alongside the existing tools before they are retired. It just so happens CMS has promised a spring 2020 release of sub-regulatory guidance to the new Discharge Planning Conditions of Participation (CoP) Final Rule that went into effect in November 2019. Updates to both can’t come soon enough as hospitals work to comply with the new CoPs requirement of sharing data from the Compare websites to beneficiaries seeking post-acute care services at the time of discharge.

In the meantime, CMS made data updates to Hospital Compare in January. Among the changes were data updates for the Hospital Readmission Reduction Program (HRRP) and Hospital-Acquired Condition (HAC) Reduction Program.

Hospital Readmissions

CMS began reducing Medicare payments for Inpatient Prospective Payment System Hospitals (IPPS) hospitals with excess readmissions in October 2012. CMS calculates readmission rates for specific conditions through the Hospital Readmission Reduction Program (HRRP). Current specific conditions include:

• Heart Attack (AMI),
• Heart Failure (HF),
• Pneumonia (PNA),
• Chronic Obstructive Pulmonary Disease (COPD),
• Hip/Knee Replacement (THA/TKA), and
• Coronary Artery Bypass Graft Surgery (CABG).

For FY 2020, Medicare estimates hospitals will lose $563 million. A hospitals specific penalty amount will be deducted from each inpatient claim billed during the FY. You can read more about the penalties in an October 1, 2019 Kaiser Health News (KHN) article by Jordan Rau.

Hospital-Acquired Condition (HAC) Reduction Program

The HAC Reduction Program began in FY 2015 and is a Medicare pay-for-performance program supporting the CMS effort to link Medicare payments to quality in the inpatient hospital setting. Hospitals ranking in the worst-performing quartile with respect to risk-adjusted HAC quality measures are subject to a 1 percent payment reduction.

Per a January 31, 2020 Kaiser Health News (KHN) article by Jordan Rau, 786 hospitals will receive lower payments during FY 2020.

Kaiser Health News (KHN) is a national health policy news service. It is an editorially independent program of the Henry J. Kaiser Family Foundation which is not affiliated with Kaiser Permanente.

Included in the basic format for National Coverage Determinations (NCDs) are Nationally Covered Indications and Nationally Non-Covered Indications sections. In general, NCDs are created to outline covered indications. However, there are NCDs specifically detailing that a service is non-covered such as:  

• NCD 280.2 White Cane for Use by a Blind Person,
• NCD 30.5 Transcendental Meditation, and
• NCD 30.3 Acupuncture.

Fortunately, for Medicare beneficiaries, with the January 21, 2020 release of Final Decision Memo (CAG-00452N), acupuncture for chronic low back pain (cLBP) is now a viable treatment option. 

Acupuncture NCD Timeline

NCD 30.3 Acupuncture

CMS initially issued a National Non-coverage Determination for Acupuncture (NCD 30.3) in May 1980. This non-coverage determination indicates that “although acupuncture has been used for thousands of years in China and for decades in parts of Europe...Medicare reimbursement for acupuncture, as an anesthetic or as an analgesic or for other therapeutic purposes, may not be made.”

Since the initial acupuncture NCD, in 2004, CMS concluded there was no convincing evidence for the use of acupuncture for pain relief in patients with fibromyalgia or patients with osteoarthritis and published two additional NCDs for non-coverage of acupuncture:

• NCD 30.3.1 – Acupuncture for Fibromyalgia, and
• NCD 30.3.2 – Acupuncture for Osteoarthritis.

CMS Proposes to Cover Acupuncture for Chronic Low Back Pain

In a July 15, 2019 Press Release, CMS announced their proposal to cover acupuncture for cLBP as a potential alternative to opioid use, while data is collected on patient outcomes. HHS Secretary Alex Azar noted, “Defeating our country’s epidemic of opioid addiction requires identifying all possible ways to treat the very real problem of chronic pain, and this proposal would provide patients with new options while expanding our scientific understanding of alternative approaches to pain.”

January 21, 2020: CMS Releases Final Decision Memo for Acupuncture for Chronic Low Back Pain (CAG-00452N)

CMS indicated in a related Press Release they had “conducted evidence reviews and examined coverage policies of private payers to inform today’s decision.”

 

NCD 30.3.3 Acupuncture for Medicare Beneficiaries with cLBP

What is covered?

Up to 12 visits in 90 days are covered for Medicare beneficiaries under the following circumstances:

• For the purpose of this decision, chronic low back pain (cLBP) is defined as:
• Lasting 12 weeks or longer;
• nonspecific, in that it has no identifiable systemic cause (i.e., not associated with metastatic, inflammatory, infectious, etc. disease);
• not associated with surgery; and
• not associated with pregnancy.

• An additional eight sessions will be covered for those patients demonstrating an improvement. No more than 20 acupuncture treatments may be administered annually.
• Treatment must be discontinued if the patient is not improving or is regressing.

What is Non-Covered?

Nationally Non-Covered Indications: “All types of acupuncture including dry needling for any condition other than cLBP are non-covered by Medicare.”

Who Can Furnish Acupuncture for Medicare Fee-for-Service Population?  

• Physicians (as defined in 1861(r)(1)) may furnish acupuncture in accordance with applicable state requirements.
• Physician assistants, nurse practitioners/clinical nurse specialists (as identified in 1861(aa)(5)), and auxiliary personnel may furnish acupuncture if they meet all applicable state requirements and have:
• A masters or doctoral level degree in acupuncture or Oriental Medicine from a school accredited by the Accreditation Commission on Acupuncture and Oriental Medicine (ACAOM); and
• Current, full, active, and unrestricted license to practice acupuncture in a State, Territory, or Commonwealth (i.e. Puerto Rico) of the United States, or District of Columbia.

Auxiliary personnel furnishing acupuncture must be under the appropriate level of supervision of a physician, physician assistant, or nurse practitioner/clinical nurse specialist required by our regulations at 42 CFR §§ 410.26 and 410.27.

Who Can Furnish Acupuncture: Comments & CMS Responses in Final Decision Memo

Comment: Several commenters suggested that acupuncture should only be performed by licensed acupuncturists and not be physicians, physician assistants, or nurse practitioners/clinical nurse specialists who would not have the specialized training a licensed acupuncturist would have.

CMS Response: The coverage criteria defined in section I of this decision memo states that physician assistants, nurse practitioners/clinical nurse specialists, and auxiliary personnel must have a masters or doctoral level degree in acupuncture or Oriental Medicine from a school accredited by the ACAOM, and language has been added to specify a current, full, active, and unrestricted license to practice acupuncture in a State, Territory, or Commonwealth (i.e. Puerto Rico) of the United States, or District of Columbia. These requirements are consistent either with the requirements of the qualification standards of private payers (which vary as discussed further below) for licensed acupuncturists who treat patients (and also the standards for VA medical centers or the requirements used to identify providers who perform acupuncture paid by the VA in the community). As noted above, licensed acupuncturists cannot directly bill Medicare for services.

Comment: One commenter requested chiropractic doctors who have completed the 100 hour acupuncture course and examination approved by the American Chiropractic Association (ACA) and the National Board of Chiropractic Examiners (NBCE) be included in the list of personnel able to furnish acupuncture in the studies.

CMS Response: CMS notes that the requirements for chiropractic acupuncturists vary widely from state to state. CMS also notes Medicare covers manual manipulation of the spine if medically necessary to correct a subluxation when provided by a chiropractor (or other qualified provider). Medicare does not cover other services or tests ordered by a chiropractor, including acupuncture. However, if a chiropractor fulfills the requirements in section I of this decision memo as auxiliary personnel, they would be eligible to furnish acupuncture “incident to” a physician’s service.

What Benefit Category does Acupuncture Fall Within?

Medicare is a defined benefit program. Items or services must fall within one of the statutorily defined benefit categories outlined in the Social Security Act. According to the Decision Memo, acupuncture qualifies as:

• Incident to a physician’s professional service,
• Inpatient Hospital Services,
• Outpatient Hospital Services Incident to a Physician’s Service, and
• Physician’s Services

Consideration of Benefits and Harms

“We believe that in light of the relative safety of the procedure and the grave consequences of the opioid crisis in the United States, there is sufficient rationale to provide this nonpharmacologic treatment to appropriate beneficiaries with chronic low back pain. Several professional societies and experts (such as the American Pain Association and American College of Physicians) also supported acupuncture as a nonpharmacologic treatment option to consider.

We have reviewed coverage policies of private payers including integrated health systems. A number of other payers such as Aetna, various Blue Cross Blue Shield plans, Cigna, Kaiser Permanente, and United Healthcare provide some coverage of acupuncture for certain indications or offer advantage plans that may provide coverage. There is variation in covered indications and frequency of services.”

NCD 30.3.3 Acupuncture for cLBP

Effective for services performed on or after January 21, 2020, CMS will cover acupuncture for Medicare patients with cLBP when the Nationally Covered Indications are met and will be manualized under NCD 30.3.3, Acupuncture for cLBP.

Background

In November 2019, the Office of Inspector General (OIG) released the Report Medicare Improperly Paid Acute-Care Hospitals $54.4 Million for Inpatient Claims Subject to the Post-Acute-Care Transfer Policy.

The OIG performed this review due to the fact that in prior reviews, they had identified almost $242 million in overpayments to hospitals that did not comply with Medicare’s Post-Acute-Care Transfer (PACT) Policy. In fact, there have been eight prior OIG related reviews dating back to the Implementation of Medicare’s Postacute Care Transfer Policy report issued on October 10, 2001.

Specifically, hospitals transferred patients to a skilled nursing facility setting, but submitted a discharge disposition as if the patient were discharged home resulting in higher reimbursement for the hospital.

Review Approach

• The audit period included claims with dates of service from January 1, 2016, through December 31, 2018.
• The review covered $212 million in Medicare Part A payments for 18,647 inpatient claims subject to the PACT Policy.
• Claims Selection:
• First, the OIG identified claims with a patient discharge status code indicating a discharged to home or certain types of healthcare institutions.
• The OIG then used beneficiary information and services dates to identify services from post-acute-care providers that began on the same date as the inpatient discharge for SNF claims or within three days of the inpatient discharge for home health claims.

Review Findings

Medicare improperly paid acute-care hospitals $54.4 million for 18,647 claims subject to the transfer policy.

Process for Determining Overpayment

Acute care hospitals discharging a Medicare beneficiary to home or certain types of healthcare institutions receive the full MS-DRG payment submitted for the hospitalization. “In contrast, Medicare pays an acute-care hospital that transfers a beneficiary to post-acute care a per diem rate for each day of the beneficiary’s stay in the hospital. The total overpayment of $54.4million represented the difference between the amount of the full MS-DRG payments and the amount that would have been paid if the per diem rates had been applied.”

OIG Recommendations

The OIG recommended that CMS direct Medicare Administrative Contractors (MACs) to do the following: 

• Recover the $54.4 million in identified overpayments,
• Identify any claims for transfers to post-acute care in which incorrect patient discharge status codes were used and direct the MACs to recover any overpayments after the audit period, and
• Ensure the MACs are receiving the post-payment edit’s automatic notifications of improperly billed claims and are taking action by adjusting the original inpatient claims to initiate recovery of the overpayments. “If all of the Medicare contractors had received the postpayment edit’s automatic notifications of improperly billed claims and had properly taken action since CY 2013, Medicare could have saved $70,011,503.”

CMS Response

CMS concurred with all of the OIG’s recommendations and provided a plan of action to the OIG to address the recommendations.

January 23, 2020 Palmetto GBA Daily Newsletter: OIG Audit Adjustments

Last week, Palmetto announced that they will be sending letters notifying Jurisdiction J and M hospitals of the OIG Audit Overpayment adjustments. The letters only state the reason for adjustment as “overpayment.” Palmetto GBA identifies the type of bill (TOB) 11K adjustments by entering verbiage in the Remarks field as “OIG AUDIT A-09-19-03007.” 

You can read the full Palmetto Article as well as sign up for Article Update Notifications specific to this issue on the Palmetto website.

Vaping-Related Disorder ICD-10-CM Guidance Timeline

As of January 14, 2020, a total of 2,668 hospitalized EVALI (E-Cigarette or Vaping product use-Associated Lung Injury) cases or deaths have been reported to the CDC from all 50 states, the District of Columbia, and two U.S. territories (Puerto Rico and U.S. Virgin Islands). Sixty deaths have been confirmed in 27 states and the District of Columbia.

In response to the vaping crisis, the Centers for Disease Control and Prevention (CDC) has been proactive by providing guidelines, a new ICD-10-CM code and most recently posting an April 2020 Addenda.

• October 17, 2019: An ICD-10-CM Official Coding Guidelines – Supplement was posted on the CDC website. This supplement is intended to be used with the October 1, 2019 edition of the ICD-10-CM Official Coding Guidelines for Coding and Reporting.

 

• December 9, 2019: The CDC announced a new emergency code established by the World Health Organization (WHO) for vaping-related disorders. This code became valid for immediate use as of September 24, 2019.
• 0, Vaping-related disorder

• January 15, 2020: The CDC posted an ICD-10-CM Tabular List of Diseases and Injuries Addenda to be implemented April 1, 2020.

• January 24, 2020: CMS released MLN Matters MM11623: Update to the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) for Vaping Related Disorder

New ICD-10-CM Browser Tool

On January 3, 2020 the CDC posted a new browser tool on their ICD-10-CM webpage. “This user-friendly web-based query application allows users to search for codes….and provides instructional information needed to understand the usage of ICD-10-CM codes. The application provides access to multiple fiscal year version sets that are available with real-time comprehensive results via the search capabilities.”

CDC Specific Vaping Related Disorder information as well as the new Browser Tool are available at https://www.cdc.gov/nchs/icd/icd10cm.htm.

Increasing Access to Innovative Antibiotics for Hospital Inpatients Using New Technology Add-On Payments: Frequently Asked Questions

CMS released MLN Matters SE20004 on January 21, 2020 for hospitals billing for services provided to Medicare beneficiaries. Specifically, this article details changes made by CMS to develop alternative New Technology Add-On Payment (NTAP) to increase access to innovative antibiotics for hospital inpatients and provides a series of frequently asked questions to educate hospitals on changes to the new NTAP policy for Qualified Infectious Disease Products (QIDPs). 

The last Wednesday@One of each month includes an article highlighting Medicare Transmittals and Other Updates released by CMS during that month. This month brings the addition of a new standing article highlighting offerings from the Medicare Administrative Contractors or MACs. More specifically, highlights from MAC daily e-newsletters and alerts that provide useful information even when it is not the MAC for your hospitals.  

Background

MACs are multi-state, regional contractors responsible for administering both Medicare Part A and Medicare Part B claims. MACs perform many activities including:

• Process Medicare FFS claims
• Make and account for Medicare FFS payments
• Enroll providers in the Medicare FFS program
• Handle provider reimbursement services and audit institutional provider cost reports
• Handle redetermination requests (1st stage appeals process)
• Respond to provider inquiries
• Educate providers about Medicare FFS billing requirements
• Establish local coverage determinations (LCD’s)
• Review medical records for selected claims
• Coordinate with CMS and other FFS contractors

Currently there are 12 A/B MACs who serve more than 1.5 million health care providers enrolled in the Medicare Fee-for-Service (FFS) program. Collectively, the MACs process more than 1.2 billion Medicare FFS claims annually. You can learn more about the MACs on the CMS MAC webpage at https://www.cms.gov/Medicare/Medicare-Contracting/Medicare-Administrative-Contractors/MedicareAdministrativeContractors.

It is in the spirit of provider inquiries, education, and medical reviews that prompted the addition of this monthly article to our newsletter.

January 6, 2020 WPS GHA Medicare eNews: Major Joint Replacement (Hip and Knee) CERT Reviews

The Comprehensive Error Rate Testing (CERT) contractor has noted error findings for joint replacement services. In most cases, the CERT contractor found the documentation for these services to be insufficient to support the service(s) according to Medicare guidelines.

 Documentation Reminders

• Physical examination should document the specific patient condition(s), past and present, and plan of care
• Investigation through radiology reports
• Documentation of tried and failed conservative (non-surgical) treatments
• Signed and dated operative report 

For more information, see the MLN Matters article SE1236.

Link to website: https://www.wpsgha.com/wps/portal/mac/site/claim-review/news-and-updates/major-joint-replacement-hip-knee-cert-reviews/!ut/p/z0/fYzNDoIwEISfaLOAkXBVoyGGBk8GejEbWKX8bJtS8fWtL-BtJt98gxob1EKbeVEwVmiOvdX541aWeZkWSVVnKkkO6nLfnYvqWKd7vKL-P4gPmVcn9ULtKAxg5GmxEf6sQNLD2_UUeMVmodF6GK2RAJ7dTB0vHPNgHEzCDB37H9lMVNFNuv0CArAQCg!!/

 

January 8, 2020 First Coast Service Options, Inc. eNews

Appeals News: Q&A’s to questions regularly received by the First Coast contact center regarding general information about appeals, overpayment appeals, and re-openings. https://medicare.fcso.com/Appeals/0410177.asp

 

January 8, 2020: Palmetto GBA Provider Contact Center (PCC) FAQs:

Oct – December 2019 FAQs published were based upon data analytics identifying topics generating a high volume of telephone enquiries. Following is an example of one FAQ that MMP gets asked on occasion also:

• Question: When did CMS begin to require one calendar years as timely filing?
• Answer: All claims for services furnished on or after Jan 1, 2010, must be filed to the Medicare contractor no later than one calendar year (12 months) from the date of service or Medicare will deny those claims. You may refer to MM6960, (PDF, 74 KB) MM7080   (PDF, 78 KB) and New Maximum Period for the Submission of Medicare Claims podcast  .

https://www.palmettogba.com/palmetto/providers.nsf/ls/JJ%20Part%20A"BKLSNF7223?opendocument

 

January 9, 2020 NGS Urgent News: [Update} NCD ICD-10 Diagnosis Code Changes for 2020

Date Reported: 12/19/2019

Date Modified: 1/8/2020

Status: Open
Provider Type(s) Impacted: Part A, including home health and hospice (HHH) and federally qualified health centers (FQHCs)
Reason Code(s): Part A RCs, see below
Claim Coding Impact: Multiple ICD-10 codes to be added to the listed national coverage determinations (NCDs).
Description of Issue
On 11/1/2019, the Centers for Medicare & Medicaid Services (CMS) issued Change Request (CR) 11491 and accompanying MLN11491 with an effective date of 4/1/2020. CMS has now issued additional instructions impacting the following NCDs, for which new ICD-10 diagnosis codes will not be systematically implemented until 4/6/2020. Local editing will be temporarily implemented for the following, allowing claims to process:

• NCD 20.9 Artificial Hearts and Related Devices – RC 59242-59243
• NCD 20.34 Percutaneous Left-Atrial Appendage Closure – RC 59267
• NCD 190.11 Home PT/INR – RC 59079-59080
• NCD 260.9 Heart Transplants – RC 59180-59181

Editing will remain in place for the following, and denied claims subject to the standard appeal process:

• NCD 110.4 Extracorporeal Photophoresis RC59019-59020, 59023-59024
• NCD 210.3 Colorectal Cancer Screening RC 59099-59100

National Government Services Action
For NCDs 20.9, 20.34, 190.11 and 260.9, National Government Services (NGS) will now modify internal editing to allow processing for claims with the new ICD-10 diagnosis codes. For NCDs 110.4 and 210.3, denials relative to new ICD-10 codes may be submitted as appeals. In addition, NGS will adjust claims already denied since 10/1/2019 relative to this issue when brought to our attention.

Provider Action
Rejected claims (59267) will be reprocessed. Any claim with a LINE LEVEL denial can be resubmitted instead of filing an appeal (please refer to Submit an Adjustment to Correct Claims Partially Denied by Automated LCD/NCD Denials). Fully denied claims may be submitted as appeals. When submitting associated appeals, providers may identify CR 11491 as a reference.

Proposed Resolution/Fix
Will be systematically implemented on 4/6/2020.

 

January 9, 2020: Palmetto GBA Daily Newsletter: Medicare Beneficiary Identifier (MBI) Q&A

The following Q&A appeared in Palmetto’s Thursday January 9, 2020 Daily e-Newsletter:

• Question: Can I obtain an MBI for a deceased beneficiary using the eServices MBI Lookup tool?
• Answer: Yes. Users may obtain an MBI as long as the Medicare beneficiary information entered is valid and the beneficiary's date of death is less than 13 months prior to the date the MBI Lookup inquiry is performed.

If the Medicare beneficiary information submitted in the MBI Lookup is valid, but the beneficiary's recorded date of death is more than 13 months prior to the date the MBI Lookup inquiry is performed, the user will receive a message advising that the date of death exceeds the timely claim filing requirement. The MBI will not be returned.

https://www.palmettogba.com/palmetto/providers.nsf/ls/JJ%20Part%20A"BJ9RJ40743?opendocument

 

January 13, 2020: WPS GHA Medicare Review (MR) Targeted Probe & Educate (TPE) Quarterly Update – J5A

Throughout quarter four of 2019, the MR clinical staff identified the following common errors:

• Inpatient Psychiatric Hospital Services (IPS):
• Reviews identify the psychiatric evaluations are incomplete. The CMS Internet-Only Manual (IOM) Publication 100-02, Chapter 2, Section 30.2 lists the components of the psychiatric evaluation. These include the following:
• a medical history,
• record of mental status,
• onset of illness and circumstances leading to admission,
• description of attitudes and behaviors, intellectual functioning, memory functioning and orientation, and
• an inventory of the patient's assets.
• Reviews continue to identify errors related to certification requirements. For more information related to certification requirements review our Inpatient Psychiatric Facility (IPF) Certification/Recertification Review Results resource.
• Wound Care: Reviews identify the documentation is incomplete and not meeting the requirements of WPS Local Coverage Determination (LCD) L37228. The documentation should support evidence of improvement, which includes measurable changes. Measurable changes include the amount of drainage, inflammation, swelling, pain, wound dimensions, and necrotic tissue. If there is no wound improvement the documentation should support a modification to the treatment plan.
• Inpatient Rehabilitation Facilities (IRF): The results of the Round 2 reviews support improvement of the documentation on the pre-admission screening and post admission evaluation. Five providers completed Round 2 and are no longer undergoing review.

 

January 13, 2020: WPS GHA Medicare Review (MR) Targeted Probe & Educate (TPE) Quarterly Update – J8A

Throughout quarter four of 2019, the MR clinical staff identified the following common errors:

• Malnutrition: Twelve providers completed Round 1 of TPE and were successful in their reviews. The diagnosis of severe malnutrition was evident in the documentation.  
• Outpatient Hyperbaric Oxygen Therapy (HBO-T): Reviews identify incomplete documentation to support the HBO-T condition. When providers treat a patient for multiple diagnoses, it is important to state clearly which diagnosis necessitated the need for HBO-T, and to include the prior history and treatment for support. The CMS National Coverage Determination (NCD) 20.29 outlines the covered conditions.

 

January 13, 2020: Palmetto GBA Daily Newsletter: Medical Necessity of Therapeutic Exercise

In this edition of their Daily Newsletter, Palmetto GBA posted a module focused on the medical necessity of therapeutic exercises. The following topics are covered in this module:

• Therapeutic Exercise Overview,
• Therapy Billing,
• Requirements for Medical Necessity,
• Documentation Requirements, and
• Reminders.
• At the top of the list of reminders list is the reminder that beginning January 1, 2020 a new modifier is required on claims for physical and occupational therapy services provided in whole or in part by a therapy assistant.

Palmetto advises you to share this with appropriate staff.

https://www.palmettogba.com/internet/eLearn3.nsf/MedicalNecessityPartB/story_html5.html

 

January 14, 2020: Palmetto GBA Daily Newsletter: Intensity-Modulated Radiation Therapy Module

Just a day after the Therapeutic Exercise Module, Palmetto posted an Intensity-Modulated Radiation Therapy (IMRT) Module which includes information about covered conditions, billing and coding guidelines, multileaf collimator and medical necessity.

https://palmettogba.com/internet/eLearn3.nsf/IntensityModulatedRadiationTherapy/story_html5.html

Fiscal Year 2019 Estimated Improper Payment Rates

In mid-November, CMS published a CMS.gov Fact Sheet detailing the estimated improper payment rates for CMS Programs for Fiscal Year (FY) 2019. Approximately 50,000 claims were sampled and included claims submitted from July 1, 2017 through June 30, 2018. The following tables highlights an improper payment rate compare of FY 2018 to FY 2019.

Audit findings are used to calculate a Medicare Fee-for-Service (FFS) program improper payment rate. “The CERT program considers any claim that was paid when it should have been denied or paid at another amount (including both overpayments and underpayments) to be an improper payment.”

CMS reminds the reader in the Fact Sheet that improper payment rates are not necessarily indicative of or are measures of fraud. Instead, improper payments are payments that did not meet statutory, regulatory, administrative, or other legally applicable requirements and may be overpayments or underpayments.”

Fiscal Year 2019 Supplemental Improper Payment Data

A month later on December 12, 2019, CMS released the Supplemental Improper Payment Data Report that delves into the details behind the final Improper Payment Rate and Improper Payments. This report includes a review of claims submitted from July 1, 2017 through June 30, 2018.

Common Causes of Improper Payments

Below is a table comparing the common causes of improper payments broken out by the type of error. The biggest shift from 2018 to 2019 was an increase in incorrect coding.  

‍“0 or 1 Day” LOS Claims Continued Outlier

The CERT Program has reported Projected Improper Payments by Length of Stay (LOS) since the 2014 Report. Unlike the past three years where the Improper Payment Rate dropped for “0 or 1 day” LOS claims, for 2019 the improper payment rate increased.  

‍Compliance with Short Stays

‍In addition to the CERT, the two Beneficiary and Family Centered Care Quality Improvement Organizations (BFCC-QIOs) (KEPRO and LIVANTA) have historically been tasked with performing Short Stay Reviews. However, on May 8, 2019 BFCC-QIO Short Stay Reviews were stopped while CMS took action to procure a new BFCC-QIO contractor to perform Short Stay Reviews on a national basis. CMS anticipated issuing a contract award by the 3rd quarter of calendar year 2019. To date, CMS has yet to announce a contract awardee. In the meantime, have you tracked your short stay volume overall, by MS-DRG or Physician over time? Do you know if your hospital is an outlier? Where can you look to find these answers?  
PEPPER

‍One resource available to hospitals is the Short-Term Acute Care PEPPER (Program for Evaluating Payment Patterns Electronic Report). The PEPPER is made available to hospitals on a quarterly basis and compares your hospital to your state, MAC Jurisdiction and the nation. One-day Stays for Medical and Surgical MS-DRGs are two of the “Target Areas” at risk for improper payments included in this report.
The PEPPER provides the following suggested interventions for high One-day Stays Hospitals: “This could indicate that there are unnecessary admissions related to inappropriate use of admission screening criteria or outpatient observation. A sample of same- and/or one-day stay cases should be reviewed to determine if inpatient admission was necessary or if care could have been provided more efficiently on an outpatient basis (e.g., outpatient observation). Hospitals may generate data profiles to identify same- and/or one-day stays sorted by DRG, physician or admission source to assist in identification of any patterns related to same- and/or one-day stays. Hospitals may also wish to identify whether patients admitted for same- and/or one- day stays were treated in outpatient, outpatient observation or the emergency department for one or more nights prior to the inpatient admission. Hospitals should not review same- and/or one- day stays that are associated with procedures designated by CMS as “inpatient only.”

‍RealTime Medicare Data

‍Another source that can help assist you is our sister company, RealTime Medicare Data (RTMD). RTMD collects over 800 million Medicare Fee-for-Service paid claims annually from 38 states and the District of Columbia, and allows for searching of over 9 billion historical claims. In response to the “Two-Midnight” Policy, RTMD has available in their suite of Inpatient Hospital reports a One Day Stay Report. To give you a true picture of your “at risk” volume, this report excludes claims with a discharge status for Expired (20), left against medical advice (07), hospice (50 & 51) and /or were transferred to another Acute care facility (02). This report enables a hospital to view one day stay paid claims data by DRG and Physician to direct where audits should be focused. For further information on all that RTMD has to offer you can visit their website at www.rtmd.org.

In an October 21, 2019 CMS Blog, Seema Verma, Administrator for the Centers of Medicare and Medicaid Services, outlined CMS’s vision to modernize “program integrity methods to better protect taxpayers from fraud, waste and abuse in Medicare.” In the blog, program integrity is defined as “pay it right.”

Government watchdog, “the Government Accountability Office (GAO) has designated Medicare as a High Risk program since 1990 because of its size, complexity and susceptibility to improper payments.” One recommendation by the GAO has been for Congress to expand prior authorization in Fee-For-Service (FFS).

Outpatient Department Prior Authorization Requirement

A step in this direction can be found in the CY 2020 OPPS Final Rule in which CMS states that, “as part of our responsibility to protect the Medicare Trust Funds, we routinely analyze data associated with all facets of the Medicare program.” Analysis of 1.1 billion outpatient claims over an 11-year period of data from 2007 through 2011 identified a significant increase in the utilization volume of some covered Outpatient Department services. Most of these services fell within the following five categories:

• Blepharoplasty,
• Botulinum toxin injections,
• Panniculectomy,
• Rhinoplasty, and
• Vein ablation.

Procedures in these categories are often considered cosmetic and would not be covered by Medicare. CMS indicates “we are unaware of other factors that might contribute to clinically valid increased in volume. Therefore, these above-average increases in volume suggest an increase in unnecessary utilization.”  In the Final Rule CMS implemented prior authorization requirements for these five services when performed in an outpatient department. This new requirement has an implementation date of July 1, 2020.  You can learn more about this new requirement in a related article in next week’s Wednesday@One.

CMS Modernizing Their Approach to Program Integrity

Although Medicare’s improper payment rates have declined, Administrator Verma notes they remain too high. In response, CMS “is developing a five-pillar program integrity strategy to modernize out approach and protect Medicare for future generations.”

Pillar 1: Stopping Bad Actors

CMS partners with the Office of Inspector General (OIG), Department of Justice (DOJ) and the Unified Program Integrity Contractors (UPICs) to “deliberate on potential healthcare fraud cases, quickly direct them to law enforcement, and take appropriate administrative action such as payment suspensions and revocations.”

Pillar 2: Preventing Fraud

CMS is focused on moving away from the “pay and chase” model by “improving infrastructure that prevents fraud, waste and abuse on the front end.” Once a bad actor and his or her scheme is identified system changes are made to avoid future activities. One example cited by Administrator Verma was the September 2019 takedown of defendants in an orthotic braces scam.

Pillar 3: Mitigating Emerging Programmatic Risks

Administrator Verma likens mitigating risk to “playing the world’s largest game of whack-a-mole.” In keeping with this theme, the prior authorization requirement for a list of high-risk durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) items, is “whacking” one mole in the game.

Pillar 4: Reducing Provider Burden

Provider education is a large part of the Targeted Probe and Educate (TPE) program. “Since its inception in 2009, the program has played a major role in reducing improper payments, recouping more than $10 billion for the Medicare program.”

The TPE program has also highlighted provider burden and confusing policies. In response CMS is working on developing a prototype Medicare FFS Documentation Requirement Lookup Service. You can read more about this effort on the CMS Documentation Requirement Lookup Service Initiative webpage. 

Administrator Verma described additional ways that CMS is focusing on reducing provider burden and noted “cumulatively, these efforts are defining a new approach to program integrity that reduces burden and increased education to achieve a better shared understanding of how the programs operate.”

Pillar 5: Leveraging New Technology

CMS looks to adopt cutting edge technology – “such as AI and machine learning tools,” to save taxpayers more money and enable them to review more claims.  

The Future of Medicare Program Integrity

Administrator Verma aptly summarizes the vision for the future of program integrity in one sentence. “CMS must elevate program integrity, unleash the power of modern private sector innovation, prevent rather than chase fraud waste and abuse through smart, proactive measures, and unburden our provider partners so they can do what they do best – put patients first.”