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 QUESTION &
ANSWER What are the specific guidelines
regarding CPT codes for E & M services? How do insurance
companies down code and the legality of this?
CLICK FOR
ANSWERThe Mitomycin bladder instillation is a common
procedure which requires drug code J9291. I find that Medicare only
pays half of my suppliers cost. How are other urologists managing
this issue? CLICK FOR ANSWER
Concerning Blue Cross' proposed
change in fee schedule for 2007, is this state wide or more of a
local issue?
CLICK FOR ANSWER
 California Urological
Association 1950 Old Tustin Ave. Santa Ana, CA
92705 TEL: 714-550-9155 FAX:
714-550-9234 EM:
info@cuanet.orgWEB:
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 American Urological
Association Annual Meeting Saturday - Thursday, May
19-24, 2007 Anaheim Marriott, Anaheim, CA MORE
INFO...
CUA Interim Board
Meeting Sunday, May 20, 2007 - 11:30am -
1:30pm Anaheim Marriott during AUA Annual Meeting Marquis
Ballroom, Northwest Salon
CUA Annual Meeting and
Lunch Tuesday, October 30, 2007 (12:00pm -
1:30pm) During the Western Section AUA 83rd Annual
Meeting MORE INFO...
Western Section AUA
- 83rd Annual Meeting October 28-November 1,
2007 Hyatt Regency at Gainey Ranch MORE
INFO...
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resources or questions with the CUA. (click
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POLITICAL
ADVOCACY
Considering that California is only one of the 50 states,
it's always impressive how well we are represented in advocacy efforts at
the national level. At this
year's Joint Advocacy Conference sponsored by the AACU and AUA held in
Washington, D.C. March 25-27, more than 10% of the
record turn out was from our golden state. Before an intensive coordinated
lobbying effort with Senate and House members, attendees heard updates on
a wide range of health policy issues beginning with a briefing on options
being considered to revise the Sustained Growth Rate formula used to
update Medicare fees from year to year. Ron Castellanos, M.D., the first
urologist to be named to MedPAC (Congress' think tank responsible for
recommendations regarding Medicare), gave us an insider's view on the
program's budget challenges that will cause Medicare rates to fall 10%
this coming January if nothing is done in the current Congress. Learning how updates are
determined and what alternatives are being considered gave us greater
understanding and better prepared us to argue our case with Congressional
staffers. As legislation
comes forward, each of you will need to contact your Congressman this Fall
to demand a fair update and let them know how deep cuts in reimbursement
are affecting your practice.
Unless the formula is altered, we face cuts up to 40% over the next
8 years at a time when inflation is predicted to increase your overhead
over 20%. Clearly, this is an
unacceptable and unsustainable scenario.
As
if this wasn't motivation enough, our invited keynote speaker was
California's own Bill Plested, M.D.,
president of the AMA. This
staunch advocate for physician independence challenged us to vigorously
negotiate with private payers over their contract terms and accept nothing
less than we deserve for the high quality care we provide. We realize that's easier said than
done but until we get tough and begin to refuse bad contracts, payments
will continue to fall and restrictive regulations will continue to
grow. At some point,
physicians have to stand up and say "enough!".
California's Dave Penson,
M.D. presented the latest on Urology's efforts to take charge and
participate with federal Pay for Performance programs that go into effect
this July 1. Congress feels
so strongly that this initiative will improve quality and cut health care
costs that they are willing to pay up to an additional 1.5% of all your
Medicare allowable charges to you as a bonus for participation. If you haven't already, you should
be making preparations to choose criteria appropriate to your practice and
start learning how to report in order to take advantage of this. Whether or not we agree with the
intent of P4P or believe it will actually have an impact on quality, since
it appears to be here to stay, we cannot afford to allow others to
establish the criteria by which we are judged. By October, Dave will have more
for us on 2008 P4P proposals in his talk to the Socioeconomic session in
Scottsdale.
In
addition to updates on several other chronic concerns, we considered the
serious challenges that have been raised to urologists performing (and
being fairly reimbursed for) imaging studies which have become such an
integral part of our practices.
The American College of Radiology has taken an
aggressive position to keep other physicians off their turf by lobbying
public and private payers to deny payment for a number of different
studies. At the same time,
the Deficit Reduction Act of 2005 cut back Medicare reimbursement for a
range of studies that has cost Urology $9 million this year out of
prostate ultrasound exams alone.
A select task force was created during the JAC to meet with the
offices of the Senate Finance committee and House Ways and Means Health
subcommittee (the two groups primarily responsible for Medicare
legislation) to craft a bill that would exempt prostate ultrasound from
the DRA cutbacks. Our initial
efforts were very well received and as a consequence, language is being
crafted that hopefully will be passed returning fair payment to us. At the same time, we made a very
strong case that ultrasound in our offices is an extension of our clinical
exam and should remain in the hands of practicing urologists. Reviewing these issues and our
options, Pat Fulgham, M.D., chair of the AUA's imaging task force,
discussed strategies including the potential for special certification
qualifying urologists as imaging experts. Pat will give further updates on
this during the Socioeconomic Forum at this year's Western section
meeting. I strongly urge you
to attend.
With the joint support of the AACU and AUA as well as broad
participation by numerous state urologic societies, the annual Washington update
has become a major focal point for legislative advocacy. I hope to see many more of you at next
year's conference.
Less than a month later, we were able to put more of that advocacy
training to use by joining with other California physicians in Sacramento at the
annual CMA legislative conference.
At least 500 doctors (including at least 6 urologists by my count)
were addressed by Governor Schwarzenegger, our CMA lobbyists and various
other political speakers before heading to the capitol to discuss the
multiple health care proposals now being debated. 2007 has been termed the year that
a major overhaul of California's health care system is
expected. Although the smart money says that little will come out of the
current legislature (and that change when we see it will be incremental
rather than revolutionary), some of these initiatives contain threats that
could greatly impact our practice.
In an effort to "share the pain" and increase funding to cover the
un-insured, several bills include a proposal for a 2% physician tax. Although referred to in
euphemisms, this "fee" is in fact a tax that would apply across the board
on gross receipts. For a
specialty like urology with many expensive drugs administered at little or
no mark up, such a tax would cause great hardship. I cannot see continuing to carry
the overhead for LHRH agonists or bladder cancer drugs if their purchase
and reimbursement was subjected to another 2% tax. However, organized medicine does
support some of the other initiatives being considered. We do support extending some type
of insurance coverage to all and we insist on greater regulation of the
insurance industry which has become a monopoly in California where 5
or 6 large companies control virtually all covered lives. We demanded legislation that would
increase penalties for delayed payment by health insurers. We asked that more of the premium
dollar be left in the system to pay for health care and that less be
diverted to administration and profit-a reasonable regulation that the
state can implement. And we
demanded stronger laws to prevent retroactive denial payment for
pre-authorized care. It's unclear which of the many
legislative packages will finally pass into law but we should take
advantage of the current atmosphere in Sacramento to demand greater
oversight of the private payers to create a more equitable system
dedicated more to providing for the health of Californians and less for
the economic health of the insurance companies.
For those of you too busy to join us in Washington or Sacramento, take advantage of your
Congressman's or state legislator's local office. Drop in and have a chat. Let him
know how you're doing, what your patients' concerns are and what he can do
for you to improve your ability to properly care for your patients. Advocacy is not limited to one or
two meetings per year. In
order to protect our practice environment, we must maintain steady
pressure on the system. RETURN TO TOP
NPI (National Provider Identifier)
On a different
note, Congress has seen fit to establish a single unique identifier to be
used by every health care entity beginning later this month. Every one of us should have
already obtained his NPI and by the time you read this article, you should
already have it in use. Many
of us belong to large organizations, partnerships or groups who will have
their own unique number.
However, a significant number of individual physicians are doing
business as S corporations, LLCs or partnerships. Even if you are a single provider
but doing business as one of these entities, you should have obtained 2
NPI numbers, type 1 (individual) and type 2 (organization or entity). One is for your corporation as the
billing or pay-to entity and the other for you personally as the
individual who ordered a test, requested a consult or performed the
surgery as the Rendering provider.
These numbers are entered in different spaces on the 1500 Claim
forms. Many who accessed the
system early and established their NPI soon after the website opened may
not have understood this requirement. Even now, a great deal of
confusion exists on this point.
It does not apply if you are a sole proprietorship or solo
practitioner in which case the Rendering provider is the same as the
billing provider and a single NPI number suffices. If you have any questions in this
regard, please refer to the CUA web site cuanet.org for a published
advisement letter on this point from Michelle Kelly, Manager Provider
Outreach and Education, NHIC. RETURN TO TOP
RECOVERY AUDIT
CONTRACTOR
It seems the
same friendly folks who brought you the NPI harbor some suspicions that
you might not be completely forthright in your Medicare billing
habits. As if reviews by the
state carrier NHIC and the CERT random audits were not enough, in the
Medicare Modernization Act, Congress established a bounty hunter program
to review past Medicare payments known as the Recovery Audit
Contractor. This 3 year
pilot program initially restricted to California, Florida
and New
York will end March 2008. However, the
funds recovered totaled over $300 million in the first year alone so
Congress has now expanded the program to all 50 states and made it
permanent.
California's contractor is PRG Schultz,
headquartered in Atlanta. The vice president of their
Healthcare division is William Davis (william.davis@prgx.com) and their
new medical director is Dr. Berman, formerly the carrier medical director
for Georgia's Medicare
carrier. Areas chosen for
review are entirely up to the contractor although certain areas are out of
bounds. They are not supposed
to review E&M codes (unless they have reason to suspect a pattern of
abuse), disputed claims, or claims already investigated for other reasons.
Reviews are done by nurses and pharmacists but not by physicians, let
alone specialists. They are
given 4 years of data by CMS which they are free to mine as they see fit
but they are not to review claims from the current year. Reviews are done on all health
care providing entities but physicians have only been responsible for a
small percentage of monies collected (hospitals make up the bulk of
overpaid charges). While
doctors as a group are lumped with ambulances and labs for reporting
purposes (and a profile of specific errors attributed to doctors has not
yet been reported publicly), these 3 groups together are responsible for
only 6% of recovered funds.
Although the program is now structured to reward the contractor for
identifying underpayments as well as overpayments, out of some $304
million incorrectly paid fees from July 2005 to August 2006, only $10
million were underpayments. It seems the systems used to scan for errors
are much more efficient and less costly when used to identify overpayments
(and more attractive to the contractor who is paid only on a contingency
fee basis). Is anyone
surprised at this?
Data available
to us so far on this program indicates that the California
contractor has had the most activity directed at doctors. Very little
physician inquiries have been reported in New York or Florida. Although many urologists received
multiple demands for records related to LHRH agonists and other expensive
medication treatments, I have personally not heard of a single urologist
receiving a demand letter for reimbursement (if you know of any California
urologist who has been asked by the RAC to refund money, please notify me
through the CUA). However,
there is tremendous potential for the contractor to abuse this system and
create a burden on the investigated physician. A number of medical oncologists in
California have reported receiving
batches of inquiries numbering 50-100 at a time for charges up to 4 years
old. The amount of staff time
necessary to respond even when all the original billings and payments were
later found to be correct is enormous. Many complaints have been filed
with PRG Schultz and CMS in Washington but there has been little
formal response. The initial
letters demanding records are poorly written as if to suggest that your
case has already been screened and the contractor has reason to believe
that payments was incorrect.
THIS IS FALSE. The
letters are fishing expeditions and there is nothing prior to your
submitting records that would suggest you have made an error. The letters are vague as to what
particular issue is being investigated or what type or amount of records
would be necessary to support your charges. Moreover, if a demand is made for
a refund, the letter from PRG Schultz does not clearly spell out your
appeal rights. If you have
received a letter requesting records from this group, consider what aspect
of your charges might be questionable and supply sufficient documentation
to make it clear to someone with a nursing background that the charges
were reasonable and necessary, not duplicative, and properly coded (do not
assume the reviewer is a physician or familiar with urology practices who
can read between the lines of your notes). If you receive a letter demanding
a refund, appeal if appropriate.
Resources are available to support your effort. Even if you feel
the cost of an appeal isn't worth the effort due to the small amount of
money involved, I urge you to fight for your rights. Failure to appeal is an admission
of an error which may very well encourage the contractor to investigate
you further demanding many more records. Even if you are in the right, this investigation can become very
time consuming and expensive and is best avoided.
The CUA has
already met with PRG Schultz and communicated with CMS regarding abuses in
this system. We have asked
that the initial letter requesting records be re-worded, clarified and
made less hostile. We have
asked that letters demanding refunds include details on your appeal rights
and instructions on how to initiate that appeal. We have demanded profiles on what
physician errors have been determined so far and a specific breakdown of
what dollar amounts have been returned to the system from physicians. And we have requested that data
from this program be used to educate physicians on how to bill correctly
the first time. It is our
impression that an inordinate amount of stress has been placed on the
physician community by this program which has not returned a significant
amount of money (certainly not enough to justify the overhead costs
involved in responding to multiple chart requests). If you or your partners are
so challenged, the CUA is available to provide support. Write us. I have already submitted comments
to CMS on their published draft for the next round of RAC contracting.
RETURN TO TOP
WESTERN SECTION
AUA SOCIOECONOMICS FORUM
Finally, I
hope you and your partners are planning to join us at the Western Section
meeting in Scottsdale this October. The socioeconomic forum already
has an excellent program scheduled for Sunday, October 28. Emphasizing economic issues, we
will have an update on the P4P program and new coding tips. We will feature an extended
presentation on enhancing revenue through ancillary services including
legal advice on how to structure your programs properly and to your
advantage. News on the
imaging wars (credentialing, certification and payment) from the AUA
imaging task force chair and further updates on state, regional and
national political and legislative challenges will round out the
program. You absolutely
cannot afford to miss this program (and lunch is included!). I look forward to seeing you there. For full meeting details please
visit http://www.wsaua.org/Scottsdale07/2007.htm .
RETURN TO TOP
Disclaimer: The "CUA 4.5 Frontline Briefing"
e-bulletin is published by the California Urological Association as a
service to CUA members. Your comments are welcomed. The California
Urological Association, Inc. (CUA) believes the information in this
newsletter is as authoritative and accurate as is reasonably possible and
that the sources of information used in preparation are reliable, but no
assurance or warranty of completeness or accuracy is intended or given,
and all warranties of any kind are disclaimed. This newsletter is not
intended as legal advice nor is the CUA engaged in rendering legal or
other professional services.
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