NY Medicaid demands repayment of Millions of Dollars

NY Medicaid has been sending letters to physicians in New York State demanding providers pay back huge amounts of money.  These demands are not for any overpayments or errors in billing.  The Medicaid Fraud Control Unit has found a new way to take millions of dollars away from doctors based on an article in Volume 16 Number 3 of a Medicaid update issued in March of 2001.

The article states that billing agents are prohibited from charging Medicaid providers a percentage of the amount claimed or collected.  They state it is prohibited by the antiquated fee splitting laws.

They go on to state that they understand that these practices are very common but it is not acceptable under the Medicaid program.

The letter then goes on to state that during the period of 1/1/2010 to present time Medicaid paid out $XXXXXXXX to the provider, and that the provider paid the billing service $xxxxxx.  They then demand that one half of the amount the provider paid to the billing service during that time frame be repaid to Medicaid.  The amounts Medicaid is demanding are staggering.  We were sent a copy of one letter demanding $48,151.66.  To add flame to the fire Medicaid is charging 9% interest on top of this.
What can we, as a medical community, do about this?  Some are hiring attorneys to fight it.   Some are checking into it with their professional associations.   We know of one family practice that is going out of business.  They have notified their patients and are closing up.  Other doctors will drop out of the Medicaid program.  How will all this affect Medicaid patients if doctors give up participation with the program?

We have been saying for several years that charging a percentage is considered fee splitting in several states including New York.  The problem is that most providers want to be charged a percentage because they feel that this is the best way to make sure that the billing service is doing their job.  They are only paid if and when the provider is paid.  However, at the end of the day it is still considered fee splitting.

At this time it appears that it is only straight New York State Medicaid however we have heard rumors that the Medicaid Managed Care Plans may follow.   Commercial insurances could also decide to follow suit.  The letter sent out by NYS Medicaid indicates that providers can actually lose their license for violating fee splitting laws.

If you or one of your providers have received a letter from Medicaid requesting a refund due to percentage billing please let us know what your office is doing about this.  What are you hearing?  We will post responses anonymously to let others know what is happening.

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MACRA in a Nutshell

 

A provider’s fee schedule will be based on their composite score.

Penalties take effect in 2019 but are based on actions taken in 2017.

There are three exceptions.  They are:
1.    Physicians billing less than or equal to $30,000 in charges to Medicare for 100 or fewer patients
2.    Physicians in their first year of enrollment
3.    Physicians participating in APMs

For 2017 & 2018 Requirements are for  Physicians (MD/DO and DMD/DDS), Physician Assistants, Clinical Nurse Specialists, and Certified Registered Nurse Anesthetists

In 2019 it is expanded to include physical and occupational therapists, speech-language pathologists, audiologists, nurse midwives, clinical social workers, clinical psychologists, and dietitians/nutritional professionals

So mental health, physical therapy, audiologists, and a few others are not affected until 2019

There are 4 performance categories:
1.    PQRS  –  60%
2.    EHR  –  25%
3.    Clinical Practice Improvement  – 15%
4.    Resource Use  –  0%  (not used in 2017, but will be in 2018 and on)
This means that a huge 85% of the score is based on PQRS and EHR.

#1 Marketing Idea for Today

Marketing is the hardest part of starting or growing your medical billing business.  We are often asked for suggestions on marketing from billing services.   There are many changes in the medical billing field that are opportunities for marketing your business.  Right now we have a great suggestion for you.

Many times there is a change or new information in the field of medical billing that is important to providers but they may not be aware of.  When such information is available, it can be a great marketing tool.  And right now we do have such information available that you can use to grow your business.

I know you probably have heard a lot about MACRA, but the surprising fact is that many providers’ offices have not yet understood how this is going to affect their income in the next few years.  Not only will their income be affected but they will be scored by Medicare and their score will be published on a website.

Here’s how to use this information to market:

First of all you need to totally understand MACRA so you can explain it to a doctor.  You need to know specifically how it will affect their income.  You need to know which medical providers will be affected when.  Also many doctors will be concerned about how they are being scored when it is available for anyone to look at on a website.   For more information on understanding MACRA, see our article MACRA in a Nutshell.

Once you are confident that you understand the information, you can build a marketing campaign by calling, writing, or dropping in offices.  If you decide to go directly to offices to try to talk to them, you may find it difficult to find a decision maker who can stop to talk to you.  Be prepared by having written information you can leave behind explaining how you can help them understand this information.  Make sure to leave your contact information.   As with any marketing campaign make sure to keep track of everything.

Another idea is to offer a luncheon to cover this important information.  Either send out invitations that are enticing with the information they will be receiving or advertise what you are offering.

You could also offer to come in to do an analysis of how MACRA will impact their office.  This may seem difficult but it really isn’t.  You just need to find out:

1. Do they report PQRS?

2. Do they demonstrate Meaningful Use? Those are the two biggest areas for scoring.

If they are already doing both of those then their score should be pretty good.  If not, then you can give them information on how to fix that.

The problem with MACRA is that most providers see “2019” and think, “We don’t have to worry about anything yet”.  But the reality is that the 2019 income will be determined but what the providers do in 2017.  Ignoring MACRA is not an option.

So back to marketing, you can use MACRA to get the provider’s attention.  Design a flyer or other informational packet and use it to get your foot in the door.  Once in, you may discover other areas that are problems and will have the opportunity to talk to them about your services.

MACRA Made Easy – The Final Rule Released

On Friday October 14th CMS released the final rule of MACRA.  Since many providers and staff that we encounter still have not even heard of MACRA despite being bombarded with emails and newsletters with information, we will start at the beginning.

MACRA is The Medicare Access and CHIP Re-Authorization Act which was signed into law in 2015 and is slated to be implemented in 2019.  Even though it will not be implemented until 2019 it will be based on performance data from 2017.  Many providers seem to be ignoring the information on MACRA.  Maybe because they see the year 2019 and figure they still have time, or maybe because it is just too darn confusing to figure out.  In either case, ignoring MACRA can be a costly mistake.

Basically MACRA takes the Meaningful Use (MU) Electronic Health Record Incentive Program, Physician Quality Reporting System (PQRS), and the Value-Based Modifier (VBM) program and combines them all into one Merit-Based Incentive Payment System (MIPS) program.

What does that mean to providers or Eligible Professionals (EPs)?  Well it means that EPs will be assigned a MIPS composite performance score.  This score will be calculated on a scale from 0 to 100 and will significantly influence their Medicare reimbursements.  In 2019 a provider’s payments may be anywhere from -4% to +4% depending on their MIPS composite performance score.

The MIPS composite performance score will be divided into the following components:

60% Quality (PQRS)  –  If providers are not reporting PQRS then they are could have a score of 40 or below right off the bat.

25% Advancing Care Information – This was previously known as Meaningful Use or EMR.  If providers are not demonstrating Meaningful Use then they could lose 25 points of their MIPS composite performance score.

15% Improvement Activates  –  EPs will be able to choose from a list of activities that best fit their practice.  At least one activity must be selected.  The activities are categorized as “medium” or “high” weight.  Full credit for this portion of MIPS is 60 points.  A high weight category earns 20 points and a medium earns 10.  One way an EP can earn 60 points would be to participate in three high weight activities from the list.

MACRA replaced the old Sustainable Growth Rate (SGR) method of determining fee schedule amounts for providers.  Providers will now have fee schedules that will be determined by their MIPS composite performance score.  So it is possible that providers in the same physical location can have completely different reimbursement rates.  This is not simply a 1.5% or 2% penalty.  This will determine the fee schedule and may result in providers receiving up to -9% by the year 2022.

The problem is that the score will be based on data from two years prior so the provider will have to deal with the lower fee schedule for up to two years in order to rectify the situation.  Providers need to understand that the claims that they submit and the actions (or lack of action) they take beginning January 1, 2017 will affect their Medicare reimbursement in 2019.

If an individual EP works for more than one group, the performance score is a weighted average.  If the individual EP changes groups, the performance score is based on the data from the previous period.  So for example, if an EP works for Middleville Health Clinic for the entire year of 2017, but then switches to Johnstown Medical in 2018, their performance score for payments in 2019 will be based on their reported data from Middleville Health Clinic in 2017.

If an EP is newly enrolled, or they are below the low-volume threshold of $10,000 for the reporting year, then they will have no MIPS score and will be considered exempt for that year.
If an EP has Medicare billing charges less than or equal to $10,000 AND provides care for 100 or fewer Medicare patients in one year they are not subject to MIPS.

Prolonged Service Add-on codes now apply to outpatient mental health

The add-on codes for prolonged services, 99354 and 99355 are now applicable to face-to-face outpatient mental health as well as for E/M codes.  Previously these codes were only reimbursable if used with E/M codes.
+99354 – Prolonged service in the office or other outpatient setting requiring direct patient contact beyond the usual service, first hour
+99355  –  Prolonged service in the office or other outpatient setting requiring direct patient contact beyond the usual service, each additional 30 minutes
Previously CPT code 90837 was the longest code to report individual psychotherapy.  The 90837 indicates 60 minutes.  If a doctor or therapist saw a patient longer than one hour there was no way to report the additional time.  With this new rule, add-on codes can be used to report the additional time.
For example, if a psychologist spends 90 minutes with a patient face to face for individual psychotherapy they would report the 90837 and the 99354.  If they spent two hours and thirty minutes, it would be reported using the 90837, 99354, and one unit of 99355.
It is important that the patients chart is noted with the time spent with the patient.  Even though these add-on codes can be applied to outpatient mental health it doesn’t mean that all insurances or all plans will cover the add-on codes.  Also, prior authorization rules would still apply as well.
They have also created two new add-on prolonged service codes.  +99415 and +99416 are to report prolonged face to face services performed by a physician, NP or PA.  These prolonged service codes start at services > 45 minutes.
Note:  The + in front of a CPT code indicates that it is an add-on code and that a primary CPT code must be used.

New Mandates in Medical Billing

Recently we have seen more mandates regarding the medical billing field.  Our local Blue Cross recently offered direct deposit by signing up for ERAs and switched from Payspan to another service.  Most of our providers opted for the direct deposit but when the ERAs started coming through in a totally different format than providers were used to we had one provider in particular who didn’t like the new format and wanted to go back to the old paper checks and EOB.  We called Blue Cross to see if this was possible but were told that yes they could change back but soon it would be mandated and they would have to reapply then.

Also AETNA has announced that as of January 1, 2017 ALL claims must be submitted electronically.  They did send out a nice letter explaining what to do regarding appeals, attachments, secondary claims, corrected claims and COB information.

Patient Payment Collections

Even before the enactment of the ACA patient responsibilities were increasing.  However with the ACA plans we are seeing them climb ever higher.  It is not uncommon to see $40 or $50 co-pays and $2500 deductibles.  With patient responsibilities rising it is becoming crucial for providers to improve their patient payment collections.

In the past when most of a visit was paid by insurance this was not as important.  Now it is not uncommon for the entire allowed amount to be the responsibility of the patient so providers cannot afford to not collect the patient portions.

With the technology available, providers now have more options.

  1. Most important is sending patient statements on a regular monthly basis
  2. Co-pays should be collected at the time of service and should not require sending a statement except in unusual situations
  3. Patient statements can now be sent by email cutting down on costs
  4. Statements can be sent with a place for the patient to enter credit card information to pay the balance.
  5. A patient portal can be set up on a website to accept electronic payments over the internet.
  6. If time allows in the office patients should be called to remind them of past due balances and an attempt should be made to set up payment arrangements
  7. Providers can consider using “soft collections” through a collection agency where the collection agency makes several calls and sends letters over a brief period of time attempting to set up payment arrangements.

People are more accustomed to making payments by EFT or paying bills online with a credit card.  It is important that providers give patients convenient ways to make their payment.