2013 OIG Work Plan: Reviews That May Affect Otolaryngology
In October 2012, the Office of Inspector General (OIG) issued its Annual Work Plan for the next fiscal year, which stipulates the areas of the Medicare and Medicaid programs that the OIG (Office of Audit Services, Office of Evaluation and Inspections, Office of Investigations, and Office of Counsel to the Inspector General) will monitor and investigate to promote efficiency and eliminate incorrect billing, waste, fraud, and abuse in these programs. The OIG releases the details of its findings in reports that outline its methodology for determining payment or billing errors and recommendations to the Centers for Medicare & Medicaid Services (CMS) to recoup erroneous payments. In addition, the Medicare Recovery Audit Contractors (RAC) will monitor the improper payment trends that the OIG indentifies in these reports to guide its selection of new areas to audit in Medicare Part A and Part B programs. The OIG plans to focus on Medicare Part A and Part B claims billed in various settings, including hospitals, acute care hospitals, hospital outpatient setting, physician offices, and ambulatory surgical centers. Notably, in addition to continuing its oversight of the Recovery Act and the Affordable Care Act (ACA), the OIG will also review CMS’ documentation of its contracts with Medicare Administrative Contractors (MACs) and CMS’ ongoing monitoring and assessment of MAC performance. We have reviewed the 2013 work plan and believe the following new and ongoing OIG initiatives could affect otolaryngologist–head and neck surgeons. Members should also remember that several initiatives instituted in previous years are still ongoing. Some of the new areas that OIG will review in 2013 include: OIG will analyze claims data to determine how much CMS potentially could save if it bundled outpatient services delivered up to 14 days prior to an inpatient hospital admission into the diagnosis related group (DRG) payment. Currently, Medicare bundles all outpatient services delivered three days prior to an inpatient hospital admission. OIG will review Medicare payments made to hospitals for beneficiary discharges that should be coded as transfers and determine whether these claims were appropriately processed and paid. Providers may use GA or GZ modifiers on claims they expect Medicare to deny as not reasonable and necessary. After a recent OIG review showed that CMS paid for 72 percent of pressure-reducing support surface claims with GA or GZ modifiers resulting in $4 million in inappropriate payments, OIG will determine the extent to which Medicare improperly paid claims from 2002 to 2011 in which providers entered GA, GX, GY, or GZ service code modifiers. Since OIG suspects that hospitals may be acquiring Ambulatory Surgical Centers (ASCs) and providing outpatient surgical services in that setting, for 2013 OIG will be reviewing the extent to which hospitals acquire ASCs and convert them to hospital outpatient departments. OIG plans on also determining the effect of such acquisitions on Medicare payments and beneficiary cost sharing. After recent Government Accountability Office (GAO) reports have revealed pervasive deficiencies in CMS’ internal control and contract management, OIG will review the number, types, and dollar amount of active CMS contracts and examine how CMS maintains all of its contract information. In addition, OIG will assess CMS’ monitoring and performance of MACs and assess MACs implementation of Part A and Part B system edits. OIG will determine the extent to which Medicare’s supply replacement schedules for supplies related to continuous positive airway pressure (CPAP) machines vary from those of Medicaid, Department of Veterans Affairs (VA), and Federal Employees Health Benefits programs. After recent drug shortages, OIG will attempt to determine the extent to which providers of select Part B-covered drugs in short supply report difficulty acquiring those drugs. OIG will ask providers to describe their behavior when facing a drug shortage and any effect on pricing, quality of care, and market availability. In addition to its new initiatives, the OIG will continue previously launched initiatives by continuing to review: Hospitals’ controls for ensuring the accuracy and validity of data related to quality of care that they submit to CMS for Medicare reimbursement. Hospitals must report quality measures in order to avoid penalties to their Medicare payments. Medicare: Hospital claims with high or excessive payments. Medicare payments for Part B Imaging Services. Medicare Part B paid claims and medical records for interpretations and reports of diagnostic radiology services (X-rays, CT, and MRIs) performed in emergency hospital settings. Off-label use of Medicare Part B prescription drugs and medical necessity of reimbursement. Medicare payments for observation services provided during outpatient visits. Medicare claims for same day hospital readmissions. Medicare Part B claims and appropriate report of place-of-service codes. The appropriateness of the process for devising ambulatory surgical center (ASC) reimbursement rates under the revised ASC payment system. Safety and quality levels of surgeries performed in an ASC setting. Place of service coding errors for services performed in an ASC and hospital outpatient departments. E/M services reimbursed as part of the global surgery fee in effort to determine if practices have changed since institution of the concept in 1992. Electronic Health Record E/M Claims with identical documentation across services. Medicare/Medicaid Incentive Payments for provider adoption of Electronic Medical Records. Appropriateness of Medicare payments for sleep studies and sleep test procedures. Medical necessity of high-cost diagnostic tests billed to Medicare. Medicare Outpatient Hospital Claims for the Replacement of Medical Devices: OIG will determine whether hospitals submitted outpatient claims that included procedures for the insertion of replacement medical devices in compliance with Medicare regulations. The extent to which providers comply with assignment rules (for participating and non-participating providers). Physician billing for incident-to services so OIG can see if the error rate is higher than non-incident-to services. Physician billing of unusually high cumulative part B payments made to an individual physician or supplier, or on behalf of an individual beneficiary, during a specified period. Medicare Part A and B claims submitted by top error-prone providers. Since the work plan primarily focuses on providers’ compliance with Medicare requirements, it is vital that members adhere to documentation requirements, particularly given the transition to electronic health records and requirements for meaningful use. As such, we encourage members to access Academy resources and tools designed to assist with compliance prior to submitting your claims: The Academy’s Coding Hotline: 1-800-584-7773. Correct Coding Initiative Edits assists with modifier usage: https://www.cms.gov/NationalCorrectCodInitEd/NCCIEP/list.asp#TopOfPage. Ensure you are aware of maximum units you can report for a service on the same patient on the same date of service (Medically Unlikely Edits (MUEs) https://www.cms.gov/NationalCorrectCodInitEd/08_MUE.asp#TopOfPage. Be mindful of global periods for procedures when submitting claims. Access the Academy’s website for updated coding resources (http://www.entnet.org/practice/Guidelines.cfm) prior to submitting your claims. Please email Healthpolicy@entnet.org for further details. Reference 2013 OIG Work Plan: https://oig.hhs.gov/reports-and-publications/archives/workplan/2013/Work-Plan-2013.pdf; Accessed December 2012.
The OIG plans to focus on Medicare Part A and Part B claims billed in various settings, including hospitals, acute care hospitals, hospital outpatient setting, physician offices, and ambulatory surgical centers. Notably, in addition to continuing its oversight of the Recovery Act and the Affordable Care Act (ACA), the OIG will also review CMS’ documentation of its contracts with Medicare Administrative Contractors (MACs) and CMS’ ongoing monitoring and assessment of MAC performance.
We have reviewed the 2013 work plan and believe the following new and ongoing OIG initiatives could affect otolaryngologist–head and neck surgeons. Members should also remember that several initiatives instituted in previous years are still ongoing.
Some of the new areas that OIG will review in 2013 include:
- OIG will analyze claims data to determine how much CMS potentially could save if it bundled outpatient services delivered up to 14 days prior to an inpatient hospital admission into the diagnosis related group (DRG) payment. Currently, Medicare bundles all outpatient services delivered three days prior to an inpatient hospital admission.
- OIG will review Medicare payments made to hospitals for beneficiary discharges that should be coded as transfers and determine whether these claims were appropriately processed and paid.
- Providers may use GA or GZ modifiers on claims they expect Medicare to deny as not reasonable and necessary. After a recent OIG review showed that CMS paid for 72 percent of pressure-reducing support surface claims with GA or GZ modifiers resulting in $4 million in inappropriate payments, OIG will determine the extent to which Medicare improperly paid claims from 2002 to 2011 in which providers entered GA, GX, GY, or GZ service code modifiers.
- Since OIG suspects that hospitals may be acquiring Ambulatory Surgical Centers (ASCs) and providing outpatient surgical services in that setting, for 2013 OIG will be reviewing the extent to which hospitals acquire ASCs and convert them to hospital outpatient departments. OIG plans on also determining the effect of such acquisitions on Medicare payments and beneficiary cost sharing.
- After recent Government Accountability Office (GAO) reports have revealed pervasive deficiencies in CMS’ internal control and contract management, OIG will review the number, types, and dollar amount of active CMS contracts and examine how CMS maintains all of its contract information. In addition, OIG will assess CMS’ monitoring and performance of MACs and assess MACs implementation of Part A and Part B system edits.
- OIG will determine the extent to which Medicare’s supply replacement schedules for supplies related to continuous positive airway pressure (CPAP) machines vary from those of Medicaid, Department of Veterans Affairs (VA), and Federal Employees Health Benefits programs.
- After recent drug shortages, OIG will attempt to determine the extent to which providers of select Part B-covered drugs in short supply report difficulty acquiring those drugs. OIG will ask providers to describe their behavior when facing a drug shortage and any effect on pricing, quality of care, and market availability.
In addition to its new initiatives, the OIG will continue previously launched initiatives by continuing to review:
- Hospitals’ controls for ensuring the accuracy and validity of data related to quality of care that they submit to CMS for Medicare reimbursement. Hospitals must report quality measures in order to avoid penalties to their Medicare payments.
- Medicare: Hospital claims with high or excessive payments.
- Medicare payments for Part B Imaging Services.
- Medicare Part B paid claims and medical records for interpretations and reports of diagnostic radiology services (X-rays, CT, and MRIs) performed in emergency hospital settings.
- Off-label use of Medicare Part B prescription drugs and medical necessity of reimbursement.
- Medicare payments for observation services provided during outpatient visits.
- Medicare claims for same day hospital readmissions.
- Medicare Part B claims and appropriate report of place-of-service codes.
- The appropriateness of the process for devising ambulatory surgical center (ASC) reimbursement rates under the revised ASC payment system.
- Safety and quality levels of surgeries performed in an ASC setting.
- Place of service coding errors for services performed in an ASC and hospital outpatient departments.
- E/M services reimbursed as part of the global surgery fee in effort to determine if practices have changed since institution of the concept in 1992.
- Electronic Health Record E/M Claims with identical documentation across services.
- Medicare/Medicaid Incentive Payments for provider adoption of Electronic Medical Records.
- Appropriateness of Medicare payments for sleep studies and sleep test procedures.
- Medical necessity of high-cost diagnostic tests billed to Medicare.
- Medicare Outpatient Hospital Claims for the Replacement of Medical Devices: OIG will determine whether hospitals submitted outpatient claims that included procedures for the insertion of replacement medical devices in compliance with Medicare regulations.
- The extent to which providers comply with assignment rules (for participating and non-participating providers).
- Physician billing for incident-to services so OIG can see if the error rate is higher than non-incident-to services.
- Physician billing of unusually high cumulative part B payments made to an individual physician or supplier, or on behalf of an individual beneficiary, during a specified period.
- Medicare Part A and B claims submitted by top error-prone providers.
Since the work plan primarily focuses on providers’ compliance with Medicare requirements, it is vital that members adhere to documentation requirements, particularly given the transition to electronic health records and requirements for meaningful use. As such, we encourage members to access Academy resources and tools designed to assist with compliance prior to submitting your claims:
- The Academy’s Coding Hotline: 1-800-584-7773.
- Correct Coding Initiative Edits assists with modifier usage: https://www.cms.gov/NationalCorrectCodInitEd/NCCIEP/list.asp#TopOfPage.
- Ensure you are aware of maximum units you can report for a service on the same patient on the same date of service (Medically Unlikely Edits (MUEs) https://www.cms.gov/NationalCorrectCodInitEd/08_MUE.asp#TopOfPage.
- Be mindful of global periods for procedures when submitting claims.
- Access the Academy’s website for updated coding resources (http://www.entnet.org/practice/Guidelines.cfm) prior to submitting your claims. Please email Healthpolicy@entnet.org for further details.
Reference
- 2013 OIG Work Plan: https://oig.hhs.gov/reports-and-publications/archives/workplan/2013/Work-Plan-2013.pdf; Accessed December 2012.