Preparing for ICD-10
Kim Reid, Director of ICD-10 Training and Curriculum (www.aapc.com) The medical industry in the United States has been using the same coding system (ICD-9-CM) for more than 25 years. Because of the ongoing advances in the medical field, we have long since outgrown the capacity of the ICD-9 coding system. Beginning October 1, 2013, a new coding system will be implemented in the United States for all covered entities under HIPAA. ICD-10-CM will be used to report diagnosis coding and ICD-10-PCS will be used to report procedures performed in the hospital (or facility). Currently, in ICD-9-CM there are approximately 14,000 codes available to choose from to report diagnoses for patients. In ICD-10-CM there are over 70,000 code choices. With such a large increase in available choices, it is inevitable that physician documentation will require more specific details to allow services to be coded to the highest level of specificity. In ICD-9, the codes may be five digits and most of them are all numeric (with the exception of the V and E codes). In ICD-10, the codes may be up to seven characters and always begin with a letter. The additional character may be alpha or numeric, depending on their place in the code. Some of the differences between the code sets include the addition of laterality, specific locations of certain diseases and conditions (inner ear, middle ear, external ear), and episode of care (initial encounter, subsequent encounter, sequela). It will by no means be impossible to learn the new coding system; however, without preparation and training, many services will not be able to be coded without the necessary information being included in the documentation. The appropriate time to begin preparing for the changes largely depends on an individual’s role in the practice. The person who is in charge of the implementation project should already be in the process of outlining a plan for their organization indicating the timelines for each step to be completed. Each person who is assigned to complete a portion of any tasks related to ICD-10 implementation should have a clear understanding of what they are expected to accomplish and when. ICD-10 will be much more than just learning a new set of codes. Computer software and hardware will need to be updated, electronic medical records will need to be assessed for vendor readiness with uploading the codes to the system, integration to all systems used in the office will need to be reviewed, and upgrades may be necessary. Providers will require education to understand what elements are going to be necessary in their documentation to ensure accurate and precise coding. There are aspects of ICD-10 preparation that should be well under way at this time. The conversion to the new electronic format for submitting claims will be implemented as of January 1, 2012. Many offices are relying on their clearinghouse or electronic medical record vendor to ensure compliance with the new format, but it is imperative that a practice understands where the vendor or clearinghouse is in the process of this transition or it could result in delayed claims processing and payment in early 2012. If you have not already had a conversation with your IT team, vendor, or clearinghouse, you may want to contact them right away to see where they are with 5010 testing. The implementation date is only a short time away. While the conversion date for the new electronic format will take place in January 2012, ICD-10 codes cannot be used until October 1, 2013. The transition to the new electronic format in January (one year and 10 months prior to the code set implementation) will allow for the healthcare industry to continue submitting claims using ICD-9 codes, while testing the electronic submission of ICD-10 codes. In addition to 5010 testing and formulating the implementation effort, it is also very important to begin preparing providers for the necessary changes that will be required in their documentation. An ideal plan is to begin looking at current documentation and trying to code for the services in ICD-10-CM. This will optimize the educational effort for the provider so they can easily understand areas of change that will be directly related to them individually. By educating the providers now on the upcoming changes, they can begin to integrate the elements required for accurate ICD-10-CM coding now, and then when the implementation date of October 1, 2013, arrives they will be minimally impacted by the change. There will still be unspecified codes available for use with ICD-10; however, if you choose to use the unspecified codes when more accurate codes are available, the payer may pay the claim initially, but if they were to perform an audit on the medical record, and they find that the service could have been reported to a higher level of specificity they could request the payment be returned. For instance, think of an ear infection. Many times a provider will indicate “OM” as the diagnosis. Depending on the circumstances of the patient, an E & M level 3 or 4 service is provided. If the diagnosis is billed as “H66.90 Otitis media, unspecified, unspecified ear” the payer may not feel that a higher level of service is supported if the ear that the condition exists in cannot be identified. The choices in ICD-10-CM are: H66.90 Otitis media, unspecified, unspecified ear H66.91 Otitis media, unspecified, right ear H66.92 Otitis media, unspecified, left ear H66.93 Otitis media, unspecified, bilateral In addition to laterality in ICD-10-CM there are other elements that are unique to this new coding system. Many conditions are indicated as being recurrent: H65.00 Acute otitis media, unspecified ear H65.01 Acute otitis media, right ear H65.02 Acute otitis media, left ear H65.03 Acute otitis media, bilateral H65.04 Acute otitis media, recurrent, right ear H65.05 Acute otitis media, recurrent, left ear H65.06 Acute otitis media, recurrent, bilateral H65.07 Acute otitis media, recurrent, unspecified The injury section in ICD-10-CM has greatly expanded to include many elements, including the episode of care. For example, foreign body in ear has the following choices available in ICD-10-CM: H16.1xxA Foreign body in right ear, initial encounter H16.1xxD Foreign body in right ear, subsequent encounter H16.1xxS Foreign body in right ear, sequela H16.2xxA Foreign body in left ear, initial encounter H16.2xxD Foreign body in left ear, subsequent encounter H16.2xxS Foreign body in left ear, sequela H16.9xxA Foreign body in ear, unspecified ear, initial encounter H16.9xxD Foreign body in ear, unspecified ear, subsequent encounter H16.9xxS Foreign body in ear, unspecified ear, sequela An initial encounter is used when the patient is receiving active medical treatment for a condition. Some examples of active medical treatment are: surgical treatment, emergency department encounter, and evaluation and treatment by a new provider. A subsequent encounter is defined in ICD-10-CM as encounters after the patient has received active medical treatment of the injury and is receiving routine care for the injury during the healing or recovery phase. Examples of subsequent care are: cast change or removal, removal of external or internal fixation device, medication adjustment, other aftercare and follow-up visits following injury treatment. Sequela is used for complications or conditions that arise as a direct result of an injury, such as scar formation after a burn. The scars are sequelae of the burn. CMS has indicated that this new coding system is being implemented as a result of the provider community working with their specialty societies, and asking for more precise codes in each specialty to more accurately convey the severity of a patient’s illness, and to better represent disease processes as they are researched and new information is obtained. This new code set will also allow the United States to report universally with the rest of the world who are already using ICD-10 to provide more precise information for statistical tracking and research. The transition to ICD-10 will be a large undertaking, and the time to begin preparing is now.
The medical industry in the United States has been using the same coding system (ICD-9-CM) for more than 25 years. Because of the ongoing advances in the medical field, we have long since outgrown the capacity of the ICD-9 coding system.
Beginning October 1, 2013, a new coding system will be implemented in the United States for all covered entities under HIPAA. ICD-10-CM will be used to report diagnosis coding and ICD-10-PCS will be used to report procedures performed in the hospital (or facility). Currently, in ICD-9-CM there are approximately 14,000 codes available to choose from to report diagnoses for patients. In ICD-10-CM there are over 70,000 code choices. With such a large increase in available choices, it is inevitable that physician documentation will require more specific details to allow services to be coded to the highest level of specificity.
In ICD-9, the codes may be five digits and most of them are all numeric (with the exception of the V and E codes). In ICD-10, the codes may be up to seven characters and always begin with a letter. The additional character may be alpha or numeric, depending on their place in the code. Some of the differences between the code sets include the addition of laterality, specific locations of certain diseases and conditions (inner ear, middle ear, external ear), and episode of care (initial encounter, subsequent encounter, sequela). It will by no means be impossible to learn the new coding system; however, without preparation and training, many services will not be able to be coded without the necessary information being included in the documentation.
The appropriate time to begin preparing for the changes largely depends on an individual’s role in the practice. The person who is in charge of the implementation project should already be in the process of outlining a plan for their organization indicating the timelines for each step to be completed. Each person who is assigned to complete a portion of any tasks related to ICD-10 implementation should have a clear understanding of what they are expected to accomplish and when.
ICD-10 will be much more than just learning a new set of codes. Computer software and hardware will need to be updated, electronic medical records will need to be assessed for vendor readiness with uploading the codes to the system, integration to all systems used in the office will need to be reviewed, and upgrades may be necessary. Providers will require education to understand what elements are going to be necessary in their documentation to ensure accurate and precise coding.
There are aspects of ICD-10 preparation that should be well under way at this time. The conversion to the new electronic format for submitting claims will be implemented as of January 1, 2012. Many offices are relying on their clearinghouse or electronic medical record vendor to ensure compliance with the new format, but it is imperative that a practice understands where the vendor or clearinghouse is in the process of this transition or it could result in delayed claims processing and payment in early 2012. If you have not already had a conversation with your IT team, vendor, or clearinghouse, you may want to contact them right away to see where they are with 5010 testing. The implementation date is only a short time away.
While the conversion date for the new electronic format will take place in January 2012, ICD-10 codes cannot be used until October 1, 2013. The transition to the new electronic format in January (one year and 10 months prior to the code set implementation) will allow for the healthcare industry to continue submitting claims using ICD-9 codes, while testing the electronic submission of ICD-10 codes.
In addition to 5010 testing and formulating the implementation effort, it is also very important to begin preparing providers for the necessary changes that will be required in their documentation. An ideal plan is to begin looking at current documentation and trying to code for the services in ICD-10-CM. This will optimize the educational effort for the provider so they can easily understand areas of change that will be directly related to them individually. By educating the providers now on the upcoming changes, they can begin to integrate the elements required for accurate ICD-10-CM coding now, and then when the implementation date of October 1, 2013, arrives they will be minimally impacted by the change.
There will still be unspecified codes available for use with ICD-10; however, if you choose to use the unspecified codes when more accurate codes are available, the payer may pay the claim initially, but if they were to perform an audit on the medical record, and they find that the service could have been reported to a higher level of specificity they could request the payment be returned. For instance, think of an ear infection. Many times a provider will indicate “OM” as the diagnosis. Depending on the circumstances of the patient, an E & M level 3 or 4 service is provided. If the diagnosis is billed as “H66.90 Otitis media, unspecified, unspecified ear” the payer may not feel that a higher level of service is supported if the ear that the condition exists in cannot be identified. The choices in ICD-10-CM are:
- H66.90 Otitis media, unspecified, unspecified ear
- H66.91 Otitis media, unspecified, right ear
- H66.92 Otitis media, unspecified, left ear
- H66.93 Otitis media, unspecified, bilateral
In addition to laterality in ICD-10-CM there are other elements that are unique to this new coding system. Many conditions are indicated as being recurrent:
- H65.00 Acute otitis media, unspecified ear
- H65.01 Acute otitis media, right ear
- H65.02 Acute otitis media, left ear
- H65.03 Acute otitis media, bilateral
- H65.04 Acute otitis media, recurrent, right ear
- H65.05 Acute otitis media, recurrent, left ear
- H65.06 Acute otitis media, recurrent, bilateral
- H65.07 Acute otitis media, recurrent, unspecified
The injury section in ICD-10-CM has greatly expanded to include many elements, including the episode of care. For example, foreign body in ear has the following choices available in ICD-10-CM:
- H16.1xxA Foreign body in right ear, initial encounter
- H16.1xxD Foreign body in right ear, subsequent encounter
- H16.1xxS Foreign body in right ear, sequela
- H16.2xxA Foreign body in left ear, initial encounter
- H16.2xxD Foreign body in left ear, subsequent encounter
- H16.2xxS Foreign body in left ear, sequela
- H16.9xxA Foreign body in ear, unspecified ear, initial encounter
- H16.9xxD Foreign body in ear, unspecified ear, subsequent encounter
- H16.9xxS Foreign body in ear, unspecified ear, sequela
An initial encounter is used when the patient is receiving active medical treatment for a condition. Some examples of active medical treatment are: surgical treatment, emergency department encounter, and evaluation and treatment by a new provider.
A subsequent encounter is defined in ICD-10-CM as encounters after the patient has received active medical treatment of the injury and is receiving routine care for the injury during the healing or recovery phase. Examples of subsequent care are: cast change or removal, removal of external or internal fixation device, medication adjustment, other aftercare and follow-up visits following injury treatment.
Sequela is used for complications or conditions that arise as a direct result of an injury, such as scar formation after a burn. The scars are sequelae of the burn.
CMS has indicated that this new coding system is being implemented as a result of the provider community working with their specialty societies, and asking for more precise codes in each specialty to more accurately convey the severity of a patient’s illness, and to better represent disease processes as they are researched and new information is obtained. This new code set will also allow the United States to report universally with the rest of the world who are already using ICD-10 to provide more precise information for statistical tracking and research. The transition to ICD-10 will be a large undertaking, and the time to begin preparing is now.