Medical Coding and Payors Assignment

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Liberty University *

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Feb 20, 2024

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1 Medical Coding and Payors Assignment: Common Billing Errors Affecting Medicare Claims and Strategies for Avoidance Nikolas Sullivan (L34020706) School of Health Sciences: Liberty University AMOA 206: Medical Office Billing and Bookkeeping Dr. Karen Davidson February 26, 2024
2 Medical Coding and Payors Assignment: Common Billing Errors Affecting Medicare Claims and Strategies for Avoidance Accurate billing is crucial for successful reimbursement from Medicare in a medical office. Incorrect billing practices can lead to claim rejections, denials, and subsequent financial losses. This article discusses three common billing errors that can affect Medicare claims and strategies to avoid future problems. The information provided is based on industry best practices and guidelines. I. Inaccurate Diagnosis Coding: One standard billing error involves incorrect diagnosis coding. Medicare requires accurate reporting of diagnoses using the International Classification of Diseases, Tenth Revision (ICD-10) codes. Mistakes in diagnosis codes can result in claim denials or underpayment. For instance, if a medical office submits a claim with a diagnosis code that does not justify the services provided, Medicare may reject the claim. To avoid this problem, medical offices should ensure trained coders review and assign the appropriate ICD-10 codes for each patient encounter. Regular training sessions help coders stay up- to-date with coding guidelines and changes. Additionally, implementing regular audits and conducting internal coding accuracy reviews can identify potential errors before submitting claims. II. Insufficient documentation is another standard billing error that can lead to claim denials. Medicare requires comprehensive documentation to support the medical necessity of services provided. Medicare may deny the claim if the documentation is incomplete, illegible, or lacks the necessary details. To avoid this issue, medical offices should establish robust documentation practices. Physicians should provide complete and
3 Medical Coding and Payors Assignment: Common Billing Errors Affecting Medicare Claims and Strategies for Avoidance detailed documentation, including relevant patient history, physical examination findings, diagnosis, treatment plans, and services' rationale. Clear and concise documentation supports accurate billing and facilitates effective communication among healthcare providers. III. Improper Use of Modifier Codes: Modifier codes are alphanumeric characters that provide additional information about a service or procedure. However, improper use or omission of modifier codes can lead to claim denials or incorrect reimbursement. For example, if a medical office fails to apply the appropriate modifier code to indicate a service was performed on both eyes instead of one, Medicare may reject the claim or pay at a reduced rate. Medical offices should educate their billing staff on the correct use and application of modifiers to avoid errors related to modifier codes. It is crucial to reference the Medicare Claims Processing Manual and other relevant resources to ensure accurate coding. Regular training sessions and ongoing communication with providers can help address any concerns or questions about the appropriate use of modifier codes.
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4 Citations: Centers for Medicare & Medicaid Services (CMS): https://www.medicare.gov/ American Academy of Professional Coders (AAPC): https://www.aapc.com/ American Medical Association (AMA): https://www.ama-assn.org/