Chapter 16 - Medical coding. After completing chapter 16, you will be able to: Explain the purpose and format of the ICD volumes that are used by medical, describe how to analyze diagnoses and locate correct codes using the ICD, identify the purpose and format of the CPT, name three key factors that determine the level of Evaluation and Management codes that are selected,...
PowerPoint® to accompany Medical Assisting Chapter 16 Second Edition Ramutkowski • Booth • Pugh • Thompson • Whicker Copyright © The McGraw-Hill Companies, Inc Permission required for reproduction or display Medical Coding Objectives 161 Explain the purpose and format of the ICD volumes that are used by medical 162 Describe how to analyze diagnoses and locate correct codes using the ICD 163 Identify the purpose and format of the CPT 164 Name three key factors that determine the level of Evaluation and Management codes that are selected Medical Coding Objectives Objectives (cont.) 165 Identify the two types of codes in the Health Care Common Procedure Coding System (HCPCS) 166 Describe the process used to locate correct procedure codes using CPT 167 Explain how medical coding affects the payment process 168 Define fraud and provide examples of fraudulent billing and coding Diagnosis Codes: The ICD9CM Patient Chief Complaint Physician Medical Diagnosis Insurance Diagnosis Code The diagnosis codes are found in the International Classification of Diseases, Ninth Revision, Clinical Modification (ICD9) The use of ICD9 codes in healthcare is mandated by HIPAA for reporting: Patient’s Diseases Conditions Signs and Symptoms Diagnosis Codes: The ICD9CM (cont.) Alphabetic Index (Volume 2) Diagnoses appear in alphabetical order The index is organized by condition Should be used initially to look up conditions Tabular List (Volume 1) Diagnoses appear in numerical order Listing is organized according to source or body system The Alphabetical Index is never used alone to find a diagnosis code because it does not contain all the necessary information Diagnosis Codes: The ICD9CM (cont.) Code Structure • Codes are made up of three, four, and five digits and a description • The four and five digit codes are mandated by payers when they are available V Codes E Codes Identify encounters for reasons Identify external causes of other than illness or injury injuries and poisoning . Can be used as either a primary Never used alone as a diagnosis code or additional code code Diagnosis Codes: The ICD9CM (cont.) ICD9CM CONVENTIONS A list of abbreviations, punctuation, symbols, typefaces, and notes that provide guidelines for using the code set Conventions NOS ( ) [ ] NEC An abbreviation that means Brackets are used around An abbreviation that means Parentheses are used “not elsewhere classified”. synonyms, alternate “not otherwise specified”, or around alternative This is used when the ICD9 wording, or explanations. “unspecified” wordings. does not provide a specific code to describe the patient’s condition Diagnosis Codes: The ICD9CM (cont.) ICD9CM CONVENTIONS A list of abbreviations, punctuation, symbols, typefaces, and notes that provide guidelines for using the code set Conventions Used in the Tabular List This word is followed by the Brace encloses a series of terms Includesafter an incomplete term types of conditions }: Diagnosis Codes: The ICD9CM (cont.) ICD9CM CONVENTIONS A list of abbreviations, punctuation, symbols, typefaces, and notes that provide guidelines for using the code set Conventions Use Code first This means that the code This note means an These notes indicate an additional code should be underlying additional entry is not classified as Excludes is not to be used as the primary diagnosis used if available. part of the preceding code disease code Diagnosis Codes: The ICD9CM (cont.) Define these ICD9CM CONVENTIONS NOS } NEC Includes [ ] Excludes ( ) Use additional code : Code first underlying disease 10 Diagnosis Codes: The ICD9CM (cont.) Record the code on the claim form Read all information to find the code that corresponds to the patient’s condition Locate the selected Alphabetic code in the Tabular List. Find the diagnosis in the Alphabetic Index Locate statement of diagnosis in patient’s medical record 11 Diagnosis Codes: The ICD9CM (cont.) A New Revision: The ICD10CM Contains over 2000 disease categories Codes are alphanumeric containing a letter followed by up to five numbers Codes are added to show specific side of the body that is affected by the disease process when applicable 12 Apply Your Knowledge Answer A medical assistant has looked up a medical term in the alphabetic index, and next to the term is the word “see”. What does this mean? This means the medical assistant must look up the term that follows the word “see” because another category should be used or crossreferenced 13 Procedure Codes: The CPT The Current Procedural Terminology (CPT) book is the most commonly used system for reporting procedures and services provided to the patient This is the HIPAA required code set Published annually by the American Medical Association (AMA) 14 Procedure Codes: The CPT Except for the first section, the reference book is arranged in numerical order Section Range of Codes Evaluation and Management 9920199499 Anesthesiology Surgery 001001999 1002169990 Radiology 7001079999 Pathology and Laboratory Medicine 8004889356 9028199602 15 Procedure Codes: The CPT (cont.) AddOn Codes Modifiers A plus sign (+) is used One or more twodigit numbers are added with a hyphen after the five digit number Category II, III, and Unlisted Procedure Codes Category II (tracks healthcare performance measures) Category III (temporary codes) Unlisted Codes (Used when no other code is adequate) 16 Procedure Codes: The CPT (cont.) Evaluation and Management Services Explains how to code different levels of patient services based on: The extent of the patient history taken The extent of the examination conducted The complexity of the medical decision made New Patient versus Established Patient New patients have not been seen by physician within the past 3 years 17 Procedure Codes: The CPT (cont.) Surgical Procedures The “Surgical Pack” is a combination of services needed for surgery such as: Anesthesia Surgery Routine FollowUp Care Global Period refers to the time period that followup is rendered following surgery 18 Procedure Codes: The CPT (cont.) Laboratory Procedures Immunizations • Panels listed in Pathology and Laboratory sections of the CPT include tests commonly performed • If the panel code is not used and separate codes are used, they will be rebundled • Injections require two codes, one for the procedure (injection) and the other for the medication (vaccine or toxoid) 19 HCPCS The Health Care Common Procedure Coding System (HCPCS) Developed by the Centers for Medicare and Medicaid Services (CMS) Pronounced “hicpicks” Contains two levels: Level I codes duplicate CPT codes Level II codes are national codes covering supplies Contains 5 characters, either numbers, letters, or a letter with a number 20 Avoiding Fraud: Coding Compliance Medical assistants help ensure that maximum appropriate reimbursement for services provided are received Compliance with federal and state law and payer requirements is mandatory Code Linkage Diagnostic Procedures This is a process that insurance company representatives use to evaluate the necessity of medical procedures that are reported based on the patient’s diagnosis Careful attention to details are needed to prevent errors in coding and incorrect billing 21 Avoiding Fraud: Coding Compliance (cont.) Investigators look for patterns such as: Reporting services that were not performed Reporting services at a higher level than was carried out Performing and billing for procedures that are not related to the patient’s condition and therefore not medically necessary Billing separately for services that are bundled in a single procedure code Reporting the same service twice 22 Avoiding Fraud: Coding Compliance (cont.) Compliance Plans To avoid the risk of fraud, medical offices incorporate a process for finding, correcting, and preventing illegal medical practices A compliance officer and committee will: Audit and monitor compliance Develop written policies and procedures that are consistent with regulations and laws Provide ongoing communication and training to staff Respond to and correct errors 23 Apply Your Knowledge Answer The insurance representative has questioned the codes listed on three patient forms that were submitted last year. When rechecking these forms the office medical assistant should: a Use the current book to validate accuracy of the codes b Use last year’s book to validate accuracy of the codes c Use next year’s book to validate accuracy of the codes. 24 End of Chapter 25 .. .Medical Coding Objectives 16 1 Explain the purpose and format of the ICD volumes that are used by medical 16 2 Describe how to analyze diagnoses and locate correct codes using the ICD 16 3 Identify the purpose and format of the CPT... 16 3 Identify the purpose and format of the CPT 16 4 Name three key factors that determine the level of Evaluation and Management codes that are selected Medical Coding Objectives Objectives (cont.) 16 5 Identify the two types of codes in the Health Care ... Common Procedure Coding System (HCPCS) 16 6 Describe the process used to locate correct procedure codes using CPT 16 7 Explain how medical coding affects the payment process 16 8 Define fraud and provide examples of fraudulent