1. Provided by Coventry Healthcare  ©2010 Coventry Health Care. All rights reserved. Proprietary – Do not copy, distribute or disclose without permission of Coventry Health Care. California Medical Bill Reviewer Certification Unit 2: Official Medical Fee Schedule Module 2: Physician Services General Guidelines

2. CA Regulations Training – Physicians ServicesMarch 2010 Overview Part I: General Information  Official Medical Fee Schedule: How it is Organized  Service Providers: Who Can Use the Fee Schedule?  General Information and Instructions  Separate Procedures  Procedures Without Unit Value  Supplies, Materials, and Supplements  Special Services  Prolonged Service Codes The Official Medical Fee Schedule, or OMFS, includes reimbursement guidelines for the different physician services. Then, you will learn about the different reports that physician’s can use and how to calculate reimbursements correctly. Part I: General Information  Official Medical Fee Schedule: How it is Organized  Service Providers: Who Can Use the Fee Schedule? In this module, you will learn how the OMFS is organized, who can use the OMFS, and the general information and guidelines that apply to the OMFS. Let’s start by discussing how the OFMS is broken down, and who can use the OMFS to bill for services, treatments, and supplies...

3. CA Regulations Training – Physicians ServicesMarch 2010 Official Medical Fee Schedule: Physician Services The OMFS includes General Information and Instructions, as well as six major sections. OFMS Sections:  Evaluation and Management  Anesthesiology  Surgery  Radiology  Pathology and Laboratory  Medicine Medicine includes: Physical Medicine Manipulative Treatment Special Services

4. CA Regulations Training – Physicians ServicesMarch 2010 Service Providers “Any provider, regardless of specialty, may use any section of the OMFS containing procedures performed within his or her scope of practice or license…” EXCEPT: Evaluation & Management: Only physicians, physician assistants, and nurse practitioners may use E & M codes. Consultation: Only physicians may use consultation codes. Assessment & Evaluation: Only physical therapists may use A & E codes. Osteopathic Manipulation: Only licensed DOs and MDs may use osteopathic manipulation codes.

5. CA Regulations Training – Physicians ServicesMarch 2010 Service Providers: Physicians *Acting within scope of their practice. Medical Doctors Acupuncturists* Psychologists* Dentists* Chiropractors* Optometrists* Podiatrists*

6. CA Regulations Training – Physicians ServicesMarch 2010 Service Providers: Non-Physicians Acting within scope of license, certification, or education. Require authorization from payor to treat the injured worker. Orthotists & Prosthetists Physical Therapists Nurse Practitioners Physician’s Assistants Marriage/Family Counselors Licensed Clinical Social Workers

7. CA Regulations Training – Physicians ServicesMarch 2010 General Information and Instructions Part I: General Information Official Medical Fee Schedule: How it is Organized Service Providers: Who Can Use the Fee Schedule?  General Information and Instructions  Separate Procedures  Procedures Without Unit Value  Supplies, Materials, and Supplements  Special Services  Prolonged Service Codes Now that you are familiar with the types of providers that can use the OMFS, let’s take a look at some general guidelines & instructions...  General Information and Instructions  Separate Procedures  Procedures Without Unit Value  Supplies, Materials, and Supplements  Special Services  Prolonged Service Codes

8. CA Regulations Training – Physicians ServicesMarch 2010 General Information and Instructions The General Information and Instructions section provides guidelines on a wide range of topics. Topics include:  Separate Procedures  Procedures without Unit Value  Supplies & Materials  Dietary Supplements  Special Services  Prolonged Service Codes  Reports

9. CA Regulations Training – Physicians ServicesMarch 2010 Separate Procedures Some listed procedures are carried out as an integral part of a total service, while other procedures are independent of additional services. Procedures that are integral parts of a total service DO NOT warrant separate identification or reimbursement. Separate Procedure: a procedure independent of, and not immediately related to, other services performed, for which reimbursement is ALLOWED. Let’s take a look…

10. CA Regulations Training – Physicians ServicesMarch 2010 Separate Procedures For Example: CPT 95851, which codes for a Range of Motion procedure, is an essential part of a follow up visit for a shoulder injury. Therefore, it WOULD NOT warrant separate reimbursement. However, if this procedure were the only service performed, it would be considered a separate procedure and should be ALLOWED.

11. CA Regulations Training – Physicians ServicesMarch 2010 Procedures Without Unit Value Most procedures listed in the OMFS have a relative value (RV). However, relative values are not listed for all procedures in the OMFS. Unlisted procedures are typically uncommon or variable services, and are coded as By Report (BR) procedures. Those procedures without a relative value are known as procedures without unit value. Fees for procedures without a unit value must be justified by report.

12. CA Regulations Training – Physicians ServicesMarch 2010 Procedures Without Unit Value: An Example Some chiropractors bill large amounts for the use of this table, when in fact, it is just another form of manual traction. Unlisted procedures in physical medicine are often used to bill for variations on manual traction or manipulation using a different table or technique. Instead of an unlisted code, the CPT 97122, should be used. Sometimes $500-$1000 is charged for a specific chiropractic table known as VAX-D.

13. CA Regulations Training – Physicians ServicesMarch 2010 Procedures Without Unit Value Every effort should be made to identify the service performed for those procedure codes that have no listed value. As you know, providers often misuse the unlisted code when a more appropriate code is available. Hmm, which code should I use?

14. CA Regulations Training – Physicians ServicesMarch 2010 Procedures Without Unit Value What should you do? If you cannot identify an appropriate code, it is permissible to recommend the allowance of a like code equal in scope, time, and complexity of the service being performed.

15. CA Regulations Training – Physicians ServicesMarch 2010 You may want to ask for help from your supervisor, or other colleagues familiar with medical reimbursements before paying in full. If the necessity of the services has been verified, and the service authorized, additional documentation may be requested about the procedure, or an online search may be performed. Procedures Without Unit Value Payment in full is a last resort, after all other avenues have been explored.

16. CA Regulations Training – Physicians ServicesMarch 2010 Supplies & Materials Supplies and/or materials normally necessary to perform a service are not separately reimbursable. Only those supplies and materials provided above and beyond items usually included with the service may be separately reimbursed. These include supplies such as:  Cotton balls  Band-Aids  Applied meds/ointments

17. CA Regulations Training – Physicians ServicesMarch 2010 Supplies and Materials Reimbursement for most supplies and materials is paid at cost plus a 20% markup with a maximum of $15.00. Purchase Price$5.00 20% Markup$1.00 Total$6.00 Supplies not reimbursed at this rate include:  Dispensed DME  Supplies not covered under the DMEPOS

18. CA Regulations Training – Physicians ServicesMarch 2010 Supplies and Materials Dispensed DME reimbursement is paid at the purchase price, (including tax, shipping & handling) plus 50% with a maximum markup of $25.00. Purchase Price$5.00 California Sales Tax$0.37 Shipping and Handling$2.50 50% of total purchase price$3.94 Total$11.81

19. CA Regulations Training – Physicians ServicesMarch 2010 Dietary Supplements Dietary supplements such as minerals and vitamins are not reimbursable unless a dietary deficiency has been clinically established as a result of the industrial injury or illness.

20. CA Regulations Training – Physicians ServicesMarch 2010 Special Services Special Services are services provided adjunct to the basic services rendered. Special Service Characteristics:  Billed with CPT 99025 – 99199.  Special services should only be billed when circumstances clearly warrant an additional charge beyond the scheduled charges for the standard service.

21. CA Regulations Training – Physicians ServicesMarch 2010 Special Service Codes CPT 99025: Initial visit when billed with a starred procedure.  Only associated with surgical procedures. CPT 99048: Lengthy or repeated telephone calls by providers to employers or other appropriate agencies regarding an injured worker’s return to work.  This should NOT be allowed as this is included with E&M services.

22. CA Regulations Training – Physicians ServicesMarch 2010 Special Service Codes CPT 99049: Missed Appointment.  Does not imply that compensation is owed.  Reimbursement is at the insurer’s discretion. CPT 99050: Services provided after hours. CPT 99058: Services provided on an emergency basis.

23. CA Regulations Training – Physicians ServicesMarch 2010 Special Service Codes CTP 99065: Outside regular hours.  Technical component CPT 99071: Educational supplies such as tapes, pamphlets, books. CPT 99086: Reproduction of chart notes. CPT 99087: Duplicate reports.

24. CA Regulations Training – Physicians ServicesMarch 2010 Prolonged Service Code Characteristics: Prolonged Service Codes Prolonged Service Codes are codes used when a physician provides a service beyond the typical service time for a specific E & M code.  The service provided and the length of time required must be identified and documented.  An associated report may be charged for CPT 99080.

25. CA Regulations Training – Physicians ServicesMarch 2010 Prolonged Service Codes There are two types of prolonged service codes: Direct (Face to Face) Contact Without Direct Contact Let’s take a look…

26. CA Regulations Training – Physicians ServicesMarch 2010 Direct (Face to Face) Contact Outpatient setting:  CPT 99354: 31 to 60 minutes.  CPT 99355: Each additional 30 minute increment. Inpatient setting:  CPT 99356: 31 to 60 minutes.  CPT 99357: Each additional 30 minute increment. Direct (Face to Face) Contact

27. CA Regulations Training – Physicians ServicesMarch 2010 Without Direct Contact CPT 99358: used when a physician spends 15 minutes or more reviewing records and tests, or communicating with other medical professionals, during or following direct contact with a patient.

28. CA Regulations Training – Physicians ServicesMarch 2010 All About Reports Part II: All About Reports  Reimbursable Reports  Non-Reimbursable Reports  Special Reports Now that you are familiar with some of the services that service providers bill for, you are ready to learn how providers report everything… Let’s start by comparing reimbursable and non- reimbursable reports... Part II: All About Reports  Reimbursable Reports  Non-Reimbursable Reports

29. CA Regulations Training – Physicians ServicesMarch 2010 Reports Separately Reimbursable Treatment Reports Not Separately Reimbursable Reports for which the charge is included in the fee for the associated E & M service for an office visit. Reports that are payable in addition to the associated E & M service for an office visit. There are two general categories of medical reports.

30. CA Regulations Training – Physicians ServicesMarch 2010 Report by Secondary Physician to the Primary Treating Physician (PTP) Report by Secondary Physician to the Primary Treating Physician (PTP): a report of a patient’s status and treatment provided to the PTP. Initial Treatment Report and Plan Doctor’s First Report of Injury Initial Treatment Report and Plan: a report which details the initial treatment of the patient’s injury or illness. Doctor’s First Report of Injury: a report provided by the patient’s primary care provider or initial treating physician. Treatment Reports not Separately Reimbursable Treatment Reports Not Separately Reimbursable

31. CA Regulations Training – Physicians ServicesMarch 2010 Treating Physician’s Report of Disability Status (DWC Form RU-90) Treating Physician’s Report of Disability Status (DWC Form RU-90): a report which is used when the physician is unable to provide an opinion regarding the injured employee’s ability to return to his/her occupation. Diagnostic/Testing Report Diagnostic/Testing Report: a report used to communicate diagnostic and test results. Treatment Reports not Separately Reimbursable Treatment Reports Not Separately Reimbursable

32. CA Regulations Training – Physicians ServicesMarch 2010 Primary Treating Physicians’ Progress Report (DWC form PR-2) Primary Treating Physicians’ Progress Report (DWC form PR-2): a report used when there is a significant change in the patient’s condition or treatment plan. Final Treating Physician’s Report of Disability Status (DWC Form RU-90) Final Treating Physician’s Report of Disability Status (DWC Form RU-90): a reported used when the physician makes a decision regarding an injured employee’s ability to return to work. Separately Reimbursable Reports Separately Reimbursable Treatment Reports

33. CA Regulations Training – Physicians ServicesMarch 2010 Primary Treating Physician's Final Discharge Report Primary Treating Physician's Final Discharge Report: a report used when the PTP determines that no additional treatment is required, the patient is without permanent disability, and can return to work in his or her original capacity. Separately Reimbursable Reports Separately Reimbursable Treatment Reports

34. CA Regulations Training – Physicians ServicesMarch 2010 Primary Treating Physician's Permanent & Stationary Report Primary Treating Physician's Permanent & Stationary Report: a report used when the physician determines that the patient’s condition is permanent and stationary. Physician will report the extent of permanent damage, limitations, and the need for ongoing medical care. Separately Reimbursable Reports Separately Reimbursable Treatment Reports

35. CA Regulations Training – Physicians ServicesMarch 2010 Consultation Report Consultation Report: a report used by a consulting physician from whom a consultation regarding one or more medical issues was requested by a treating physician, a third party, the Administrative Director, or the Workers’ Compensation Appeals Board. Separately Reimbursable Reports Separately Reimbursable Treatment Reports

36. CA Regulations Training – Physicians ServicesMarch 2010 Special Reports In addition to reimbursable and non-reimbursable reports, there are special reports. Separately Reimbursable Treatment Reports Not Separately Reimbursable Special Reports

37. CA Regulations Training – Physicians ServicesMarch 2010 Special Reports Special Reports (CPT 99080) are reports completed in addition to the standard procedure. Special reports may include:  Requested reports with Modifier – 18.  Reports billed with prolonged service codes. Special Reports

38. CA Regulations Training – Physicians ServicesMarch 2010 Special Reports Reimbursement Special reports are reimbursed using the Medicine Conversion Factor (CF) multiplied by the Relative Value (RV). Special Reports Relative Value:  RV: 6.5 for the first page and 4.0 for each additional page, less 5%.  Reimbursement is limited to a total of six pages. Special Reports

39. CA Regulations Training – Physicians ServicesMarch 2010 How Do I Calculate the Reimbursement? RV x CF x 0.95 = TOTAL REIMBURSEMENT CF and RV can be found on OMFS Table A! Special Reports (99080) are listed under the Medicine section. Recall that the Medicine conversion factor is $6.15. So, what would the total reimbursement be for an eight page report? RV =6.0(1 page)+ 4.0(5 pages) = 26.0 CF = $6.15 26.0 x $6.15 x 0.95 = $151.91

40. CA Regulations Training – Physicians ServicesMarch 2010 OMFS Section Guidelines Let’s take a look… Each section of the OMFS has general guidelines that provide information about specific ground rules and modifiers that apply to that section.

41. CA Regulations Training – Physicians ServicesMarch 2010 Ground Rules Ground Rules are general guidelines at the beginning of each section of the OMFS which pertain to that section. It is important to read and follow the Ground Rules so that correct reimbursements are issued. Ground Rules include topics such as:  Classification of services within the section.  Definitions of commonly used terms within the section.  Unlisted and separately identifiable procedures.  Billing procedures and time reporting.

42. CA Regulations Training – Physicians ServicesMarch 2010 Modifiers Modifiers indicate that a procedure was altered by additional circumstances, but was not changed from its standard definition. A list of modifiers specific to each section in the OMFS follow the Ground Rules that pertain to that section. Modifiers may indicate circumstances such as:  Only part of the whole procedure was performed.  A bilateral procedure was performed. For a complete list of modifiers, see the OMFS.

43. CA Regulations Training – Physicians ServicesMarch 2010 Pricing Conversion Factors Pricing Conversion Factor: a numerical factor used to convert relative value units to dollar amounts for reimbursement. SectionConversion Factor E&M$8.50 Anesthesia$34.50 Surgery$153.00 Radiology$12.50 Pathology$1.50 Medicine$6.15 Each section of the OMFS applies specific pricing conversion factors.

44. CA Regulations Training – Physicians ServicesMarch 2010 Relative Value Units (RVU) As you know, services and procedures can vary greatly in scope and complexity. Therefore, each code is given a Relative Value Unit (RVU) that is used in determining reimbursement. RV x CF x 0.95 = TOTAL REIMBURSEMENT Together, conversion factors and relative value units are used to calculate the appropriate reimbursement for any procedure, treatment, or supply.

45. CA Regulations Training – Physicians ServicesMarch 2010 Looking up Reimbursements Just like reimbursements for special reports, specific procedure reimbursements can be found in OMFS Table A. For services on or after May 14, 2005, please refer to the following link: http://www.dir.ca.gov/dwc/dwcpropregs/ OMFS_Regulations/OMFS_tableAMay.pdf http://www.dir.ca.gov/dwc/dwcpropregs/ OMFS_Regulations/OMFS_tableAMay.pdf Be sure to check the DIR website often for updates: http://www.dir.ca.gov/dwc/OMFS9904.htm http://www.dir.ca.gov/dwc/OMFS9904.htm Let’s take a look…

46. CA Regulations Training – Physicians ServicesMarch 2010 OMFS Table A Procedure Code Relative Value Conversion Factor Reduction Percent OMFS Maximum

47. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements Let’s take a look… Although the bill review system calculates reimbursements, it is important that you understand how reimbursement calculation works.

48. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements Reimbursement rates in the OMFS cannot fall below the Medicare rates. RV x CF x 0.95 = TOTAL REIMBURSEMENT To calculate reimbursements, multiply the Relative Value (RV) by the Conversion Factor (CF) of each procedure, less 5%. Why do we multiply the total value by 0.95? 100 – 5 = 95 So, to reduce the total reimbursement by 5%, you need to multiply the total by 95%.

49. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements Suppose you need to calculate a reimbursement rate for CPT 99192. What is the relative value? What is the conversion factor? 44.8 6.15

50. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements RV x CF x 0.95 = 44.8 X 6.15 X 0.95 = $261.74 What is the relative value? What is the conversion factor? 44.8 6.15

51. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements Now, suppose you need to calculate the reimbursement for CPT 99203. What is the relative value? What is the conversion factor? 9 8.5

52. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements RV x CF x 0.95 = 9 X 8.5 X 0.95 = $72.68 What is the relative value? What is the conversion factor? 9 8.5 Why is the calculated reimbursement lower than the OMFS maximum?

53. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements Did you remember that reimbursement rates cannot fall below the Medicare rate? Notice that the reduction percentage is 0%, not 5%. Because the reimbursement amount would have fallen below the Medicare rate with a 5% reduction, the reimbursement was reduced by a smaller amount. In this case, it wasn’t reduced at all!

54. CA Regulations Training – Physicians ServicesMarch 2010 Calculating Reimbursements It is important to know that the bill review system calculates and applies these reimbursements for you. But, as you can see, knowing how to calculate reimbursements may help you identify errors during bill review or troubleshoot problems when reviewing challenging bills.

55. CA Regulations Training – Physicians ServicesMarch 2010 Summary OMFS: Content, organization, & who can use it. Differentiated between separate procedures and procedures without value. Going Above and Beyond: Prolonged Service Codes What constitutes special services. Differentiated between reimbursable, non- reimbursable, and special reports. How to calculate reimbursements.

56. CA Regulations Training – Physicians ServicesMarch 2010 Module 2 Quiz Click on the link to go directly to the quiz. Feel free to review any of the material before you move on. Good Luck! Quiz: U2M2: Physician's Services