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HI1011 THE MEDICAL ADMINISTRATIVE ASSISTANT Chapter 16

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HI1011

THE MEDICAL

ADMINISTRATIVE ASSISTANT

Chapter 16

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Slide 1

Chapter 16The Basics of Procedure Coding

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Slide 2

Chapter Objectives:

• Understanding the CPT manual

• Classification of sections

• Modifiers

• Evaluation and Management

• Coding the procedure

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Slide 3

Understanding the CPT Manual

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Slide 4

The CPT Manual

• Current Procedural Terminology, fourth edition (CPT4)

• Set of codes, descriptions and guidelines used to describe

services and procedures performed by providers

• Standardized code set used for reimbursement

• Each code has five digits

• CPT is published annually, early fall

• January 1st is effective date for use of updated codes

• Used for professional billing

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Slide 5

CPT Categories

• Category I

– Evaluation and Management

– Anesthesiology

– Surgery

– Radiology

– Pathology

– Medicine

• Category II

– Tracking codes

• Category III

– Temporary codes

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Slide 6

Format of CPT Codes

• Stand alone procedures - a full description of the service

• Indented procedures – listed under the associated stand-

alone code. The indented codes includes the description

of the stand-alone code that precedes the semicolon.

35901 Excision of infected graft; neck

35903 extremity

35905 thorax

35907 abdomen

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Slide 7

Modifying Terms

• Alternative Anatomic Site

– 22220 Osteotomy of spine, including discectomy, anterior approach, single vertebral segment; cervical

– 22222 thoracic

– 22224 lumbar

• Alternative Procedure

– 31505 Laryngoscopy, indirect; diagnostic

– 31510 with biopsy

– 31511 with removal of foreign body

– 31512 with removal of lesion

– 31513 with vocal cord injection

• Description of Extent of the Service

– 11055 Paring or cutting of benign hyperkeratotic lesion; single lesion

– 11056 two or four lesions

– 11057 more than four lesions

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Slide 8

Symbols

Revised Code

New or revised text

New Code

+ Add-on code

x Exemptions to modifier -51

Moderate Sedation

Product pending FDA approval

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Slide 9

Special Reports

• Special reports are used for services performed that are unusual or newly adopted, or use an unlisted code in the CPT book

• The report helps the insurance company determine the reimbursement value

• Requirements:

– Description, extent and for the procedure performed

– Time and effort

– Equipment necessary to provide services

– Additional items: complexity of symptoms, final diagnosis, pertinent physical findings, diagnostic and therapeutic procedures, concurrent problems and follow up care

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Slide 10

Unlisted Procedures

• 39599 Unlisted procedure, diaphragm

• 49999 Unlisted procedure, abdomen, peritoneum

and omentum

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Slide 11

Bundled and Unbundled Codes

• Bundled procedure codes are designed to report a group

of services that are paid as one

• Unbundled services are codes that are separated from

the bundled procedure and billed independently

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Slide 12

Separate Procedures

• Codes that are listed as “separate procedure” are commonly carried out with other services

• If notated as “separate procedure” and done with a service considered to be an intregal component of that procedure, the code should not be reported

• If service is done independently or distinct from other services, it can be reported

– Different session

– Different site, organ system or procedure

– Separate incision/excision, lesion or injury

Example:

49400 Injection of air or contrast into peritoneal cavity (separate procedure)

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Slide 13

Guidelines

• Guidelines are found at the beginning of each section

• They are specific to the section

• Additional guidelines/notes can be found in subsections

• Written to assist the coder in understanding when and

under what circumstances the code may be used

• Always read and follow the guidelines for proper coding

and maximizing reimbursement

• Inappropriate coding can be considered fraud or abuse

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Slide 14

Notes

• Notes can be found in the category, subcategory or code description

• These notes apply to that particular set of codes

• They can be found throughout the CPT book and should be read and

followed for proper coding and maximizing reimbursement

Example:

Cardiovascular System

Myocardial profusion and cardiac blood pool imaging studies may be

performed at rest and/or during stress. When performed during

exercise and /or pharmacologic stress, the appropriate stress testing

code from the 93015-93018 series should be reported in addition to

78451-78454, 78472-78492.

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Slide 15

Appendices

• Appendix A – Modifiers

• Appendix B – Summary of Additions, Deletions & Revisions

• Appendix C – Clinical Examples

• Appendix D – Summary of CPT Add-on Codes

• Appendix E – Summary of CPT Codes Exempt from Modifier -51

• Appendix F – Summary of CPT Codes Exempt from Modifier -63

• Appendix G – Summary of CPT Codes that Include Moderate Sedation

• Appendix H – Alpha Index of Performance Measures

• Appendix I – Genetic Testing Code Modifiers by Clinical Condition

• Appendix J – Electrodiagnostic Medicine Listing of Sensory, Motor, and

Mixed Nerves

• Appendix K – Product Pending FDA Approval

• Appendix L – Vascular Families

• Appendix M – Crosswalk to Deleted CPT Codes

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Slide 16

Classification of Sections

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Slide 17

Procedure Format

• Section – found at the top of the page indicating the

section (surgery, radiology, etc)

• Subsection – also found at the top of the page, indicating

organ system (integumentary, respiratory, etc)

• Subheading – specific anatomical part within organ

system

• Category – type of procedure

• Subcategory – more defined description of procedure

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Slide 18

Example of Procedure Format

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Slide 19

Evaluation and Management

• Code Range 99201-99499

• For physician services evaluating and managing patients

care in the office, hospital, nursing home, emergency

department, and home

• Includes preventative medicine, consultation and critical

care

• Made up of multiple components

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Slide 20

Anesthesia

• Code Range 00100-01999, 99100-99140

• Codes are primarily used for General anesthesia

• Other types of anesthesia include, Epidural, Spinal,

Blood Patch, Regional, Local and PCA (Patient

Controlled Anesthesia)

• Codes are selected on the anatomic location of where

the surgery is performed on the patient

• Some codes are based on age

• Moderate Conscious sedation – decreased level of

consciousness that allows patient to respond to

stimulation and verbal commands of the physician

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Slide 21

Calculating Anesthesia Services

• Basic Value Unit – Issued by the Anesthesiology Society of America

(ASA) referred to as the Relative Value Guide (RVG), is a numeric

value based on the level of complexity of the service.

• Time Unit – Usually 15 minutes equals one unit of time. Starts when

the Anesthesiologist begins preparing the patient to receive

anesthesia and end when the patient no longer requires the

independent care of the anesthesiologist.

• Modifying Unit – reflects circumstances that modify the environment.

Included are Qualifying Circumstance (QC) Codes and Physical

Status (PS) Modifier codes.

Anesthesia Formula:

Basic Value Units + Time Units + Modifying Units = Total Units

(B + T + M = Total)

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Slide 22

Qualifying Circumstances

• +99100 Anesthesia for patient of extreme age, under 1

or over 70

• +99116 Anesthesia complicated by utilization of total

body hypothermia

• +99135 Anesthesia complicated by utilization of

controlled hypotension

• +99140 Anesthesia complicated by emergency

conditions (An emergency is defined as existing when

delay in treatment of the patient would lead to a significant

increase in the threat to life or body part)

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Slide 23

Physical Status Modifiers

• P1: Normal Health Patient

• P2: Patient with mild systemic disease

• P3: Patient with severe systemic disease

• P4: Patient with severe systemic disease that is a

constant threat to life

• P5: Moribund patient who is not expected to survive

without the operation

• P6: A declared brain-dead patient whose organs are

being removed for donor purposes

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Slide 24

Surgery

• Code Range 10021-69990

• Largest Section of the CPT book

• 10021 – 19499 Integumentary System

• 20000 – 29999 Musculoskeletal System

• 30000 – 32999 Respiratory System

• 33010 – 39599 Cardiovascular System

• 40490 – 49999 Digestive System

• 50010 – 53899 Urinary System

• 54000 – 55980 Male Genital System

• 56405 – 58999 Female Genital System

• 59000 – 59899 Maternity Care and Delivery

• 60000 – 60699 Endocrine System

• 61000 – 64999 Nervous System

• 65091 – 68899 Eye and Ocular Adnexa

• 69000 – 69979 Auditory System

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Slide 25

Surgery Section Procedures

• Incision and drainage

• Excision

• Biopsy

• Introduction and Removal

• Repair, Revision, Reconstruction

• Destruction

• Endoscopy/Arthroscopy/Laproscopy

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Slide 26

Surgical Package

• Pre-Op

– One related E/M service

– Local Anesthesia (General Anesthesia billed separately)

• Procedure

– Operation

• Post-OP

– Follow-up care

– Written orders

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Slide 27

Radiology

• Code Range 70010-79999

• Divided by type of imaging and further divided by anatomical site

• Diagnostic imaging includes:

– X-ray

– MRI – Magnetic Resonance Imaging

– MRA – Magnetic Resonance Angiography

– CT – Computerized Tomography

– US – Ultrasound or Sonography

– Nuclear

– Radiation Oncology

• Guidance procedures used during surgical procedures

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Slide 28

Radiology Cont.

• Radiology procedures are divided into professional and technical components

• Interventional Radiology consists of the Radiologist performing both the surgical and radiology (guidance) procedures

• Contrast - used in many sections of radiology procedures for imaging enhancement

• Intravascularly

• Intra-articularly

• Intrathecally

• Oral and/or rectal contrast administration does not qualify

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Slide 29

Pathology

• Code Range 80048-89356

• Procedures are performed using serum (blood), urine, feces, sputum and other to determine health or disease status of specific organ systems

• Codes are chosen by exam and the source utilized

• Section includes:

– Organ and Disease panels

– Drug testing

– Evocative and suppression testing

– Urinalysis

– Chemistry

– Infectious agents

– Microbiology

– Cytopathology

– Cytogenetic studies

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Slide 30

Surgical Pathology

• Evaluation of specimens to determine the disease process

• Codes are chosen based on specimen source and reason for exam

• Pathology codes consist of six classification levels:

• Level I Gross exam only

• Level II Gross and Microscopic

• Level III Gross and Microscopic

• Level IV Gross and Microscopic

• Level V Gross and Microscopic

• Level VI Gross and Microscopic

• The classification level is determined by the complexity of exam

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Slide 31

Medicine

• Code Range 90281-99199, 99500-99602

• Codes are used for diagnostic and therapeutic services

• Large various subsection groups

• Immunizations and vaccinations

• Hydration, Therapeutic, Prophylactic and Diagnostic injections and infusions

• Psychiatry

• Dialysis

• Cardiology

• Sleep Testing

• Nervous system

• Health and Behavioral Assessment

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Slide 32

Medicine Cont.

• Chemotherapy Administration

• Modalities

• Active Wound Care Management

• Acupuncture

• Osteopathic Manipulative treatment

• Chiropractic Manipulative Treatment

• Education and Training for Patient

Self-Management

• Home Health Procedures and Services

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Slide 33

HCPCS

• Healthcare Common Procedure Coding System

• Used for Medicare billing and most private insurances

• HCPCS codes represent:

– Procedures

– Supplies

– Products

– Services

• Codes are five position alpha-numeric

(J0735 Injection, clonidine HCl, 1mg)

• Codes are divided into two levels:

– Level I CPT codes

– Level II HCPCS codes

• Table of Drugs

• Alphabetical Index

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Slide 34

HCPCS Sections

• A0000-A0999 Transport Services

• A4000-A8999 Medical and Surgical Supplies

• A9000-A9999 Administrative, Miscellaneous and

Investigational

• B4000-B9999 Enteral and Parenteral Therapy

• C1000-C9999 For Use Only under the Hospital Outpatient

Prospective Payment System

• D0000-D9999 Dental Procedures (not listed, ® to ADA)

• E0100-E9999 Durable Medical Equipment

• G0000-G9999 Procedures/Professional Services

(temporary)

• H0001-H1005 Alcohol and/or Drug Services

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Slide 35

HCPCS Sections Cont.

• J0100-J8999 Drugs Other Than Chemotherapy

• K0000-K9999 Codes for Durable Medical Equipment (temporary)

• L0100-L4999 Orthotic Procedures

• L5000-L9999 Prosthetic Procedures

• M0000-M0399 Medical Services

• P0000-P2999 Pathology and Laboratory

• Q0000-Q9999 Temporary Codes

• R0000-R5999 Domestic Radiology Services

• S0000-S9999 Temporary National Codes

• T1000-T9999 National T Codes for State Medicaid

• V0000-V2999 Vision Services

• V5000-V5999 Hearing Services

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Slide 36

Modifiers

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Slide 37

Why Use Modifiers?

• A modifier is a two digit code that indicates that the procedure has

been altered in some way, but has not changed the definition of the

code.

• Examples:

– Service was for professional and/or technical component

– Performed by more than one physician

– Service performed more than once

– Service was increased or reduced

– Only one part of service was performed

– Bilateral service was performed

– An adjunctive service

– Unusual circumstances

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Slide 38

Modifiers

21 – Prolonged evaluation and management service

22 – Unusual procedural services

23 – Unusual anesthesia

24 – Unrelated evaluation and management service by the same physician during a postoperative period

25 – Significant, separately identifiable evaluation and management service by the same physician on the same day of the procedure or other service

26 – Professional component

32 – Mandated services

47 – Anesthesia by surgeon

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Slide 39

Modifiers Cont.

50 – Bilateral procedure

51 – multiple procedures

52 – Reduced services

53 – Discontinued Procedure

54 – Surgical care only

55 – Postoperative management only

56 – Preoperative management only

57 – Decision for surgery

58 – Staged or related procedure or service by the same physician during the postoperative period

59 – Distinct procedural services

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Slide 40

Modifiers Cont.

62 – Two surgeons

63 – Surgical team

76 – Repeat procedure by same physician

77 - Repeat procedure by another physician

78 – Return to the operating room for a related procedure

during the postoperative period

79 – Unrelated procedure or service by the same physician

during the postoperative period

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Slide 41

Modifiers Cont.

80 – Assistant surgeon

81 – Minimum assistant surgeon

82 – Assistant surgeon (when qualified resident surgeon

not available)

90 – Reference (outside) laboratory

91 – Repeat clinical diagnostic laboratory test

99 – Multiple modifiers

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Slide 42

HCPCS/National Modifiers

LT – left side

RT – right side

LC – left circumflex, coronary artery

LD – left anterior descending coronary artery

RC – right coronary artery

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Slide 43

HCPCS Hand Modifiers

FA – Left hand, thumb

F1 - Left hand, second digit

F2 - Left hand, third digit

F3 - Left hand, fourth digit

F4 - Left hand, fifth digit

F5 - Right hand, thumb

F6 - Right hand, second digit

F7 - Right hand, third digit

F8 - Right hand, fourth digit

F9 - Right hand, fifth digit

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Slide 44

HCPCS Foot Modifiers

TA – Left foot, great toe

T1 - Left foot, second digit

T2 - Left foot, third digit

T3 - Left foot, fourth digit

T4 - Left foot, fifth digit

T5 - Right foot, great toe

T6 - Right foot, second digit

T7 - Right foot, third digit

T8 - Right foot, fourth digit

T9 - Right foot, fifth digit

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Slide 45

HCPCS Eyelid Modifiers

E1 – Upper left, eyelid

E2 – Lower left, eyelid

E3 – Upper right, eyelid

E4 – Lower right, eyelid

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Slide 46

Evaluation and Management

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Slide 47

Considering Factors

To properly code E/M services you must know:

1. Place of Service

– Office, Hospital, Emergency Dept, Nursing Home

2. Type of Service

– Consultation, admission, preventative

3. Patient Status

– New, Established, Inpatient, Outpatient

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Slide 48

E/M Key Components

There are 3 key components in determining the level of service provided for E/M codes:

1. History

2. Examination

3. Medical Decision Making

Contributing factors:

• Counseling

• Nature of Presenting Problems

• Coordination of Care

• Time

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Slide 49

History

• History consists of multiple subjective factors:

– Chief Complaint (CC)

– History of Present Illness (HPI)

– Review of Systems (ROS)

– Past, Family and Social History (PFSH)

• Levels of History

– Problem Focused History (PF)

– Expanded Problem Focused History (EPF)

– Detailed History

– Comprehensive History

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Slide 50

Examination

• Objective part of the patients services performed by provider

• Constitutional

– vital signs and appearance

• Body Areas

– head, neck, chest, abdomen, genitalia, groin, buttocks,

back, and each extremity

• Organ Systems

– Ophthalmology, Otolaryngology, Cardiovascular,

Respiratory, Gastrointestinal, Genitourinary,

Musculoskeletal, Integumentary, Neurological, Psychiatric,

and Hematological/Lymphatic/Immunologic

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Slide 51

Exam Levels

• Levels of Examination:

– Problem Focused Examination (PF)

– Expanded Problem Focused Examination (EPF)

– Detailed Examination

– Comprehensive Examination

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Slide 52

Medical Decision Making

• Three elements make up the medical decision making:

– Number of diagnoses and management options

– Amount and complexity of data reviewed

– Risk of complications and/or morbidity or mortality

• Levels of Medical Decision Making

– Straightforward (SF)

– Low complexity (LO)

– Moderate complexity (MOD)

– High complexity (HI)

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Slide 53

Contributing Factors

These contributing factors must exceed 50% of the encounter to

considered.

• Counseling – discussing patients diagnosis, test results,

prognosis, risks, recommendations with the patient and/or

family.

• Coordination of Care – arranging for personal care beyond the

hospital. (i.e. nursing home)

• Nature of Presenting Problem – Usually is the chief complaint.

• Time – Are expressed to assist in determining level of care.

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Slide 54

Selecting an E&M Service

1. Identify the Place

2. Identify the Type of service

3. Identify the Patient Status

4. Determine the extent of history obtained

5. Determine the extent of the exam performed

6. Determine complexity of medical decision making

7. Determine how many key components are required

8. Consideration of contributing factors (if applicable)

9. Make your code selection

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Slide 55

Example E/M Codes

99203 Office or other outpatient visit for the evaluation and management of a new patient, which requires these three key components:

A detailed History

A detailed Exam

Medical Decision Making of low complexity

99213 Office or other outpatient visit for the evaluation and management of a established patient, which requires at least two of these three key components:

A expanded problem focused History

A expanded problem focused Exam

Medical Decision Making of low complexity

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Slide 56

Coding the Procedure

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Slide 57

Rules to Follow

• Be as specific as possible when coding

• Never add any words, modifying terms, or descriptions to

the procedure or service that is not documented

• Never use Index only

• Read all guidelines and notes surrounding the code

• Use reference materials and/or other coding sources

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Slide 58

Alphabetical Index Format

Classification of main and modifying terms:

• Organ or Anatomic Site

• Procedure or Service

• Condition, Illness or Injury

• Eponym, synonym, or acronym

Listing of codes

• Hyphen – used to indicate a range of codes

• Comma – used to indicate multiple codes

• Single code – one code

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Slide 59

Using the Alpha Index

• Select the main term to begin search

• Add modifying terms to narrow search

• Select code

Example: Open flexor Tenotomy of the finger

Tenotomy

Achilles Tendon 27605-27606

Ankle 27605-27606

Arm, Lower 25290

Arm, Upper 24310

Finger 26060, 26455-26460

Foot 28230, 28234

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Slide 60

Referencing the Code

Example: Open flexor Tenotomy of the finger

26060 Tenotomy, percutaneous, single, each digit

26455 Tenotomy, flexor, finger, open, each tendon

26460 Tenotomy, extensor, hand or finger, open, each tendon

• Compare code descriptions with medical documentation

• Read and follow all notes and guidelines

• Make your selection

• Determine if there is a need for modifiers

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Slide 61

Downcoding

• Charging for a lesser service than performed

• There is no serious consequences for under coding

• May also be done by insurance company if they feel documentation does not support the service

Disadvantages:

• Lower reimbursement

• Set red flags for audit, when billed correctly

• Incorrectly records doctors performance of procedures

• In some cases could be considered fraudulent or abusive with a third party payer (policy restrictions, pre-existing)

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Slide 62

Upcoding

• Deliberately charging for a higher level of service than

performed

• This is considered fraudulent

• Can result in civil and criminal penalties (fines, penalties,

prison time)

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Slide 63

Errors & Omissions Insurance

• Protects against the loss of money caused by an error or

unintentional omission on the part of the individual or

billing service creating, submitting and processing claims

• E&O Insurance will pay for judgments against you

including court costs

• Mistakes can happen, the coverage could save you from

embarrassment, loss of work or a bad reputation

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Review Questions:

1. Which statement is correct about stand alone codes?

A. They have a full description

B. They have a partial description

C. They are the only codes used

D. They are unspecified codes

2. CPT stands for

A. Common Procedure Terminology

B. Current Procedural Terminology

C. Category Procedural Terminology

D. Current Practice Terminology

3. CPT is published every

A. January

B. July

C. October

D. December

4. CPT codes have a dollar value associated with them.

A. True

B. False

5. Coders only use Category I codes for billing.

A. True

B. False

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6. Which one is not a modifying term for a procedure?

A. alternative anatomic site

B. alternative procedure

C. extent of service

D. alternative physician

7. Unbundling codes is a method that can be used to show the insurance company the

extent of the procedures performed by the physician.

A. True

B. False

8. Unlisted procedures should never be used for billing.

A. True

B. False

9. The appendices are where you will find the notes for the section.

A. True

B. False

10. What type of procedure would you find in the surgery section?

A. stereotactic guidance

B. office visit

C. arthroscopy

D. blood smear

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11. HCPCS are used for supplies.

A. True

B. False

12. Which one indicates a use of a modifier?

A. service was changed

B. service was reduced

C. date was changed

D. physician assistant performed the service

13. Modifiers are numeric or alphanumeric.

A. True

B. False

14. There are three key components to determine an E/M level.

A. True

B. False

15. Which one is not an E/M factor?

A. place

B. type

C. status

D. date

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Answer Key:

1. A

Feedback: Stand alone codes have a full description of the procedure done.

2. B

Feedback: CPT stands for Current Procedural Terminology.

3. C

Feedback: The CPT book is published every year in the fall (October).

4. A

Feedback: CPT codes have a dollar value associated with them and diagnosis codes give

medical reason for those services to be paid.

5. B

Feedback: Coders can also use Category III and HCPCS codes as needed for proper billing

of services.

6. D

Feedback: An alternative physician is not a modifying term to identify a procedure.

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7. B

Feedback: Unbundling codes is considered fraudulent by the insurance companies. You

never want to unbundle procedures for billing purposes.

8. B

Feedback: Unlisted procedure codes can be used if necessary. A report will need to go

with the claim.

9. B

Feedback: Notes are found in the Guidelines in front of each section of the CPT book.

10. C

Feedback: An arthroscopy is a surgical procedure and can be found in the surgery

section of the CPT book. A-Radiology, B-Evaluation & Management , D-Pathology

11. A

Feedback: HCPCS are used for supplies, durable medical equipment and medicines.

12. B

Feedback: A modifier can be used if the service performed was reduced from the

original description.

13. A

Feedback: CPT modifiers are numeric and HCPCS modifiers are alphanumeric.

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14. A

Feedback: The three key components used in determining the level of service of an

Evaluation and Management procedure is History, Exam and Medical Decision Making.

15. D

Feedback: The Evaluation and Management factors to take into consideration when

selecting a code are the place, type of service and patient status. Not the date.