Health Insurance Claims Chapter 11
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Health Insurance Claims Chapter 11

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Questions and Answers

Which of the following are examples of keyboarding errors in processing claims? (Select all that apply)

  • Federal employer tax ID number (EIN) (correct)
  • Patient's nickname
  • Incorrect diagnosis code number (correct)
  • Procedure code number (correct)
  • What elements might be omitted that could lead to a claim being processed incorrectly? (Select all that apply)

  • Patient's postal address
  • Current diagnosis (correct)
  • Policies for the patient's insurance
  • Required prior treatment authorization numbers (correct)
  • What is the purpose of the 'Final Steps in Processing CMS-1500 Claims'?

    To double-check claims for errors, add attachments, save claims, and submit to the payer.

    Providers are required to keep copies of all insurance claims for a period of five years.

    <p>True</p> Signup and view all the answers

    The UB-04 claim is designed for billing institutional services such as services performed in ______.

    <p>hospitals</p> Signup and view all the answers

    What are the responsibilities of the National Uniform Billing Committee (NUBC)?

    <p>To identify and revise data elements for the UB-04 form.</p> Signup and view all the answers

    Which of the following is a required entry in the UB-04 claims form?

    <p>Patient's birth date</p> Signup and view all the answers

    FL5 requires the entry of the facility's ______ identification number in the format 00-0000000.

    <p>federal tax</p> Signup and view all the answers

    In what format should the admission start of care date be entered in the UB-04 form?

    <p>MMDDYYYY</p> Signup and view all the answers

    Handwritten items on the claim are acceptable.

    <p>False</p> Signup and view all the answers

    What is the purpose of CMS-1500 claims?

    <p>Professional services reimbursement</p> Signup and view all the answers

    What are data packets?

    <p>Units of data routed electronically</p> Signup and view all the answers

    What is ANSI ASC X12N 837P?

    <p>The standard format used for submission of electronic claims for professional health care services.</p> Signup and view all the answers

    What does the ANSI ASC X12N 837I standard represent?

    <p>The standard format for submission of electronic claims for institutional health care services.</p> Signup and view all the answers

    What is the National Council for Prescription Drug Programs (NCPCP) Telecommunication Standard?

    <p>The standard format for retail pharmacy.</p> Signup and view all the answers

    What is the purpose of CMS-1500 and 837P?

    <p>To facilitate electronic transmission of health care claims.</p> Signup and view all the answers

    What is the relationship between UB-04 and 837?

    <p>The UB-04 claim uses 837I as its standard format.</p> Signup and view all the answers

    Why might some claims require attachments?

    <p>To aid in determination of reimbursement by the third-party payer.</p> Signup and view all the answers

    Data entry for CMS-1500 claims requires that all alpha characters are entered in lowercase.

    <p>False</p> Signup and view all the answers

    What does the National Provider Identifier (NPI) signify?

    <p>A unique 10-digit number issued to health care providers and organizations.</p> Signup and view all the answers

    For CMS-1500 claims, block 3 requires an entry of ___ to designate the patient's gender.

    <p>X</p> Signup and view all the answers

    How do you separate the patient's name in CMS-1500 claims?

    <p>By using commas for last name, first name, and middle initial.</p> Signup and view all the answers

    HIPAA mandates that health care providers communicate electronically without obtaining a National Provider Identifier (NPI).

    <p>False</p> Signup and view all the answers

    What is a reason claims may be flagged for review?

    <p>Entering a diagnosis code starting with V</p> Signup and view all the answers

    What is the process for applying for an NPI?

    <p>By submitting a web-based application, paper-based application or electronic file.</p> Signup and view all the answers

    What is the supervising physician's role?

    <p>A licensed physician in good standing who engages in the direct supervision of a nonphysician practitioner.</p> Signup and view all the answers

    What is a rendering provider?

    <p>A physician or nonphysician practitioner who provides care to patients.</p> Signup and view all the answers

    What does 'assignment of benefits' mean?

    <p>Patients sign Block 13 to instruct the payer to reimburse the provider directly.</p> Signup and view all the answers

    Which of the following codes are entered in Block 21 of the CMS-1500 claim?

    <p>ICD-10-CM codes</p> Signup and view all the answers

    What is the maximum number of ICD-10-CM codes allowed on a single CMS-1500 claim?

    <p>12</p> Signup and view all the answers

    The diagnosis pointer letter can be entered with spaces or commas.

    <p>False</p> Signup and view all the answers

    What should the first-listed code reported on a CMS-1500 claim indicate?

    <p>The major reason the patient was treated.</p> Signup and view all the answers

    What is required for Block 24F of the CMS-1500 claim?

    <p>Enter charges for services or procedures.</p> Signup and view all the answers

    What are modifiers used for in CMS-1500 claims?

    <p>To accurately report a procedure or service.</p> Signup and view all the answers

    What effect do Medically Unlikely Edits (MUE) have on Medicare claims?

    <p>Improve accuracy by detecting unlikely claims.</p> Signup and view all the answers

    What needs to be reported in Block 25 of the CMS-1500 claim?

    <p>Either the provider's Social Security Number (SSN) or their employer tax identification number (EIN).</p> Signup and view all the answers

    What must be included in Block 33 of the CMS-1500 form?

    <p>The name, address, and telephone number of the billing entity.</p> Signup and view all the answers

    What must be consistently documented in a patient's record for claims submission?

    <p>Encounter documentation supporting claims.</p> Signup and view all the answers

    What time format should be used for discharge hour?

    <p>Military time</p> Signup and view all the answers

    What is required to specify if an accident occurred?

    <p>The state (e.g., NY)</p> Signup and view all the answers

    What should you leave blank for FL30?

    <p>Leave blank</p> Signup and view all the answers

    What does FL47 report?

    <p>Total charges</p> Signup and view all the answers

    What should you do with FL49?

    <p>Leave blank</p> Signup and view all the answers

    Study Notes

    General Claims Information

    • CMS-1500 is for professional services; UB-04 for institutional services.
    • Claims submitted electronically via third-party clearinghouses or payers, adhering to HIPAA standards.
    • Rejections can occur based on initial edits for HIPAA compliance and coverage requirements.
    • Acknowledgment reports confirm successful transmission of claims.

    Data Packets

    • Claims transmitted as units of data called data packets, routed through the Internet or packet-exchange networks.

    ANSI ASC X12N 837P (837P)

    • Standard format for electronic claims submission for professional healthcare services, used by physicians and suppliers.

    ANSI ASC X12N 837I (837I)

    • Standard format for electronic claims submission for institutional healthcare services, utilized by various institutional providers such as hospitals and nursing facilities.

    NCPCP Telecommunication Standard

    • Standard format for retail pharmacy claims, essential for billing services like vaccination administration.

    CMS-1500 and 837P

    • CMS-1500 claims generated via medical practice management software and follow the 837P electronic format for claims transmission.

    UB-04 and 837

    • UB-04 claim, or CMS-1450, uses the 837I standard for electronic claims, incorporating data from an institution's electronic health record.

    Claims Attachments

    • Certain claims require attachments such as operative reports or clinic notes to support reimbursement determinations.
    • Attachments must include patient identification and avoid medical jargon for clarity.

    CMS-1500 Data Entry

    • Key inputs include patient and policyholder details, provider identifiers (NPI, EIN), and specific formatting instructions for codes and dates.
    • Follow strict guidelines for data entry to ensure claims processing without delays.

    Patient and Policyholder Names

    • Separate names with commas for CMS-1500; use spaces for UB-04 when entering names.

    Entering Provider Names

    • Enter full provider names without punctuation on CMS-1500 and include NPI for UB-04.

    Entering Mailing Addresses

    • Follow specific formatting for addresses in CMS-1500 and UB-04 forms, ensuring accuracy without punctuation.

    Recovery of Funds from Responsible Payers

    • Claims may be flagged for review based on ICD-10-CM codes indicating potential responsibility of alternative payers (e.g., workers' compensation).
    • Clear submission of documentation may be required for reimbursement from responsible parties.

    ICD-10-CM External Causes of Morbidity

    • Most external cause codes are in Chapter 20, aiding in detailing conditions related to external factors.

    National Provider Identifier (NPI)

    • A permanent 10-digit number for individual providers and healthcare organizations, essential for electronic healthcare transactions.

    HIPAA Mandated Unique Identifiers

    • Utilization of national identifiers for employers (EIN), providers (NPI), and individuals (currently on hold) to streamline healthcare transactions.

    HIPAA Covered Entities

    • Covered entities include health plans, healthcare providers, and clearinghouses that engage in electronic transactions, mandated to use NPI.

    NPI Application Process

    • NPI is obtained through web-based, paper-based, or electronic file applications, ensuring provider identification in transactions.

    Practices that Bill "Incident To"

    • Nonphysician practitioners can bill under a supervising physician's name, necessitating specific entries on claims for compliance.

    Supervising Physician

    • A licensed physician providing direct oversight to nonphysician practitioners, with requirements for presence in the facility.

    Rendering Provider

    • A physician or nonphysician practitioner who delivers healthcare services to patients, essential in billing practices.

    Assignment of Benefits vs. Accept Assignment

    • Assignment of benefits allows direct payment to providers upon patient authorization; accepting assignment dictates payment acceptance terms from payers.### Reporting Diagnoses: ICD-10-CM Codes
    • CMS-1500 Block 21: Enter diagnosis codes (no decimals) for a maximum of 12 ICD-10-CM codes. If additional codes are needed, generate a new claim.
    • UB-04 Reporting: Also requires ICD-10-CM codes in specific form locators without decimals.
    • Chronic Conditions: Always code chronic conditions like diabetes mellitus and hypertension affecting patient care.

    Diagnosis Pointer Letter

    • Block 21 includes letters A through L as diagnosis pointers.
    • When using multiple pointers in Block 24E, do not include spaces or commas.

    Sequencing Multiple Diagnoses

    • CMS-1500: Report the main reason for treatment first; secondary diagnoses must justify services rendered.
    • Uncertain Diagnoses: Do not report uncertain diagnoses in outpatient claims but may do so in inpatient settings.

    CMS-1500 Block 24-Shaded Lines

    • Shaded rows in Block 24 allow reporting of additional service information.
    • Identifiers must be entered correctly corresponding to services, including NPI in the appropriate blocks.

    CMS-1500 Block 24A: Dates of Service

    • Each date of service must follow the six-digit format (MM DD YYYY).

    CMS-1500 Block 24B: Place of Service

    • Place of Service (POS) codes are required and must align with the service descriptions provided.

    CMS-1500 Block 24C: EMG

    • If emergency services were provided, a 'Y' should be entered in Block 24C as per payer requirements.

    CMS-1500 Block 24D: Procedures and Services

    • Enter CPT and HCPCS codes and modifiers.
    • For multiple procedure coding, list by highest charge first and ensure all coding is accurately represented.

    CMS-1500 Modifiers

    • Up to four modifiers can accompany CPT/HCPCS codes to indicate specifics of service delivery.

    Days or Units

    • Block 24G specifies the number of service units; when entering units greater than one, total charges must reflect this in Block 24F.

    Medically Unlikely Edits (MUE) Project

    • MUE was introduced to reduce excessive Medicare claims through checks comparing reported unit counts against code definitions.

    National Standard Employer Identifier

    • Block 25 requires either a provider's SSN or EIN; entering accurate numbers is essential for proper reimbursement reporting.

    Reporting the Billing Entity

    • Block 33 captures the billing entity's legal name, address, and contact information, including NPI.

    Processing Secondary CMS-1500 Claims

    • For secondary claims, input primary and secondary payer details on the same claim form following specified steps.

    Common Errors in CMS-1500 Claims

    • Keying Mistakes: Incorrect procedure codes, diagnosis codes, policy IDs, and patient information can lead to claim rejection.
    • Omissions: Missing essential information, such as diagnosis codes or proper linking, compromises claim validity.

    Final Steps in Processing CMS-1500 Claims

    • Review claims for errors, add attachments, and ensure proper record-keeping before submitting to payers.

    Maintaining CMS-1500 Insurance Claim Files

    • Claims need to be retained for up to five years according to Medicare guidelines. Organize files by case status and payer type.

    Insurance File Set-Up

    • Organize claims by open/closed status, year, payer types, and process remittance advice for efficient claims management.

    Processing Assigned Paid Claims

    • Upon receiving remittance advice, review claims for payments, noting discrepancies, and initiate appeals for any errors identified in processing.### Federal Privacy Act
    • Enacted in 1974, it restricts payers from notifying providers about unassigned claims or payments sent to patients.
    • For providers to assist patients with appeals, patients must provide an Explanation of Benefits (EOB) and a signed error explanation letter.
    • The EOB and letter are required for reconsideration of claims.

    UB-04 Claim

    • Insurance claim form used for billing institutional services such as those performed in hospitals.
    • Contains form locators (FLs) for data entry, previously referred to as the UB-92.
    • Used for Medicare Part A reimbursements and for various institutional providers like hospitals and skilled nursing facilities.
    • The claim is often generated through electronic health records to the billing department.

    UB-04 Claim Development and Implementation

    • Claims submitted to payers by institutional providers for patient service reimbursement.
    • Managed by the National Billing Committee (NUBC) in coordination with State Uniform Billing Committees (SUBCs).

    National Uniform Billing Committee (NUBC)

    • Responsible for revising data elements on the UB-04 form, ensuring clarity and uniformity.
    • Originally designed as the UB-82 in 1982, updated to UB-04 in 2004, implemented in 2007.
    • Aims to support public health reporting and eliminate ambiguities in data collection.

    Data Specifications for the UB-04

    • Developed considering payer needs and provider reporting burdens; adheres to HIPAA provisions.
    • Each data element is assigned to a specific UB-04 form locator (FL).

    UB-04 Claims Submission

    • Contains 81 form locators with instructions for completing claims according to payer guidelines.
    • Collects NUBC-approved data for audit trails, even if not all elements are required by every payer.

    Providers Submitting UB-04 Claims

    • Includes hospitals, ambulance companies, home health agencies, hospice organizations, skilled nursing facilities, and various outpatient clinics.

    Form Locator (FL) Descriptions

    • Indicate requirements regarding data entry for Medicare claims (required, not required, situational).
    • Payer-specific instructions can be found online.

    Specific Form Locators (FL) Details

    • FL1: Billing provider information is mandatory; verifies provider identity.
    • FL3a: Patient control number is required to facilitate record retrieval.
    • FL4: Type of bill (TOB) requires a four-digit alphanumeric code outlining facility type, type of care, and bill sequence.
    • FL5: Federal tax number is mandatory for provider identification.
    • FL6: Statement covers period (dates) required.
    • FL11: Patient sex must be indicated as M (male) or F (female).
    • FL14: Type of admission/visit code required for inpatient claims, specifying if it's emergency, urgent, etc.
    • FL17: Patient discharge status indicates outcome using standardized codes.

    Condition Codes and Occurrence Dates

    • FL18-28: Condition codes are used situationally to describe events or circumstances applicable to the billing period.
    • FL31-34: Occurrence codes date specific events related to the billing period, if necessary.
    • FL35-36: Occurrence span codes detail specific timeframes relevant for inpatient claims, per payer requirements.

    Responsible Party Information

    • FL38: Responsible party name and address is required if specified by the payer; includes the individual's last name, first name, and middle initial.

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    Description

    Explore essential concepts from Chapter 11 on CMS-1500 and UB-04 claims. This quiz covers the definitions and details concerning reimbursement processes for professional and institutional services. Test your knowledge of claims submission and payment systems.

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