Sarah Hanna President ECS Billing & Consulting North
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1 Presented By: Sarah Hanna President ECS Billing & Consulting North 252 W. Market St. Tiffin, Ohio ext
2 This presentation was current at the time it was published/provided to attendees. CMS policies change frequently so links to the source documents have been provided within the document for your reference. This presentation was prepared as a service to the attendees of the American Society for Automation in Pharmacy s 2014 Midyear Conference by ECS Billing & Consulting North and is not intended to grant rights or impose obligations. This presentation may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage attendees/readers to review the specific statutes, regulations, and other interpretive materials for a full and accurate statement of their contents
3 The format and/or content of this presentation is copyright 2014 by ECS Billing & Consulting North (ECS North), Tiffin, Ohio. It is illegal to reproduce and or distribute in any form any part of this presentation without written permission of ECS North
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6 1) Background 2) ICD-9 vs. ICD-10 3) Benefits of ICD-10 4) Rockin the physician world 5) Challenges
7 6) Effects on HME/pharmacy providers 7) Preparing for October 1, ) Stay informed
8 ICD-10 represents the International Classification of Diseases, 10 th Edition, Clinical Modification (CM)/Procedure Coding System (PCS) The ICD-10CM is the only applicable codes for DMEPOS providers The ICD-10PCS are used for hospital claims for inpatient settings Developed by the World Health Organization (WHO) in 1990 Other countries started to adapt to ICD-10 in 1994, but the US only partially adopted I-10 in 1999 for mortality reporting
9 A software update: Software will need to be updated to accommodate both ICD-9 and ICD-10 and have a listing/dropdown functionality of ICD-10 codes to choose Something only billing/coders have to worry about: ICD-10 affects many aspects of your workflow intake, medical documentation, and billing
10 CHARACTERISTICS ICD-9 (vols. 1&2) ICD 10 CM Field Length 3-5 characters 3-7 characters Available Codes Approximately 14,000 codes Approximately 69,000 codes Code composition (numeric or alpha) Digit 1 = alpha or numeric Digits 2-5 = numeric Digit 1 = alpha Digit 2 = numeric Digits 3-7 = alpha or numeric Available space for new codes Limited Flexible Overall detail embedded within codes Limited detail in many conditions Generally more specific (allows description of comorbidities, manifestations, etiology/ causation, complications, detailed anatomical location, sequelae (aftereffects of a disease, condition, or injury such as scar formation after a burn), degree of functional impairment, biologic and chemical agents, phase/stage, lymph node involvement, lateralization and localization, procedure or implant related, age related, or joint involvement) Laterality Does not identify right versus left Often identifies right versus left Sample code 81315, Open fracture of head of radius S52122C, Displaced fracture of head of left radius, initial encounter for open fracture type IIIA, IIIB, or IIIC
11 ICD-9 vs ICD-10
12 Type I diabetes mellitus with diabetic nephropathy Step 1 Look up term in the Alphabetic Index: Diabetes, diabetic (mellitus) (sugar) E11.9 type 1 E10.9 with nephropathy E10.21
13 Type I diabetes mellitus with diabetic nephropathy (continued) Step 2 Verify code in Tabular E10 Type 1 diabetes mellitus E10.2 Type 1 diabetes mellitus with kidney complications E10.21 Type 1 diabetes mellitus with diabetic nephropathy Type 1 diabetes mellitus with intercapillary glomerulosclerosis Type 1 diabetes mellitus with intracapillary glomerulonephrosis Type 1 diabetes mellitus with Kimmelstiel-Wilson disease Assign code: E10.21
14 Chronic obstructive pulmonary disease Step 1 Look up term in the Alphabetic Index: Disease, diseased (see also Syndrome) pulmonary see also Disease, lung chronic obstructive J44.9 with acute bronchitis J44.0 exacerbation (acute) J44.1 lower respiratory infection (acute) J44.0
15 Chronic obstructive pulmonary disease (continued) Step 2 Verify code in Tabular: J44 Other chronic obstructive pulmonary disease Includes: Asthma with chronic obstructive pulmonary ` disease Chronic asthmatic (obstructive bronchitis Chronic bronchitis with airways obstruction Chronic bronchitis with emphysema Chronic emphysematous bronchitis Chronic obstructive asthma Chronic obstructive bronchitis Chronic obstructive tracheobronchitis
16 Chronic obstructive pulmonary disease (continued) Step 2 (continued) J44.9 Chronic obstructive pulmonary disease unspecified Chronic obstructive airway disease NOS Chronic obstructive lung disease NOS Assign code: J44.9
17 Streamline payment operations by allowing for greater automation and fewer payer-physician inquiries, decreasing delays and inappropriate denials; Provide more detailed data to better analyze disease patterns and track and respond to public health outbreaks; The United States will join the rest of the developed world in using ICD-10, and will be able to compare public health trends and pandemics across orders;
18 Provide opportunities to develop and implement new pricing and reimbursement structures including fee schedules and hospital and ancillary pricing scenarios based on greater diagnostic specificity; Provide payers, program integrity contractors, and oversight agencies with improved methods for detecting fraud; Provide more accurate information to support the development and implementation of important health care policies nationally and regionally.
19 ICD-10 codes refine and improve operational capabilities and processing, including: Detailed health reporting and analytics: cost, utilization, and outcomes; Detailed information on condition, severity, comorbidities, complications, and location; Expanded coding flexibility by increasing code length to seven characters; and Improved operational processes across health care industry by classifying detail within codes to accurately process payments and reimbursements.
20 All HIPAA covered entities must transition to ICD-10 An exception applies to certain designated HIPAA exempt organizations: Worker s Comp Auto/Accident
21 Physicians are used to using the unspecified codes with ICD-9 and believe that they can utilize the unspecified codes in ICD-10. The challenge is that in 2-3 years when physicians review their severity and risk scores they will be in bad shape, because they won t have the specificity in their codes to justify higher levels and better reimbursement Journal of AHIMA Surveys and studies found that greater than 50% of the current physician documentation cannot be coded to the appropriate level of specificity with the ICD-10CM Physicians will now have to support their diagnosis codes in more detail through their charting efforts Lack of appropriate documentation in the charts to justify the ICD-10CM code used for billing will lead to recoupment in case of an audit William Blair & Company 2011 MGMA Annual Conference
22 ICD-10 codes report detailed information about the patient s condition and Coders for physicians can t assign detailed codes without the information being documented in the EHR/chart For most physicians the biggest challenge will be learning what needs to be documented so their coder can assign the appropriate ICDCM-10 code Physician practices may be in for significant practice disruption for the first 3-6months of adoption and sustainability enduring at least a 15% increase in documentation time. William Blair & Company 2011 MGMA Annual Conference
23 Documentation of the status of the patient s disease in the medical record is essential: Promotes the selection of the correct code; Supports medical necessity; Provides clear communication; Protects the claim in an audit
24 Most if not all information/training on ICD-10 is focused on physicians and hospitals; there is not much guidance for HME/pharmacy providers Budgeting for slow cash flow is hard due to the unanswered questions from a billing and software implementation standpoint Some EHR (Electronic Health Record) systems lead physicians to believe that they can easily convert ICD-9 to ICD-10 Minimal physician buy-in or participation with the expectation that it is business as usual Lack of knowledge of the impact and ramifications that may/will/ definitely occur
25 ICD-9 codes can be used on claims with dates of service (DOS) September 30, 2015 and prior ICD-10 codes will be needed on claims with DOS October 1, 2015 and forward
26 Unspecified Codes The ICD-9 coding system allows for the use of many unspecified codes. Many of the ICD-9 codes providers have in their systems are these unspecified codes. This will lead to challenges with the advent of ICD-10. The use of the use of the unspecified codes will be dramatically reduced as the purpose of using ICD-10 is to gain more specificity for data gathering and trending data regarding the conditions and health of people around the globe. Each healthcare encounter should be coded to the level of certainty known for that encounter
27 Unspecified codes should be reported when they most accurately reflect what is known about the patient s condition at the time of that particular encounter When sufficient clinical information isn t known or available about a particular health condition to assign a more specific code, it is acceptable for the physician to report the appropriate unspecified code It would be inappropriate to select a specific code that is not supported by the medical record documentation or conduct a medically unnecessary diagnostic testing in order to determine a more specific code Providers need chart notes to prove the medical necessity of the items provided, the physician needs to have quality of the clinical data from the physician to support the medical necessity of the code they are using to
28 Identify a champion of ICD -10 within their organization. In August 2015, providers should run a list of patients who will continue renting or will be up for re-supply with DOS of 10/1/2015 and forward Pharmacy providers should contact physicians for the new ICD-10 code for the patients so that you can update the system.
29 Software systems should allow for the ICD-9 code to be used for billing/re-billing claims with DOS 9/30/2015 and prior. Providers should enter the new ICD-10 code for the DOS 10/1/2015 and forward. Pharmacy intake, medical documentation and billing will need to understand the nuances of ICD-10 codes so they can ensure that they have the correct code from the referral for billing purposes. There is no requirement that a new detailed written order or CMN will need to be received due to the ICD-10 transition. Stay informed.
30 Watch for ListServes from Medicare Contractors with updated information in the coming months; Review updated MLN Matters articles via ListServe or by visiting the CMS website. ; Periodically visit the CMS website to view updated presentations and resources on ICD-10 implementation; Attend future webinars and presentations on ICD-10 implementation and updates
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32 Questions
33 Thank You for Your Time Sarah Hanna President ECS Billing & Consulting North 252 W. Market St. Tiffin, Ohio ext
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