Friday, July 17, 2015

The nitty gritty of NCCI edits and modifiers

Did you know most private insurance use the NCCI edits for automatic system denials?

What is the Medicare National Correct Coding Initiative (NCCI)?

The Medicare National Correct Coding Initiative (NCCI) (also known as CCI) was implemented to promote national correct coding methodologies and to control improper coding leading to inappropriate payment. NCCI Procedure-to-Procedure (PTP) code pair edits are automated prepayment edits that prevent improper payment when certain codes are submitted together.

In addition to PTP code pair edits, the NCCI includes a set of edits known as Medically Unlikely Edits (MUEs). An MUE is a maximum number of Units of Service (UOS) allowable under most circumstances for a single Healthcare Common Procedure Coding System/Current Procedural Terminology (HCPCS/CPT) code billed by a provider on a date of service for a single beneficiary.

NCCI tables and manual can be found under the following links.



Why Would a Health Care Professional, Supplier, or Provider use the NCCI edits tool?

Accurate coding and reporting of services are critical aspects of proper billing. The NCCI tools help providers avoid coding and billing errors and subsequent payment denials. It is important to understand, however, that the NCCI does not include all possible combinations of correct coding edits or types of unbundling that exist. Providers are obligated to code correctly even if edits do not exist to prevent use of an inappropriate code combination.

How the NCCI coding decision are made?

Coding decisions for edits are based on conventions defined in the American Medical Association’s (AMA’s) “CPT Manual,” national and local policies and edits, coding guidelines developed by national societies, analysis of standard medical and surgical practices, and a review of current coding practices. Prior to the implementation of MUEs, the proposed edits are released for review and comment to the AMA, national medical/surgical societies, and other national health care organizations, including non-physician professional societies, hospital organizations, laboratory organizations, and durable medical equipment organizations. Similarly, proposed PTP code pair edits are released to various national health care organizations for review and comment prior to implementation.

MODIFIERS

The PTP code pair edit simply represents two codes that should not be reported together, unless an appropriate modifier is used. Many procedure codes should not be reported together because they are mutually exclusive of each other. Mutually exclusive procedures cannot reasonably be performed at the same anatomic site or same beneficiary encounter.

Modifiers 24 – 25 – 57 – 59 are used for separate reimbursement of a service. These modifiers generally bypass claims systems edits. The use of this modifiers must be substantiated in the medical records. Modifiers may be appended to HCPCS/CPT codes only if the clinical circumstances justify the use of the modifier.

A modifier should not be appended to a HCPCS/CPT code solely to bypass a PTP code pair edit if the clinical circumstances do not justify its use.

The CPT Manual defines these modifiers as follows:

Modifier 24 = “Unrelated evaluation and management service by the same physician or other qualified health care professional during a postoperative period”

The E/M service was performed during the postoperative period of a major surgery but for a reason unrelated to the original procedure. If the diagnosis codes is not a clear indication that the visit was unrelated to the surgery, supporting documentation specifying the 'reason' the visit was unrelated must be submitted with the claim.

Modifier 25 = “significant, separately identifiable evaluation and management service by the same physician or other qualified health care professional on the same day of the procedure or other service”

Modifier 25 may be appended to an evaluation and management (E&M) CPT code to indicate that the E&M service is significant and separately identifiable from other services reported on the same date of service. The E&M service may be related to the same or different diagnosis as the other procedure(s).

Modifier 25 may be appended to E&M services reported with minor surgical procedures (global period of 000 or 010 days) or procedures not covered by global surgery rules. Since minor surgical procedures includes pre-procedure, intra-procedure, and post-procedure work inherent in the procedure, the provider should not report an E&M service for this work.Furthermore, Global Surgery rules prevent the reporting of a separate E&M service for the work associated with the decision to perform a minor surgical procedure whether the patient is a new or established patient.

Modifier 57 = “Decision for surgery”

Evaluation/Management (E/M) services on the day before major surgery or on the day of major surgery that result in the initial decision to perform the surgery are not included in the global surgery payment for the major surgery. Therefore, these services may be billed and paid separately. In addition to the CPT E/M code, modifier “-57” (Decision for surgery) is used to identify a visit that results in the initial decision to perform surgery. The modifier “-57” is not used with minor surgeries because the global period for minor surgeries does not include the day prior to the surgery. When the decision to perform the minor procedure is typically done immediately before the service, it is considered a routine pre-operative service and a visit or consultation is not billed in addition to the procedure. Insurance companies may not pay for an E/M service billed with the CPT modifier “-57” if it was provided on the day of, or the day, before a procedure with a 0 or 10 day global surgical period.

Modifier 59 = “Distinct Procedural Service”

Modifier 59 is an important NCCI-associated modifier that is often used incorrectly.
Under certain circumstances, it may be necessary to indicate that a procedure or service was distinct or independent from other non-E/M services performed on the same day. Modifier 59 is used to identify procedures/services, other than E/M services, that are not normally reported together, but are appropriate under the circumstances. Documentation must support a different session, different procedure or surgery, different site or organ system, separate incision/excision, separate lesion, or separate injury (or area of injury in extensive injuries) not ordinarily encountered or performed on the same day by the same individual.

Note: Modifier 59 should not be appended to an E/M service.

Common appropriate uses;

·         Different anatomic sites during the same encounter only when procedures which are not ordinarily performed or encountered on the same day are performed on different organs, or different anatomic regions, or in limited situations on different, non-contiguous lesions in different anatomic regions of the same organ. The treatment of contiguous structures in the same organ or anatomic region does not constitute treatment of different anatomic sites. (Example; Arthroscopic treatment of structures in adjoining areas of the same shoulder constitutes treatment of a single anatomic site)

·         Modifier 59 is used appropriately when the procedures are performed in different encounters on the same day. For surgical procedures, non-surgical therapeutic procedures, or diagnostic procedures that are performed during different patient encounters on the same day and that cannot be described by one of the more specific modifier.


RECOMMENDATIONS

I recommend that you carefully review the chapters of the NCCI manual that pertain to the code ranges you most often bill. These chapters include detailed information about correct coding and use of NCCI-associated modifiers for separately reportable services, and much more.

This is the first step to end insurances denials and the correct road for COMPLIANCE.

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