Chapter 14 After completing this chapter, you should be able to: List at least three examples of payor contract provisions that influence scheduling, billing, or collections Discuss potential situations and make decisions concerning confidentiality and patient rights Discuss potential situations and make decisions concerning payor collections Discuss potential situations and make decisions concerning patient collections Discuss potential situations and make decisions concerning provider compliance with laws In Chapters 1 through 13, you learned about medical plans, how to work together as a team to gather claim information, how to complete and file claim forms, and how to achieve reimbursement success. However, in the real world things are not always textbook perfect. Laws change and new rules are implemented nearly every year. Even when everything is done correctly, unexpected problems can and do arise. In Chapters 1 through 13, you learned about medical plans, how to work together as a team to gather claim information, how to complete and file claim forms, and how to achieve reimbursement success. However, in the real world things are not always textbook perfect. Laws change and new rules are implemented nearly every year. Even when everything is done correctly, unexpected problems can and do arise. Final HIPAA standards are expected to follow the compliance schedule that appears in Table 14-1. The compliance dates are estimates, as published on the official government websites for HIPAA. TABLE 14-1 HIPAA standards that are still in development are expected to follow the schedule in Table 14-2. Sometimes it takes longer than expected to write a final rule. The final rule usually has modifications and is not identical to the proposed standard. TABLE 14-2 HIPAA Schedule for Standards in Development *No longer listed on the official government websites for HIPAA. As the various deadlines for implementing each phase of HIPAA draw near, you must be ready to help your practice meet the new requirements. It is essential for you to join professional organizations to keep abreast of these changes as they occur. Medical assistants, medical billers, medical coders, medical records specialists, medical office managers, medical compliance officers, and medical financial officers each have professional organizations. Each organization takes steps to keep members informed of important laws and how they apply to you personally as well as professionally. Many of these organizations are listed by name in Chapter 2. If you have time to do the research yourself, most of this information is available on the Internet. The CMS website (http://cms.hhs.gov) and the website for the Department of Health and Human Services (http://www.hhs.gov) are good places to begin when searching for items about HIPAA and the status of proposed “Administrative Simplification” standards. Key provisions of the final rule for the privacy standard are: Access: People are given the right to see and copy their own medical records. Some states did not grant people this right of access, even when the patient paid the entire bill for the medical care. The only exception is for mental health. In mental health, the provider (a psychiatrist or a psychologist) may refuse to give a patient access to his or her own record if the provider determines that doing so could be detrimental to the patient. Privacy: The proposed rules pertained only to records stored on a computer, but the final rule pertains to all patient information, including that stored on a computer, all forms of hard-copy records, and spoken information. The inclusion of spoken information was the biggest surprise in the final rule, and spoken information is the most difficult to control. You must make a reasonable effort to avoid eavesdropping. Lower your voice and face a corner when speaking on the telephone. Do not discuss patients in public parts of your office or facility, such as elevators, hallways, and waiting rooms. Keep a partition (usually Plexiglas) between the waiting room and the receptionist. Limits on disclosure: In the final rule, other than those disclosures required for treatment, payment, and normal health care operations, health care providers and payors are required to obtain the patient’s consent before disclosures of individually identifiable information occur. This consent must be voluntary and cannot be tied to the delivery of any benefits or services. Previously, many medical practices and most payors required people to sign broad waivers of their privacy as a condition of receiving health care or health benefits. In addition, patients may now ask to see a list of each disclosure of individually identifiable patient information from his or her records, including but not limited to who received information, what information was sent, and the date it was sent. This has greatly increased the record-keeping burden for the medical office. Please see Appendix D for more information about the provisions for disclosure. Patient rights: Under this rule, all businesses, not just medical businesses, must inform people of their business policies for handling individually identifiable information, and the person’s rights regarding that information. Each business must disclose who they share information with on either a routine or occasional basis, and they must give people the option of being excluded when this information is shared. Individually identifiable information is clearly spelled out in the privacy act. It includes demographics, such as name, address, phone number, birth date, and medical record number, as well as any information that would cause someone to identify a specific individual. The final rule included the example of a small town where only one or two hip surgeries might be performed on a given day or even in a given week or month. If you then refer to just the procedure and the date or time of the procedure (the hip case from Thursday morning), most of the people in the town would be able to identify the exact person who had received the surgery. In that situation, it would be a violation of privacy even though the patient’s name and demographics were not mentioned. Research: Under this rule, the patient is not given the right of access to his or her own medical records related to participation in a research project. Nor are they guaranteed access to the results of any research projects they participate in, even if the anticipated results did not occur and, most surprising of all, not even when a high percentage of the participants are dying. There is already controversy about this rule, so watch for changes. Penalties: Health care providers, payors, and clearinghouses would be subject to civil and criminal penalties (up to $25,000 per year and 10 years in jail) for violating the law. Yet, HIPAA prevents the Secretary of the Department of Health and Human Services from including a private right of action for individuals to sue for violations of the law. Preemption: In the final rule, federal regulations would not preempt or override stronger state laws. Instead, they would set a baseline of minimum protections to which the states could add additional provisions to better protect their citizens. A July 1999 report issued by the Health Privacy Project found that while few states have health privacy laws that protect all medical data, most states have enacted legislation to protect sensitive information, such as information pertaining to mental health, communicable diseases, and genetic testing. Please see Appendix D for more information about protected health information (PHI). Many states have state-specific legislation detailing patient rights and responsibilities. To find out if additional “patient rights” legislation exists in your state, contact the insurance commissioner or the Department of Insurance. If your state has patient rights legislation, ask the insurance commissioner’s office to send you a copy of the rights or see if a copy is available on the Internet. Contact information for the Department of Insurance for each state can be found in Appendix B and can be verified at Medicare’s website: www.medicare.gov. Some payors use the resource-based relative value system (RBRVS) to calculate fees. RBRVS was introduced in Chapter 10. The payor gives a conversion number in the contract and tells which version of RBRVS to use when calculating the fee. The conversion number is the dollar value per relative value unit (RVU). The most common version of RBRVS is Medicare’s RBRVS fee schedule, but other publishers such as McGraw-Hill and Ingenix also publish RBRVS fee schedules. These other publishers usually assign RVUs to every CPT procedure code. Medicare only assigns RVUs to the procedures that are “covered services” for Medicare. The adjusted RVUs for a given procedure are 2.5. If the conversion factor is 54.00, multiply 2.5 by 54.00 (2.5 ×54.00 = 135.00) for a fee of $135.00.
DEVELOPING CRITICAL THINKING SKILLS: ANALYZING PROBLEMS AND MAKING DECISIONS
Introduction
Health Insurance Portability and Accountability Act of
Standard
Proposed
Final Rule
Compliance
05/07/1998
08/17/2000
10/16/2002
10/16/2003
05/17/1998
1/23/2004
5/23/2007
5/23/2008
06/16/1998
5/31/2002
6/30/2004
8/1/2005
08/12/1998
5/31/2003
4/21/2005
4/21/2006
10/29/1999
2/20/2003
4/14/2003
4/14/2004
MEDICAL OFFICE CONFIDENTIALITY REQUIREMENTS
PATIENT PROTECTION LAWS
Payor Contracts
FEE SCHEDULES