HIM2350C FINAL EXAM
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1. In the RBVS, which codes have associated RVUs?
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HCPCS, CPT level I
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2. What are the three elements of the RVU?
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Physician work (WORK), physician practice expenses (PE), and malpractice (MP)RVU=Relative Value Units: Physician Work + Practice Expense +Malpractice Costs
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3. How can physician payments be adjusted for the price differences among various parts of the country
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An adjustment component, geographic practice cost index (GPCI), reflects local costs, and the WORK, PE, and MP elements of the RVU have their own GPCIs. Both the RVUs and GPCIs are included in the payment calculation
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4. What is the control mechanism the government uses on Medicare Payments to physicians, and how is it applied?
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The conversion factor (CF) is the control (constant) CMS raises or lowers annually to adjust physician payments. The sum of RVUs and GPCIs are multiplied times the conversion factor to arrive at the national allowance, 80 percent of which is the actual reimbursement payment (once the Part B deductible is met).
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5. What are the bases for the seven levels of service used in the ambulance services fee schedule?
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Levels are dependent on the complexity of service performed (basic versus specialty care), the EMT's level of training required to perform the service, and the type of transport involved (land vehicle versus helicopter).
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6. True or False? When a patient is pronounced dead during ambulance transport, Medicare payment rules are followed as if the patient were alive:
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FALSE - no mileage billable
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7. How is the "two-times rule" applied to APC groups?
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The rule establishes that the median cost of the most expensive procedure or service in the APC cannot be more than two times greater than the median cost of the least expensive procedure or service in the same group.
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8. True or False? CMS, not the APC Advisory Panel or MedPAC, makes the final ruling for updates and changes to OPPS
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TRUE
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9. True or False? The number of APCs per encounter for a single patient is limited to 10
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FALSE
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10. Describe how observation services are currently reimbursed under OPPS
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A well-defined set of specific clinically appropriate services, which include ongoing short-term treatment, assessment, and reassessment, and are utilized before a decision can be made regarding whether patients will require further treatment as hospital inpatients or if they are able to be discharged from the hospital.
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11. What adjustments, if any, are used under OPPS to account for cost differences among facilities under OPPS:
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Wage index adjustment Permanent hold harmless add-on payment Rural sole community hospital add-on payment
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12. Describe how the ASC PPS conversion factor is different from OPPS conversion factor:
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Medicare moved to a PPS for hospital inpatient services to help control increasing healthcare costs and Medicare expenditures; August 1, 2000; They are paid via APC (Ambulatory Payment Classifications (APCs)) - Hospital outpatient prospective payment system. The classification is a resource-based reimbursement system. The payment unit is the ambulatory payment classification group (APC group); Changed the Mammography payment from HOPPS to a fee schedule-based payments.; Not for physicians but for facilities
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13. * Why are device-intensive procedure APCs payments adjusted for ASCs
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Payment methodology is modified for certain device-intensive procedures
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14. Which Federal Law mandated the current bundled payment system for ESRD
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Section 153(b) of Pub. L. 110-275, the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA
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15. In the ESRD payment system, list two facility-level adjusments:
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wage index adjustment, low-volume adjustment
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16. What law consolidated the four federal primary care programs?
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Consolidated Health Care Act of 1996
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17. True or False? Both FQHCs and RHCs must offer services using a sliding scale
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FALSE, FQHC requires a sliding scale - RHC does not
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18. What law established the Medicare hospice benefit?
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Tax Equity and Fiscal Responsibility Act of 1982 (FEFRA)
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19. True or False? In the hospice PPS, palliative care provides relief for caregivers
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FALSE
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1. What services are included in the consolidated billing of the SNF PPS? What services are excluded from the consolidated billing of the SNF PPS?
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Consolidated billing include: Therapist, Lab test, X-ray, and pharmacy/medicines Consolidated billing exclude: Emergency services, inpatient care, extended services, and radiation therapy
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2. How are per diem rates for SNF PPS patients determined for various cases?
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Per diem rates for SNF PPS patients are determined for various cases by using the RUG classification system. This system uses the nursing component, therapy component, and noncase-mix-adjusted component to drive the rates.
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3. For CMS to define a facility as an LTCH, how many days must its Medicare patients' average length of stay be?
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25 or more days
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4. How are MS-LTC-DRGs determined:
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MS-LTC-DRGs are determined by the principal diagnosis, up to eight additional diagnoses, up to six procedures, sex, and discharge status.
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5. One the IRF PAI the patient's ability to perform activities of daily living, or ______, is recorded on the as_________.
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functional status, assessment table
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6. True or False? For inpatient rehabilitation facility patients, codes on the IRF PAI should follow the UHDDS and the UB-04 guidelines:
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False
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7. True or False? Facilities transmit IRF PAIs to the Centers for Medicare and Medicaid Services using CMS's free IRVEN software:
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TRUE
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8. In the HHPPS, __________. software is used to collect and submit OASIS data
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Home assistance validation and entry (HAVEN).
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9. How is durable medical equipment (DME) reimbursed in the HHPPS
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DME is excluded from the per-episode HHPPS reimbursement system and is reimbursed under the DME fee schedule.
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10. Why is the home health HIPPS code called an "intelligent" code?
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The home health HIPPS code is called an "intelligent" code because each number or letter in the code provides information depending on its position. The first position is the payment grouping step for episode (numeric). The second, third, and fourth positions are clinical, functional, and service dimensions (alphabetic). The fifth position is severity of nonroutine medical supplies (alphanumeric).
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1. Which provider order entry system is usually more reliable, paper-based or electronic? Why?
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The provider order entry system that is usually more reliable is electronic because the charge for the service or supply is entered at the point of service and automatically transferred to the patient account and posted to the patient claim. The paper system leaves more room for error
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2. What are two sources of new charge description master codes
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One source of new codes is the CMS release of updates to codes and billing guidance; the other is performance of new services at the healthcare provider that require line items to be added to the system
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3. What risk areas are concerns when the charge description master is not properly maintained and revised
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compliance violations and lost reimbursements, Overpayment Underpayment ,undercharging for services
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4. How has HIPAA changed claims processing?
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Administrative Simplification, Developement and implementation of standardized health-related financial and administrative activities electronically and implementation of privace and security procedures to prevent the misuse of health information by ensuring confidentiality
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5. What are two roles of EDI in claims processing
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1.to make sure the EOBs and the MSNs are provided to the facility. 2. is that the EDI reports claim rejections, denials, and payments to the facility
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6. List ways that discrepancies between submitted charges and paid charges are reconciled by the provider:
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The ways that discrepancies between submitted charges and paid charges can be reconciled is by the provider contacting the patient to collect the outstanding deductible or copayment. In addition the facility needs to determine whether the claim can be corrected and resubmitted, if it cannot the facility has to write it off or make an adjustment on the patients account.When batches of EOBs, MSNs, and RAs are received via the 835A or 835B electronic format, accounting personnel check the amount owed by the patient (listed as not covered on the EOB or MSN), and collections personnel contact the patient to collect deductibles, copayments, and charges remaining. Accounting personnel also check RAs for denied claims to determine whether corrected claims should be submitted to the insurer. When they cannot receive further payment from insurers or insureds, billing personnel write off the patients' accounts and the revenue cycle ends.
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7. How do providers decide what optimal performance is for units of their facility:
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Providers define optimal performance for units of the facility by establishing key performance indicators (KPI) which represent the areas that need to be improved. And by setting a standard for each indicator which can be measured to gauge performance improvement.
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8. Facility B just completed an analysis of its own alarmingly high balance of unpaid claim amounts. What are some key performance indicators a provider's CM team could use to learn the reason for the surge in unpaid balances?
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Some key performance indicators a provider's RCM team could use to learn the reasons for the surge in unpaid balances could be the days from discharge to coded, the percentage of denials from the third party payers, percentage of late charges, percentage of returned claims for corrections.
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9. Describe at least three sources of errors that cause claim denials
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sources of errors that can cause claim denials are invalid procedure, invalid revenue code, the code is not recognized or service unit out of range for procedure and data entry mistakes
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10. True or False? Use of the charge description master has been made manual coding by HIM coders obsolete:
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FALSE
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1. What three fundamental characteristics doe value based purchasing (VBP) systems and pay for performance (P4P) systems share?
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Reimbursement (incentives, rewards) Performance Quality
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2. Why did VBP/P4P systems emerge?
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-Wide-spread movement toward quality and safety -Pay for performance (P4P) and value-based purchasing (VBP) emerge as way to align payment incentives and quality - These systems were created for the health care system as an incentive linked to payment, performance and quality.
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3. What is attribution, and by what other term in the process known?
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Attribution is the determination of who rendered care so that the care's outcomes can be linked to its provider and that provider receives the reward or penalty. Other terms for attribution are enrollee assignment or beneficiary assignment.
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4. The very first P4P systems emerged in the early 1900's / TRUE OR FALSE
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FALSE
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5. The Centers for Medicare and Medicaid Services (CMS) has attempted to slow the trend toward VBP/P4P systems because its experts believe the linkage of quality and rewards jeopardizes the care of patients TRUE/FALSE
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FALSE
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6. List at least three other countries that have implemented VBP/P4P systems in their healthcare delivery systems
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Australia, Canada, Great Britain
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7. Withholding compensation would be considered a penalty-based model of VBP/P4P TRUE/FALSE
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TRUE
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8. What piece of legislation mandated that CMS develop a VBP program?
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Deficit Reduction Act of 2005
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9. Discuss the difference between "pay for reporting" and "paying for value"
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CMS allows a facility to maintain the full payment for services when it successfully participates in a quality-measure reporting program. CMS wants to promote efficiency in resource use while providing high-quality care, established hospital-acquired conditions provision in the acute care delivery
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10. What type of VBP program is the Hospital-Acquired Conditions Reduction Program?
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Beginning in FY 2015, the Hospital-Acquired Condition (HAC) Reduction Program, mandated by the Affordable Care Act, requires the Centers for Medicare & Medicaid (CMS) to reduce hospital payments by 1 percent for hospitals that rank among the lowest-performing 25 percent with regard to HACs.