SDMGMA Third Party Payer Day. Lori Lawson, Deputy Medicaid Director

Transcription

1 SDMGMA Third Party Payer Day Lori Lawson, Deputy Medicaid Director 1

2 Agenda Medicaid Overview TPL ARSD How to report TPL on 1500 form How to report TPL on UB form Common TPL Errors ICD-10 update a. Readiness b. Tips APC update Q &A

3 What is Medicaid? Medicaid is one of the largest healthcare insurers in South Dakota. Federal-State partnership governed by Medicaid State Plan (agreement with federal government on who is served and what services are covered). Each state s plan is different. Makes comparisons between states difficult. Different than Medicare - 100% federal coverage for older and some disabled adults.

4 Medicaid Claims Processing South Dakota Medicaid pays for covered health care services that are medically necessary. Meet or exceed federal timely payment requirements. South Dakota Medicaid staff process and adjudicate Medicaid claims. There were approximately 5 million claims processed in SFY15. Over 83% of the claims are submitted electronically.

5 Who Uses Medicaid Now? In SFY15 there were 117,346 average monthly individuals enrolled in South Dakota Medicaid. Nearly 1 of every 7 persons in any given month will have health coverage through Medicaid or CHIP. 1 of every 3 persons under the age of 19 in South Dakota has health coverage through Medicaid or CHIP. 50 percent of the children born in South Dakota will be on Medicaid or CHIP during the first year of their life.

6 Who We Serve Low income children, pregnant women, adults and families Elderly or disabled Children in foster care Adult coverage is limited to: Elderly or disabled Parent/Caregiver/Relatives of Low Income Children - 53% Federal Poverty level (FPL) Family of three $10,489 annual income 68% children and 32% adults

7 Who We Serve SFY 2015 Average Monthly Eligible South Dakotans Elderly 7,057 Disabled/Blind 19,126 Pregnant Women (pregnancy only) 1,188 Low-income Adults 13,159 Children of Low-income Families 64,690 Children covered by CHIP 12,126 Total Average Monthly 117,346

8 Medicaid Participation SFY 2015 Monthly Average = 117,346 8

9 Health Care Services Covered Healthcare Services must be medically necessary and physician ordered. Medicaid Mandatory Services South Dakota Optional Services Inpatient hospital services Outpatient hospital services Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) services All Medically Necessary care for eligible children under age 21 Nursing facility services Home health services Physician services Rural health clinic services Federally qualified health center services Laboratory and X-ray services Nurse Midwife services Certified Pediatric and Family Nurse Practitioner services Transportation to medical care Tobacco cessation counseling for pregnant women Physician assistants Psychologists and independent mental health practitioners Intermediate Care Facilities for the Mentally Challenged (ICF/MR) Podiatry Prescription Drugs Optometry Chiropractic services Durable medical equipment Dental services Physical, occupational, speech therapy, audiology Prosthetic devices and eyeglasses Hospice care, nursing services Personal care services and home health aides

10 THIRD PARTY LIABILITY WHAT IS THIRD PARTY LIABILITY? Third Party Liability (TPL) is the obligation of an entity other than Medicaid to pay for either part or all of the medical cost of an injury, disease or disability. The most common sources of TPL are Medicare and Private Health Insurance plans such as DakotaCare, Blue Cross Blue Shield, etc. TPL can also come from worker s compensation, disability insurance, or automobile insurance. When a recipient becomes eligible for Medicaid, they assign their right to third party payments to Medicaid.

11 THIRD PARTY LIABILITY WHY DOES SOUTH DAKOTA MEDICAID REQUIRE TPL INFORMATION ON A CLAIM? By federal law, Medicaid is the payer of last resort. This means that when a Medicaid recipient has a third party payment source, such as private health insurance, the insurance company must pay the claim before Medicaid. South Dakota Medicaid requires all providers to submit claims to TPL before billing Medicaid. Claims not submitted to TPL before Medicaid will be denied. Exception: Absent parent insurance and auto insurance. Send these claim to SDMA. South Dakota Medicaid requires proof of third party payment or rejection to be submitted with all paper claims. Electronic claims must provide proof of third party payment or rejection upon request of the Department.

12 Third Party Source ARSD 67:16:26:05 Provider must collect from third-party source before submitting a claim to the department -- Medical assistance program payer of last resort. The provider is eligible to receive the recipient's third party liability responsibility amount or the amount allowed under the department's payment schedule less the third-party liability amount, whichever is less.

13 THIRD PARTY LIABILITY TERMS Explanation of Benefits (EOB): A statement sent by a health insurance company identifying the patient and services rendered, the amount charged by the provider, the amount of charges covered and not covered by the insurance company including any contractual writeoff amounts, and the patient responsibility amount. Alternative Terms: Summary of Benefits, Remittance Advice, Coverage Determination, Beneficiary Notice. Usual and Customary Charge (UCC): The amount charged by the provider for the service. This amount should not contain any deductions. Alternative Terms: Billed Charges Patient Responsibility: The amount of the UCC the patient is responsible for paying, usually the co-payment, co-insurance, and/or deductible amount.

14 THIRD PARTY LIABILITY TERMS Contractual Obligation: The amount of the UCC that neither the insurance company nor the patient is responsible for paying. This amount is usually specified in a contract between the provider and the insurance company or network. Alternative Terms: Network Savings, Not-Allowed Amount, Write-Off, Adjustment, CTR True Payment: The dollar amount that the private health insurance company paid for the service.

15 THIRD PARTY LIABILITY on a 1500 Form WHAT TPL INFORMATION IS REQUIRED TO BE ON THE CLAIM FORM? Block 9: Other Insured s Name Block 11: Insured s Policy Group or FECA Number Block 24 A (Shaded): Enter the contractual obligation/network savings amount with the prefix CTR. Block 24 F (Shaded): Enter the true payment for each service in the shaded portion. The UCC will be entered in the unshaded portion. Block 28 Enter the UCC amount. Block 29 Enter the dollar amount paid by the insurance company. This should equal the sum of the true payments in 24 F. Do not include any network savings or contractual obligation amounts. Block 30 Enter the Balance Due. Block 9 Block 11 Block 24 A Block 24 F Block 28, 29, 30

16 Third Party Liability Example HCFA Claim Submitted to Private Health Insurance Usual and Customary Charge $ Contractual Obligation $ Insurance Payment: $ SDMA Allowable $ SDMA Pays the lesser of : $ $ $500.00=$ $ $500.00=$88.63

17 Third Party Liability Example HCFA WELLMARK BCBSSD BLUE PPO X CTR A

18 Third Party Liability Example UB-04 Claim Submitted to Private Health Insurance Usual and Customary Charge: Insurance Payment: $ $ Contractual Obligation: SDMA Payment pays the lesser of : $62.00 $ $62.00-$155.91=$44.09 South Dakota Medicaid Allowable: $ $155.91=$63.57 $219.48

19 Third Party Liability Example UB BCBS 141 MEDICAID

20 Common TPL Errors Medicare Crossovers Adjustments Billed Charges (Usual and Customary UCC) Timely Filing

21 MEDICARE/MEDICAID CROSSOVERS WHAT IS REQUIRED TO BE ON CLAIMS SUBMITTED TO MEDICARE TO ENSURE SOUTH DAKOTA MEDICAID PAYS THE CLAIM? Ensure that the information on the claim form matches the information that is in South Dakota Medicaid s SDMEDX Provider Enrollment Record. Zip+4 Servicing and Billing NPI Taxonomy Check the Medicare Box on the claim form. If you do not receive a remittance advice from South Dakota Medicaid within 4 weeks of submitting a crossover claim please contact the Telephone Service Unit at

22 ADJUSTING A CLAIM HOW DO I DO VOID ADJUSTMENT ERRORS? Adjustments may only be made to paid claims. Denied claims cannot be adjusted. If you adjust a denied claim, the adjustment will be denied. Corrections to a claim that has been denied should be submitted as a new claim. If you have a denied adjustment be sure to check your remit advice. Payment may be recouped and a new claim will need to be submitted. Always use the correct reference number on an adjusted claim. If information on the adjusted claim does not match the information on the given reference number, the claim will deny. Do not write ADJ in Block 22 of the claim form if you are not adjusting a claim.

23 BILLED CHARGES WHAT INFORMATION NEEDS TO BE IN THE BILLED CHARGES BLOCK OF THE CLAIM FORM? Always list the usual and customary charge (UCC) on the claim form. The UCC is the amount charged by the provider for the service. This amount should not contain any deductions. The amount listed in the claim form in Block 24F and Block 28 on the claim form will effect the payment amount from Medicaid. If you list an amount that is less than the fee schedule, you will be paid only the amount listed on the claim. If you leave these blocks blank, the claim will be denied.

24 TIMELY FILING ARSD 67:16:35:04 WHEN SHOULD A PROVIDER COMPLETE AND SUBMIT CLAIM FORMS? Claim forms should be submitted every time an eligible service is provided to an eligible Medicaid recipient. We recommend submitting a claim form as soon as possible following the date of service. South Dakota Medicaid requires all claims to be received within 6 months following the month of the date of service. Example: For a date of service of March 17, 2015, claim forms must be submitted by September 30, 2015.

25 TIMELY FILING WHAT ARE THE TIMELY FILING REQUIREMENTS WHEN A RECIPIENT HAS PRIVATE HEALTH INSURANCE OR MEDICARE? When a recipient has private health insurance or Medicare, claims must be submitted to those sources for payment before Medicaid. Claims forms must be submitted to Medicaid within 6 months of notice of payment or denial from Medicare or private health insurance. Example: Date of service is March 17, Provider submits to insurance, insurance makes a payment on June 30, Claim must be received by Medicaid no later than December 30, 2015.

26 TIMELY FILING WHAT ARE THE TIMELY FILING REQUIREMENTS FOR RESUBMISSION WHEN A CLAIM HAS BEEN DENIED BY SOUTH DAKOTA MEDICAID? Claim forms must be submitted to South Dakota Medicaid within 3 months of the denial unless the claim was denied for timely filing. Example: If a claim is denied on March 18, 2015, a new claim must be received by South Dakota Medicaid by June 18, 2015.

27 ICD-10 updates Date of Service Driven Diagnosis Codes AND Procedure Codes Readiness Billing/Coding Paper vs. Electronic

28 Ambulatory Payment Classification (APC) Update What? Why? When? Who?

29 WHERE CAN I FIND MORE INFORMATION? SOUTH DAKOTA MEDICAID WEBSITE SOUTH DAKOTA MEDICAID LISTSERV FREQUENTLY ASKED QUESTIONS PROFESSIONAL SERVICES MANUAL

30 Questions? MEDICAID ELIGIBILITY: South Dakota Medicaid Interactive Voice Response (IVR) is an automated system that describes recipient s eligibility for Medicaid over the phone. You must know your NPI and the recipient s Medicaid ID number when you call. Calls take approximately 1 minute to complete. Out-Of-State call CLAIMS QUESTIONS: PROVIDER ENROLLMENT: