Medical Billing
In order to properly code a bill for medical necessity, it is important to understand different plans and the requirements for billing each. It is true that they all use the ICD-10-CM diagnosis coding system, the CPT procedure coding system, and the CMS-1500 form, but each type of carrier has certain requirements for a clean bill.
Tasks:
Create a billing manual constructed of summaries of each type of insurance.
Include the major requirements for billing for each type.
Note inpatient or outpatient differences where appropriate.
Explain how to determine from the patient which type they subscribe to.
Sample Solution
1. Medicare: Medicare is a government health insurance program for people 65 years of age or older, as well as certain disabled individuals. To bill Medicare, you must use the HCPCS code set and the ICD-10-CM diagnosis coding system. You will also need to provide reason codes that explain why the services are medically necessary and document this in patient charts with appropriate encounter forms. The CMS 1500 form is required for billing Medicare.
2. Medicaid: Medicaid is a state administered health insurance program for people who meet specific income thresholds and needs based criteria established by each state’s Medicaid agency office. To bill Medicaid, you must use the ICD-10-CM diagnosis coding system, CPT procedure codes and include any relevant modifiers to indicate delivery type or other circumstances impacting services provided such as emergency care or hospitalizations.. Documentation requirements include proper completion of all claim forms (CMS 1500) plus additional documentation that meets state standards including signed consent forms, proof of guardianship if applicable and preauthorization documents (if required).