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Reference Guide For Pharmacy Mangement and Pharmacoeconomics-Questions and Answers (FPGEE)

Answers



In most cases, the drug has been used appropriately, however the person performing the DUR has been forced into product-centered DUR without considering the patient past history or clinical status. Switching to patient-centered DUR study provides more accurate clinical status of the patient and helps in controlling healthcare cost as well as healthcare related services more efficiently. In this type of study, importance is primarily given to inappropriate utilization of medications and screening of targeted patient-population. For example, patients who are elderly with prior history of bone fractures and falls may be screened for drugs that may potentially cause additional falls and fractures or for drugs that may adversely affect bone mass index. This may include excessive or inappropriate use of sedatives or benzodiazepines, which may cause additional falls.

ANSWER 11
(a) The following coding systems, ICD-9-CM, CPT-4 , and HCPCS, were adopted as standard code sets under the Health Insurance Portability and Accountability Act (HIPAA). Effective October 16, 2003, all covered entities are required to use these national coding systems.

1. ICD-9-CM is the official system of assigning codes to diagnoses and hospital procedures in the United States. Volumes 1 and 2 comprise diagnostic codes, and Volume 3 lists certain hospital procedure codes. ICD-9-CM is maintained jointly by the National Centers for Health Statistics and the Centers for Medicare and Medicaid Services as part of the ICD-9-CM Maintenance Committee. ICD-9-CM is modified annually to accommodate new terminology and procedures, and to update outdated nomenclature. ICD-9-CM will eventually be replaced by ICD-10-CM (diagnostic codes) and ICD-10-PCS (hospital procedure codes).
2. CPT® is a systematic coding system for reporting medical services and procedures performed by physicians. CPT is maintained by the American Medical Association and is modified every year. Revisions are usually effective for dates of service on or after January 1 of each year. CPT also represents Level 1 of the Healthcare Common Procedure Coding System.
3. The Healthcare Common Procedure Coding System (pronounced “hick-picks”) was originally created for use under the Medicare program. Today, HCPCS is used by virtually every payer in the United States.

ANSWER 12
(d) All. Medical providers who bill Medicare, Medicaid, and other Government programs use a standardized system of numerical codes for patient services. In this way, insurers and the Government do not have to work out what services were provided from numerous records or from thousands of different types of coding or billing systems. Misuse of these standardized codes to obtain more money than is allowed by law is commonly termed “UPCODING” or “UPCHARGING.”
Each Medicare billing code is tied to a particular group of services and will eventually result in a reimbursement to the physician or other provider (hospital, psychologist, chiropractor, etc.) based upon the code entered by the provider. Providers have financial incentives to “upcode” or increase the bill by exaggerating or even falsely representing what medical conditions were present and what services were provided.
For example, when a 2-minute visit for diagnosis and treatment of an upper respiratory condition (i.e. a cold without complications) is “upcharged” from a very low reimbursement rate code by intentionally using codes for a more serious ailment. Thus, the “URI” or “upper respiratory infection” diagnosis is altered to indicate that the patient was suffering from a more severe bronchitis and sinus infection, with some breathing impairment requiring nebulizer treatment, and the patient required a full 1-hour office visit. In either case, whether the additional services billed were not even provided or if provided but not medically needed, a fraudulent “upcharge” occurs.
Churning occurs when a physician provides a service to a patient more frequently than is necessary for the purpose of billing for more services. For example, a psychiatrist may require more sessions with the patient than are recommended for the condition.
Unbundling or fragmentation occurs when a physician bills separately for services that are normally reported as one service. Medicare and Medicaid often have special reimbursement rates for a group of procedures commonly done together, such as typical blood test panels by clinical laboratories. Some health care providers seeking to increase profits will “unbundle” the tests and bill separately for each component of the group, which totals more than the special reimbursement rates.

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