Background<strong>The</strong> primary goal of the RAC demonstration was to determine if recovery auditing could be effective in<strong>Medicare</strong>. <strong>The</strong> Centers for <strong>Medicare</strong> & Medicaid Services (CMS) directed the RAC staff to organize theirefforts primarily to attain that goal.Supplemental goals, such as correcting identified vulnerabilities, were identified after the fact and werenot required tasks. CMS did collect improper payment information from the RACs. However, it was on avoluntary basis, and was done at the claim level and focused on the collection. Two high riskvulnerabilities for physician claims are listed in Table 1. <strong>The</strong>se claims were denied because thedemonstration RACs determined that either a duplicate claim was billed and paid or the physicianreported an incorrect number of units for current procedural terminology (CPT) code billed based on theCPT code descriptor, reporting instructions in the CPT book, and/or other CMS local or national policy.Table 1ItemProviderTypeImproper PaymentAmount (preappeal)RAC Demonstration Findings1 Physician $6,635,558 Other Services with Excessive Units - Units billedexceeded the number of units per day based on theCPT code descriptor, reporting instructions in theCPT book, and/or other CMS local or nationalpolicy.2 Physician $1,094,751 Duplicate Claims - Physician billed and was paidfor two claims for the same beneficiary, for thesame date of service, same CPT code, and samephysician.Note: <strong>The</strong> two findings identified in Table 1 impacted multiple codes and no specific coding trends wereself-reported by the RACs for these categories.Summary of RAC Demonstration Findings<strong>The</strong> two high-risk vulnerabilities for physician claims listed in Table 1 were identified because thedemonstration RACs determined that either a duplicate claim was billed and paid or the units billedexceeded the number of units per day according to the CPT code descriptor, instructions in the CPT book,and/or other CMS local or national policy.Physician Billing and Documentation RemindersAn overpayment exists when a physician bills and is paid for services that have been previouslyprocessed and paid. See the CMS Internet-Only Manual (IOM), <strong>Medicare</strong> Financial Management Manual,Chapter 3, Section 10.2 at http://www.cms.gov/manuals/downloads/fin106c03.pdf on the CMS Web site.For more specific information on what criteria constitutes a duplicate claim see the CMS IOM, <strong>Medicare</strong>Claim Processing Manual, Chapter 1, Section 120 found athttp://www.cms.gov/manuals/downloads/clm104c<strong>01</strong>.pdf on the CMS Web site. CMS reminds physiciansthat routinely submitting duplicate claims to Part B carriers and MACs for a single service encounter isinappropriate. CMS asks physicians to discontinue this practice. For more information on avoidingduplicate billing, please review <strong>Medicare</strong> Learning Network (MLN) Matters article SE0415 found athttp://www.cms.gov/MLNMattersArticles/downloads/SE0415.pdf on the CMS Web site.CMS guidance requires physicians to bill using the appropriate CPT code and to accurately report theunits of service. Physicians should ensure that the units billed do not exceed the number of units per dayCPT codes and descriptors are only copyright 2<strong>01</strong>0 American Medical Association (or such other date publication of CPT)<strong>The</strong> <strong>Medicare</strong> <strong>Monthly</strong> <strong>Review</strong> 96 <strong>MMR</strong> <strong>2<strong>01</strong>1</strong>-<strong>01</strong>, <strong>January</strong> <strong>2<strong>01</strong>1</strong>
ased on the CPT code descriptor, reporting instructions in the CP book, and/or other CMS local ornational policy.Additional InformationPhysicians are also encouraged to visit the CMS RAC Web site at http://www.cms.gov/RAC for updateson the National RAC Program. On the Web site you can register to receive e-mail updates and viewcurrent RAC activities nationwide.News Flash - It’s a Busy Time of Year. Make each office visit an opportunity to talk with your patientsabout the importance of getting the seasonal flu vaccination and a one-time pneumococcal vaccination.Remember, <strong>Medicare</strong> pays for these vaccinations for all beneficiaries with no co-pay or deductible. <strong>The</strong>seasonal flu and invasive pneumococcal disease kill thousands of people in the United States each year,most of them 65 years of age or older. <strong>The</strong> Centers for Disease Control and Prevention (CDC) alsorecommends that health care workers and caregivers be vaccinated against the seasonal flu. Protect yourpatients. Protect your family. Protect yourself. Get Your Flu Vaccine - Not the Flu.Remember – Influenza vaccine plus its administration are covered Part B benefits. Note that influenzavaccine is not a Part D covered drug. For information about <strong>Medicare</strong>’s coverage of the influenza vaccineand its administration, as well as related educational resources for health care professionals and theirstaff, please visit http://www.cms.gov/MLNProducts/Downloads/Flu_Products.pdf andhttp://www.cms.gov/AdultImmunizations on the CMS Web site.DisclaimerThis article was prepared as a service to the public and is not intended to grant rights or impose obligations. This article may contain references or links tostatutes, regulations, or other policy materials. <strong>The</strong> information provided is only intended to be a general summary. It is not intended to take the place of eitherthe written law or regulations. We encourage readers to review the specific statutes, regulations and other interpretive materials for a full and accurate statementof their contents. CPT only copyright 2009 American Medical Association.CPT codes and descriptors are only copyright 2<strong>01</strong>0 American Medical Association (or such other date publication of CPT)<strong>The</strong> <strong>Medicare</strong> <strong>Monthly</strong> <strong>Review</strong> 97 <strong>MMR</strong> <strong>2<strong>01</strong>1</strong>-<strong>01</strong>, <strong>January</strong> <strong>2<strong>01</strong>1</strong>
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Calendar Year 2011 Annual Update fo
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Waiver of Coinsurance and Deductibl
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Ambulance Inflation Factor for CY 2
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Medicare-covered preventive service
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CMS has decided to follow the same
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