ABN - Our Office's Process

by  Codapedia
December 21st, 2015

By: Charlene Burgett (Sep/18/2009) 

In an attempt to make the ABN more understandable for my physicians and staff, I developed this explanatory paper that is specific to our office; however, the basics apply to all offices.

Charlene Burgett,MS-HCM,CMA(AAMA),CPC,CCP,CMSCS,CPM
Administrator, North Scottsdale Family Medicine
POMAA National Advisory Board

charlene_burgett@yahoo.com
Invite me on LinkedIn: http://www.linkedin.com/in/charleneburgett 
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When to Use an Advanced Beneficiary Notice (ABN)

By Charlene Burgett, MS-HCM, CMA (AAMA), CPC, CMSCS, CCP, CPM

The use of the ABN is required by Medicare to alert patients when a service will not be paid by Medicare and to allow the patient to choose to pay for the service or to refuse the service. If we do not have a signed ABN from the patient and Medicare denies the service, we have to write off the charge and cannot request the patient to pay for it. The only exception is for statutorily excluded services (those that Medicare never covers like cosmetic surgery and complete physicals for example). In this case, we can still bill the patient for the non-covered service regardless of having a signed ABN. It is, however, a good idea to have the ABN signed for non-covered services so the patient still is aware that they are responsible and we have proof that they knew. Typically, the patient will call our office when they receive our bill and state that “they were never told”, “they weren’t aware”, or a similar complaint. With a signed ABN, we have proof that we have their informed consent to provide the service and their agreement to be financially responsible for the service. In the past, Medicare had a “Notice of Exclusion of Medicare Benefits” (NEMB) that we could provide to the patient (no signature required) to alert them of Medicare’s non-covered services. The ABN has replaced the NEMB.

The typical reasons that Medicare will not cover certain services and that would be applicable to our office are:

 

1.      Statutorily Excluded service/procedure (non-covered service)

2.      Frequency Limitations

3.      Not Medically Necessary
 

Statutorily Excluded items are services that Medicare will never cover, such as (not a complete list):

 

·Complete physicals (excluding Welcome to Medicare Screenings, with caveats)

·Most immunizations (Hepatitis A, Td)

·DME supplies (splints, personal comfort items)

·Cosmetic surgery

 

For these items, it is a good idea (not a requirement) to complete the ABN and have the patient check the appropriate box under options and sign the ABN. For the sake of our billing department, I strongly encourage the use of ABN’s for statutorily excluded items.

Frequency Limitations are for services that have a specific time frame between services. For example, for normal pap smears Medicare allows one every 24 months. If the patient wants one every 12 months for their piece of mind, Medicare will pay for year one and the patient will pay for year two and that pattern continues. The ABN needs to be on file for the year that the patient is responsible for paying. If the patient fits Medicare’s guidelines for “high risk” they are allowed to have the pap every 12 months and no ABN is required.

 Services that are not considered Medically Necessary are those that do not have a covered diagnosis code based on Local Coverage Determinations. One example is for excision of a lesion. If the lesion is being removed because the patient just doesn’t like how it looks, that is considered cosmetic surgery. If the lesion is showing some changes (i.e. bleeding, growing, changing color, etc), then it is considered medically necessary because it potentially can be malignant. The removal needs to have diagnosis coding to substantiate the medical necessity and Medicare has Local Coverage Determinations that lists all the codes/coding combinations that Medicare will approve for payment.
 

A rule of thumb in trying to discern the necessity of ABN’s is to discern whether or not Medicare ever will cover the service and if there may be some times that the service isn’t covered. The times the service isn’t covered, an ABN is required. To illustrate this point, I will use two examples:

 

· EKG’s are covered for certain cardiac and respiratory conditions. The only time an EKG is covered for preventive screening is during the patient’s first year enrolled in the Medicare program and when being doing during the Welcome to Medicare screening. After that time, Medicare will never cover an EKG for preventive screening. To notify the patient of this and to show that the patient agrees to be financially responsible for the EKG, an ABN will need to be completed.

 

· Another example is for the Tetanus immunization. Medicare will cover tetanus when medically necessary; basically if the patient has cut themselves and the tetanus is provided due to that injury. If the tetanus is provided to the patient because it has been ten years since the last tetanus and the tetanus is not in response to a recent injury, then it will be non-covered because it is not “medically necessary” and the ABN will need to be on file.

 

ABN’s need to be completed entirely and I am providing a “cheat sheet” specific to our office and the services we provide. The “Options” box can only be completed by the patient and it states that “We cannot choose a box for you”. That would appear to be coercion.

 

In addition, there is a small area to provide additional information that can be used by either the patient or the provider’s office. This could be anything pertinent to the information that the ABN covers. The bottom of the form is where the patient signs and dates. We keep the original ABN in the chart behind the progress note for that day. We MUST provide a copy of the signed ABN to the patient.

 
Service/Procedure
Reason

Estimated Cost

Physical/Preventive Visit, New Patient
Medical Necessity
$230.00
Physical/Preventive Visit, Established
Medical Necessity
$180.00
EKG
Medical Necessity
$65.00
Breast & Pelvic Exam (24 months)

Frequency Limitation

$107.00
Bone Density/DXA (24 months)

Frequency Limitation

$250.00
Excision of Lesion
Medical Necessity
$100.00 - $550.00
Skin Tag Removal, initial 15 lesions
Medical Necessity
$114.00
Skin Tag Removal, each additional
Medical Necessity
$40.00
Immunization-Tetanus w/Admin fee
Medical Necessity
$75.00
Immunization-Hepatitis A w/Admin
Medical Necessity
$125.00
Immunization-TwinRix w/admin
Medical Necessity
$155.00
DME-splint/sling/bandage/comfort item
Medical Necessity
$10.00 - $50.00
PPD-Tuberculosis Skin Test
Medical Necessity
$31.00
Hearing Test

Statutorily Excluded

$50.00

References:

ABN - Our Office's Process. (2015, December 21). Find-A-Code Articles. Retrieved from https://www.findacode.com/articles/abn-28032.html

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