Healthcare News: E/M services remain a leading cause of improper Medicare payments

April 12th, 2016

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article summarizes a Medicare compliance update showing that evaluation and management services were a major source of improper payments, with a specific look at observation services reviewed by CERT. It is relevant for coders, compliance staff, and providers who monitor Medicare billing risk, documentation completeness, and audit findings. The article points readers to Medicare guidance and highlights the kinds of documentation issues associated with observation-service claims.

Why This Topic Matters

It helps readers understand why E/M and observation-service claims draw Medicare scrutiny and what broad documentation gaps were identified in compliance review activity.

Article Sections

  1. Medicare improper payment findings for E/M services

    An overview of the reported improper payment impact tied to evaluation and management services in Medicare fee-for-service claims. It places the issue within a compliance and audit context.

  2. CERT review of observation services

    A discussion of the CERT review focus on observation services and the HCPCS codes included in that review. The section introduces the audit scope and the type of claims examined.

  3. Documentation issues identified in review

    A summary of the broad documentation gaps noted in the review process. It describes the general categories of missing record support that affected payment determinations.

  4. Example of a recovered observation claim

    A brief case example illustrating how a reviewed observation-service claim was affected by incomplete supporting records. The example shows how the audit process unfolded at a high level.

  5. Where to find more guidance

    A pointer to additional Medicare claims-processing guidance and related newsletter material. It indicates where readers can look for broader reporting and compliance information.

What You Will Learn

  • How Medicare compliance reviews can affect evaluation and management services
  • What kinds of observation-service claims were reviewed by CERT
  • Which broad documentation issues were identified in the review
  • Where Medicare claims-processing guidance may provide additional context

Who Should Read This

  • Medical coders
  • Compliance officers
  • Billing staff
  • Physicians and clinical practice managers
  • Revenue cycle professionals

Codes Discussed

  • HCPCS Level II: 99217
  • HCPCS Level II: 99218
  • HCPCS Level II: 99219
  • HCPCS Level II: 99220
  • HCPCS Level II: 99224
  • HCPCS Level II: 99225
  • HCPCS Level II: 99226

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