tci Medicare Compliance & Reimbursement - 2007 Issue 11
BILLING: You Can't Use ABNs To Collect Extra From Patients
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Article Overview
This billing-focused article clarifies common misunderstandings about Advance Beneficiary Notices in Medicare claims. It is intended for physicians, coders, billers, and compliance staff who need to distinguish between situations involving noncovered services, coverage limitations, and patient billing restrictions. The discussion covers ABN use, modifier-related claim handling, and why repeated denials should be addressed through review and appeal rather than routine ABN issuance.
Why This Topic Matters
Incorrect ABN use can create compliance risk, billing errors, and improper patient charges. Understanding the limits of ABNs helps practices handle Medicare coverage issues appropriately and avoid overuse.
Article Sections
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Myth #1: When an ABN Should Be Used
Explains the first common misconception about ABN use and contrasts covered services with situations involving Medicare coverage limitations. The section also discusses claim handling in general terms for services that are not covered in a particular instance.
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Example of Medicare Coverage Limits for a Service
Uses a clinical scenario to illustrate how Medicare coverage concerns can arise even when a service is clinically considered. The section also references preventive service frequency limits.
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Myth #2: ABNs and Extra Patient Charges
Addresses the misconception that ABNs allow billing above Medicare payment amounts. The section focuses on participation status and restrictions on patient cost sharing beyond the allowed amount.
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How Often ABNs Should Be Used
Discusses whether frequent ABN issuance may indicate a problem with workflow or claim denials. The section emphasizes monitoring patterns and reviewing repeated denials.
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Bottom Line
Summarizes the overall compliance theme of the article and reinforces that ABNs are intended for limited use.
What You Will Learn
- The general purpose of Advance Beneficiary Notices in Medicare billing
- How to distinguish between different kinds of Medicare noncoverage situations
- Why ABNs do not override Medicare payment limits
- How repeated denials may indicate the need for review or appeal
- Common compliance concerns related to ABN overuse
Who Should Read This
- Physicians
- Medical billers
- Medical coders
- Revenue cycle staff
- Compliance professionals
Modifiers Discussed
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