Compliance: Avoid These Missteps That Will Put You In The RAC Spotlight

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

Article Overview

This compliance article explains several recovery audit contractor (RAC) review topics that were expected to draw attention in 2014 and beyond. It is aimed at physician practices, coders, and compliance staff who bill Medicare Part B and want to understand the general categories of documentation and claim-review concerns being monitored by the RAC program. The article also discusses the role of CMS transmittals and contractor announcements in shaping audit priorities.

Why This Topic Matters

Understanding current RAC focus areas helps practices assess audit risk, strengthen documentation, and review claim patterns before they become repayment issues. The article is relevant to organizations that bill observation services, hospital evaluation and management services, blepharoplasty-related procedures, or drug claims involving vial wastage.

Article Sections

  1. Background on RAC review priorities

    Introduces the RAC program, the contractors involved, and the general purpose of the review topics discussed in the article.

  2. Observation care for fewer than 8 hours

    Discusses audit attention on short observation stays and the related Medicare Part B billing area.

  3. Billing more than one E/M code per day

    Reviews contractor scrutiny of multiple evaluation and management services reported on the same date of service.

  4. Blepharoplasty procedures

    Covers contractor review of eyelid surgery claims and the distinction between cosmetic and medically necessary services.

  5. Billing for multi-use vials of Herceptin

    Describes review activity involving drug billing and discarded amounts associated with a cancer therapy product.

What You Will Learn

  • Which broad Medicare billing areas were identified as RAC review targets.
  • How the article frames observation care, hospital E/M, eyelid surgery, and drug vial billing as compliance risks.
  • Which CMS materials and contractor announcements are referenced as the basis for review activity.
  • Why documentation and claim-review readiness matter for Part B practices.

Who Should Read This

  • Physician practices
  • Medical coders
  • Billing staff
  • Compliance officers
  • Revenue cycle teams
  • Medicare providers

Codes Discussed

  • CPT: 99217
  • CPT: 99234
  • CPT: 99235

Code Ranges Discussed

  • CPT: 99218-99220
  • CPT: 99234-99236

Modifiers Discussed

  • HCPCS Level II: JW

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