tci Part B Insider - 2014 Issue 15

Observation Coding: Medicare Observation Services Increased by 100 Percent, Report Reveals

Expect carrier scrutiny in light of this leap and ensure you’re coding accurately. If it looks like you’re reporting more observation codes than ever before, you’re not just seeing things—practices are billing these services more now than ever before, a recent study notes. In fact, the use of Medicare hospital observation services grew by over 100 percent between 2001 and 2009, the new AARP report, entitled “Rapid Growth in Medicare Hospital Observation Services: What’s Going On?” says. This means that payers are probably starting to scrutinize these services to ensure medical necessity...

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