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Medical billing and coding demystified PDF

305 Pages·2016·26.05 MB·English
by  Burgos
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D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 .6 2 .1 5 6 .8 6 ] a t [0 7 /1 8 /1 6 ]. C o p y rig h t © M c G ra w -H ill G lo b a l E d u c a tio n H o ld in g s, L L C . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity Medical Billing and Coding 5 .6 2 .1 5 6 .8 6 ] a  DeMYSTiFieD t [0 7 /1 8 /1 6 ]. C o p y rig h t © M c G ra w -H ill G lo b a l E d u c a tio n H o ld in g s, L L C . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 .6 2 .1 5 6 .8 6 ] a t [0 7 /1 8 Notice /1 6 ]. C Medicine is an ever-changing science. As new research and clinical experience broaden our knowledge, changes op y in treatment and drug therapy are required. The authors and the publisher of this work have checked with sources rig h believed to be reliable in their efforts to provide information that is complete and generally in accord with the t © standards accepted at the time of publication. However, in view of the possibility of human error or changes in M c medical sciences, neither the authors nor the publisher nor any other party who has been involved in the Gra preparation or publication of this work warrants that the information contained herein is in every respect accurate w-H or complete, and they disclaim all responsibility for any errors or omissions or for the results obtained from use ill G of the information contained in this work. Readers are encouraged to confirm the information contained herein lo b with other sources. For example and in particular, readers are advised to check the product information sheet a l E included in the package of each drug they plan to administer to be certain that the information contained in this d u work is accurate and that changes have not been made in the recommended dose or in the contraindications for ca administration. This recommendation is of particular importance in connection with new or infrequently used tion H drugs. o ld in g s, L L C . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 .6 2 .1 Medical Billing 5 6 .8 6 ] a t [0 7 /1 8 and Coding /16 ]. C o p y rig h t © M DeMYSTiFieD c G ra w -H Second Edition ill G lo b a l E d u c a tio n H o ld in g Marilyn Burgos, BSBA s, L L C Donya P. Johnson, BS . N o t to Jim Keogh RN-BC, MSN be re d With contributions by Marissa Hernandez istrib u te d o r m o d ifie d in a n y w a y w ith o New York Chicago San Francisco Athens London Madrid ut p Mexico City Milan New Delhi Singapore Sydney Toronto erm issio n . Copyright © 2016 by McGraw-Hill Education. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication Do w may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher, with n the exception that the program listings may be entered, stored, and executed in a computer system, but they may not be reproduced for publication. loa d e d ISBN: 978-0-07-184933-3 by [ F a MHID: 0-07-184933-5 c u lty The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-184934-0, of N MHID: 0-07-184934-3. u rsin g eBook conversion by codeMantra , C Version 1.0 hia n g m All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an a editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, i U n they have been printed with initial caps. iv e McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions or for use in corporate training programs. To rsity 5 contact a representative, please visit the Contact Us page at www.mhprofessional.com. .6 2 .1 5 Previous edition’s copyright © 2007 by the McGraw-Hill Companies, Inc. 6.8 6 ] a TERMS OF USE t [0 7 /1 This is a copyrighted work and McGraw-Hill Education and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as 8/1 pmeormdiiftyt,e cdr ueantdee dr ethriev Catoivpey rwigohrkt As bcat soefd 1 u9p7o6n a,n tdra tnhsem riigt,h dt itsot rsitbourtee ,a nddis sreetmriienvaet eo,n see lclo, ppyu bolfi sthh eo wr sourbkl,i yceonus me tahye n woto drke coorm anpyil ep,a drti soafs site wmibthleo, urte vMecrsGer eanwg-iHneilelr E, rdeupcraotdiounce’s, 6]. C o prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may py be terminated if you fail to comply with these terms. rig h t © THE WORK IS PROVIDED “AS IS.” McGRAW-HILL EDUCATION AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE M c ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION G THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS raw OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. -H McGraw-Hill Education and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will ill G be uninterrupted or error free. Neither McGraw-Hill Education nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless lo b of cause, in the work or for any damages resulting therefrom. McGraw-Hill Education has no responsibility for the content of any information accessed through al E the work. Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar d u damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability ca shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise. tio n H o ld in g s, L L C . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 .6 2 .1 I want to thank God for allowing me the privilege and opportunity to be a coauthor for 56 .8 6 this book. Thank you Jim for working diligently and patiently with us—it has been a ] a wonderful experience. To all my mentors in the medical field, thank you for your insight, t [07 /1 8 support, and guidance which has helped shape me into the healthcare professional I am /1 6 today. For my beautiful daughter Emilie Rose, who has always been my enthusiastic ]. C o p y supporter; may you grow up and stay as enthusiastic in all that you set your mind to. rig h Those who say it cannot be done should not interrupt the person doing it. t © M c G —Marilyn Burgos, BSBA ra w -H I would have fainted had I failed to see the goodness of God. ill G lo b Thank You Glenn, Dianne, and Jonathan for all of your love and support. a l E d u —Donya P. Johnson, BS ca tio n H o This book is dedicated to Anne, Sandy, Joanne, Amber-Leigh Christine, Shawn, Eric, ld in g and Amy. Without their help and support, this book couldn’t have been written. s, L L C —Jim Keogh, RN-BC, MSN . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 .6 2 .1 5 6 .8 6 ] a t [0 7 /1 8 /1 6 ]. C o p y rig h t © M c G This page intentionally left blank ra w -H ill G lo b a l E d u c a tio n H o ld in g s, L L C . N o t to b e re d istrib u te d o r m o d ifie d in a n y w a y w ith o u t p e rm issio n . D o w n lo a d e d b y [ F a c u lty o f N u rsin g , C h ia n g m a i U n iv e rsity 5 Contents .6 2 .1 5 6 .8 6 ] a t [0 7 /1 8 Introduction xi /1 6 ]. C o p y rig h CHAPTER 1 Introduction to Medical Billing and Coding 1 t © M 1. The Business of Healthcare 2 cG ra 2. The Economics of Healthcare 3 w-H 3. The Money Game 7 ill G 4. The Marketing Game 9 lob a 5. A Brief Look Back at Healthcare 10 l E d u 6. Medical Insurance Specialist 18 ca tio n H CHAPTER 2 Ethical and Legal Aspects of Medical Billing 25 o ld 1. Insight Into Medical Billing 26 ing 2. Ethics and Medical Billing 26 s, LL C 3. Legal Aspects of Medical Billing 29 . N o 4. Civil Law 30 t to b 5. Contracts 33 e re d 67.. TTyhpee Fse oafs aCnivciel sL aw 3357 istribu te d 8. The Four Ds of Negligence 38 o r m 9. Types of Criminal Law 39 o d 10. Confidentiality 40 ifie d in a n y w a y w ith o u t p e rm vii issio n . viii CoNTENTS D o w n lo a d CHAPTER 3 Medical Terminology and Procedures 47 ed b y 1. Insight Into Medical Terminology [ F a and Procedures 48 cu lty 2. The Secret to Understanding o f N Medical Language 48 u 3. Mastering Medical Terminology 50 rsing , C 4. Medical Tests, Procedures, and Treatments 53 h ia n g m CHAPTER 4 Medical Office Procedures 69 a i U 1. Behind the Scenes 70 niv e 2. The Healthcare Team 74 rsity 3. Medical office Procedures 77 5.6 2 4. Telephone Calls 79 .1 5 6 5. The Answering Service 83 .86 6. Making Calls on Behalf of ] at [0 the Medical Practice 84 7/1 8 7. Medical Records 84 /16 ]. C o CHAPTER 5 Introduction to Procedural Coding 91 py rig 1. Here’s How Coding Works 92 ht © 2. Getting Paid 93 M c G 3. The Healthcare Common Procedure ra w Coding System 94 -H 4. Current Procedural Terminology 94 ill G lo 5. Inside the CPT Manual 95 ba l E 6. Level II National Codes 96 d u c 7. ICD-10-CM 98 atio n 8. Hands-on Coding 102 H o ld in CHAPTER 6 Introduction to Insurance Plans 107 gs, L 1. What Is Insurance? 108 L C 2. Sharing Risk 109 . N o 3. How Insurers Make Money 110 t to b e 4. How Practitioners Make Money 111 re d 5. Healthcare Financing 112 istrib 6. Health Insurance Premium 113 ute d 7. Medical Coverage 115 or m 8. Assessing the Value of a Healthcare Policy 115 od 9. Types of Healthcare Plans 116 ified in 10. Types of Indemnity Insurance 117 a n y 11. Types of Managed Care Plans 118 w a y 12. Health Savings Accounts 120 w ith o u t p e rm issio n . CoNTENTS ix D o w n lo a d 13. Auto Insurance and Healthcare 120 ed b y 14. Disability Insurance 120 [ F a 15. Workers’ Compensation 121 cu 16. Liability Insurance and Healthcare 121 lty o f N u CHAPTER 7 The Insurance Claim Cycle 125 rsin g 1. Inside the Insurance Claim Cycle 126 , C h 2. Verify Insurance Information 128 ian g m 3. Input Patient Information 129 a i U 4. Create an Encounter Form 130 n iv e 5. Calculate Medical Fees 132 rsity 6. Preparing the Claim 133 5 .6 2 7. Send the Claim 133 .1 5 6 8. The Claim Is Received 134 .8 6 9. The Insurance Claim 135 ] at [0 10. HIPAA Claims and Paper Claims 140 7/1 8 11. Health Insurance Portability /16 and Accounting Act 142 ]. C o p 12. Types of Health Insurance Coverage 142 yrig h t © CHAPTER 8 Billing and Coding Errors: How to Avoid Them 153 M c 1. The Hidden Cost of Errors 154 Gra w 2. Types of Errors 156 -H 3. Dumb Mistakes 157 ill G lo 4. Red Flags 158 b a l E 5. The Penalty for Coding Errors 159 d u c a CHAPTER 9 Strategies for Handling Claim Disputes 163 tion H 1. The Claim Adjudication Process 164 old in 2. The Medical Review Department 165 gs, L 3. Remittance Advice Confusion 168 L C 4. Explanation of Benefits Confusion 169 . N o 5. Reviewing a Remittance Advice 169 t to b e 6. Handling Exceptions 170 re d CHAPTER 10 Medical Transportation 179 istribu te 1. Transporting Patients 180 d o 2. Vehicle and Crew Requirements 181 r mo d 3. Reasonableness and Medical Necessity 181 ifie d 4. Ambulance Condition Codes 182 in a n 5. Basic Life Support and Advanced Life y w a Support Transportation 183 y w 6. Selecting the Correct Condition Code 184 ith o u 7. Transport Indicators 187 t p e rm issio n .

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Medical Billing and Coding Demystified clearly explains the practices used by medical offices, hospitals, and healthcare facilities to encode medical services in order to receive payment from government agencies and insurance companies. Like other entries in this bestselling series, this self-teachi
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