Posts Tagged: IRF

Maybe Waivers

As mentioned in the previous post in this series, when the RACs take back the revenue from a claim, they take back 100%, and the provider cannot refile — except, during the demonstration project, in the case of a claim for inpatient therapy following a single knee replacement at an Inpatient Rehabilitation Facility (IRF). Even then, as we noted, the report is not clear about this exception and its application, much less what will happen in the future.

In the RAC Evaluation Report, however, there is this interesting notice, under section 6, entitled, “Lessons Learned from the RAC Demonstration”:

ISSUE #4: Hospitals could not resubmit claims
when necessary services were provided in the
wrong setting.
CHANGE: During the RAC demonstration, CMS
waived the “timely claim filing” limits and allowed
hospitals to resubmit claims for outpatient ancillary
services in these situations. CMS is exploring
whether it is possible to continue this waiver during
the RAC permanent program.

There is no further explanation, no discussion, no notes, and nothing has appeared as yet to update that notation.

Given how much the RACs are “recovering,” we have doubts they will do much beyond this scenario, perhaps because of the difficulties involved in meeting the mandated criteria, as outlined in the the published requirements (again, see HCFA Ruling 85-2 and Medicare Benefit Policy Manual Section 110 ).

Next, we will examine some of the other “Lessons Learned” to glean more about what the RACs will be watching. Actually, we have a complete course about “Documentation Hot Spots” that the RACs are sure to pursue.

See the course on our eVehicle, at www.myedutrax.com.

Can I Resubmit?

Another good question that came up in a recent conference. The answer is No, except in some special cases. What cases? That’s hard to tell. Here’s a few hints, gleaned from client experience and the recent RAC Evaluation Report (download many RAC documents at www.myedutrax.com).

The RACs, at least in the demonstration project, allowed a facility to resubmit a recovered claim in only this case (see the report above, pg. 50):

Claim Facts

  • An Inpatient Rehabilitation Facility (IRF) submitted a claim for inpatient therapy following a single knee replacement
  • Medical record indicated that although the beneficiary required therapy, the beneficiary’s condition did not meet Medicare’s medical necessity criteria for IRF care (HCFA Ruling 85-2 and Medicare Benefit Policy Manual Section 110)
  • The RAC determined that the service was MEDICALLY UNNECESSARY for the inpatient setting and issued a repayment request letter for the entire claim. The provider may resubmit the claim for ancillary services that would have been covered had the services been properly provided in an outpatient setting.

Notice, however, that this is not really clear — was this true for all such cases?  Doubtful. Will it be true in the future for such cases?  Also, doubtful. At any rate, it is not clear what will happen.

There is one glimmer of hope.  Evidently, CMS is considering allowing a waiver of “timely claim filing” at least in cases involving outpatient ancillary services rejected for providing services in the wrong setting. More on that, next post…

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