Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in...

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Billing for Medicaid Billing for Medicaid School Based Services School Based Services on Your Own on Your Own Gay Lewis, Ed.D. Gay Lewis, Ed.D. Director of Student Services Director of Student Services Northfield Public Schools Northfield Public Schools Northfield, MN 55057 Northfield, MN 55057 Shane Dennis, President SpEd Forms, Inc. www.spedforms.com (866) 796-1848

Transcript of Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in...

Page 1: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Billing for Medicaid Billing for Medicaid School Based ServicesSchool Based Services

on Your Ownon Your Own

Gay Lewis, Ed.D.Gay Lewis, Ed.D.Director of Student ServicesDirector of Student ServicesNorthfield Public SchoolsNorthfield Public SchoolsNorthfield, MN 55057Northfield, MN 55057

Shane Dennis, PresidentSpEd Forms, Inc.www.spedforms.com(866) 796-1848

Page 2: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Participants will gain an understanding of:

1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing

Objectives:

solution, 2) the advantages of a web-based data collection

system (vs. a fax-paper-to-billing vendor process;),

3) The time and costcost--savingsaving advantages of having local control over the data collection process,

Page 3: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Participants will gain an understanding of:

4)4) how claims are submitted directly to state payers how claims are submitted directly to state payers using HIPAA EDI 837 health care claims,using HIPAA EDI 837 health care claims,

Objectives:

5)5) how districts electronically receive and process how districts electronically receive and process HIPAA EDI 835 health care claim payments HIPAA EDI 835 health care claim payments (i.e., electronic RAs), and(i.e., electronic RAs), and

6)6) the reporting and auditing advantages of the reporting and auditing advantages of electronic claims processing.electronic claims processing.

Page 4: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

How It All Started . . .How It All Started . . .•• In the midIn the mid--1990s, a few districts began 1990s, a few districts began

billing public and private insurances to help billing public and private insurances to help cover the growing cost of special education.cover the growing cost of special education.

•• These districts lobbied the MN legislature These districts lobbied the MN legislature for statutory changes to facilitate school for statutory changes to facilitate school billing.billing.

•• This caught the attention of legislators who This caught the attention of legislators who were seeking revenue sources other than were seeking revenue sources other than taxation to fund education.taxation to fund education.

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How It All Started . . .How It All Started . . .

Beginning July 1, 2000, districts shall seek reimbursement from insurers and similar third parties for the cost of services provided by the district whenever the services provided by the district are otherwise covered by the child's health coverage.

M.S. 125A.21

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33rdrd Party Billing Task ForceParty Billing Task ForceA ThirdA Third--Party Billing Task Force was Party Billing Task Force was formed and charged with developing a billing formed and charged with developing a billing system that:system that:•• CompliedComplied with all insurance billing with all insurance billing

requirements,requirements,

•• Was acceptable to all stakeholders,Was acceptable to all stakeholders,

•• Could be implemented by all MN school Could be implemented by all MN school districts,districts,

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33rdrd Party Billing Task ForceParty Billing Task Force

And to . . .And to . . .

•• Develop the procedures, forms and other Develop the procedures, forms and other materials necessary to bill insurers,materials necessary to bill insurers,

•• Develop training materials for schools to Develop training materials for schools to utilize in training their staff, andutilize in training their staff, and

•• Provide the initial training to districts across Provide the initial training to districts across the state.the state.

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33rdrd Party Billing Task ForceParty Billing Task Force

The Task Force, by consensus, established The Task Force, by consensus, established the following additional goals:the following additional goals:

•• That school billing should have no impact on That school billing should have no impact on the childthe child’’s nor familys nor family’’s current nor future s current nor future medical coverage.medical coverage.

–– CopaysCopays–– Service capsService caps–– Lifetime limitsLifetime limits

Page 9: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

33rdrd Party Billing Task ForceParty Billing Task Force

The Task Force, by consensus, established The Task Force, by consensus, established the following additional goals:the following additional goals:

•• The school billing process should have no The school billing process should have no impact on the type nor amount of services a impact on the type nor amount of services a child receives.child receives.

–– Decisions about IEP services must continue Decisions about IEP services must continue to be made by IEP Teams.to be made by IEP Teams.

–– Schools must not become responsible for Schools must not become responsible for nonnon--educational medical services.educational medical services.

Page 10: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

33rdrd Party Billing Task ForceParty Billing Task Force

The Task Force, by consensus, established The Task Force, by consensus, established the following additional goals:the following additional goals:

•• To simplify the billing process as much as To simplify the billing process as much as possible,possible,

•• To keep paperwork requirements to an absolute To keep paperwork requirements to an absolute minimum, andminimum, and

•• To create a process that neither required nor To create a process that neither required nor prohibited the use of billing agencies.prohibited the use of billing agencies.

Page 11: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Key FeaturesKey Features

•• HealthHealth--related IEP services are related IEP services are ““carvedcarved--outout”” of the traditional MA billing systemof the traditional MA billing system

•• CopaysCopays and deductibles are waived.and deductibles are waived.

•• Parent consent is Parent consent is not not required in order to required in order to bill MA bill MA (but don(but don’’t forget FERPA!)t forget FERPA!)

–– Services are billed directly to DHSServices are billed directly to DHS

–– Have not impact the childHave not impact the child’’s medical s medical coveragecoverage

Page 12: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Key FeaturesKey Features•• Each service provider has only one Each service provider has only one

service code.service code.

•• Only one time unit is reported Only one time unit is reported -- daily daily contacts.contacts.

•• Physician orders are required only:Physician orders are required only:–– once per school yearonce per school year–– for PCA and specialized nursing services.for PCA and specialized nursing services.

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Key FeaturesKey Features•• For students covered by both public and For students covered by both public and

private insurance, private insurance denial private insurance, private insurance denial is required only once per school year.is required only once per school year.

•• Although School Psychologists are Although School Psychologists are classified as classified as ““Mental Health PractitionersMental Health Practitioners””in MN:in MN:

–– Test administration may be billed to MA Test administration may be billed to MA without supervision by a without supervision by a ““Mental Health Mental Health Professional.Professional.””

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An ExampleAn Example

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Student’s Name __________________________ Type of Service Provided (Service Code) - Check one:Physical Therapy (T1018-U1) Occupational Therapy (T1018-U2)

Date of Birth___________________________________ Speech-Language/Hearing Therapy(T1018-u3)Mental Health Services(T1018-U4)

School_________________________________________ Nursing Services (TU-1018-U5)Personal Care Assistant/Paraprofessional Services (T1018-U6

Oral Language Interpreter Services (T1013)

Minnesota Department of Human ServicesIEP/IFSP Services Activity Log

Date of Time Spent Number Service DescriptionService (Face-to of (Results, response, progress notes, checklist for PCA/paraprofessional

M D Y face Children services; description must relate to IEP/IFSP goals/objectives; M D Y services) in Group supervisor’s signature/notes, etc.)

Service Provider’s Signature/Title: ______________________________________________________________________

Typed/printed name: _________________________________________________________________________________

Steve Student

7/7/94

Downtown Middle

10 1 05 21 min.Toileting (10 min a.m., 11 min. p.m.)

10 1 05 29 min.Eating (6 min. a.m. snack, 23 min. lunch)

x

2

10 1 05 32 min.Positioning (32 times @ 1 min. each)

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Steve Student

7/7/94

Downtown Middle

4 4 06 6

4 6 06 6

Student’s Name __________________________ Type of Service Provided (Service Code)

Date of Birth_____________________________ Special Transportation (T1018-U8)

School__________________________________

Minnesota Department of Human ServicesIEP/IFSP Services Trip Log

Date of Miles from Miles fromService pick-up pick-up

(home) to (school) toM D Y drop-off drop-offM D Y (school) (home)

Service Provider’s Signature/Title: ________________________________________________________________________

Typed/printed name: ___________________________________________________________________________________

Date of Miles from Miles fromService pick-up pick-up

(home) to (school) toM D Y drop-off drop-offM D Y (school) (home)

6

6

4 5 06 6 6

Page 17: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

The Birth of MA FormsThe Birth of MA Forms•• A majority of MN school districts were A majority of MN school districts were

already using SpEd Forms to complete special already using SpEd Forms to complete special ed due process paperwork.ed due process paperwork.

•• Staff were comfortable using SpEd Forms.Staff were comfortable using SpEd Forms.

•• SpEd Forms already contained the billable SpEd Forms already contained the billable IEP healthIEP health--related services and student related services and student information necessary to bill MA.information necessary to bill MA.

•• The first step was to computerize the MA The first step was to computerize the MA billing forms.billing forms.

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Page 27: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

The Next Step . . .The Next Step . . .•• Districts were already using MA Forms to Districts were already using MA Forms to

collect billing detailscollect billing details•• Districts asked if it would be possible to Districts asked if it would be possible to

directly bill from MA Forms:directly bill from MA Forms:–– make the process more efficient by reducing make the process more efficient by reducing

paperwork shuffling and doublepaperwork shuffling and double--entry;entry;

–– eliminate the fees billing agencies charged to eliminate the fees billing agencies charged to process claims; andprocess claims; and

–– maximize school control over the process.maximize school control over the process.

Page 28: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

ResearchResearch•• Contacted MN DHS to learn how they Contacted MN DHS to learn how they

preferred to receive claims.preferred to receive claims.

•• DHS was in the process of moving from a DHS was in the process of moving from a modem based system to a system based on the modem based system to a system based on the standards set forth by HIPAA:standards set forth by HIPAA:http://http://www.hhs.gov/ocr/hipaawww.hhs.gov/ocr/hipaa//

•• Our subsequent research led us to the Our subsequent research led us to the ““Transactions and Codes Set StandardsTransactions and Codes Set Standards””required by HIPAA.required by HIPAA.

Page 29: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

HIPAA HIPAA -- ““Transactions and Transactions and Codes Set StandardsCodes Set Standards””

•• Establishes national standards used to Establishes national standards used to exchange health care information.exchange health care information.

•• Consolidated dozens of transmission Consolidated dozens of transmission methods used by states and health care methods used by states and health care organizations to exchange data.organizations to exchange data.

•• Made transfer of health care information Made transfer of health care information easier because they promote data security, easier because they promote data security, programming excellence and consistency.programming excellence and consistency.

Page 30: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Useful Transactions Useful Transactions StandardsStandards

•• ASC (Accredited Standards Committee) X12ASC (Accredited Standards Committee) X12Tech lingo for an ANSI (American National Standards Tech lingo for an ANSI (American National Standards Committee) EDI (Electronic Data Interchange) standard.Committee) EDI (Electronic Data Interchange) standard.

•• ASC X12N 270/271ASC X12N 270/271Checks the eligibility of students.Checks the eligibility of students.

•• ASC X12N 837ASC X12N 837Submits claims to the payer (DHS).Submits claims to the payer (DHS).

•• ASC X12N 835ASC X12N 835Details remittances.Details remittances.

Page 31: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

An XAn X--12 Transaction12 Transaction

ISA*03*QKQMA07 *00* *ZZ*NNNNNNNNN *ZZ*610442 *070823*0906*U*00401*000000025*1*T*:^GS*HS*NNNNNNNNN *610442*20070823*0906*25*X*004010X092A1^ST*270*0001^BHT*0022*13*0001*20070823*0906^HL*1**20*1^NM1*PR*2*MEDI-CAL*****46*610442^HL*2*1*21*1^NM1*1P*1******SV*PROV00029^REF*4A*2450117^HL*3*2*22*0^TRN*1*1111111111*9000000000^NM1*IL*1**^REF*EJ*1111111111^DMG*D8*19500201^DTP*102*D8*20050401^DTP*472*D8*20050407^EQ*30^HL*4*2*22*0^TRN*1*4444444444*9000000000^NM1*IL*1**^REF*EJ*4444444444^DMG*D8*19500201^DTP*102*D8*20050401^DTP*472*D8*20050407^EQ*30^HL*5*2*22*0^TRN*1*2222222222*9000000000^NM1*IL*1**^REF*EJ*2222222222^DMG*D8*19500201^DTP*102*D8*20050401^DTP*472*D8*20050407^EQ*30^HL*6*2*22*0^TRN*1*3333333333*9000000000^NM1*IL*1**^REF*EJ*3333333333^DMG*D8*19500201^DTP*102*D8*20050401^DTP*472*D8*20050407^EQ*30^SE*40*0001^GE*1*25^IEA*1*000000025^

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270/271270/271

•• The standard used to check eligibility.The standard used to check eligibility.

•• Requires basic student information Requires basic student information attached to the state DHS ID.attached to the state DHS ID.

•• Returns dates the students are eligible.Returns dates the students are eligible.

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837837

•• The standard used to transmit claims.The standard used to transmit claims.

•• Each eligible line on an Activity Log is a Each eligible line on an Activity Log is a claim in an 837.claim in an 837.

•• Includes all information needed by the Includes all information needed by the payer to process the claim.payer to process the claim.

Page 34: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

835835•• The standard used to receive remittance The standard used to receive remittance

advices (payment and/or denial information).advices (payment and/or denial information).•• Includes the amount paid, check number, Includes the amount paid, check number,

denial codes, etc.denial codes, etc.

•• Allows payment information to be collected Allows payment information to be collected and attached to the original service entered by and attached to the original service entered by the service provider.the service provider.

•• Makes reporting how much was paid, for what Makes reporting how much was paid, for what services and when easy.services and when easy.

Page 35: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Simplified BillingSimplified BillingOnce the billing coordinator identifies eligible Once the billing coordinator identifies eligible students :students :

1.1. Service providers enter eligible services Service providers enter eligible services provided to the student onto activity logs,provided to the student onto activity logs,

2.2. The billing coordinator reviews these The billing coordinator reviews these services electronically (no double entry!),services electronically (no double entry!),

3.3. Services are flagged for inclusion on the Services are flagged for inclusion on the next 837 claims file sent to the payer.next 837 claims file sent to the payer.

Page 36: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Advantages of DIYAdvantages of DIY•• Control over your own data:Control over your own data:

•• Reduced transaction costs.Reduced transaction costs.

•• Local understanding of the process can:Local understanding of the process can:–– prevent prevent ‘‘accidentalaccidental’’ overover--billing and billing and

subsequent paybacks,subsequent paybacks,–– maximize revenue: you know your staff, maximize revenue: you know your staff,

students and data best.students and data best.

–– flexible reporting,flexible reporting,–– local data analysis.local data analysis.

Page 37: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

Example:Example:

State ReportingState Reporting

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Example:Example:

District SummariesDistrict Summaries

Page 39: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

What We LearnedWhat We Learned

•• Direct billing can be accomplished by Direct billing can be accomplished by creating a computer program consistent creating a computer program consistent with HIPAA requirements.with HIPAA requirements.

•• Technical assistance provided by billing Technical assistance provided by billing agencies can be replaced by local support agencies can be replaced by local support groups and supportive state agencies.groups and supportive state agencies.

•• Every district that initiated direct billing Every district that initiated direct billing saved time saved time andand money.money.

Page 40: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

If You Wish To BeginIf You Wish To BeginBilling On Your OwnBilling On Your Own

•• Identify a district billing coordinator.Identify a district billing coordinator.

•• Meet with Billing Coordinators from Meet with Billing Coordinators from neighboring districts who also direct bill.neighboring districts who also direct bill.

•• Develop a working relationship with Develop a working relationship with thirdthird--party payers.party payers.

•• Utilize a computerized program to submit Utilize a computerized program to submit ‘‘batchbatch’’ claims.claims.

Page 41: Billing for Medicaid School Based Services on Your Own · 1) the history of Medicaid billing in Minnesota that led to the development of a computerized billing Objectives: solution,

QuestionsQuestions

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