Michael F. Easley, Governor Buck Lattimore, Chairman |
Bernadine S. Ballance,
Commissioner Thomas J. Bolch, Commissioner Laura K. Mavretic, Commissioner Renée C. Riggsbee, Commissioner Christopher Scott, Commissioner Dianne C. Sellers, Commissioner |
North Carolina
Industrial Commission
MEMORANDUM
TO: | All Workers’ Compensation Carriers, Third Party
Administrators, Self-Insured Employers and Medical Bill Processors |
CC: | All Hospital Providers |
FROM: | Jennifer
Gudac, Chief Medical Fee Examiner |
DATE: | June 26, 2002 |
SUBJECT: | Hospital Billing Procedures and Proper Reimbursement |
The
North Carolina Industrial Commission continues to receive reports regarding
improper reductions for outpatient hospital services. Hospitals are to bill
using revenue codes on a UB-92 Form. Other than the designated non-covered
revenue codes that are to be billed on a HCFA 1500, the outpatient services are
to be paid at 95% of charges. Ambulatory Surgery facility charges are to be paid
in full. There is no reason for requiring a hospital to provide CPT or HCPCS
codes for a workers’ compensation billing, although some hospitals
automatically generate these codes on their UB-92 bills. Please note, the fees
for those codes do not apply for facility bills.
Companies
will be held accountable for improper application of the Fee Schedule, and stand
to loose their authorization to process bills. It is permissible to request
medical records and itemized statements to support a UB-92 bill. It is not
permissible to request coding on a bill not required by the Industrial
Commission guidelines. When the wrong coding is used to process bill, the
payments are reduced improperly. This costs the medical providers in lost
revenue and overhead in filing appeals. Additionally, this practice could cost
payors in ten percent late penalties when bills are submitted properly and not
paid timely and properly.
It
is advisable at this time for all companies to review practices involving
hospital bills. If you have questions, please contact me at (919) 807-2614.