1. Audits and Current Therapy Trends Kimberly Saylor, OTR/L VP of Business Development Concept Rehab, Inc. 937-776-3581

2. Objectives for Today: Understanding of types of audits being conducted in LTC Understand the appeal process of audits on therapy services Discuss the current trends of therapy in LTC/SNF setting Explore the business-side of therapy

3. Audits…Audits…Everywhere Types of Audits: MAC Audits RAC Audits MMR (Manual Medical Review) Medicaid Audits Managed Care Audits ZPIC

4. What is a MAC ? MAC = Medicare Administrative Contractors Regional Contracts with CMS MACs are responsible for: Reviewing, Revising, and Issuing updated Local Coverage Determination (LCD) guidance covering the services in their area Ohio is in Jurisdiction 15 CIGNA (CGS) is our MAC for Medicare Part A and Part B CIGNA website: http://www.cgsmedicare.com/

5. MAC Medical Review (MR) program goal: to reduce payment error by preventing the initial payment of claims that do not comply with Medicare’s coverage, coding, payment, and billing policies. – Identify noncompliance through analysis of data – Take action to prevent improper payment with goal of reducing the paid claims error rate.

6. MAC Medical Review Process ADR Focused Reviews (Probe) Ex: 2009 Focused Review OT/PT (97110) Random Reviews Potential Outcome of ADR Full, Partial or Denied Payment

7. What is a RAC? RAC = Recovery Audit Contractor Subcontractor that is hired by CMS to detect, correct, and prevent future improper payments CGI Federal  RAC for Region B which includes Ohio RAC is paid on a contingency fee basis. This means they are paid only if they find reason to deny a claim. The fee is % of amount of improper payment. RACs became permanent in 2010.

8. RAC Primary task is to ID improper PAST Medicare payments 3 year look back period Must get CMS ok to conduct widespread review or referred to as “issues” RAC AUDITS

9. 3 Types of RAC Review: Automated Review: Overpayment data based solely on data billed (no medical record reviewed.). Audit focused on billing and coding patterns compared to peers and other providers. Semi-Automated Review: Claims are reviewed using data and possibly a reviewer to look at the medical record, if requested. Complex Review: RAC demands medical records to determine if there was over payment.

10. RAC 2005-2007 What Did They Find? RAC demonstration project of 2005-2007 recovered over $1.3 billion mostly due to: 45% Medically unnecessary 35% Incorrect coding 10% Insufficient documentation

11. Officially started August 27, 2012 Will conduct Pre-payment reviews on claims that historically have high rates of improper payments Ohio to be reviewed d/t high claims volumes of short stay hospital visits New RAC Prepayment Reviews:

12. Zone Program Integrity Contractors ZPICs handle Medicare Program integrity functions for CMS They work with the Medicare Administrative Contractor (MAC) to handle fraud and abuse within their jurisdiction They refer cases of potential fraud to the Dept. of Health and Human Services (HHS) and Office of Inspector General (OIG) ZPICs have the power to suspend claims/ payment for up to 1 year and there is no appeal recourse at this time

13. ZPIC Scrutinize providers across settings; i.e. hospital with hospital based SNF/HH etc. Don’t have a limit on the time they spend looking at the provider in question No ZPIC audit is random. A ZPIC audit is either the subject of a fraud investigation, or process to review information to determine if a fraud investigation should be opened. ZPIC for Ohio  Cahaba Safeguard Administrators, LLC

14. Part B Manual Review Process (MMR) Specific to Part B Therapy Services - Effective October 1, 2012 and was in place temporarily for 3 months Current cap is $1900. Threshold of $3700 for OT and $3700 for PT/ST combined for Medicare Part B American Taxpayer Relief Act of 2012 extended Part B OP manual medical review (MMR) requirements thru Dec 31, 2013 MMR – completed on every claim at and after the services exceed $3,700.

15. Current MMR Framework CMS Finalized 2013 Process No more prior authorization process April 1, 2013 begins RAC OH is among the 11 states in ‘Pre-Pay’ MMR demonstration RAC 39 states in ‘Post-Pay’ MMR RAC

16. Current MMR Process MAC issues ADR once $3700 threshold is met Provider has 30 days from the date of ADR to submit documentation RAC to conduct MMR within 10 business days RAC notifies MAC of the decision RAC issues detailed review results letter to provider

17. ARE WE HAVING FUN YET?

18. Medicaid Integrity Contractors Established in 2005 as part of the Medicaid Integrity Program Three Types of MICs: Audit: Conduct post payment audits and identify over payments which states will collect and work with provider appeals. Review: Analyze Medicaid claims to identify high risk areas and potential vulnerabilities. Education: Use findings from Audit and Review MIC to identify and provide areas of needed education and training to prevent Medicaid fraud, waste and abuse.

19. Humana Audits for Skilled Care Specifics: – to ensure accuracy of RUG scores billed – Post-Payment: going back 2 years – Providers have 14 – 30 days to respond to request Primary Issues: – Are therapy minutes submitted on MDS supported? – Are ADL scores supported in documentation? – Is there evidence of need for COT OMRA? Outcome Letter: – RUG validated – RUG not validated  Results in re-rugging and request for overpayment to be PAID back

20. Humana Audits for Skilled HMO Issues: – Therapy minutes submitted on MDS supported? – Are ADL scores supported in document? – Evidence of need for COT OMRA? Outcome Letter: – RUG validated – RUG not validated  Results in re-rugging and request for overpayment to be PAID back

21. Audits will continue until no more issues can be found!

22. Understanding the Appeal Process

23. How to Prepare for an Audit? Have facility specific procedure outlined for gathering records Identify key personnel Billing, Medical Records, Nursing, Therapy Outline individual responsibilities Establish timeframes Work from checklists to assure completeness

24. Submitting Information for an Audit Timing is important! Audits are very time sensitive - Know your deadlines Always send packets using certified mail, Fed Ex, or UPS Tracking receipt a must! Some contractors accept fax or CD/DVD in TIFF Submit ‘other’ records that help support medical necessity of therapy services Social services’ notes that support PLOF Nurses’/Restorative notes that support reason for referral or decline Physician notes/H&P that support decline

25. What do I do if all or portions of my claim are denied? Know your appeal rights Uniform Process for Medicare Denied Claims MAC and RAC have same appeal process 5 Levels in Appeal Process

26. First Level of Appeal: Redetermination Records examined by the MAC – different department than one who reviewed ADR. You have 120 days from the date of the initial determination to file a redetermination. Must be requested in writing. Include additional supporting documentation to make your case. Appeal letter to summarize rebuttal.

27. Second Level of Appeal: Reconsideration Reconsideration by a Qualified Independent Contractor (QIC) Must be filed within 180 days of date of redetermination decision letter. Appeal letter and important to send all supporting documentation at this level. – May not be granted permission to submit further documentation beyond this level of appeal. QIC will make decision in 60 days. Website Link to check status of Level 2 Appeal: https://www.q2a.com

28. Third Level of Appeal: Administrative Law Judge Hearing Administrative Law Judge (ALJ) Hearing Request this hearing within 60 days of the date of the reconsideration decision letter. – Must receive permission by Judge to submit any additional documentation at this level – Must have ‘good cause’ Must be a claim of at least $140.00. Hearing held by phone or video-telephone. Decision issued within 90 days

29. NOTE: ALJs are currently delayed due to the volume of requests being received Third Level of Appeal: Administrative Law Judge Hearing

30. Fourth Level of Appeal: Medicare Appeals Council If dissatisfied with ALJ decision a request may be made to the Medicare Appeals Council. Must be requested within 60 days of the date of the ALJ decision letter. Appeal submitted in writing. Generally a decision is issued by the Council within 90 days of the request for review.

31. Fifth Level of Appeal: Federal District Court If dissatisfied with Council decision may submit final appeal to Judicial review in Federal District Court Current threshold is $1,400. Must request this review within 60 days of the date of the Council’s decision letter.

32. Humana Appeal Process 3 Levels to Humana Appeal Process Level 1: 30 days to contact Humana and notify you are appealing 120 days to submit appeal. Appeal reviewed by original reviewing organization Level 2: 120 days to submit appeal Appeal reviewed by 3 rd party vendor Level 3: 120 calendar days to submit appeal. Depends on type of audit and expertise required. A physician will review all medical necessity cases. Appeals reviewed by Humana: Internal Clinical Physician Review Team Internal Coding Team

33. Keys to Successful Appeals Individualize appeal letters at each level SAMPLE templates can assist with this process Focus on specific rebuttals Decision letters as you advance in appeal process provide more details of reasons for UNFAVORABLE decisions Familiarize self with LCDs and CMS Manual information Copy and paste regulations from these resources in your appeal letters Don’t trigger an audit!!

34. Keys to Successful Claims DOCUMENTATION of Medical Necessity Supportive Medical and Treatment Diagnosis Details of specific reason for referral – helpful if supported elsewhere Detailed Prior Level of Function to justify decline Discipline specific, objective, functional goals Objective evidence that treatment is effective and progressive Routine updates to the Plan of Care Appropriate frequency and duration of therapy relating to diagnosis ADL scores are consistent with RUG category Avoid technical denials Physician signatures, certifications, co-signatures, dates etc. Treatment requires skills of therapist Hint: why are restorative services not an option

35. Skilled Terminology Hints Non-Skilled Buzz-Words  Ambulation  Chronic  Endurance  Fitness  Observing  Performed  Practiced  Refused  Repetitious  Uncooperative  Color of theraband Skilled Buzz-Words  Acute exacerbation  Analyzing/analysis  Assessed/re-assessment  Developing  Establishing  Evaluating effectiveness of  Individualized  Inhibition or Facilitation  Modifying  Remediation  Minimum, moderate, maximum resistance

36. Therapy Updates and Current Trends

37. Recent Therapy Updates MPPR increased to 50% April 2013 G Codes implemented 7/1/13 Therapy Cap expires 12/31/13 MDS RUG changes 10/1/13 – Medium and Low Criteria – Co-Treatment Changes

38. Therapy-Specific Optimization RUG Distribution – ADL End Splits Part B Services – Case Mix Managed Care Management Technology Outcomes ACO Positioning

39. Therapy Service Extenders Out-patient Wellness and Education Home Care In-house and Other Strategic Alliances Physician Collaborations Clinical Specialties Person-Centered Care Initiatives CCRC-Specific Models

40. THANK YOU

41. References Cahaba: http://www.cahabasafeguard.com/ http://www.cahabasafeguard.com/ CERT: http://www.cms.gov/Research-Statistics-Data-and-Systems/ http://www.cms.gov/Research-Statistics-Data-and-Systems/ Monitoring-Programs/CERT/index.html?redirect=/cert CGI: https://racb.cgi.com/default.aspx https://racb.cgi.com/default.aspx CIGNA (CGS): http://www.cgsmedicare.com/ http://www.cgsmedicare.com/ KePro: https://www.ohiokepro.com/ https://www.ohiokepro.com/ Medicare Appeals Process: http://www.cms.gov/Medicare/Appeals-and-Grievances/ OrgMedFFSAppeals/index.html?redirect=/orgmedffsappeals/ Medicare Benefit Policy Manual Chapter 15, Section 220: http://www.cms.gov/Regulations-and-Guidance/ Guidance/ Manuals/ Downloads/ bp102c15.pdf

42. References MMR FAQ Document : http://www.cms.gov/Research-Statistics-Data-and- Systems/Monitoring-Programs/Medical-Review/ Downloads/ FAQ_OutpatientTherapy_04172013.pdfhttp://www.cms.gov/Research-Statistics-Data-and- Systems/Monitoring-Programs/Medical-Review/ MMPR Medlearn Matters Article (9/28/12): http://www.cms.gov/outreach-and-education/medicare-learning-network- mln/mlnmattersarticles/downloads/MM8036.pdf http://www.cms.gov/outreach-and-education/medicare-learning-network- mln/mlnmattersarticles/downloads/ MMPR Medlearn Matters Article (7/6/2013): http://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network- MLN/MLNMattersArticles/downloads/MM7050.pdf http://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network- MLN/ Therapy CAP Fact Sheet: http://www.cms.gov/Research-Statistics-Data-and-Systems/Monitoring- Programs/Medical-Review/Downloads/rev01172013TherapyCapFactSheet_v2.pdf

43. Resource Links AOTA Medicare Resources: http://www.aota.org/Advocacy-PolicyFederal- Reg-Affairs/Pay/Medicare.aspx http://www.aota.org/Advocacy-PolicyFederal- Reg-Affairs/Pay/Medicare.aspx CGS Contact Information: http://www.cgsmedicare.com/parta/help/ http://www.cgsmedicare.com/parta/help/ contact_info.html Join the CGS ListServ to receive updates from CIGNA by email: http://www.cgsmedicare.com/medicare_dynamic/ls/001.asp http://www.cgsmedicare.com/medicare_dynamic/ls/001.asp