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I started writing this weeks ago and I'm still not sure it is what I intended it to be, but its something different and I still think a lot of people don't know how they are actually reimbursed.
Disclaimer: This document pertains only to Private Practice podiatry. I'm not some fancy out of network biller and I don't unbundle. I'm not in a big group. My experiences attempting to negotiate so far have really only been minimally successful so I'm not putting myself out there as an example of success. I've made 2 pairs of customs in the past 2ish years so I'm not going through every insurance benefit looking for this. I've been reading this forum for years now and I think the quality of information people provide about practices is better than its ever been. One of the things that stands out to be is the profound differences in collections that people report. We're all obviously different. We treat differently. We code differently. That said, I've had a strong feeling recently that the number one thing holding me down is the quality of my practice's contracts. My hope is to try and give people who are just starting out a headstart on understanding how they get paid for their services so they can adjust accordingly. It goes without saying that if you are an associate and your owner won't let you see how claims are paid you'll be missing out.
It Shouldn't be a Mystery
When I first started seeing patients and operating I always wondered - what am I going to get paid? I really had no idea at all. I'd go back through my patients a month after the fact looking back to see what was worth more and what was worth less. My EHR really didn't make it easy. I'd pull charges and see all manner of different rates being paid for what appeared to be the same insurance. I ultimately found myself having to separate my partner and I's patients and literally look at patient's insurance cards. I don't think I'm alone in my initial ignorance. I recently spoke to a colleague's wife who is their office manager. They described for me their disappointment at the reimbursement for a matrixectomy performed at surgery center. To me the reason is clear as day - in facility reimbursement but they didn't seem to be aware of this. They thought - surgery at facility, must pay well. Sadly not. It takes effort to sort all this out, but I think it benefits you to learn things sooner rather than later.
Basics
In general - the first step for figuring out your reimbursement is the Medicare fee schedule lookup tool. Most insurance uses these values in some form. Pick your code and your specific locality ie. most states are divided into specific areas with different rates paid based on location and theoretically cost. Yes, NYC type localities will have higher values than backwater rural areas. You can pull multiple codes at a time. Its very involved, but you can technically pull all the CPT codes into an excel table (its time consuming) and then use the vlookup function in excel to check the values an insurance company offers you. There are sometimes mistakes in their values. Its also nice to just have all the values in 1 place for checking and comparison.
Some codes list both "office" (non-facility) and facility reimbursement. In general, more complex codes ie. ankle fusion, will only have a facility value because they'd only be performed in a facility. The office value is essentially always higher than the facility value. Sometimes the values are somewhat similar. Othertimes they are quite different. Dtrack has explained this elsewhere (better) but when you receive reimbursement in your own clinic the value includes both professional and facility component reimbursement theoretically taking into account the cost of delivering the service. Its more technical than that - any CPT code can be broken down into all manner of components and pre/intra-op/global etc components. When you perform the service in a facility you only receive the professional component (though assuredly the facility receives a larger facility fee than your office would have).
Consider the following codes followed by "office" and "facility" values (these are rounded numbers)
10060 - $120 - $100 - similar
11750 - $160 - $100 - different
11042 - $128 - $60 - very different
11056 - $82 - $22 - what what?
Some of these I can sort of try to explain. For example, since in general you can't charge for dressings the 11042 difference accounts for supplies and materials that would be used (TAO and bandaid...) Calluses - I don't know. Perhaps nursing homes aren't all they are cracked up to be by the many happy nursing home doctors I've met.
I list the above because they are straight forward common minimalist procedures. You can also perform some surgeries both in your clinic or at a facility. Consider.
28296 - $880 - $500
28297 - $1000 - $580
28285 - $525 - $370
28232 - $370 - $230
28825 - $290 - $170
Will you perform a lapidus in your office? Probably not (talk to your Lapiplasty rep about in office Lapiplasty...). You should also always check with the insurance company before you perform a "real" surgery in your office because they may use this as an excuse to deny it. My office recently accidentally submitted the location of a 28113 as in the office rather than at a facility. The insurance denied it stating they wouldn't cover that procedure in an office. Medicare obviously provides fee values for both.
Some of the values listed above are obviously for very minimalist procedures ie. open flexor tenotomy, partial toe amp. Others are almost always associated with expenses ie. sterile field, gloves/gowning, hardware, power hardware, fluoroscopy.
The impression I'm under is that if you perform surgery in your office you can either
(a) accept the non-facility reimbursement which covers all reimbursement and expenses ie. whatever hardware (READ: K-wires) you use, all the dressings etc
or (b) go through some sort of enormous regulatory process to try and turn your procedure room into a "Surgery Center" which will require a separate entrance and all sorts of other stuff.
Not an expert on the above, but if you have 1 pot of reimbursement for a procedure you won't be using $100 cannulated screws.
OK! Thus concludes a brief overview on how Medicare sets its fee schedule / pays and somewhat the basis/starting point for thinking about codes. Note that Medicare Advantage is NOT Medicare. More on that later.
But how does insurance pay!?!?
Variably. And to figure it out you either have to have the contract, get the schedule or you have to tear the values apart.
(1) Insurance can DEFINITELY pay different doctors in the practice different amounts. You are the new associate. You join an established practice. A lot of times the new doctor is listed as "Rendering" but not as "Supervising" (right or wrong). If you become "Supervising" and "Rendering" and your reimbursement goes down compared to your partner then they have different values than you do. One of the take homes here is that if a practice is renewing a plan they need to look at the documents for every doctor because different doctors may have different values in the back of their fee schedules.
(2) Insurance can pay different values for different types of services and even different locations. The general breakdown of services are some variation of (a) E&M (b) procedures/surgery (c) imaging (d) J codes (e) DME (f) laboratory etc. You can have different multipliers of all these values. One of my better insurances pays 150-155% for procedures in the office but 190-195% for procedures in a surgery center. Remember though that these multipliers are applied to facility and non-facility base values and the non-facility base value is often substantially larger.
(3) Insurance can screw with the base values for multipliers ie. ignore location. For example, a recent insurance of mine that I cracked paid all services based on the facility value multiplied by a multiplier. They literally provided 1 fee schedule value for all services regardless of where they were performed ie. same fee in the office or in a facility. Relevance of this? When you multiply a "facility" value by a multiplier it produces a smaller number than if you'd multiplied the non-facility value by the same number. The difference between 11750 in the office verse in the facility is so large that the multiplier barely brought the reimbursement over the facility value.
(4) Insurance can literally just produce a hodge-podge mix of different values for every single service with no rhyme or reason. I have a fee schedule for an insurance in which every procedure when charted against Medicare is being multiplied by a different value. What's the take home here. You MUST do your best to get the company to send you the fee schedule. My bizarre feeling when I acquired one of these schedules recently was that some podiatrist had gone through and picked over certain values to game it for themself. For example - 20550 paid $50 but 20551 paid $80. Percutaneous flexor tenotomy codes paid more than open codes. 11750 paid over $200 but 11730 paid under $100.
(5) A small nice thing. Some small boutique insurances generate one fee schedule and use the non-facility value as the basis for all values.
(6) Insurance can lock to a specific year preventing you from benefiting from changes/upgrades in the Medicare fee schedule. If you are locked by a plan to 2021 you'll miss all the benefits of the E&M change. ie. my 99213 went up like $15-16 in 2021 but not for plans locked to 2020.
(7) Insurance can sometimes pay simply a multiplier of your fee schedule. I don't believe this is common at all. If you've set a very reasonable fee schedule this can be super detrimental and annoying. Awhile back I realized a plan was paying us a straight 60% multiplier of our fee schedule. It was a small boutique plan. I didn't have a contract but figured it out by tearing the data apart.
Sooooooo. Wait. How do I figure these values out / get these values / etc.
This is one of the hard parts. In general, new insurances will usually send you the rates when you start the process of applying for the plans. All recent new insurances requests we've received have contained an Appendix and interestingly all have offered some variation of a straight multiplier of Medicare. *Sneaky thing - they often include some sort of variable short line about how "Uncovered/Unlisted" services will be paid at 50%. I'd have to read the line again but I took it to mean they were demanding a 50% reduction of how you were to charge their patients. Watch out for that if you have some sort of cash pay uncovered charge you push on everyone.
Major insurances ie. United often offer a series of summary pages. The first will list a series of breakdowns ie. E&M, procedure etc and the reimbursement rate ie. 80% of Medicare followed by another page listing common codes and their reimbursement value in dollars for both both in non-facility and facility.
***I'm probably going to repeat this elsewhere but VERY IMPORTANT. There is no such thing as a "RENEWAL" with a major company ie. UNITED. United will change your contractual reimbursement any chance they get. If you get a contract and are like "we should just sign this" you are making a mistake. Read the fee schedule line by line. They will cut your rate if you aren't looking for it.
Asking for contracts has been more useful than asking for free schedules. When I ask for a contract we seem to get it. When we ask for a fee schedule - nothing. Like we asked months ago and nothing. Some plans list their values on Availity. My experience is these values are incomplete and often wrong. My Availity account conclusively demonstrated to me that I was accepting 3 different BCBS fee schedules. However, the facility surgery values were wrong for at least one of them. Availity claimed to include the Aetna fee schedule values but a line by line review of my Aetna data shows at least 2 different fee schedules.
Disclaimer: This document pertains only to Private Practice podiatry. I'm not some fancy out of network biller and I don't unbundle. I'm not in a big group. My experiences attempting to negotiate so far have really only been minimally successful so I'm not putting myself out there as an example of success. I've made 2 pairs of customs in the past 2ish years so I'm not going through every insurance benefit looking for this. I've been reading this forum for years now and I think the quality of information people provide about practices is better than its ever been. One of the things that stands out to be is the profound differences in collections that people report. We're all obviously different. We treat differently. We code differently. That said, I've had a strong feeling recently that the number one thing holding me down is the quality of my practice's contracts. My hope is to try and give people who are just starting out a headstart on understanding how they get paid for their services so they can adjust accordingly. It goes without saying that if you are an associate and your owner won't let you see how claims are paid you'll be missing out.
It Shouldn't be a Mystery
When I first started seeing patients and operating I always wondered - what am I going to get paid? I really had no idea at all. I'd go back through my patients a month after the fact looking back to see what was worth more and what was worth less. My EHR really didn't make it easy. I'd pull charges and see all manner of different rates being paid for what appeared to be the same insurance. I ultimately found myself having to separate my partner and I's patients and literally look at patient's insurance cards. I don't think I'm alone in my initial ignorance. I recently spoke to a colleague's wife who is their office manager. They described for me their disappointment at the reimbursement for a matrixectomy performed at surgery center. To me the reason is clear as day - in facility reimbursement but they didn't seem to be aware of this. They thought - surgery at facility, must pay well. Sadly not. It takes effort to sort all this out, but I think it benefits you to learn things sooner rather than later.
Basics
In general - the first step for figuring out your reimbursement is the Medicare fee schedule lookup tool. Most insurance uses these values in some form. Pick your code and your specific locality ie. most states are divided into specific areas with different rates paid based on location and theoretically cost. Yes, NYC type localities will have higher values than backwater rural areas. You can pull multiple codes at a time. Its very involved, but you can technically pull all the CPT codes into an excel table (its time consuming) and then use the vlookup function in excel to check the values an insurance company offers you. There are sometimes mistakes in their values. Its also nice to just have all the values in 1 place for checking and comparison.
Some codes list both "office" (non-facility) and facility reimbursement. In general, more complex codes ie. ankle fusion, will only have a facility value because they'd only be performed in a facility. The office value is essentially always higher than the facility value. Sometimes the values are somewhat similar. Othertimes they are quite different. Dtrack has explained this elsewhere (better) but when you receive reimbursement in your own clinic the value includes both professional and facility component reimbursement theoretically taking into account the cost of delivering the service. Its more technical than that - any CPT code can be broken down into all manner of components and pre/intra-op/global etc components. When you perform the service in a facility you only receive the professional component (though assuredly the facility receives a larger facility fee than your office would have).
Consider the following codes followed by "office" and "facility" values (these are rounded numbers)
10060 - $120 - $100 - similar
11750 - $160 - $100 - different
11042 - $128 - $60 - very different
11056 - $82 - $22 - what what?
Some of these I can sort of try to explain. For example, since in general you can't charge for dressings the 11042 difference accounts for supplies and materials that would be used (TAO and bandaid...) Calluses - I don't know. Perhaps nursing homes aren't all they are cracked up to be by the many happy nursing home doctors I've met.
I list the above because they are straight forward common minimalist procedures. You can also perform some surgeries both in your clinic or at a facility. Consider.
28296 - $880 - $500
28297 - $1000 - $580
28285 - $525 - $370
28232 - $370 - $230
28825 - $290 - $170
Will you perform a lapidus in your office? Probably not (talk to your Lapiplasty rep about in office Lapiplasty...). You should also always check with the insurance company before you perform a "real" surgery in your office because they may use this as an excuse to deny it. My office recently accidentally submitted the location of a 28113 as in the office rather than at a facility. The insurance denied it stating they wouldn't cover that procedure in an office. Medicare obviously provides fee values for both.
Some of the values listed above are obviously for very minimalist procedures ie. open flexor tenotomy, partial toe amp. Others are almost always associated with expenses ie. sterile field, gloves/gowning, hardware, power hardware, fluoroscopy.
The impression I'm under is that if you perform surgery in your office you can either
(a) accept the non-facility reimbursement which covers all reimbursement and expenses ie. whatever hardware (READ: K-wires) you use, all the dressings etc
or (b) go through some sort of enormous regulatory process to try and turn your procedure room into a "Surgery Center" which will require a separate entrance and all sorts of other stuff.
Not an expert on the above, but if you have 1 pot of reimbursement for a procedure you won't be using $100 cannulated screws.
OK! Thus concludes a brief overview on how Medicare sets its fee schedule / pays and somewhat the basis/starting point for thinking about codes. Note that Medicare Advantage is NOT Medicare. More on that later.
But how does insurance pay!?!?
Variably. And to figure it out you either have to have the contract, get the schedule or you have to tear the values apart.
(1) Insurance can DEFINITELY pay different doctors in the practice different amounts. You are the new associate. You join an established practice. A lot of times the new doctor is listed as "Rendering" but not as "Supervising" (right or wrong). If you become "Supervising" and "Rendering" and your reimbursement goes down compared to your partner then they have different values than you do. One of the take homes here is that if a practice is renewing a plan they need to look at the documents for every doctor because different doctors may have different values in the back of their fee schedules.
(2) Insurance can pay different values for different types of services and even different locations. The general breakdown of services are some variation of (a) E&M (b) procedures/surgery (c) imaging (d) J codes (e) DME (f) laboratory etc. You can have different multipliers of all these values. One of my better insurances pays 150-155% for procedures in the office but 190-195% for procedures in a surgery center. Remember though that these multipliers are applied to facility and non-facility base values and the non-facility base value is often substantially larger.
(3) Insurance can screw with the base values for multipliers ie. ignore location. For example, a recent insurance of mine that I cracked paid all services based on the facility value multiplied by a multiplier. They literally provided 1 fee schedule value for all services regardless of where they were performed ie. same fee in the office or in a facility. Relevance of this? When you multiply a "facility" value by a multiplier it produces a smaller number than if you'd multiplied the non-facility value by the same number. The difference between 11750 in the office verse in the facility is so large that the multiplier barely brought the reimbursement over the facility value.
(4) Insurance can literally just produce a hodge-podge mix of different values for every single service with no rhyme or reason. I have a fee schedule for an insurance in which every procedure when charted against Medicare is being multiplied by a different value. What's the take home here. You MUST do your best to get the company to send you the fee schedule. My bizarre feeling when I acquired one of these schedules recently was that some podiatrist had gone through and picked over certain values to game it for themself. For example - 20550 paid $50 but 20551 paid $80. Percutaneous flexor tenotomy codes paid more than open codes. 11750 paid over $200 but 11730 paid under $100.
(5) A small nice thing. Some small boutique insurances generate one fee schedule and use the non-facility value as the basis for all values.
(6) Insurance can lock to a specific year preventing you from benefiting from changes/upgrades in the Medicare fee schedule. If you are locked by a plan to 2021 you'll miss all the benefits of the E&M change. ie. my 99213 went up like $15-16 in 2021 but not for plans locked to 2020.
(7) Insurance can sometimes pay simply a multiplier of your fee schedule. I don't believe this is common at all. If you've set a very reasonable fee schedule this can be super detrimental and annoying. Awhile back I realized a plan was paying us a straight 60% multiplier of our fee schedule. It was a small boutique plan. I didn't have a contract but figured it out by tearing the data apart.
Sooooooo. Wait. How do I figure these values out / get these values / etc.
This is one of the hard parts. In general, new insurances will usually send you the rates when you start the process of applying for the plans. All recent new insurances requests we've received have contained an Appendix and interestingly all have offered some variation of a straight multiplier of Medicare. *Sneaky thing - they often include some sort of variable short line about how "Uncovered/Unlisted" services will be paid at 50%. I'd have to read the line again but I took it to mean they were demanding a 50% reduction of how you were to charge their patients. Watch out for that if you have some sort of cash pay uncovered charge you push on everyone.
Major insurances ie. United often offer a series of summary pages. The first will list a series of breakdowns ie. E&M, procedure etc and the reimbursement rate ie. 80% of Medicare followed by another page listing common codes and their reimbursement value in dollars for both both in non-facility and facility.
***I'm probably going to repeat this elsewhere but VERY IMPORTANT. There is no such thing as a "RENEWAL" with a major company ie. UNITED. United will change your contractual reimbursement any chance they get. If you get a contract and are like "we should just sign this" you are making a mistake. Read the fee schedule line by line. They will cut your rate if you aren't looking for it.
Asking for contracts has been more useful than asking for free schedules. When I ask for a contract we seem to get it. When we ask for a fee schedule - nothing. Like we asked months ago and nothing. Some plans list their values on Availity. My experience is these values are incomplete and often wrong. My Availity account conclusively demonstrated to me that I was accepting 3 different BCBS fee schedules. However, the facility surgery values were wrong for at least one of them. Availity claimed to include the Aetna fee schedule values but a line by line review of my Aetna data shows at least 2 different fee schedules.