Medicare Blog

how does inpatient physician bill medicare for nurse practitioner coverage

by Gerard Abshire Jr. Published 2 years ago Updated 1 year ago

With incident to billing, the physician bills and collects 100% of Medicare’s allowable reimbursement. This type of billing is used when an NPP sees a patient in which the physician has performed the initial service and has initiated a Plan of Care or treatment plan.

Full Answer

Can a nurse practitioner bill Medicare under the nurse practitioner benefit?

Nurse Practitioners. For Medicare billing purposes, when billing under the nurse practitioner benefit (and not as an “incident to” service), the collaborating physician does not need to be present with the nurse practitioner when the services are furnished. Supervision requirements are set by state law.

Do you Bill under the NP’s NPI or “incident to”?

According to Michael Rupp, MD, FACAAI, member of the Practice Management Committee, “We bill “incident to” whenever possible, but we make sure it meets incident to criteria. We bill under the NP’s NPI when they see patients with new complaints or when one of us is not available.”

How does Medicare pay non-physician providers (NPPs)?

There are 3 basic types of reimbursement that Medicare provides for these non-physician providers (NPPs). Direct pay is when the NPP holds their own Provider Identification Number (PIN). This reimburses the NPP (or practice) at 85% of the billable physician rate.

How are nurse practitioners and physician assistants billed?

As will be further discussed below, the services of nurse practitioners and physician assistants may be billed by a physician practice using the name and Medicare billing number of these providers.

Can an NP bill Medicare?

NPs are allowed either to bill Medicare directly under their own provider numbers or to reassign their billing rights to employers or other contracting entities.

How do you bill for nurse practitioner services basics?

The services must be billed under the NP's provider number, unless the entity doing the billing is following Medicare's rules on "shared visits." If those rules are followed, the services may be billed under the physician's provider number.

Does CMS require collaboration between NP and physician?

The collaborating physician does not need to be present with the NP when the services are furnished or to make an independent evaluation of each patient who is seen by the NP. E.

Can a nurse practitioner bill a 99214?

Yes, NPs can bill for 99214 and 99215 visits with the following caution: Beware in states where the scope of NP practice is not specifically defined to include comprehensive evaluations.

What does it reimburse the NP compared to the physician?

States reimburse nurse practitioners at anywhere from 75% to 100% of the physician rate. This means that unlike Medicare, some state Medicaid plans treat services provided by nurse practitioners equally to those provided by physicians. In fact, most states reimburse NPs at 100% the rate of MDs.

What modifier does a nurse practitioner use?

When billing for services provided by a nurse practitioner, use the modifier -NP.

Why are nurse practitioners reimbursed less?

Why do NPs get reimbursed less than medical doctors for the same care? The 85% reimbursement policy is supported by the rationale that physicians have higher student loans, pay practice overhead cost, have higher malpractice premiums, and care for more complex patients (MedPAC, 2002).

Can a nurse practitioner bill a consult?

Yes they can. When requested by a physician or other appropriate source, a consultation may be provided by a physician or qualified nonphysician practitioner (NPP).

What CPT codes can nurse practitioners use?

CPT codes for NP visits Generally, when an NP or physician assistant (PA) sees a patient in a physician's office, he or she should use the usual office or other outpatient visit codes (99201-99215).

Can Nurse Practitioners Bill 99204?

If the NP performed a service that correctly codes to 99204 or 99215, then that is what you bill. Intentionally undercoding can constitute fraud. However, if the NP's documentation supports 99203 or 99214, then that is what you should code from the start.

What is the difference between 99214 and 99215?

To get an idea of the monetary difference between the two codes, a major national healthcare insurer's policies list CPT Code 99214 as reimbursable for up to $107.20 for each patient. With the same insurer, CPT Code 99215 is reimbursable for up to $144.80 for each patient.

Can you bill CPT 99214 and G0439 together?

They can bill the service under the physician's NPI incident-to. The AWV is billed with two codes, G0438 and G0439, which are based on relative value units (RVUs) for 99204 and 99214 respectively.

What is an inpatient hospital?

Inpatient hospital care. You’re admitted to the hospital as an inpatient after an official doctor’s order, which says you need inpatient hospital care to treat your illness or injury. The hospital accepts Medicare.

How many days of inpatient care is in a psychiatric hospital?

Inpatient mental health care in a psychiatric hospital is limited to 190 days in a lifetime.

What are Medicare covered services?

Medicare-covered hospital services include: Semi-private rooms. Meals. General nursing. Drugs as part of your inpatient treatment (including methadone to treat an opioid use disorder) Other hospital services and supplies as part of your inpatient treatment.

Who approves your stay in the hospital?

In certain cases, the Utilization Review Committee of the hospital approves your stay while you’re in the hospital.

Why are hospitals required to make public charges?

Hospitals are required to make public the standard charges for all of their items and services (including charges negotiated by Medicare Advantage Plans) to help you make more informed decisions about your care.

What does incident to billing mean?

2. Bill “incident to,” which means billing under the supervising allergist’s NPI. Under Medicare, when billing “incident to,” you will receive 100% of Medicare rates. The allergist must perform the initial service and initiate any changes in the care plan.

Does a third practice bill both ways?

A third practice bills both ways, depending on the circumstances. According to Michael Rupp, MD, FACAAI, member of the Practice Management Committee, “We bill “incident to” whenever possible, but we make sure it meets incident to criteria. We bill under the NP’s NPI when they see patients with new complaints or when one of us is not available.”

Do APPs bill Medicare?

In a fourth practice, all APPs bill Medicare under their own NPI. J. Kelly Davis, BS, CMPE, member of the Practice Management Committee, notes, “More commercial payors are requiring APPs to be credentialed separately and bill under their own NPI.”

Does an allergist have to be the same as an NP?

One side note: the allergist who initiates the plan of care does not need to be the same allergist who supervises the NP – it can be another allergist in the group. Most commercial payers follow Medicare’s “incident to” rules. But plans vary, so check your contracts to review the rules for “incident to” billing.

Do commercial plans have incident to billing?

But plans vary, so check your contracts to review the rules for “incident to” billing. Some commercial plans have less restrictive rules regarding “incident to” billing – but make sure you get them in writing.

Does Medicare bill NPs?

Not surprisingly, Medicare sets the rules for how to bill for advanced practice providers (APPs), which include NPs and PAs. Medicare provides two billing options for services provided by APPs:

When did Medicare start covering nurse practitioners?

Medicare rules – Nurse Practitioner (NP) Services. Effective for services rendered after January 1 , 1998, any individual who is participating under the Medicare program as a nurse practitioner (NP) for the first time ever, may have his or her professional services covered if he or she meets the qualifications listed below, ...

When is NP payment effective?

Payment for NP services is effective on the date of service, that is, on or after January 1, 1998, and payment is made on an assignment-related basis only.

What is covered under Part B?

1. General. The services of an NP may be covered under Part B if all of the following conditions are met:

What is a NP in medical terms?

NPs are nurses who hold a Master’s Degree or Doctor of Nursing Practice (DNP). PAs are certified (PA-C), usually holding a Master’s Degree as well.

How does incident to billing work?

By filing a claim “Incident to”, the physician can collect 100% of the Medicare Physician Fee Schedule (MPFS) instead of 85% of the MPFS for care provided by a qualified NPP. New patients should be seen by the physician to set up the Plan of Care and this would be billed under the rendering physician. After the initial visit, the NPP can provide follow-up care based on the Plan of Care, billing for direct care as “Incident to”. If adjustments are made to the plan of care such as medication changes, then the physician should see the patient face to face in order to adjust the original plan of care, otherwise, the visit may not qualify for “Incident to” billing.

What is incident to billing?

With incident to billing, the physician bills and collects 100% of Medicare’s allowable reimbursement. This type of billing is used when an NPP sees a patient in which the physician has performed the initial service and has initiated a Plan of Care or treatment plan. There are specific rules for this type of billing, the physician must be on site, in the suite, not just in the building, and provides direct supervision (the rules for home visits varies).

Why is it important to understand NPPs?

Understanding how to properly bill and code for services provided by NPPs is imperative to running a cost-effective and efficient medical practice. Regulations vary by insurance companies and states, so both the physician and the NPP’s must stay current with practice guidelines and ongoing changes.

What is the importance of documentation in billing?

Each practitioner must thoroughly document the care they provided to substantiate reimbursement under the split/share guidelines allowing both parties to bill for care .

Why do medical practices use mid level providers?

There are a number of reasons that medical practices utilize these mid-level providers: Reduced Salary expenses (as compared to a physician) Lower overhead costs. Higher patient volumes. Reduced insurance and liability costs. There are 3 basic types of reimbursement that Medicare provides for these non-physician providers (NPPs).

Do mid level providers need to have their own NPI?

It is very important that each of your mid-level providers receives his/her own National Provider Identifier (NPI) and be credentialed with each payer to bill under his/her PIN number, if possible, based on payer rules and regulations. However, many payers will not credential NPPs.

What is a doctor in Medicare?

A doctor can be one of these: Doctor of Medicine (MD) Doctor of Osteopathic Medicine (DO) In some cases, a dentist, podiatrist (foot doctor), optometrist (eye doctor), or chiropractor. Medicare also covers services provided by other health care providers, like these: Physician assistants. Nurse practitioners.

What is original Medicare?

Your costs in Original Medicare. In Original Medicare, this is the amount a doctor or supplier that accepts assignment can be paid. It may be less than the actual amount a doctor or supplier charges. Medicare pays part of this amount and you’re responsible for the difference. for most services.

What does "covered" mean in medical terms?

medically necessary. Health care services or supplies needed to diagnose or treat an illness, injury, condition, disease, or its symptoms and that meet accepted standards of medicine.

Do you pay for preventive services?

for most services. You pay nothing for certain preventive services if your doctor or other provider accepts

Why are there questions about NPPs performing the admission service?

Many questions arise about NPPs performing the admission service because NPPs might not be given “admitting” privileges by the facility in which they practice. NPPs may provide and/or participate in services according to their state scope practice and facility-imposed guidelines.

What documentation is needed for a NPP?

Documentation. Physician documentation must include an attestation that supports the physician encounter (e.g. “Patient seen and examined by me”), the individual with whom the service is shared (e.g. “Agree with note by X”), their portion of the rendered service (e.g. “Pulse oximetry 94% on room air. Audible rhonchi at bilateral lung bases. Start O2 2L nasal cannula. Obtain CXR”), the date, and a legible signature. NPP documentation should include as similar reference to the physician with whom the service is being shared for better charge capture. It alerts coders, auditors, and payor representatives to consider both notes in support of the billed service and ensures that the correct notes are sent to the payor in the event of claim denial and subsequent appeal.

Does Medicare have a shared billing policy?

Shared/split billing policy only applies to Medicare beneficiaries, while independent billing policy applies to Medicare and Aetna. Excessive costs prevent most other non-Medicare insurers from credentialing and enrollment NPPs. Absence of payor policy does not disqualify reimbursement for shared services, but it does require additional measures to establish recognition of NPP services and a corresponding reimbursement model.

Does the NPP have to see the patient before the physician does?

There are no billing mandates requiring the NPP to see the patient before the physician does, although practice style might govern this decision. 4 CMS does not specify the extent of provider involvement, but it could be established by local Medicare contractor requirements.

Can you submit a shared/split claim for Medicare?

Although the visit level is supported by both provider services, only one claim may be submitted for a shared/split service. The rendering provider listed on the claim can be the physician (reimbursed at 100% of the Medicare allowable physician rate) or the NPP (reimbursed at 85% of the allowable physician rate).

Can two providers perform the same service on the same day?

When two providers (a physician and NPP) from the same group ( direct employment or a lease arrangement contractually linking the providers) perform a service for the same patient on the same calendar day, CMS allows the combined services to be reported under a single provider’s name.

Do you have to be a cosignature for a physician to see a patient?

The physician is not required to see the patient but must be available by phone or beeper in accordance with supervisory/collaborative guidelines. Physician cosignature is not required unless mandated by state law or the facility.

How much does a PA hospitalist make?

Clearly, the group using the expanded PA model was able to take advantage of what study authors called “substantial salary savings,” with each PA hospitalist being paid a median salary of $102,960 vs. the median internal medicine physician hospitalist salary of $253,977.

How many patients do PAs round on?

In the first group, the PAs rounded on 14 patients a day and billed 35.7% of all overall visits under their own names. Meanwhile, the PAs in the second group rounded on only nine patients a day and billed only 5.8% of all group visits under their own names and provider IDs. The authors compared the two groups on a host of outcomes, including in-hospital mortality, readmissions, length of stay, consultant use, illness severity, mortality risk and costs.

Can a NP bill for a shared visit?

And a caveat: Doctors and NPs/PAs cannot bill shared visits for procedures or critical care. “Procedures can be billed only by the person doing the procedure,” Mr. Powe pointed out. “If NPs/ PAs are doing a procedure, even if a physician is standing next to them and signing the record, that procedure can be billed only under the NP/PA name and provider number.”

Can a physician spend 20 minutes in the ICU?

As for critical care, if a physician spends 20 minutes with a patient in the ICU and an NP/PA from the same group separately spends 15 minutes later in the day, it would not be appropriate to combine those minutes to attempt to qualify for a 99291 bill.

Is shared billing for evaluation and management service wide open?

Other than procedures and critical care, however, shared billing for an evaluation and management service—admission, subsequent visit or discharge—is wide open.”It doesn’t matter how much or how little time the doctor spends with that patient on that day,” said Mr. Powe. “If the NP/PA spends 35 minutes with the patient and the doctor spends only five, those two times can be combined and billed under the physician.”

Do doctors have to do all of the history?

According to the CMS, doctors must perform all or some portion of the history, exam or medical decision-making. “That could be rather limited,” Mr. Powe pointed out, “and documenting only a few lines can be sufficient to recognize the physician’s role.”.

Can NPs bill under their own name?

Both also made a strong case for allowing NPs/ PAs to bill under their own name and provider ID and be reimbursed at 85% of that schedule, as allowed by payer policy. As Ms. Marriott pointed out, “The positive margin contribution billed by NPs/PAs is still significant.”

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