Medicare Blog

how to billing medicare for laboratory services

by Bill Ruecker Published 2 years ago Updated 1 year ago
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Direct billing is also required for all Medicare-reimbursed laboratory tests. Tests must be billed directly to Medicare by the laboratory or physician performing the tests. If an outside laboratory performs a test on a referral from a physician, only the reference laboratory may legally bill Medicare for the procedure.

Full Answer

Does Medicare pay for lab work?

clinical diagnostic laboratory services when your doctor or practitioner orders them. You usually pay nothing for Medicare-approved clinical diagnostic laboratory services. Laboratory tests include certain blood tests, urinalysis, tests on tissue specimens, and some screening tests. A laboratory that meets Medicare requirements must provide them.

How do I become a Medicare Biller?

What Is an Insurance Biller?

  1. Get Trained. Formal training in insurance billing is available at vocational schools and community colleges in the form of diploma, certificate and associate's degree programs.
  2. Obtain Certification. Licensure is not required for insurance billers; however, obtaining professional certification is highly recommended.
  3. Acquire Work Experience. ...

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What are the requirements for Medicare billing?

  • The regular physician is unavailable to provide the service.
  • The beneficiary has arranged or seeks to receive the services from the regular physician.
  • The locum tenens is NOT an employee of the regular physician.
  • The regular physician pays the locum tenens physician on a per diem or fee-for-service basis.

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How to Bill laboratory services?

Three of the most significant provider schemes that continue to cost employers are:

  • Substance abuse, rehabilitation center abuse and fraud.
  • Pass-through billing.
  • Testing abuse (most recently found in COVID-19 testing).

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What modifiers are used for in laboratory billing?

There are two modifiers used for facility reporting for lab testing: modifier -91 and -59. There is often confusion over which modifier to use when reporting multiple units that require a modifier.

Where do CLIA numbers go on CMS 1500?

On each claim, the CLIA number of the laboratory that is actually performing the testing must be reported in item 23 on the CMS-1500 form.

What is reference lab billing?

“Reference laboratory” - A Medicare-enrolled laboratory that receives a specimen from another, referring laboratory for testing and that actually performs the test. “Billing laboratory” - The laboratory that submits a bill or claim to Medicare. “Service” - A clinical diagnostic laboratory test.

What is a modifier 90 used for?

Definitions. Modifier 90 is appended to a procedure code to identify laboratory procedures performed by a party other than the treating or reporting physician or other qualified health care professional. When a provider pays a laboratory to perform a lab test; then, files a claim for reimbursement of these services.

What is a CLIA number for Medicare?

A laboratory that is included in the CLIA legislation must obtain a CLIA certificate from the Centers for Medicare & Medicaid Services. The certificate will include a 10-digit number, which is your CLIA number.

What box on HCFA does CLIA go?

Box 23Complete Box 23 with CLIA certification or waiver number as the prior authorization number for those laboratory services for which CLIA certification or waiver is required.

What type of provider is the laboratory?

Clinical laboratory tests are furnished primarily in three distinct settings: physician office laboratories, hospital-based laboratories, and independent laboratories. Only independent laboratories (hereafter referred to as laboratories) are a provider type 43.

Does Medicare cover blood work at Labcorp?

Insured Patients Labcorp will file claims directly to Medicare, Medicaid, and many insurance companies and managed care plans. Before you have lab tests performed, please make sure: Your insurance information is up to date. Your insurance company accepts claims from Labcorp.

How often does Medicare pay for routine blood work?

For people watching their cholesterol, routine screening blood tests are important. Medicare Part B generally covers a screening blood test for cholesterol once every five years. You pay nothing for the test if your doctor accepts Medicare assignment and takes Medicare's payment as payment in full.

What is modifier 32 used for?

When to use Modifier 32. Modifier -32 indicates a service that is required by a third-party entity, Worker's Compensation, or some other official body. Modifier 32 is no used to report a second opinion request by a patient, a family member or another physician. This modifier is used only when a service is mandated.

What is GZ modifier?

The GZ modifier indicates that an Advance Beneficiary Notice (ABN) was not issued to the beneficiary and signifies that the provider expects denial due to a lack of medical necessity based on an informed knowledge of Medicare policy.

What is the difference between modifier 59 and 91?

Modifier 91 causes a lot of confusion when differentiating its use from that of modifier 59 Distinct procedural service. When reporting lab procedures, modifier 59 is used when the same lab procedure is done, but different specimens are obtained, or the cultures are obtained from different sites.

What is laboratory billing?

Some basics of laboratory billing for you to know. The field of laboratory medical billing is unlike physicians, hospitals, or DME billing specialties. It is centered on a very specific set of CPT codes.

What is Medicare approved lab?

They also have CLIA certification which makes them the first choice for referring labs, hospitals and other physician practices. Being a laboratory medical billing specialist.

What is billing lab?

Billing Laboratories: The lab that performs testing, E&M procedures, and further bills them to the insurance company for reimbursement are known as billing labs.

What is lab technician?

This means that a majority of professionals working in a lab and running the tests are lab technicians. In a normal lab set-up, tests are conducted in a separate facility and the back-office billing responsibilities are handled by a separate department that is generally cut off from the lab. Only at times, a pathologist will need to engage ...

What is a reference lab?

Reference Laboratories: The labs that receive the referred sample from a referring laboratory are known as reference labs.

What is a lab code?

The codes used by a lab includes services that are used to evaluate specimens obtained from a patient sample. It won’t be wrong to say that labs run labs. And, that’s what they bill for. Laboratories carry out testing procedures for samples provided by a doctor who orders them.

What tests are performed in a lab?

The kind of tests that can be performed in a lab include urinalysis, blood count and some mono-spot tests. Laboratories performing lab tests are required to be certified in order to bill for the same, or they may not get paid by the insurance payers. Some lab specialties are being discussed below.

When can a lab bill Medicare?

Section 1833(h) (5) of the Act provides that a referring laboratory may bill for tests for Medicare beneficiaries performed on or after May 1, 1990, by a reference laboratory only if the referring laboratory meets certain exceptions. In the case of a test performed at the request of a laboratory by another laboratory, payment may be made to the referring laboratory but only if one of the following three exceptions is met:

When a hospital laboratory performs a laboratory service for a nonhospital patient, (i.e.,

When a hospital laboratory performs a laboratory service for a nonhospital patient, (i.e., for neither an inpatient nor an outpatient), the hospital bills its FI on the Form CMS-1450. If a carrier receives such claims, the carrier should deny them. When a hospital-leased laboratory performs a service for a nonhospital patient, it must bill the carrier.

What is CMS fee schedule?

The CMS adjusts he fee schedule amounts annually to reflect changes in the Consumer Price Index (CPI) for all Urban Consumers (U.S. city average), or as otherwise specified by legislation. The CMS also determines, publishes for contractor use, and places on its web site, coding and pricing changes. A CMS issued temporary instruction informs contractors when and where the updates are published.

Where are American Laboratories located?

American Laboratories, Inc., is an independent laboratory company with branch laboratories located in Philadelphia, PA and Wilmington, DE , as well as regional laboratories located in Millville, NJ and Boston, MA.

Does Medicare pay for specimen collection?

Medicare allows a specimen collection fee for physicians only when (1) it is the accepted and prevailing practice among physicians in the locality to make separate charges for drawing or collecting a specimen, and (2) it is the customary practice of the physician performing such services to bill separate charges for drawing or collecting the specimen.

Can Medicare reimburse a referring laboratory?

The referring independent laboratory may obtain Medicare reimbursement for medically necessary covered tests if no more than 30 percent of the total annual clinical laboratory tests requested for the refer ring laboratory are performed by another laboratory.

Does Medicare cover ESRD labs?

Hospital-based facilities are reimbursed for the separately billable ESRD laboratory tests furnished to their outpatients following the same rules that apply to all other Medicare covered outpatient laboratory services furnished by a hospital.

What is the CMS listing?

Once a year the Centers for Medicare & Medicaid Services (CMS) makes available to physicians and to the general public specific information (including information provided to CMS by the Office of the Inspector General) that is useful in evaluating the performance of laboratories. The Clinical Laboratory Improvement Amendments of 1988 (CLIA) and implementing regulations at 42 CFR 493.1850 require that this listing include the following:

How is LBA performed?

LBA is performed by placing a drop of blood from the patient’s fingertip on a microscope slide under a glass coverslip to keep it from drying . In some cases, a powder has been developed that, when sprinkled on the blood, forms a type of “coverslip”.

What is LBA test?

Live Blood Cell Analysis (LBA) is a test which is used for the purpose of providing information for the diagnosis, prevention, or treatment of any disease or impairment of, or assessment of the health of human beings. LBA is also known as Hemaview, Free Radical Blood Screening, or Nutritional Blood Analysis.

Is HIV testing covered by the practitioner?

Testing for HIV is covered separately when determined to be medically necessary and ordered by the practitioner. Only practitioners should order the serum or urine HCG qualitative method when the beneficiary requires preliminary pregnancy testing. Nurse-midwives may order only the laboratory tests listed below.

Is HIV billed separately?

Unless the complete panel is ordered and performed, bill as individual tests. Testing for HIV is covered separately when determined to be medically necessary and ordered by the practitioner.

Is laboratory testing considered medical necessity?

An explanation of the laboratory testing method or the results of diagnostic tests, whether normal or abnormal, is not considered documentation of medical necessity. For approval of payment, the laboratory procedure (s) must be specific and appropriate to the beneficiary’s documented condition and diagnosis.

Is LBA covered by Medicare?

LBA is not a Provider-Performed Microscopic Procedure (PPMP) test. It is also a non-covered Medicare service.

What is Medicare Part B Clinical Laboratory Fee Schedule?

It includes clarifications for determining whether a hospital outreach laboratory meets the requirements to be an “applicable laboratory,” the applicable information (that is, private payor rate data) that must be collected and reported to the Centers for Medicare & Medicaid Services (CMS), the entity responsible for reporting applicable information to CMS, the data collection and reporting periods, and the schedule for implementing the next private payor-rate based CLFS update. Also, this revised article includes information about the condensed data reporting option for reporting entities. CMS previously issued additional information about the CLFS data collection system and Advanced Diagnostic Laboratory Tests (ADLTs) through separate instructions.

What is an applicable laboratory?

Section 1834A of the Act defines an applicable laboratory as a laboratory which receives the majority of its Medicare revenues under the CLFS and/or PFS. It also provides the authority to establish a low volume or low expenditure threshold.

What is the final rule for clinical diagnostic laboratory tests?

The CLFS final rule Medicare Clinical Diagnostic Laboratory Tests Payment System Final Rule (CMS-1621-F) was displayed in the Federal Register on June 17, 2016, and was published on June 23, 2016. The CLFS final rule implemented Section 1834A of the Act.

Is a hospital outreach lab a Medicare lab?

Similar to the preceding section, in order for hospital outreach laboratories that bill Medicare Part B using the hospital’s NPI to be an applicable laboratory, the hospital outreach laboratory must be a laboratory as defined under the CLIA regulatory definition of a laboratory in 42 C.F.R. § 493.2 and meet the majority of Medicare revenues threshold and low expenditure threshold.

Your Comprehensive Guide to Lab Billing and Its Outsourcing

Laboratories are a very unique part of the medical establishment, appearing in a number of sizes and iterations. However, while a hospital’s lab only accounts for 3 to 5% of the total revenue of a hospital, its findings make up 70 to 80% of a patient’s electronic health record (EHR) and formulate the most critical parts of healthcare decisions.

A Guide to Medical Laboratory Billing

Generally speaking, the medical laboratory billing cycle is the process of ongoing interactions between a physician or some other entity ordering a lab, the lab providing the services as directed, and the insurance company or other payer who provides compensation for the time, labor, and materials used.

Use Laboratory Billing Information to Grow Your Lab

While your laboratory billing information provides you with all the information necessary to identify areas for future growth, you can’t grow your lab without a knowledge of basic lab economics. On the simplest level of analytics, you should track your overall patient volume to determine daily and monthly patient activity at all locations.

Reasons to Outsource Laboratory Billing

To accurately glean the above-mentioned information so crucial to the representation of your laboratory’s daily, weekly, and monthly activities, many labs implement a software system to provide an electronic health or laboratory record.

Hire an Experienced Laboratory Billing Company

Your lab deserves every effort possible to improve efficiencies, increase revenue, and seize opportunities for growth. However, many lab managers simply don’t have the time, staff, or resources necessary to dedicate an adequate focus to the nuances of laboratory billing.

Laboratory Billing Services Are Likely a Positive Step Forward For Your Lab

Regardless of which particular ERM software or services your lab requires, managed laboratory billing services are a solution for your manning and analysis issues. Outsourcing your lab billing can result in quicker resolution of the billing process and supply better data.

Who orders diagnostic x-rays?

The physician who treats a patient must order all diagnostic x-rays, diagnostic laboratory tests, and other diagnostic tests for a specific medical problem. The physician uses test results signature requirements and

Do you need a progress note for labs for Medicare?

If you bill laboratory services to Medicare, you must get the treating physician’s signed order (or progress note to support intent to order) and documentation to support medical necessity for ordered services. These records may be housed at another location (for example, a nursing facility, hospital, or referring physician’s oce).

When did CMS stop allowing independent laboratories to bill for pathology?

CMS published a final regulation in 1999 that would no longer allow independent laboratories to bill under the physician fee schedule for the TC of physician pathology services. The implementation of this regulation was delayed by Section 542 of the Benefits and Improvement and Protection Act of 2000 (BIPA).

What is the modifier 26 for clinical laboratory interpretation?

These services are reported under the clinical laboratory code with modifier 26. These services can be paid under the physician fee schedule if they are furnished to a patient by a hospital pathologist or an independent laboratory. Note that a hospital’s standing order policy can be used as a substitute for the individual request by the patient’s attending physician.

What is a surgical pathology service?

1.Surgical Pathology Services. Surgical pathology services include the gross and microscopic examination of organ tissue performed by a physician, except for autopsies, which are not covered by Medicare. Depending upon circumstances and the billing entity, the contractors may pay professional component, technical component or both.

When did contractors allow separate payment for a pap smear?

For services furnished on or after January 1, 1999, contractors allow separate payment for a physician’s interpretation of a pap smear to any patient (i.e., hospital or non-hospital) as long as: (1) the. laboratory’s screening personnel suspect an abnormality; and (2) the physician reviews and interprets the pap smear.

Can a PC and TC be billed separately?

However, if the PC and the TC are each provided in different service locations ( enrolled practice locations), the PC and the TC must be separately billed. Merely applying the same place of service (POS) code to the PC and the TC does not permit global billing for any diagnostic procedure.

Do you need to interpret a cervical smear?

Cervical and vaginal smears do not require interpretation by a physician unless the results are or appear to be abnormal. In such cases, a physician personally conducts a separate microscopic evaluation to determine the nature of an abnormality.

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