Jonathan,

You conveniently dropped my comments on Uniform Billing in order to make my
comments support your arguments.  HIPAA does not dictate billing and payment
policies because there is too much diversity between payers especially when
you include Medicare and Medicaid in the mix.  HIPAA places a significant
financial burden on all impacted parties to ensure providers can bill for
the services they render, and payers pay appropriately for those services.
Standardizing transactions is the first step, and if you have been following
the listservs for a while, you should have seen that this step alone is far
more costly than initial HHS projections.  

Had HIPAA dictated Uniform Billing in this round, most payers would likely
be facing bankruptcy or would have chosen to not participate because the
penalties likely would be less than the cost of compliance.  If we have any
hope for HIPAA to succeed, we can not expect Uniform Billing in the near
term, and we need to focus our attention on the things we can affect.  

Since payers can not reject transactions because of the existence of data
they do not need to adjudicate the claim, and since payers are required to
pass the claim on to other payers without changing anything on the claim
other than the elements they are supposed to change, is there any reason why
providers can not include situational data elements regardless of the need
of the payers in the chain of a single claim?  If we accept this premise,
then providers aught to be able to minimize changes to elements sent for
individual service codes by starting with a set of elements that are
required by any of their payers and bill those elements all the time.

If we accept this approach, providers have a way to bill most service codes
in a standard way.  The providers will still need to meet payers
requirements to bill services on different forms (transactions) or different
service codes, but they should be able to bill each code on a transaction
the same way in most cases.  

Note: the reason I am not committing fully to this is because of the varied
approaches to the elimination of Local Code.  This part of the rule requires
Medicaid payers to use national codes to define their services, and because
the service needs to be uniquely identified for special payment policies and
Federal reporting requirements, Medicaid agencies have to use additional
data elements to ensure their systems can identify the one service from
another, e.g., a waiver service from a normal Medicaid service that is
billed using the same form and base service code.  Many are using
combinations of modifiers and taxonomy to ensure this uniqueness, and
because of this, standardized billing for individual service codes can not
be fully achieved.

Uniform Billing aught to be our final target, but it is unachievable at this
time.  Payers are not unaware of the providers' plight as witnessed by some
of the early surveys used to assess the feasibility of Uniform Billing.
Those surveys established an awareness of the issues, but the findings
indicated significant valid reasons for most of the differences in payment
policies.  The surveys also gave us an indication of the difficulties we
would face in deciding how to bill each service uniformly and the potential
costs needed to implement the changes. 

Walt



----Original Message-----
From: Jonathan Allen [mailto:[EMAIL PROTECTED]
Sent: Thursday, March 27, 2003 11:35 AM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: Re: Situational segments/elements and payer-specific edits


Walt,

> The principal reason for the HIPAA rule is to make claims transactions
> more consistent.

Absolutely.  Any provider should only ever have to send one format of
claim: the HIPAA format.  All payers should accept and process all data
from that one format, discarding anything that they themselves don't
want or need.

> Providers have to bill payers based on the payer's payment policies
> (keeping within the HIPAA guidelines), and these policies differ.

This is what defeats HIPAA, just it has also defeated the DoD and other
800lb gorillas who have attempted to introduce standardisation across
a range of EDI transactions.

> If we require providers to bill each payer differently when the service
> code and other basics are the same but the situational elements needed
> differ between payers, then we have fully defeated the reason for HIPAA.

With the greatest possible respect, you are looking at the symptoms, not
the diagnosis.  The allowance for different payer policies to alter the
content of a standard HIPAA transaction is the root problem.  HIPAA is
and was always intended to be standard, not variable.

> It makes sense to me that providers should develop their claims submission
> systems to support all payer needs and that payers accept claims
regardless
> of what data is in elements that they do not need.

That sounds exactly right - and fits the HIPAA model.  Perhaps it all comes
down to the meaning of the word 'need' ?  You are talking about the payer's
needs, whereas I was talking about the HIPAA rule's needs.  Sending
situational
data that the HIPAA IG says is not to be situationally sent is a compliance
failure, regardless of what any payer may think they want.

> Kepa, in an earlier message, cited a segment from the IGs that providers
> should send the data if the situation applies.

I take this to mean that the situation is defined by the IG and has nothing
whatsoever to do with the payer or their policies.  If an ambulance service
code is quoted, then a code must be present to say why it was needed.

> Extending this argument, rather than requiring providers to determine
which
> payers are in the chain, wouldn't it be more practical for payers to
ignore
> any data that they do not need so that providers can bill individual
> services codes in a way that all payers who pay for that service code will
> accept?

Again, you are talking (and quite correctly, I recognise) about the needs
of individual payers, rather than the HIPAA compliance needs which is the
direction that I was coming from when answering the original question.

As you describe it, any receiving payer has to accept a variety of data
that they do not want in order to pass it on down the chain.  But their
input database or file layout must have space allocated for that data so
that it can be replayed later - so it cannot get silently dropped on the
floor. In other words, the payer has taken a conscious business decision
to examine, store and ignore-for-themselves the data that they don't need
so that they can regurgitate it for a secondary/tertiary payer.  Any data
that shouldn't be in the input stream (at all) will cause rejection.  So
no-one should get sued for not seeing/processing any data.

Does that make sense ?

Jonathan
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