Neurology & Pain Management Coding Alert

Reimbursement Heads-Up:

Plan for Medicare's Conversion Factor Cut--It's a Doozy

Plus:  Find out how the new physician fee database treats your 2006 CPT codes

Don't be surprised when you see reimbursement for most of your common services drop in 2006. This year's adjustment could swallow up more than 4 percent of your bottom line.

The Centers for Medicare & Medicaid Services released its 2006 Physician Fee Schedule in early November, and it includes an approximate 4.4 percent reduction in the Medicare conversion factor. The conversion factor, along with the relative value units (RVUs) assigned to individual codes under the fee schedule, determines payments to Medicare providers.

The number you-ve been waiting for: Without congressional action, the conversion for 2006 will equal 36.1770 (down from 37.8975 in 2005).

The ripples from this drastic cut could spread well beyond Medicare, -as more than half of U.S. payers establish their fee schedules using the Medicare system,- says Elizabeth Woodcock, MBA, FACMPE, CPC, founder and principal of Woodcock & Associates in Atlanta.

Dollars-and-cents example: The 2005 fee schedule assigns 4.95 nonfacility total RVUs for the global package of 95816 (Electroencephalogram [EEG]; including recording awake and drowsy). In 2005, this equals an average payment of $187.59 (4.95 RVUs x 37.8975 conversion factor). For 2006, the RVUs for this EEG service inch forward to 4.96, but average payment for the procedure falls to $179.44 (4.96 x 36.1770) conversion factor), or about $8 less for the same physician work.

Voice your opinion: Congress can still step in with a new budget package that includes a 1 percent increase to your payments. You can send a request for action to your congressional representatives through the American Medical Association by visiting http://capwiz.com/ama/mail/oneclick_compose/?alertid=8104801.

Keep reading Neurology Coding Alert for news of any government interventions. Get a Break With New Chemodenervation Guidance Codes While most neurologists were glad to see new add-on codes for guidance in conjunction with chemodenervation (64612-64614) in CPT 2006, many worried they might lose out on payment for +95873 (Electrical stimulation for guidance in conjunction with chemodenervation) and +95874 (Needle electromyography for guidance in conjunction with chemodenervation).

Good news: The 2006 fee schedule alleviates this fear, assigning 0.77 nonfacility RVUs to electrical stimulation and 0.78 RVUs to needle electromyography.

The new allowance is on par with the 0.78 RVUs assigned to the code that you previously used to report guidance (95870, Needle electromyography; limited study of muscles in one extremity or non-limb [axial] muscles [unilateral or bilateral], other than thoracic paraspinal, cranial nerve supplied muscles, or sphincters). Of course, with the new drop in the conversion factor, the payment for those 0.78 RVUs will be shaved from $29.56 to $28.22.

-In 2005, CMS was going to outlaw all extra codes for EMG guidance, but with specialty-society input they agreed to allow 95870. [...]
You’ve reached your limit of free articles. Already a subscriber? Log in.
Not a subscriber? Subscribe today to continue reading this article. Plus, you’ll get:
  • Simple explanations of current healthcare regulations and payer programs
  • Real-world reporting scenarios solved by our expert coders
  • Industry news, such as MAC and RAC activities, the OIG Work Plan, and CERT reports
  • Instant access to every article ever published in your eNewsletter
  • 6 annual AAPC-approved CEUs*
  • The latest updates for CPT®, ICD-10-CM, HCPCS Level II, NCCI edits, modifiers, compliance, technology, practice management, and more
*CEUs available with select eNewsletters.

Other Articles in this issue of

Neurology & Pain Management Coding Alert

View All