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RAC Legal Defenses

RAC Legal Defenses. Renee M. Jordan, Esq. Bacen & Jordan, P.A. 2901 Stirling Road, Suite 206 Fort Lauderdale, FL 33312 (954) 961-5544 (800) 499-7840 rjordan@bacenjordan.com. Should I Appeal?. Appeal only meritorious claims.

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RAC Legal Defenses

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  1. RAC Legal Defenses Renee M. Jordan, Esq. Bacen & Jordan, P.A. 2901 Stirling Road, Suite 206 Fort Lauderdale, FL 33312 (954) 961-5544 (800) 499-7840 rjordan@bacenjordan.com

  2. Should I Appeal? • Appeal only meritorious claims. • Medical Necessity issues are often vague/subjective and have a higher probability of success. • Avoid becoming a target for the RAC and OIG.

  3. Supporting Documents for Appeal • All supporting clinical records – Medicare not required to pay if not documented. • Submit all clinicals at 2nd level appeal. • Medicare manuals, NCD, LCD, IP only list • Interqual & Milliman when applicable. • Affidavits • Organize your appeal and documents with an index page, tabs, page numbers, citations.

  4. Defenses Treating Physician rule can be persuasive although not presumptive. • ALJ are more objective. • Look at effective date of Medicare payment criteria vs. date of service. • Challenge whether the RAC used a certified coder or physician in its review? • Statistical Sampling / Extrapolation – Challenge the methods used by the RAC. ALJ must review each claim. • 3 year look back (limited to 10/1/07)

  5. Medically Necessary Audit Issues • The Medicare Benefit Policy Manual 100-02, Chapter 1 Inpatient Hospital Services Covered Under Part A states the following (emphasis added): • "The physician or other practitioner responsible for a patient's care at the hospital is also responsible for deciding whether the patient should be admitted as an inpatient. Physicians should use a 24-hour period as a benchmark, i.e., they should order admission for patients who are expected to need hospital care for 24 hours or more, and treat other patients on an outpatient basis. However, the decision to admit a patient is a complex medical judgment which can be made only after the physician has considered a number of factors, including the patient's medical history and current medical needs, the types of facilities available to inpatients and to outpatients, the hospital's by-laws and admissions policies, and the relative appropriateness of treatment in each setting. Factors to be considered when making the decision to admit include such things as:

  6. Medically Necessary Audit Issues • • The severity of the signs and symptoms exhibited by the patient; • • The medical predictability of something adverse happening to the patient; • • The need for diagnostic studies that appropriately are outpatient services (i.e., their performance does not ordinarily require the patient to remain at the hospital for 24 hours or more) to assist in assessing whether the patient should be admitted; and • • The availability of diagnostic procedures at the time when and at the location where the patient presents.

  7. Medically Necessary Audit Issues • Under original Medicare, the Quality Improvement Organization (QIO), for each hospital is responsible for deciding, during review of inpatient admissions on a case-by-case basis, whether the admission was medically necessary. Medicare law authorizes the QIO to make these judgments, and the judgments are binding for purposes of Medicare coverage. In making these judgments, however, QIOs consider only the medical evidence which was available to the physician at the time an admission decision had to be made. They do not take into account other information (e.g., test results) which became available only after admission, except in cases where considering the post-admission information would support a finding that an admission was medically necessary."

  8. Legal Defenses • Without Fault (Section 1870)– a provider will be deemed to be without fault if notice of the overpayment is 3 or more years from initial payment. • A provider is without fault when it exercised care in billing for, and accepting the payment (full disclosure & reasonable basis for assuming the payment was correct). • Rebuttal of without fault = pattern of questionable billing errors or other misconduct.

  9. Legal Defenses • Waiver of Liability (Section 1879)– Limits liability of the provider if services are found to be not medically reasonable & necessary, if the provider did not know or could not reasonably been expected to know that the services were not covered.

  10. Legal Defenses • CFR (405.980) - Reopen within one year of initial determination for any reason. • Good Cause for Reopening – Medicare contractor may reopen a claim within 4 years from the date of the initial determination for good cause. • Good cause may be established if: (1) there is new & material evidence that (i) was not available or known at the time of determination; and (ii) may result in a different conclusion; or (2) the evidence that was considered clearly shows on its face an obvious error. • Not an appealable issue for the ALJ– CMS’s evaluation and monitoring of the contractor’s performance, not the appeals process, offered the forum for enforcing the good cause standard (unless the FI or QIC has not ruled on this issue).

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