Most claims are comprised of two types of charges – professional and technical.
- Professional charges cover the fee of the physician.
- Technical charges can cover the facility overhead, materials, medications, nurses, support staff, etc.
Typically, hospitals and RHCs bill charges to Part A Medicare on a UB-04 form. Outpatient clinics bill Part B Medicare using a CMS 1500 form. Nearly all claims are billed using the electronic version of these claim forms.
Let’s get into the exceptions to these rules…
Check out the video at the end to see how easy Azalea makes split-claim billing for freestanding RHCs!
RHC Split Claim Scenario
Medicare has defined a list of “non-RHC services” that are covered however they are not reimbursed under the RHC reimbursement model. RHCs must bill these “non-RHC services” on separate claims from their RHC claims. Non-RHC services include:
- Lab services
- X-rays and EKGs – technical only
- Hospital services
- Ambulance services
- Leg, arm, back and neck braces
- Prosthetic devices
- Hospice care (related conditions)
- Durable Medical Equipment
Freestanding RHCs bill professional charges to Medicare Part A on a UB-o4 and technical charges, such as labs, on a CMS 1500 to Medicare Part B. Provider-based RHCs bill professional charges on a UB-04 and technical components to Part A on a UB-04 under their parent provider.
22 Tips & Tricks to Increase Practice Reimbursements
Ask yourself: Are we consistently collecting patient co-pays? Are our patients paying on time? Are more than 4% of our claims being rejected? Do we have a monthly period close process? If you can’t answer “yes” to all of these questions, this list is for you!
Learn quick and easy ways to enhance your collection process and increase practice reimbursements
How Do You Bill Medicare Split Claims?
Depending on your EHR and billing system, billing both, UB-04 and CMS 1500, might not even be possible. Many systems focus on handling one or the other types of billing, few do both well. This can lead to the adoption of another software or service often not in communication with other solutions causing inefficiency, higher collection cost, and even a loss of revenue.
Even with systems that can handle both billing methods, split-claim billing is a process that doesn’t get much love from software companies. To accomplish splitting a claim you might have to go through multiple steps and screens to clean up generated claims and rebill new claims. In order to understand the true pain of inefficiency, often you have to experience it yourself.
We know because we did!
A Better Way – RHC Split-Claim Billing With Azalea
With Azalea’s roots in medical billing and our excellent track record providing billing services for hundreds of physicians, we identified this scenario and created a solution. A solution that is hard to beat. Splitting a claim with Azalea’s PM takes one click!
One click? Yes!
With many EHRs and PMs focusing on either hospital or ambulatory billing, situations involving both types of billing become more of a “specialty” situation. Does your system handle split-claim billing? Is there room for error? Does it cost you more in time than it has to?
US San Diego Health reported encountering challenges with split-claim billing and after finding a new solution reported seeing its “clean claim rate increase and coding productivity skyrocket, with colonoscopy coding down from 12 minutes to less than five minutes.”