Skip to content
  • About
  • Contact
  • Contribute
  • My Book
  • Careers
  • Podcast
  • Transcripts
  • Speaking
KevinMD
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
    • All
    • Physician
    • Burnout
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • About
    • Contact
    • Contribute
    • My Book
    • Careers
    • Podcast
    • Transcripts
    • Speaking
KevinMD
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
    • All
    • Physician
    • Burnout
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • About
    • Contact
    • Contribute
    • My Book
    • Careers
    • Podcast
    • Transcripts
    • Speaking
  • About Kevin Pho, MD, Founder of KevinMD
  • Be heard on social media’s leading physician voice
  • Contact Kevin
  • Custom enhanced author page pricing
  • DMCA Policy
  • Establishing, Managing, and Protecting Your Online Reputation: A Social Media Guide for Physicians and Medical Practices
  • KevinMD influencer opportunities
  • Opinion and commentary by KevinMD
  • Physician burnout speakers to keynote your conference
  • Physician Coaching by KevinMD
  • Physician keynote speaker: Kevin Pho, MD
  • Physician Speaking by KevinMD: a boutique speakers bureau
  • Primary care physician in Nashua, NH | Kevin Pho, MD
  • Privacy Policy
  • Recommended services by KevinMD
  • Terms of Use Agreement
  • Thank you for subscribing to KevinMD
  • Thank you for upgrading to the KevinMD enhanced author page
  • Upgrade to the KevinMD enhanced author page

Medicare made the rules and now punishes doctors for following them

Shadowfax, MD
Health Policy
December 29, 2012
Share
Tweet
Share

I wanted to expand on something I wrote recently, which relates to my other sort-of-recent post on upcoding. I wrote, about scribes and compliance:

Knowing that the scribe cannot document a complete ROS unless I actually did that ROS, I am more compulsive about making sure I hit all ten systems. (Even when it’s not clinically relevant. Such is the Kafkaesque world we live in.) And I make sure to do a full exam where before I may have elided over a few systems. This is, of course, only for cases where the complexity of the case will justify a service level requiring the complete H&P.

This hits at the heart of the upcoding debate. Remember this front-page article in the New York Times, in which the increased billing levels of ER doctors is asserted as prima facie evidence of fraud and abuse, and the follow-up in which the powers that be asserted their intent to reclaim these hundreds of millions of dollars in “inappropriate payments.” We are not looking at a hypothetical threat here, and the financial risk to care providers is enormous.

The rules, for those not familiar with them (and who the hell would be reading a blog post about medical coding if you weren’t?) are that to bill at a level 5, which is the highest ordinary level of service in the ER, the physician must document the following:

  • An extended history
  • A complete review of systems
  • A comprehensive exam
  • High complexity medical decision-making

In order to quality for a level 5, all of these must be met, but the sine qua non is the medical decision-making (MDM). This is, in fact, the ultimate driver of the visit level. MDM consists of three components: the number of diagnostic options (i.e. your differential), the amount of data you must review (i.e. tests, re-examinations) and the risk inherent in the presenting problem. If the MDM isn’t met, no matter how nicely documented the rest of the chart is, a high service level may not be justified. To put it another way, an ankle sprain, no matter how thoroughly documented, is still just an ankle sprain.

Previously, it was common to have cases “downcoded” when a doctor had a high-complexity MDM but slipped up on the other items, most commonly on the ROS. Over the years, physicians have gotten better educated about the system and more sophisticated at making sure the ROS and other requirements have been met so that the billing level can, appropriately, be determined by the MDM.

This rankles. Always has. When I see a patient with chest pain and a heart attack, in order to get paid appropriately I have to ask a bunch of completely irrelevant questions about unrelated systems: do you have burning when you urinate? Do you have any rashes? Nobody would argue that the complexity and risk don’t justify the level 5, but I have to document a bunch of medically unnecessary trivia to compliantly bill at the level the MDM deserves.

And this is where the bureaucratic hassle now becomes a catch-22.

“Medical necessity.”

Medicare considers it fraud to bill for things which are medically unnecessary. If I see an ankle sprain and order blood tests and a CT scan to try and get the bill up to a high level, that legitimately is fraud because the tests ordered are not medically necessary. But what is happening now is that Medicare (in the form of the private contractors who administer it regionally, along with some private payers) are reviewing charts and claiming that the physicians are fraudulently upcoding because we are documenting complete Reviews of Systems when they were not … wait for it … medically necessary.

To be clear: Medicare set the rules, and made them arbitrary and disconnected from reality, and now is coming back and punishing physicians for attempting to follow the rules to the letter of the law.

And the format this takes is scary. You get a letter from the Medicare carrier (or a RAC or a Medicare Advantage administrator) telling you that you’ve been reviewed, found guilty of upcoding, and this finding, based on a handful of charts, is extrapolated back several years. The result is a large demand for reparations, usually in the mid-to-high six figures. The physician group can either write a check or lawyer up and argue it chart by chart in front of an administrative law judge.

What I hate about this is the underlying dishonesty. This is about saving money. I get that, and that is in fact a reasonable goal. Healthcare is astoundingly expensive, and as a society we need to ratchet back the expense. If there’s an argument to be made that physicians are paid too much, then let’s have that debate on its merits. But the attempt to save money by harassing physicians and exploiting the contradictions within the rules that the government itself wrote is beyond maddening.

“Shadowfax” is an emergency physician who blogs at Movin’ Meat.

Prev

Ask your toddler to do the chores

December 29, 2012 Kevin 5
…
Next

The age differential in medical care

December 30, 2012 Kevin 0
…

Tagged as: Emergency Medicine, Medicare

< Previous Post
Ask your toddler to do the chores
Next Post >
The age differential in medical care

ADVERTISEMENT

More by Shadowfax, MD

  • a desk with keyboard and ipad with the kevinmd logo

    The SGR is dead! Hooray?

    Shadowfax, MD
  • Don’t pay specialists for being on call. Here’s why.

    Shadowfax, MD
  • a desk with keyboard and ipad with the kevinmd logo

    The truth about admissions from the emergency department

    Shadowfax, MD

More in Health Policy

  • How Becerra and Hilton differ on California health care

    Kayvan Haddadan, MD
  • The direct primary care HSA rule did not fix access

    Dana Y. Lujan, MBA
  • RFK’s HHS cuts leave the U.S. open to a bioweapon attack

    Harry Severance, MD
  • Fragmented care is the gap digital health left open

    Robert Nieves, JD, MBA, MPA, RN
  • End-of-life decision-making is never a solo act

    Chinmeri Nwuba
  • Neonatal care in humanitarian crises is conditional

    Maddie Beans
  • Most Popular

  • Past Week

    • The MCAT requirement persists as a norm, not as a tool

      Aniruth Ananthanarayanan | Medical Education
    • Leaving insurance-based practice while burned out is a trap

      Suzanne Gilberg-Lenz, MD | Physician
    • The gut microbiome and mental health are interconnected

      Sidhartha Gautam Senapati, MD | Conditions and Diseases
    • AI bias in health care reads the writer, not the symptom

      Craig Hauben, MPA | Health Technology
    • Why are doctors prosecuted for prescribing opioids?

      Richard A. Lawhern, PhD | Conditions and Diseases
    • When difficulty swallowing pills looks like noncompliance

      Laurel A. Coons, PhD | Conditions and Diseases
  • Past 6 Months

    • Primary care crisis requires new training and skills

      Justin Oldfield, MD | Physician
    • The MCAT requirement persists as a norm, not as a tool

      Aniruth Ananthanarayanan | Medical Education
    • Polycystic ovary syndrome is more than ovarian

      Oluyemisi Famuyiwa, MD | Conditions and Diseases
    • DEA fear is reshaping how doctors prescribe

      Ronald L. Lindsay, MD | Physician
    • Why physicians miss business owner stress in patients

      Timothy Lesaca, MD | Physician
    • Reclaiming the lost art of the physical exam

      Ann Lebeck, MD | Physician
  • Recent Posts

    • AI bias in health care reads the writer, not the symptom

      Craig Hauben, MPA | Health Technology
    • How Becerra and Hilton differ on California health care

      Kayvan Haddadan, MD | Health Policy
    • Diagnosis shock is the missing piece in patient encounters

      Judith A. Swack, PhD | Conditions and Diseases
    • When a patient attacks you, it changes your life

      Timothy Lesaca, MD | Physician
    • Rural health care delivery is not a coverage problem

      Vance Alm, MD | Physician
    • The direct primary care HSA rule did not fix access

      Dana Y. Lujan, MBA | Health Policy

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 58 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • The MCAT requirement persists as a norm, not as a tool

      Aniruth Ananthanarayanan | Medical Education
    • Leaving insurance-based practice while burned out is a trap

      Suzanne Gilberg-Lenz, MD | Physician
    • The gut microbiome and mental health are interconnected

      Sidhartha Gautam Senapati, MD | Conditions and Diseases
    • AI bias in health care reads the writer, not the symptom

      Craig Hauben, MPA | Health Technology
    • Why are doctors prosecuted for prescribing opioids?

      Richard A. Lawhern, PhD | Conditions and Diseases
    • When difficulty swallowing pills looks like noncompliance

      Laurel A. Coons, PhD | Conditions and Diseases
  • Past 6 Months

    • Primary care crisis requires new training and skills

      Justin Oldfield, MD | Physician
    • The MCAT requirement persists as a norm, not as a tool

      Aniruth Ananthanarayanan | Medical Education
    • Polycystic ovary syndrome is more than ovarian

      Oluyemisi Famuyiwa, MD | Conditions and Diseases
    • DEA fear is reshaping how doctors prescribe

      Ronald L. Lindsay, MD | Physician
    • Why physicians miss business owner stress in patients

      Timothy Lesaca, MD | Physician
    • Reclaiming the lost art of the physical exam

      Ann Lebeck, MD | Physician
  • Recent Posts

    • AI bias in health care reads the writer, not the symptom

      Craig Hauben, MPA | Health Technology
    • How Becerra and Hilton differ on California health care

      Kayvan Haddadan, MD | Health Policy
    • Diagnosis shock is the missing piece in patient encounters

      Judith A. Swack, PhD | Conditions and Diseases
    • When a patient attacks you, it changes your life

      Timothy Lesaca, MD | Physician
    • Rural health care delivery is not a coverage problem

      Vance Alm, MD | Physician
    • The direct primary care HSA rule did not fix access

      Dana Y. Lujan, MBA | Health Policy

MedPage Today Professional

An Everyday Health Property Medpage Today

Copyright © 2026 KevinMD.com | Powered by Astra WordPress Theme

  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Medicare made the rules and now punishes doctors for following them
58 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...