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Office of Medicaid (MassHealth) Review of Evaluation and Management Claims Submitted by Asaker Medical Associates

February 25, 2016 · Office of Medicaid (MassHealth) · Read the full official report (PDF) ↗ · official site ↗

Published February 25, 2016 Audit covers January 1, 2013 – December 31, 2014 Under Suzanne M. Bump · 2011–2023

In plain English
The auditor found that Asaker Medical Associates billed MassHealth incorrectly for some nurse practitioner services, leading to an estimated $24,357 in overpayments.
source
“Asaker Medical Associates improperly billed MassHealth for outpatient evaluation and management (E/M) services using the wrong provider identification number.”
Read the plain-English breakdown
What is this?

This is a state audit of MassHealth claims submitted by Asaker Medical Associates for certain medical office visits from 2013 through 2014.

“The Office of the State Auditor has conducted an audit of evaluation and management (E/M) claims submitted to MassHealth by Asaker Medical Associates for the period January 1, 2013 through December 31, 2014.”
Why was it audited?

The auditor checked whether the practice followed MassHealth rules when billing for services provided to MassHealth members.

“The purpose of our audit was to determine whether Asaker Medical Associates submitted claims for services provided to MassHealth members in compliance with certain state regulations and MassHealth policies and procedures.”
Why it matters

MassHealth is a major public program serving many Massachusetts residents and using a large share of the state budget, so billing errors affect public money and trust.

“Medicaid expenditures represent approximately 38% of the Commonwealth’s total annual budget.”
What's in it for me?

For an ordinary resident, this audit is about whether taxpayer-supported healthcare dollars are being paid correctly and whether providers are following the rules.

“As with any government program, public confidence is essential to the success and continued support of the state’s Medicaid program.”
The bottom line

The practice was told to fix its billing and repay MassHealth for overpayments tied to nurse practitioner services.

“Asaker Medical Associates should repay MassHealth for overpayments for all services performed by an independent NP but billed at the physician rate.”
What happens next

MassHealth said it would start another review of Dr. Asaker based on this report and earlier audit findings.

“MassHealth will re-initiate a review of Dr. Asaker based on the State Auditor’s report and MassHealth’s previous audit findings.”
Why it's significant

The audit found a concrete dollar impact: MassHealth likely paid too much because some services were billed as if the doctor performed them when the auditor said a nurse practitioner did.

“Based on our statistical sample of 88 E/M outpatient claims, we estimate that MassHealth made $24,357 of such overpayments during the audit period.”
Jargon, unpacked

A nurse practitioner is a licensed medical professional; a modifier code is a billing code that tells MassHealth a service was changed in some way, such as being performed by a non-independent nurse practitioner with a doctor.

“A modifier code is used when a medical procedure or service has been altered in some way.”

What the Auditor checked

What the Auditor found

Asaker Medical Associates billed MassHealth at physician rates for services actually performed by an independent nurse practitioner.
vendor oversightinternal controlsrecordkeeping/documentation

Why it matters: MassHealth paid higher physician rates, resulting in an estimated $24,357 in overpayments.

Standard: 130 CMR 450.301(A), 130 CMR 450.223(C)(2)(e), and 130 CMR 450.307(A) ( Section 450.301(A) of Title 130 of the Code of Massachusetts Regulations; 130 CMR 450.223(C)(2)(e); 130 CMR 450.307(A) )

2 recommendations
  • Asaker Medical Associates should take the measures necessary to ensure that it submits claims that correctly identify the provider of E/M services.
  • Asaker Medical Associates should repay MassHealth for overpayments for all services performed by an independent NP but billed at the physician rate.
Agency response & Auditor reply
Agency: "Since that time services for that day have been billed with the NP’s provider number."
Auditor: "However, this is not correct."
Asaker Medical Associates billed MassHealth at full physician rates for services performed by a non-independent nurse practitioner without the required modifier.
vendor oversightinternal controlsrecordkeeping/documentation

Why it matters: MassHealth paid claims at the full physician rate instead of the required 85% rate.

Standard: 101 CMR 317.04(3), MassHealth All Provider Bulletin 230, and 130 CMR 450.301(A) ( 101 CMR 317.04(3); 130 CMR 450.301(A); 130 CMR 433.433(D) )

3 recommendations
  • Asaker Medical Associates should use the required modifier codes when billing for services provided by a non-independent NP in collaboration with Dr. Asaker.agency: agreed
  • Within members’ medical files, Asaker Medical Associates should properly document services performed by a non-independent NP in collaboration with Dr. Asaker.
  • Asaker Medical Associates should repay MassHealth for overpayments for all services performed by a non-independent NP in collaboration with Dr. Asaker.
Agency response & Auditor reply
Agency: "Going forward, I will comply with the auditor’s billing and coding recommendations."
Auditor: "However, this conflicts with Asaker Medical Associates’ appointment schedule, which indicated that patients were scheduled to see the non-independent NP."

Verified dollar findings

Projected / estimated $24,357 not in headline

Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.

$24,357 - estimated overpayments

Prior findings revisited

Still a problem
"Further, Dr. Asaker’s claims to MassHealth did not use the SA modifier to indicate that a non-independent nurse practitioner had performed services billed to MassHealth."
Being worked on
"MassHealth will re-initiate a review of Dr. Asaker based on the State Auditor’s report and MassHealth’s previous audit findings."

More audits of this entity

Other Office of the State Auditor reports on Office of Medicaid (MassHealth) , including the prior audits referenced above.

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