Hierarchical Coding Categories and Beneficiary Risk · • HCC 120 Seizure Disorders and...

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Hierarchical Coding Categories and Beneficiary Risk Lynette Byrnes United Rheumatology Gloria Johnston, MBA, RN, RHIT HealthAdvanta

Transcript of Hierarchical Coding Categories and Beneficiary Risk · • HCC 120 Seizure Disorders and...

Page 1: Hierarchical Coding Categories and Beneficiary Risk · • HCC 120 Seizure Disorders and Convulsions • HCC 122 Non-Traumatic Coma, Brain Compression/Anoxic Damage • HCC 125 Respirator

Hierarchical Coding Categories and Beneficiary Risk

Lynette ByrnesUnited Rheumatology

Gloria Johnston, MBA, RN, RHITHealthAdvanta

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Copyright © 2018 United Rheumatology

Agenda

Objectives• To introduce the audience

to HCCs

• To discuss the importance of capturing chronic conditions considered in the treatment of Rheumatology patients

• To review actions Rheumatology practices can take to improve performance under cost and other risk-based contracts

Content Slides

Why HCCs Matter to Physician Practices

3 - 7

HCC and Beneficiary Risk Overview 8 - 11

HCC Risk Adjustment Scoring 12- 20

Actions for Rheumatology Practices 21 - 25

Resources and Supplemental Information

28 - 33

Disclaimer

This presentation is intended to serve as an educational tool and

provide a general overview of the topics discussed. We strive for

accuracy but cannot be held responsible for any errors or

omissions in information as denoted on the slides.

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Why HCCs Matter to Physician Practices

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Why HCCs Matter to Physician Practices

Quality50%

Cost10%

ACI25%

CPIA15%

2018 • Cost represents 10% of the total MIPS score in 2018

• Cost is expected to increase to 30% in the coming years

• Cost is far more difficult to influence than the other MIPS categories

• Tolerance for costs is higher for sicker patients

• In 2018, up to 5 MIPS bonus points available for practices who take care of the sickest patients

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Why HCCs Matter to Physician Practices

• Cost represents 10% of the total MIPS score in 2018

• Cost is expected to increase to 30% in the coming years

• Cost is far more difficult to influence than the other MIPS categories

• Tolerance for costs is higher for sicker patients

• In 2018, up to 5 MIPS bonus points available for practices who take care of the sickest patients

Quality30%

Cost30%

ACI25%

CPIA15%

Possibly as early as 2019

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MIPS Cost Measures

• Measurement is the average cost to the Medicare program for attributed patients

• Patients are attributed based on plurality of ambulatory evaluation and management services EM

• Two-pass evaluation

▪ Primary care physicians, NPs and PAs

▪ Specialists

• Determined by claims

• Includes all Part B costs

• Compared to historical benchmark for scoring

• Cost impacts MIPS score if at least 20 patients are attributed

Per Capita Cost

• Measurement is total costs of inpatient admission episodes for certain high resource MSDRGs diagnoses, procedures

• Episodes are attributed to the provider who bills the highest Part B professional services during the triggered admission

• Attributed costs include 3 days prior to admission, the inpatient admission and 30 days post admission

• Cost impacts MIPS score if at least 35 episodes are attributed

• Rheumatology rarely exceeds minimum episode threshold

Medicare Spending Per Beneficiary Cost

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MIPS Cost Measures

• Measurement is the average cost to the Medicare program for attributed patients

• Patients are attributed based on plurality of ambulatory evaluation and management services EM

• Two-pass evaluation

▪ Primary care physicians, NPs and PAs

▪ Specialists

• Determined by claims

• Includes all Part B costs

• Compared to historical benchmark for scoring

• Cost impacts MIPS score if at least 20 patients are attributed

Per Capita Cost Per Capita Costs Countermeasures

• Ensure every patient has a PCP and sees that PCP once per year

• When appropriate, utilize incident to billing for mid-level providers

▪ Established patients

▪ Existing problem

▪ Established plan

▪ Physician in office at time of service

• Ensure that patient complexity is expressed on the claim to align beneficiary risk with each patient’s health status

• Tolerance for costs is higher for sicker patients

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Why HCC’s Matter to Physician Practices

• Risk adjustment is not a concept exclusive to Medicare

▪ Private payers use beneficiary risk in risk-based contracts

▪ Medicare Part C Plans Medicare Advantage are funded by Medicare based on beneficiary risk

▪ Medicaid uses HCC risk

• As payment models continue to evolve toward a system whereby providers will be paid for managing populations, risk stratification will be paramount

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HCC and Beneficiary Risk Overview

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What is HCC?

• The HCC risk score reflects the overall health status of the patient and is influenced by demographic factors

• HCCs are derived from ICD codes submitted on Medicare claims

• Diagnoses from all contributing providers are included in the HCC risk score

• The HCC model is made up of 9,531 costly chronic disease ICD-10 codes organized into 189 HCC categories

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Top Chronic Conditions That Influence Beneficiary Risk

• Congestive heart failure

• Vascular disease

• Ischemic or unspecified stroke

• Ischemic heart disease

• Specified heart arrhythmia

• Angina

• Morbid obesity

• Rheumatoid arthritis

• Inflammatory connective tissue disease

• Cancer

• Diabetes

• Chronic obstructive pulmonary disease

• Major depressive and bipolar disorders

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What is HCC?

• HCCs are wiped clean each January

• Capture comorbidities for all new patients and once per year for established patients

Source: https://www.google.com/search?q=he%27s+cured+pig+cartoon&tbm=isch&source=iu&ictx=1&fir=CY3ehcOIFg8DjM%253A%252CMCyWt0RCwdIiCM%252C_&usg=__cbvWImKAuTCeINaiOzbjxt2MWKE%3D&sa=X&ved=0ahUKEwjvzIXQgrvaAhWE7IMKHeBaCrUQ9QEIKzAA#imgrc=a34zq2F888zLZM:

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HCC Risk Adjustment Scoring

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HCC Risk Adjustment Score

HCC Risk Score

Disease Interactions

Diagnosis

Demographics

HCC Inputs

• Age

• Gender

• Duel enrollment in Medicaid

• Residency status –community vs institutional

• Diagnoses ICD-10 codes

▪ Disease-disease interactions

▪ Disease-disability interactions

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HCC Risk Adjustment Score

HCC 1.0

Average Risk Patient

HCC < 1.0

Healthier Patient

HCC > 1.0

Sicker Patient

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Beneficiary Risk Adjustment Factor (RAF) Example

Scenario A: 75 year old male

ICD-10 ICD-10 DESCRIPTION HCCHCC

Score

Demographic base factor --- 0.466

M06.09RA without Rheumatoid factor, multiple sites

40 0.423

E11.9Type 2 diabetes mellitus without complications

19 0.104

E66.9 Obesity, unspecified 0.000

I49.9Cardiac Arrhythmia, unspecified

0.000

Disease Interaction: 0

HCC Beneficiary RAF: 0.993

ICD-10 ICD-10 DESCRIPTION HCCHCC

Score

Demographic base factor --- 0.466

M06.09RA without Rheumatoid factor, multiple sites

40 0.423

E11.21Type 2 diabetes with diabetic nephropathy

18 0.318

E66.01 Morbid obesity 22 0.273

I48.2Atrial fibrillation, chronic

96 0.268

Disease Interaction: 0

HCC Beneficiary RAF: 1.748

Scenario B: 75 year old male

Note: Increased specificity does not always increase the score. See supplemental slides for additional information.

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Beneficiary Risk Profile

You can gain insight into your historic beneficiary risk profile by reviewing your QRUR

• Overall beneficiary risk compared to all patients nation-wide

• Attributed patient beneficiary risk percentile scores

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Sample Rheumatology QRUR Reports

Practice A: 10+ Provider Suburban Rheumatology Practice

Beneficiary Risk 56th Percentile

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Sample Rheumatology QRUR Reports

Practice B: Two Provider Rural Rheumatology Practice

Average Beneficiary Risk 69th Percentile

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• Retrieve beneficiary details from Table 3B of the QRUR

• Group patients into HCC percentile ranges

• Count patients by HCC percentile range then graph results

Creating an HCC Profile For Your Practice

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• It is important to do a baseline assessment of ICD coding to determine if current coding practices support accurate assignment of beneficiary risk

ICD Coding Analysis

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• It is important to do a baseline assessment of ICD coding to determine if current coding practices support accurate assignment of beneficiary risk

ICD Coding Analysis

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Rheum

Related ICD Count %

Yes 64,393 98.48%

No 996 1.52%

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Actions for Rheumatology Practices to Support Appropriate Beneficiary Risk Assignment

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What Do I Need To Do?

• Document and code comorbidities

▪ All new patients

▪ Established patients once per calendar year

• Be specific when documenting and coding for comorbidities

• Review your current QRUR report to see how you performed historically on cost measures

▪ Cost performance

▪ Beneficiary risk percentile

• Conduct a baseline ICD coding analysis

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• It is appropriate to capture and code for a comorbidity when it is

necessary to consider the comorbidity in treating the patient

▪ Disease state

▪ Medications used to manage the comorbid condition

▪ Disease-disease interactions

▪ Impact of planned treatment on the treatment or outcome of the

comorbidity

• Documentation of the comorbidity must reside within the assessment and

plan section of the note in order for the ICD to be assigned

• Do not assign ICDs solely based on past medical history or the problem list

• Be careful about copy/paste/carry-forward for comorbidities. Your

comment pertaining to the comorbidity must reflect current status

Documenting and Coding Comorbidities

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• These examples, if documented in the Assessment and Plan

section of the note , support reporting the comorbidity:

▪ Hypertension – BP 138/82 today. Well controlled on Atenolol 100mg daily.

▪ Hypertension – BP 168/92 today on Atenolol 100mg daily. Return to PCP for BP check.

▪ Chronic Afib – Asymptomatic today, on Warfarin. Managed by Cardiologist.

▪ Morbid obesity – BMI 41.2 today. Referred to PCP for BMI management.

▪ Diabetic neuropathy legs and feet – Managed by PCP, on Lyrica and Metformin.

Documenting and Coding Comorbidities

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• Here are examples of insufficient documentation to report comorbidities on the claim:

• Past medical history: CHF since 2001

• Vitals: BMI 41.1

• Assessment: Diabetes [no further discussion in the note]

Documenting and Coding Comorbidities

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Questions?

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Thank You

Gloria Johnston, MBA, RN, RHITChief Health Information Officer

O: 888-507-2988 x102C: 919-723-7938

E: [email protected]

Lynette Byrnes Chair Administrator Committee

VP RCM Management & Practice Workflows

C: 631.334.6296E: [email protected]

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Supplemental Slides

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Resources

Resource Link

CMS Cost Measures https://www.cms.gov/Medicare/Quality-Payment-Program/Resource-Library/2018-Resources.html

Cost Performance Category Fact Sheet https://www.cms.gov/Medicare/Quality-Payment-Program/Resource-Library/2018-Cost-Performance-Category-Fact-Sheet.pdf

CMS QPP Site https://qpp.cms.gov

Healthcare Update eNewsletters http://healthcareenewsletters.com/articles/20180402.html

Hierarchical condition categories(HCCs) and the shift to value-basedReimbursement [3M whitepaper]

http://multimedia.3m.com/mws/media/1340264O/hccs-and-shift-to-value-based-reimbursement-white-paper.pdf

2017 RAF Score Reference https://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Downloads/Announcement2017.pdf

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Glossary

• Beneficiary Risk – Valuation assigned to each Medicare patient which is reflective of their health status

• HCC – Hierarchical Condition Category

• MIPS – Merit-based Incentive Payment System

• RAF – Risk Adjustment Factor

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RAF Score Reference

33 Source: http://multimedia.3m.com/mws/media/1340264O/hccs-and-shift-to-value-based-reimbursement-white-paper.pdf

• Example from 2017 RAF Score Reference

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Diagnosis Specificity and HCCs

34 Source: http://multimedia.3m.com/mws/media/1340264O/hccs-and-shift-to-value-based-reimbursement-white-paper.pdf

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• HCC 2 Septicemia, Sepsis, Systemic Inflammatory Response Syndrome/Shock

• HCC 42 Peritonitis/Gastrointestinal Perforation/Necrotizing Enterocolitis

• HCC 120 Seizure Disorders and Convulsions

• HCC 122 Non-Traumatic Coma, Brain Compression/Anoxic Damage

• HCC 125 Respirator Dependence/Tracheostomy Status

• HCC 126 Respiratory Arrest

• HCC 127 Cardio-Respiratory Failure and Shock, Including Respiratory Distress Syndromes

• HCC 156 Pulmonary Embolism and Deep Vein Thrombosis

Disease-Disease Interaction HCC’s

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