Anesthesia Billing for CRNAs
When a CRNA is employed by the hospital and a separate anesthesia group is medically directing, reimbursement is shared in some cases, and non-existent in others – depending on several factors. First, the method of reporting claims. As previously mentioned, not all carriers recognize split claims or the HCPCS modifiers, and expect to receive only one bill for anesthesia services. Unless the hospital billing department and the anesthesia group have a previous arrangement regarding the billing of anesthesia services, one should expect the “quickest claim filed” rule to come into play. In this scenario, the first claim processed receives payment while the second claim is typically rejected, ignored, or denied as a “duplicate service”.
The second issue is that some carriers, such as Ohio Medicaid, will not pay separately for hospital employed CRNAs. According to the January, 2005 Ohio Job and Family Service Physician Handbook, “Services of a hospital employed CRNA/AA are included in the facility.” In some cases, Medicare offers small hospitals that employ only one CRNA a “pass through” billing option. When this occurs, the hospital and/or CRNA receiving pass-through funding is prohibited from billing a Medicare Part B Carrier for any anesthesia services furnished to patients of that hospital.
It is also important to realize there is a distinct reimbursement difference between “supervision” and “medical direction.” While the terms are often used interchangeably by physicians, nurses, and office staff, they have two entirely different meanings. Medical direction (the physician has met all the requirements, if applicable) effectively pays 100% of the claim. Supervision, a claim that is filed with an “AD” modifier, indicates that the anesthesiologist was either involved with more than four concurrent rooms or cases (regardless of type of insurance) or failed to meet the medical direction steps in some states. Medicare penalizes supervised claims by paying a maximum of four (4) units per case, providing the anesthesiologist was present for induction. No time is allowed for any of the concurrent cases. You may be surprised to learn that some carriers pay absolutely nothing when an AD modifier is reported.
The AANA estimates that 80 percent of CRNAs work as partners in a care team environment with anesthesiologists. It is important that anesthesia billers have a clear understanding of how to bill for the services of CRNAs in their own state and recognize that not all payers require two claims. Obtain state guidelines for each major carrier – Medicare, Medicaid, Blue Cross/Blue Shield, Work Comp and update annually. Remember – the only rules for reporting CRNA services to private insurance companies are the ones that you agree to in your contract.
QZ: (CRNA modifier – pays 100%) non-medically directed CRNA services; CRNA is either working without medical direction or criteria was not fully met.
QX: (CRNA modifier – pays 50%) Medically directed CRNA services; the CRNA is being medically directed by an MD, who has met all required steps for medical direction.
QK: (physician modifier { used in conjunction with QX modifier} – pays 50%) Medical direction of two, three or four concurrent procedures
QY: (physician modifier { used in conjunction with QX modifier} – pays 50%) MD is medically directing one CRNA
AD: (physician modifier { used in conjunction with QX modifier} – pays maximum of four units or zero) Medical supervision by a physician of more than four concurrent procedures
Q6: (physician modifier- doesn’t affect payment) Service furnished by locum tenens “physician”
Source: HCPCS, 2005.
Payment for CRNA Pass-Through Services
If a CAH that meets the criteria for a pass-through exemption is interested in selecting the Method II option, it can choose this option for all outpatient professionals except the CRNA’s and still retain the approved CRNAs exemption for both inpatient and outpatient professional services of CRNAs. The CAH, with an approved exemption, can choose to give up its exemption for both inpatient and outpatient professional services of CRNAs in order to include its CRNA outpatient professional services along with those of all other professional services under the Method II option. By choosing to include the CRNAs under the Method II for outpatient services, it loses its CRNA pass-through exemption for not only the outpatient CRNA services, but also the inpatient CRNA services. In this case the CAH would have to bill the A/B MAC (B) for the CRNA inpatient professional services.
All A/B MAC (A) payments for CRNA services are subject to cost settlement.
If a CAH that meets the criteria for a pass-through exemption is not interested in selecting the Method II option, the CAH can still receive the CRNA pass-through under the Standard Option (Method I). Below are the billing requirements for Method
Provider Billing Requirements for Method I
TOBs = 85X and 11X
Revenue Code 037X for CRNA technical services
Revenue Code 0964 for Professional services
HCPCS Code for services the CRNA is legally authorized to perform in the state in which the services are furnished
Units = Anesthesia (if applicable)
Reimbursement
Revenue Code 37X, CRNA technical service = Cost Reimbursement
Revenue Code 0964, CRNA professional service = Cost Reimbursement for both inpatient and outpatient
Deductible and coinsurance apply.
Note that effective January 1, 2013, qualifying rural hospitals and CAHs are eligible to receive CRNA pass-through payments for services that the CRNA is legally authorized to perform in the state in which the services are furnished.
Payment for Anesthesia Services by a CRNA (Method II CAH only)
Provider Billing Requirements for Method II Receiving the CRNA Pass-Through
TOB = 85X
Revenue Code 037X = CRNA technical service
Revenue Code 0964 = CRNA professional service
HCPCS Code = for services the CRNA is legally authorized to perform in the state in which the services are furnished
Units = Anesthesia (if applicable)
Reimbursement
Revenue Code 037X, CRNA technical service = cost reimbursement
Revenue Code 0964, CRNA professional service = cost reimbursement
Deductible and coinsurance apply.
Provider Billing Requirements for Method II CRNA – Gave up Pass-Through Exemption (or never had exemption)
TOB = 85X
Revenue Code = 037X for CRNA technical service
Revenue Code = 0964 for CRNA professional service
Reimbursement – For dates of service on or after July 1, 2007
Revenue Code 037X for CRNA technical service = cost reimbursement
Revenue Code 0964 for CRNA professional service = based on 100 percent of the allowed amount when not medically directed or
50 percent of the allowed amount when medically directed.
Providers bill a “QZ” modifier for non-medically directed CRNA services. Deductible and coinsurance apply.
How to calculate payment for anesthesia claims based on the formula – For dates of service on or after July 1, 2007
Identify anesthesia claims by HCPCS code range from 00100 through 01999
Non-medically directed CRNA
(Sum of base units plus time (anesthesia time divided by 15)) times conversion factor minus (deductible and coinsurance) times 1.15
Medically directed CRNA
(Sum of base units plus time (anesthesia time divided by 15)) times conversion factor times medically directed reduction (50 %) minus (deductible and coinsurance) times 1.15
Reimbursement – For dates of service prior to July 1, 2007
Revenue Code 037X for CRNA technical service = cost reimbursement
Revenue Code 0964 for CRNA professional service = 115% times 80% (not medically directed) or 115% times 50% (medically directed) of allowed amount (Use Anesthesia formula) for outpatient CRNA professional services.
Providers a “QZ” modifier for non-medically directed CRNA services. Deductible and coinsurance apply.
How to calculate payment for anesthesia claims based on the formula – For dates of service prior to July 1, 2007
Add the anesthesia code base unit and time units. The time units are calculated by dividing actual anesthesia time (Units field on the UB92) by 15. Multiply the sum of base and time units by the locality specific anesthesia conversion factor (file name below).
The Medicare program pays the CRNA 80% of this allowable charge when not medically directed. Deductible and coinsurance apply.
If the CRNA is medically directed, pay 50% of the allowable charge. Deductible and coinsurance apply.
Base Formula
Number of minutes divided by 15, plus the base units = Sum of base units and time Sum of base units and time times the conversion factor = allowed amount
Source
Number of minutes = Number of units on the claim (Units field of the UB04) Base Units = Anesthesia HCPCS
Conversion Factor = File – MU00.@BF12390.MPFS.CYXX.ANES.V1023
Note that effective January 1, 2013, qualifying rural hospitals and CAHs are eligible to receive CRNA pass-through payments for services that the CRNA is legally authorized to perform in the state in which the services are furnished.
CAH Outpatient Services Part B Deductible and Coinsurance
Payment for outpatient services of a CAH is subject to applicable Medicare Part B deductible and coinsurance amounts unless waived based on statute.
For information on the application of deductible and coinsurance for screening and preventive services, see chapter 18 of Pub. 100-04, Medicare Claims Processing Manual.
Payments for clinical diagnostic laboratory tests furnished to CAH outpatients on or after November 29, 1999, are made on a reasonable cost basis with no beneficiary cost-sharing – no coinsurance, deductible, copayment, or any other cost-sharing.
General Guidelines
When filing claims through the Medicare program and the CRNA is employed by the anesthesiologists, reimbursement for “medically directed” by an anesthesiologist and “non-medically directed” are revenue neutral – meaning reimbursement is equal to the same amount. For example, when medical direction modifiers “QK and QX” are reported (see table below), reimbursement is divided equally (50% and 50%) between the physician and the CRNA. When a CRNA is non-medically directed, full reimbursement (100%) is paid. It is a misconception that an MD/CRNA care team must report Medicare modifiers to all insurance companies, and doing so may cause reimbursement problems. Not all carriers recognize separate claims or Healthcare Common Procedure Coding System (HCPCS) modifiers!
Many private insurers expect CRNA services to be billed under the anesthesiologist, on one line of the claim form. Reporting separately may result in a claim denial or improper payment. An additional confusion, since many practices generally equally split the full amount of the bill between the physician and CRNA, is that the claim is viewed as a duplicate. Although Medicare pays the CRNA and anesthesiologist equal shares, other carriers may not pay the separate charge, leaving your patient with a large out-of-pocket expense.
One way to avoid confusion when you must bill two claims, i.e. to collect a Medicare secondary balance, is to charge different amounts for the physician and CRNA. For example, in our practice we assigned 70% of the conversion factor to the physician and 30% to the CRNA; however, your practice may choose to assign a different value. Assigning different values when claims must be split helps identify and separate the services of the physician and the CRNA, as well as decrease odds the claims will be mistaken as duplicate. It is important to remember, however, not to assign a CRNA value so low that the submitted charge is less than the allowed or expected amount!
How can you tell when to send separate claims? One clue is to determine whether a separate provider number is needed, such as Tricare, which does credential CRNAs. To receive payment from carriers that require two claims, the CRNA must have a valid provider number and have reassigned their benefits. It is important to ensure the provider number is valid before the CRNA begins working. Many practices lose revenue by their inability to bill certain insurances, such as Medicare and Medicaid, for a CRNA whose number is not yet in place, such as temporary providers. Although short-term contract or temporary CRNAs are called “locum tenens,” the locum tenens modifier is not intended to be used to bill for their services.
In most instances, CRNAs are prohibited from using the Q6 modifier to receive payment, since by definition the modifier indicates the service was provided by a “physician.” However, as to be expected in the anesthesia world of billing, there are no “absolutes”! Georgia Medicare published policy in September of 1999, which specifically allows use of the Q6 modifier by CRNAs. Keep in mind, though that without written permission this is generally not an acceptable use of the Q6 modifier.
