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September 2019

Auditing will begin Sept. 1 for Medicare Plus Blue’s reimbursed diagnosis-related group claims

HMS® will begin auditing Medicare Plus BlueSM PPO’s reimbursed diagnosis-related group claims for clinical and coding validation, starting Sept. 1, 2019. HMS is an independent company working for Blue Cross Blue Shield of Michigan.

The audits will review medical records to ensure claims were billed in accordance with coding guidelines, and diagnoses were supported by documentation in the medical record.

Be ready to share medical charts for review. After an audit, HMS will send the findings and information on how you can ask for an appeal, if necessary.

The purpose of the clinical audit of the diagnosis-related group, or DRG, is to:

  • Confirm compliance with national coding guidelines.
  • Ensure documentation supports diagnoses and procedures reported.
  • Detect, prevent and correct waste and abuse.
  • Facilitate accurate claim payments.

HMS will be holding webinars for providers with information on the overall DRG clinical validation process and helpful tips. Schedules will be provided in a future web-DENIS message.

DRG clinical validation audits take a three-phase approach. See the scope of each phase and the data period for each phase in the chart below.

Phase 1:
Sept. 1 to Nov. 30, 2019
Providers receive audit finding letters, but no recoupment will come from Blue Cross. Audits are educational only. Data period:
Dates of service are Jan. 1 to April 30, 2019.
Phase 2:
Dec. 1, 2019, to Feb. 28, 2020
Recoupment begins on claims with DRG findings. Providers won’t be charged for appeals on claims. Data period:
Dates of service are May 1 to Nov. 30, 2019.
Phase 3:
March 1, 2020
DRG clinical validation audits are fully implemented. Providers will follow existing audit and appeal process. Recoupment occurs. Claims selected from claims not previously selected within the proper audit review period.

Questions?
During an audit, call 1-866-875-1749 to speak with an HMS representative.

No portion of this publication may be copied without the express written permission of Blue Cross Blue Shield of Michigan, except that BCBSM participating health care providers may make copies for their personal use. In no event may any portion of this publication be copied or reprinted and used for commercial purposes by any party other than BCBSM.

*CPT codes, descriptions and two-digit numeric modifiers only are copyright 2018 American Medical Association. All rights reserved.