Billing and Claiming Operational Policy - Voided Claims

BILLING AND Claiming Operational policy
Title: Voided Claims

  1. Background and Scope

Public Consulting Group (PCG), hereinafter referred to as the SFA, has billing and claiming criteria that requires the following:

    1. Processing of voided claims initiated in NYEIS
    2. Processing of voided claims initiated in KIDS
    3. Processing of voided claims initiated by providers no longer receiving early intervention Escrow payments
    4. Recoupment of all resulting overpayment made by Escrow
    5. Sending outbound voided claims via an outbound 837 file or paper (whichever appropriate) to all applicable third parties (commercial insurance/payer and Medicaid).

 

  1. Purpose

The purpose of this policy is to outline the appropriate claiming and billing activities when a voided claim is received.

 

  1. Policy Statement

As required by the Department the SFA accepts and processes voids created through the State’s source system. 

·         The policy and procedure for managing Voids from KIDS will be established separately.

Should claims be overpaid as a result of a voided claim, the overpayment amount is recouped by the overpaying party, which could be Escrow, Commercial Payer, Medicaid and/or BEI. Unless part of a void project, claims overpaid by Escrow shall be deducted from the provider’s next available Escrow payment. Claims overpaid as a result of a void project shall be recouped in a lump sum or over a period of 10 weeks.

·         The policy and procedure for managing negative balances for providers who no longer provide early intervention services and therefore will not have claims to offset overpayments will be established separately.

 

 

  1. Definitions

Q1 2015 VOIDS Project: A recoupment process of overpayments for provider-generated voids put in to the EI system from 4/1/2013 to 12/31/2014

 

BEI: Bureau of Early Intervention

 

SFA: State Fiscal Agent

 

Claim: An itemized statement of services and costs from an early intervention provider submitted to the SFA for payment

 

Original Claim: Initial submission of a claim and resubmission of a previously voided claim

 

Voided Claim: A claim meant to nullify an original claim

 

Recoup/Recoupment: Deduction of overpayments from the provider’s future payment by the overpaying party

 

TPL: Third Party Liability(ies), this includes commercial insurance/payers and Medicaid

 

Inactive Providers: Providers who no longer provide early intervention services and therefore will not have claim payments to offset overpayments

 

  1. NYEIS Procedure

All data files are typically received from the DOH every Monday. In the event Monday is a holiday, the files are received on Tuesday. The claims are submitted in two separate files, one consisting of only Original Claims and the other consisting of only Voided Claims. Both files are uploaded to the SFA’s claim system the same day of receipt.

 

Original claims are loaded to the claiming system prior to loading the voided claims.

 

Voids are processed immediately for claims that fall into one of the following categories:

1.     Claim has not been sent to primary TPL

2.     Claim has not been sent to secondary TPL

3.     Claim has not received a response from third party payer, including Medicaid within 25 days of submitting claim to the TPL

4.     Claim has been considered by all TPL and is pending Escrow payment

5.     Claim has been considered by all TPL and Escrow payment has been issued

6.     Claim is in a workable queue

 

Voids are not processed for claims that are pending a response from a TPL within the first 25 days after claim submission.

 

Voided Claim Process when only Medicaid and Escrow are involved

1.     Voided claims are loaded to the SFA claim system

2.     Using the NYEIS claim id field, the system locates the original claim received.

·      In the absence of an original claim to void, the void transaction is manually reviewed by the SFA to confirm there is no claim to void. After confirmation, the void is closed in EIBilling.com by the SFA.

3.     The transaction billed amount, other paid amount(s) and escrow paid amounts are nullified.

4.     The status of the claim is updated to “Voided” and can be viewed via existing on-line claim reports within the EIBilling.

5.     When the void is processed, the system recognizes the void and simultaneously creates a void transaction for any Medicaid activity that may have occurred on the claim.

6.     837I outbound claim files are created and submitted to Medicaid if applicable.

7.     The system deducts any escrow payment made on the voided claim from future payments made to the associated billing agency.

8.     The 835I response files acknowledging the processing of the void

 

Example:

Original Claim

DOS                       Procedure         Billed                Medicaid           Escrow

5/1/14                     90802               $75                   $75                   $0

 

Voided Claim

DOS                       Procedure         Billed                Medicaid           Escrow

5/1/14                     90802               ($75)                 ($75)                 ($0)

 

In this example, the claim has been voided. A void transaction is issued to Medicaid. Medicaid will recoup from the provider the $75 they paid.

 

In the event that there is no Medicaid and payment was issued from Escrow only, the claim is voided and the overpaid amount is deducted from the billing agency’s future escrow payments.

 

Example:

Original Claim

DOS                       Procedure         Billed                Escrow Paid

5/1/14                     90802               $75                   $75

 

Voided Claim

DOS                       Procedure         Billed                Escrow Paid

5/1/14                     90802               ($75)                 ($75)

 

In this example, the claim has been voided. Future escrow benefits to the billing agency shall be reduced by $75.

 

F.    Voided Claim Process when Commercial Payers are involved

1.     Voided claims are loaded to the SFA claim system.

2.     Using the NYEIS claim id field, the system locates the original claim received.

·      In the absence of an original claim to void, the void transaction is manually reviewed by the SFA to confirm there is no claim to void. After confirmation, the void is closed in EIBilling.com by the SFA.

3.     The transaction billed amount, other paid amount(s) and escrow paid amounts are nullified.

4.     The status of the claim is updated to “Voided” and can be viewed via existing on-line claim reports within the EIBilling.

5.     When the void is processed, the system recognizes the void and simultaneously creates a void transaction for any commercial payer and Medicaid activity that may have occurred on the claim.

6.     837P outbound files are created and submitted to all applicable payers for original claims with a commercial payer claim ID.

7.     Voids associated with original claims that do not have a commercial payer claim ID are managed by the SFA through a manual queue. Note: Currently, the SFA, providers, and electronic remit files from payers do not currently update the payer claim IDs on the original claims. Should this system enhancement occur, the SFA will have the ability to increase the electronic void transactions with payers which will in turn expedite the void process.

8.     837I outbound files are created and submitted to Medicaid (if applicable).

9.     For voids initiated via an 837, 835 response files are received from the commercial payers and Medicaid acknowledging receipt of the void.

10.  For voids initiated manually by the SFA, the voids are manually processed directly with the commercial payers, using the SFA system.

Example:

            Original Claim

            DOS                 Procedure         Billed                BCBS Paid       Escrow Paid

            5/1/14               90802               $75                   $50                   $25

           

            Voided Claim

DOS                 Procedure         Billed                BCBS Paid       Escrow Paid

            5/1/14               90802               ($75)                 ($50)                 ($25)

 

In this example, the claim has been voided. A void transaction is issued to BCBS and future benefits to the billing provider/agency shall be reduced by $25. BCBS will also recoup from the provider the $50 they paid.

 

  1. KIDS - PROCEDURE TBD

 

  1. INACTIVE PROVIDERS TBD

 

  1. RETRO VOIDED CLAIMS – PROJECT

Since there is an inventory of voids not processed from 4/1/2013 to 12/31/14, the SFA will with the exception of claims involving commercial payers which escrow will be always be recouped at 100%, shall notify via email the impacted providers of the amounts that will be voided and when they will be voided. The recoupment of the resulting escrow overpayments will be completed one of two ways:

 

Option 1: Unless contacted by the provider to select Option 2, Option 1 will be the default recoupment method.

 

All voids will be processed and recouped at 100% from the provider’s subsequent escrow payments until the overpayment is recouped.

 

For example:

            $1000 total amount to be recouped

                        $1000 next escrow payment scheduled

$1000 will be deducted from the next escrow payment

OR

$1000 total amount to be recouped

                        $500 next escrow payment scheduled

$500 will be deducted from the next escrow payment and the remaining $500 will be recouped from the following escrow payments

 

Option 2: This option will be available to providers whose impacted claims do not involve commercial payers and who inform the SFA in writing within 10 business days of the SFA notifying the provider of the overpayment.

 

The amount of the provider’s overpayment will be divided among 10 weeks and, processing by claim date of service, voids will be processed within the SFA system as close to the weekly amount without splitting claims.

 

            For example:

            $1000 total amount to be recouped

                        $100 targeted to be recouped each week

                        There are 16 claims to void at $62.50 per claim

                        Two claims will be voided per week totaling $125

                       

  1. Down Stream Processes

All down-stream processes shall take the voided claims into consideration. These include, but not limited to:

·         1099: voids are reflective in the year that they are processed

·         Reports

·         Data Warehouse

·         State Voucher

 

K.    Report

A monthly “Closed Void” report will be created that will identify all voids that were received but could not be processed because the SFA did not receive the original claim associated with the void.

 

L.    Reference sources

N/A

 

  1. Attachments

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