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Medical reimbursement insurance

In 1992, the Resource Based Relative Value System (RBRVS) began to replace the long established usual and customary methodology for determining reimbursement for physicians by the Medicare program. RBRVS was a radical departure from the previous payment methodology. An integral part of this new system was the introduction of new Medical reimbursement insurance. Generally, modifiers serve to bypass payment edits designed to deny payments for services. Leaving off a needed modifier will surely result in denial of payment. Proper use of Medical reimbursement insurances is important, as a case has been made by government auditors that the act of adding a modifier is willful and is designed to force payment when payment normally would not be made.

The Medicare program reimburses physicians only for services which are medically necessary and that are assumed to be properly documented. The Medicare Carrier's Manual describes the proper use of most Medical reimbursement insurance, and they are sometimes defined differently there than in the Current Procedural Terminology Manual (CPT) published by the American Medical Association.

Most commercial carriers have no published payment policies in regards to modifier usage, nor do they follow the convention of the Medical reimbursement insurance. Proper payment often requires costly appeals and claims resubmissions, severely eroding the perceived value of their published fee schedules.

The physician may need to indicate that on the day a procedure or service identified by a CPT code was performed, the patient's condition required a significant, separately identifiable Medical reimbursement insurance service above and beyond the other service provided or beyond the usual preoperative and postoperative care associated with the procedure that was performed. The Medical reimbursement insurance service may be prompted by the symptom or condition for which the procedure and/or service was provided. As such, different diagnoses are not required for reporting of the Medical reimbursement insurance services on the same date. This circumstance may be reported by adding the modifier '-25' to the appropriate level of Medical reimbursement insurance service, or the separate five digit modifier 09925 may be used. Note: This modifier is not used to report an E/M service that resulted in a decision to perform surgery.