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Research ArticleOriginal Research

Inadequate Reimbursement for Care Management to Primary Care Offices

Jodi Summers Holtrop, Zhehui Luo and Lynn Alexanders
The Journal of the American Board of Family Medicine March 2015, 28 (2) 271-279; DOI: https://doi.org/10.3122/jabfm.2015.02.140207
Jodi Summers Holtrop
From the Department of Family Medicine, University of Colorado Denver, Aurora, CO (JSH); Department of Epidemiology and Biostatistics, Michigan State University, East Lansing, MI (ZL); Department of Nursing, Sienna Heights University, Adrian, MI (LA).
PhD, MCHES
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Zhehui Luo
From the Department of Family Medicine, University of Colorado Denver, Aurora, CO (JSH); Department of Epidemiology and Biostatistics, Michigan State University, East Lansing, MI (ZL); Department of Nursing, Sienna Heights University, Adrian, MI (LA).
MD, PhD
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Lynn Alexanders
From the Department of Family Medicine, University of Colorado Denver, Aurora, CO (JSH); Department of Epidemiology and Biostatistics, Michigan State University, East Lansing, MI (ZL); Department of Nursing, Sienna Heights University, Adrian, MI (LA).
MSN, RN, FNP
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Article Figures & Data

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    Table 1. Direct Reimbursement Revenue Opportunities for Care Management
    OpportunityDescriptionIssues
    Care manager evaluation and management as an independent provider“Incident to” care of a provider. Allows certain care manager types to bill evaluation and management codes for care manager work in conjunction with the care of a primary care physician
    • Only certain professional types are allowed to use this option, for example, RD and Master of Social Work since they are considered independent providers

    Nurse or other provider visit (99211)Office visit for the evaluation and management of an established patient that may not require the presence of a physician
    • Does not pay that well for a visit that often lasts a long time

    T-codesEncounter-based billing that allows specified allied health professionals phone or in person visits for disease management for patients with specified chronic conditions
    • Only some insurers have and pay on t-codes

    • Often involves patient copay

    • Allows phone or in-person visit

    Medical nutrition therapy (MNT) provided by a registered dietitian (RD)Nutrition counseling provided by an RD
    • Only used by an RD

    • Limited number of visits (3 hours total first year)

    • Must have specific diagnosis (diabetes or chronic kidney disease)

    Per member per month fee paymentUsually paid for an entire population, set amount paid to the practice whether care management is given or not
    • May be difficult to correctly attribute the amount needed for the practice population; some arrangements are based on performance metrics achieved

    Medicare wellnessCompletion of wellness visit as specified by Medicare
    • Must be enrolled in Medicare anytime in first year

    • Visit requirements for assessment and prevention plan

    • RD, registered dietician.

    • View popup
    Table 2. Care Management Direct Reimbursement Revenue Billed and Collected
    OpportunityCode and Per-Unit RevenueBilledCollected
    Care manager evaluation and management billingvariable$66,393$38,276.01 (58%)
    Allied professional visit99211, $35$25,168$15,186.15 (60%)
    T-codes1015, $70
    1019, $35 per 15 minutes with a maximum of 2
    $37,158$34,413.60 (93%)
    Registered dietitian medical nutrition therapy97802, $35
    97803, $32
    $3,420$2,287.15 (67%)
    Per member per month fee paymentNot applicable$0$0
    Medicare wellness visitG0402, $191; G0438, $208; G0439, $137$0$0
    Total$132,139$90,162.91 (68%)
    • View popup
    Table 3. Care Management Direct Reimbursement by Care Manager Type
    Care Manager TypeNurse (LPN and RN) 2.45 Full-Time Equivalent (FTE)Social Work 0.6 FTERegistered Dietitian 0.9 FTE
    Care manager evaluation and management0$5,870.16$32,405.85
    Allied professional visit$12,662.26$1,790.28$733.61
    T-codes$16,420.06$2,268.39$15,725.15
    Medical nutrition therapy00$2,287.15
    Total revenue collected$29,082.32$9,928.83$51,151.76
    Per FTE$11,870.33$16,549.72$56,835.29
    Per patient enrolled$69.24$84.86$302.67
    • LPN, licensed practical nurse; RN, registered nurse; FTE, full-time equivalent.

    • View popup
    Table 4. Issues Due to Cost of Care Management
    IssueIllustrations
    Patients not willing to pay for care manager servicesCare manager: “Well, all of a sudden she got a bill for like a $120 … and that was the end of that. She told me that she would come back and see me when she got that bill paid off, but I don't look for her to call me up. … so that was one of my success stories you know that I was really kind of clicking along with her, and I was seeing regularly.”
    Care manager: “And frankly I don't think that patients yet get that a nurse visit is worth any money. Now you and I know that a nurse visit can be packed with a lot more information, support, training, motivation than a provider visit, but the patients don't get that. They're not used to thinking in terms of paying a nurse for anything, so they don't value it.”
    Physicians not referring to care managers due to concern about payment from the patientInterviewer: “So you were getting actual feedback from the patient saying I can't afford this?”
    Physician: “Or a phone call where they called the front staff and they said patient cancelled visit due to cost. Yeah so I mean even if we have like 2 or 3 insurances that are on board, and say we want to get these people all the help they need because they cost us less money when their diabetes is well-controlled. Then we'll say fine.”
    Receptionist: “I think [the patient] saw [care manager], and we billed for the visit. It was like $212 or $230 and [the patient] ended up getting the bill, and he was really upset about it … so I think that may have affected referrals. The [providers] are hesitant to refer because they really, our patient population down here isn't, you know we have a lot of Medicaid, a lot of indigent patients. So they're really hesitant to refer if they think the patient's going to get stuck with the bill.”
    Problems of uncertainty about payment and what can be billedPhysician: “First thing they want to know though is how much is this going to cost?” Interviewer: “And then what do you say?” Physician: “I don't always know because I don't know what kind of copay they're going to have or what is covered. What isn't covered? And I can tell them I don't know, but my front desk will try to help find that out.”
    Care manager: “I think that the whole money thing needs to be a little more clearcut from the beginning. A patient needs to know up front whether there's going to be a charge, how much of a charge there's going to be. When they're expected to pay it? In this state of the economy, people don't like surprises, and when the front desk staff says well we'll have to submit it and see what they pay. People don't want to know that.”
    Receptionist: “Who qualifies for what? What insurance pays for what? What codes get done? What does [the care manager] bill? How does she bill it? If she doesn't bill it, is the patient going to get this? Do they have to pay a copay? Can they be seen 2 visits in 1 day? That's a disaster. If they have a blood draw the same day as [the care manager], [the care manager's] the rendering, which she's not an MD, so she can't order blood. She can't order micro albumin, so then it has to have 2 encounters which link together, and then it has to be processed backwards, and it's a nightmare.”
    • View popup
    Table 5. Organizational Revenue Opportunities Potentially Attributable to Care Management
    OpportunityDescriptionIssues
    Per-unit quality incentives for service provisionMoney per person for completing testing or services recommended, eg, $10 per member for each health plan member who has diabetes and has annual eye exam
    • Patients may not participate in services for reasons unrelated to the primary care physician or the care management services are not effective in encouraging this participation

    • Requires ability to capture population-based data and report

    • Only some insurers do this

    Per-unit quality incentives for meeting clinical benchmarksMoney per person for meeting clinical benchmarks, eg, $50 per member for each health plan member who has blood pressure <140/80 at last physician visit of the year
    • Requires patient to make health behavior changes, and they may be unable or unwilling to do so or the care management services may be ineffective in encouraging these changes

    • Requires ability to capture population-based data and report

    • Only some insurers do this

    Patient-centered medical home designation10% uplift in evaluation and management billing for all services if designated
    • Only occurs yearly

    • Designation line conveys “in” or “out” of designation and difficult to attribute to care management services only to meet designation

    • Requires up-front investment

    • Only one insurer pays for this at present

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The Journal of the American Board of Family     Medicine: 28 (2)
The Journal of the American Board of Family Medicine
Vol. 28, Issue 2
March-April 2015
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Inadequate Reimbursement for Care Management to Primary Care Offices
Jodi Summers Holtrop, Zhehui Luo, Lynn Alexanders
The Journal of the American Board of Family Medicine Mar 2015, 28 (2) 271-279; DOI: 10.3122/jabfm.2015.02.140207

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Inadequate Reimbursement for Care Management to Primary Care Offices
Jodi Summers Holtrop, Zhehui Luo, Lynn Alexanders
The Journal of the American Board of Family Medicine Mar 2015, 28 (2) 271-279; DOI: 10.3122/jabfm.2015.02.140207
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