Tips for avoiding hospice election form denials

Tips for avoiding hospice election form denials

What is a hospice election statement?

A hospice election statement is a condition of payment under Medicare. For a patient to be eligible to receive hospice services under the Medicare benefit, the patient or the patient’s authorized representative must elect hospice care by signing a hospice election statement. While Medicare provides a model of this form, each hospice agency is free to design their own hospice election form. However, there are some required elements, as specified by Medicare. To find out more details about the hospice election statement, read more at our blog post here: What is the Hospice Election Statement requirement?

Why is the hospice election statement important?

An invalid hospice election statement can impact payment for the entire patient hospice stay.  There has been a recent rise in denials related to the election form.  As such, it is important for hospice agencies to ensure that all required elements are present on the form and that the forms are completed accurately.  

What are are tips for avoiding common hospice election form denials?

  • Tip 1: Use the model election form provided by CMS or stick to something very close to it. This will ensure that no critical elements are missed.  CMS has provided a model hospice election form. Hospice agencies are not required to use this model form; they may design their own election form. 
  • Tip 2: Focus on the purpose of the document and stick with the required elements,  Over the years, hospices have had a tendency to add to their election forms so that it has been moving away from its original legal intent. While it is good to provide patients with additional information, the election form may not be the appropriate place to provide this information. By adding information to the election statement, there is a risk that upon audit contractors may find fault with aspects of the document that are not part of Medicare’s required elements of the election statement. In other situations, contractors missed the election statement since it was buried in a such a long document. 
  • Tip 3: build in redundancy in the elements of the elements of the hospice election statement.  Use the admission material to build in redundancy of the required elements of the hospice election statement. That is, the required elements can be included in the election statement but some of the election statements which, for example, are acknowledgement statements, can be included in other admission material that is provided to the patient on admission. This could be helpful to defend potential claim denials or invalid denials in case of audit. 
  • Tip 4: Reduce the possibility of errors in completing the forms, by stressing the importance of the forms, creating standardized processes, and leveraging technology.  Reduce human error by ensuring that the individuals responsible for completing the documents understand their importance. Human error is the biggest problem with properly completing the hospice election statement form. Create processes to double check the forms – in real time. Leverage technology, where possible, to eliminate the possibility of errors or to detect errors. 

Where can you find more information?

What is the Hospice Election Statement requirement?

What is the Hospice Election Statement requirement?

To receive hospice services under the Medicare benefit, a patient or his authorized representative must elect hospice care. 

If the patient or authorized representative elects to receive hospice care, the patient must file an election statement with a specific hospice agency. The election statement serves to indicate that the patient is choosing hospice care. 

The election statement and the election statement addendum are conditions for payment.

What is the structure of a hospice election form?

Every hospice agency can design and create their own hospice election statement form although Medicare has published a model form that can be used by hospice agencies Model Hospice Election Statement.  The election statement must include all of the following elements:

  • Name of hospice agency that will be providing the services
  • Acknowledge that nature of hospice services have been explained to the patient including, in particular, the palliative rather than curative nature of care
  • Acknowledge patient understands that by electing hospice care, some Medicare services are waived 
  • For hospice elections beginning on or after October 1, 2020, a statement that although it would be rare, there could be some necessary items, drugs, or services that may not be covered by hospice because these items are deemed to be unrelated to the terminal illness or related conditions
  • The effective date of the election. This may be the first day of hospice care of a later day. But it cannot be a date that precedes the date that the election statement was signed by the patient or their authorized representative. 
  • The individual who is serving as the patient’s attending physician, if any.
  • Acknowledgement that the identified attending physician was the choice of the patient or authorized representative
  • Signature of patient or authorized representative

There are some additional requirements for the election statements for elections beginning dated October 1, 2020 or later. These election statements must also include : 

  • Information on patient cost sharing for hospice services
  • Notification of the patient or authorized representative right to receive an addendum to the election statement. The addendum is only required to be furnished to beneficiaries, their authorized representatives, non-hospice providers, or Medicare contractors who request this information. This addendum includes a list and rationale for the items, drugs, or services that are not covered by hospice services because the hospice has deemed these to be unrelated to the terminal illness and related conditions. 
  • Information on the Beneficiary and Family Centered Care Quality Improvement Organization (Beneficiary and Family Centered Care (BFCC) ), including that immediate advocacy is available through this organization if the patient disagrees with the hospice’s determination regarding non-covered services

Right to Request Patient Notification of Non-Covered Items, Services, And Drugs

At any time, a patient may request, in writing, the Patient Notification of Hospice Non-Covered Items, Services, and Drugs. addendum to the election statement. 

The hospice agency must provide the notification within five days, if this request is made on the start of care date. 

If the request is made during the course of hospice care, the hospice agency must provide the requested notification within 72 hours.

If the patient (or authorized representative) requests the addendum at the start of care but dies with five days, the hospice is deemed to have met its requirement and is not required to provide the addendum.

When would a hospice update the addendum?

The addendum lists the patient’s diagnoses and conditions that are present upon hospice admission and the items, services, and drugs that are not covered by the hospice because they are deemed to be unrelated to the terminal illness and related conditions.

During the course of hospice care, the addendum may require update, for example, if the patient’s plan of care is updated.

Changes to the addendum will need to be signed by the patient or his authorized representative and stored in the patient’s medical record with the hospice agency. 

Where can you find more information on the election statement

Hospice Acronym Alphabet Soup

Are you confused by the Acronym Alphabet Soup?

Does the never ending list of acronyms used in the hospice and healthcare industry leave you confused?

Are you worried that you may confuse CMN with CMP?

To help sort out the confusion, we add here links to lists of acronyms:

Use these acronym listings to help clarify things when you inevitably are faced with acronym confusion!

Timely filing of Notice of Election

A hospice must file a Notice of Election (NOE) within five days after the beneficiary’s hospice admission date.

What is considered timely filing of an NOE?

For an NOE to be considered timely:

  • The NOE must have a receipt date within five calendar days after the hospice admission date
  • The NOE must process and finalize in status/location P B9997

For example: 

  • Patient admitted on 5/8
  • NOE submitted on 5/13
  • NOE processed on 5/27

To be timely, the NOE must have a receipt date of 5/13 and the NOE must subsequently process (P B9997)

However, if the NOE is not filed timely, Medicare will not cover and pay for the days of hospice care from the date that the patient is admitted until the date the NOE is submitted and accepted. For example:

  • Admission date: 5/1
  • NOE receipt date 5/10
  • NOE processed 5/18

Non covered days: 5/1 through 5/9 (one day before NOE receipt date)

  • Admission date 5/1
  • NOE receipt date 5/10
  • NOE processed 5/18

Non covered days: 5/1 through 5/9 (one day before NOE receipt date)

What happens if a hospice must resubmit an NOE due to errors?

Sometimes an NOE is submitted but it is not accepted due to a need for corrections. The NOE is “RTPd” (Returned to Provider) and is then resubmitted by the hospice. The date that the NOE is resubmitted by the hospice is considered the submission date.

How should a hospice file a claim if the NOE was filed late?

If a hospice has a late NOE, the claim must be filed showing the late filed NOE. It must also show occurrence code OSC 77, indicating the non covered dates. The claim will have two rows, one row for the non-covered days and one row for the covered days.

See Submitting Claims for Untimely NOEs for more details on billing when NOEs are untimely. 

For more information on submitting claims, read some of our posts here Hospice Keys Billing Blogs

What is a MAC?

What is a MAC?

A Medicare Administrative Contractor (MAC) is a private health care insurer that has been awarded a geographic jurisdiction to process Medicare Part A and Part B medical claims for Fee For Service (FFS) beneficiaries.

CMS relies on these contractors to serve as the primary operational contact between the Medicare FFS program and the health providers enrolled in the program.

MACs are multi-state regional contractors who are responsible for administering Part A and Part B claims.

What types of MACs are there?

There are two types of MACs: Part A/B MACs and DME MACs. 

Hospice claims are administered by Part A/B MACs. Part A/B MACs process about 95% of all FFS claims. 

There are 12 Part A/B MACs. 

Four of the MACs specialize in processing claims for hospice and home health providers

 

What geographic areas do each of the hospice and home health MACs cover?

The following map shows the geographic regions that each of the hospice MACs is responsible for administering.

What activities do MACs perform?

MACS perform a number of activities including:

  • Provider Enrollment
  • Claims processing, payment, and payment notices
  • Provider customer service (but not beneficiary customer service)
  • Audit provider cost reports
  • Respond to provider inquiries
  • Audit payments and review medical records

How are MACs measured and how well do they perform?

Each year, CMS evaluates MAC performance against specific metrics in eleven functional areas. MAC performance quality has been consistently improving since CMS began measuring MAC performance. Average MAC performance has increased from 62% to 93% since CMS began measuring MAC performance.

Print ‘n take hospice keys

  • Seeking to contact your MAC? Here’s their contact information
hospiceKeys - CMS MAC contact


Download

  • A map of MAC regional jurisdictions
hospiceKeys - CMS MAC


Download

Where can you find more information?

This PowerPoint from Medicare Learning Network provides more helpful information about MACs: MLN MAC PowerPoint