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ASA NEWSLETTER
 
 
October 1999
Volume 63
Number 10
 
PRACTICE MANAGEMENT

'Bundling' Invasive Lines: Anesthesiologists Take on the Payers

Karin Bierstein,
Practice Management Coordinator


At least three Blue Cross/Blue Shield carriers are denying payment for invasive monitoring lines on the grounds that these services are included in the anesthesia fee. The ASA Washington Office has also learned of one Aetna health plan that has adopted the same policy. At a minimum, this activity may foreshadow a trend, and we would like ASA members who experience the "bundling" of invasive lines to let us know. There are numerous strategies anesthesiologists may employ, individually and on a coordinated basis.

What the Payers Are Doing

The bundling of central venous pressure and arterial lines surfaced as a problem last fall in Wisconsin. When Blue Cross and Blue Shield of Wisconsin and its affiliate, Compcare Health Services Insurance Corporation (collectively referred to as BCW), began rejecting claims for those procedures, several anesthesia groups billed the patients directly. The groups did not have contracts with BCW that might prohibit balance-billing, nor did state law prevent collecting from the patient.

The anesthesia groups eventually went to court to obtain payment. BCW undertook the defense as "indemnitor" for each of the patients in seven separate proceedings. BCW argued that CVPs and arterial lines as well as postoperative pain management nerve blocks and hemodilution were an integral and "usual" part of the anesthesia service and were compensated through the base units for the anesthetic. BCW also claimed that both the American Medical Association and the national Blue Cross and Blue Shield Association had taken the position that placement of invasive monitoring lines should not be reimbursed and that many other private payers similarly bundled these procedures with the anesthetic. BCW denied that it had adopted a new policy, contending that only inadequate information systems and "computer logic" had permitted payment of the claims prior to 1996.

None of these arguments persuaded any of the court commissioners hearing the cases. All of the court commissioners upheld the anesthesiologists' right to recover. BCW appealed each decision to the circuit court. Only one circuit court appeal has been completed to date -- again supporting the anesthesiologists. It is expected that BCW will appeal the circuit court decisions to the Wisconsin appellate courts.

Meanwhile, a handful of other payers are implementing similar bundling policies; the Blue Cross and Blue Shield companies in Maryland and in Alabama and an Aetna health maintenance organization in Colorado are denying claims for all invasive monitoring (including Swan-Ganz catheters) and, in at least one case, for postoperative pain services as well.

The Arguments on Both Sides

BCW, as noted above, insists that arterial lines and central venous lines are necessary components of the anesthesia service for every coronary artery bypass surgery and that "this kind of monitoring is basic and inherent to the general anesthesia procedure. It is the standard of care required and a relatively simple procedure taking in most cases just a few minutes to perform."

Even if BCW is correct that placing CVP and arterial lines is the standard of care for bypass surgery and correct that it does not take more than a few minutes, the CPT™ guidelines that BCW cites in support of its view in fact recognize monitoring as a distinct service. According to the Anesthesia Guidelines appearing on page 37 of the 1999 CPT book, "these services include the usual preoperative and postoperative visits, the anesthesia care during the procedure, the administration of fluids and/or blood and the usual monitoring services (e.g., ECG, temperature, blood pressure, oximetry, capnography, and mass spectrometry). Unusual forms of monitoring (e.g., intra-arterial, central venous and Swan-Ganz) are not included."

Elaborating on this principle, the February 1997 issue of CPT Assistant, a newsletter published by the AMA CPT staff, stated that "Basic anesthesia administration services ... include interpretation of noninvasive monitoring such as ECG (electrocardiography), body temperature, blood pressure, oximetry (blood oxygen concentration), capnography (blood carbon dioxide concentration) and mass spectrometry." The article on "Anesthesia: Coding for Procedural Services" goes on to provide an illustration of appropriate coding where the anesthesiologist inserts an arterial line (code 36620) and reports the service on a separate line on the claim form. Another illustration affirms the separate and distinct nature of postoperative pain management nerve blocks.

The CPT Assistant uses language very similar to that of the ASA Relative Value Guide (RVG), according to which: "The usual anesthesia services included in the Basic Value include the usual preoperative and postoperative visits, the administration of fluids and/or blood products incidental to the anesthesia care and interpretation of noninvasive monitoring." The intent will be made even clearer in future editions of the RVG.

BCW contends that not only AMA policy, but also that of the national Blue Cross and Blue Shield Association (which licenses the independent, individual BC/BS carriers) mandates the bundling of invasive lines. This claim is inaccurate. There is an optional Policy Reference Manual available to licensees. The administrative policy on anesthesia services that has been in effect since May 1997 is ambiguous on the inclusion of invasive monitoring services, but it is not binding on the carriers unless contracts with employers require its use.

BCW and the other carriers mentioned above argue that the basic unit values in the RVG take into account the insertion of monitoring lines. A review of the history of the RVG by L. Charles Novak, M.D., chair of the Committee on Economics, has demonstrated that is not the case. This is noted by Dr. Novak in a Statement on Invasive Monitoring Procedures that readers may request from Caroline Coleman in the Washington Office (202) 289-2222; e-mail.

"As the ASA has developed and refined its Relative Value Guide, placement of invasive monitoring devices has not been factored in when establishing basic unit values. In fact, the basic unit values for many anesthesia codes in which invasive monitoring is now common were established prior to the use of invasive devices, and have not been changed. Furthermore, inclusion of additional basic units to account for invasive monitoring in some anesthesia codes and not in others would make the relative value system inconsistent."

Yet another justification advanced for the bundling policy is the use of third-party software that identifies CPT codes that are deemed a component of other codes and that automatically kicks claims out for denial of payment. One of the health plans using such software claims that the bundling of invasive lines is a standard "edit" that the plan has no discretion to change ­ an assertion that is questionable. Most commercial claims editing software vendors contend that their edits can be turned on or off as the client wishes. Blue Cross Blue Shield of Maryland wrote in a letter to a state senator inquiring on behalf of an anesthesiologist-constituent that the ClaimCheck™ system that it uses is based on the CPT "coding criteria," which is manifestly untrue in the case of invasive monitoring procedures provided to patients undergoing general anesthesia.

None of the four carriers who has come to our attention has claimed consistency with Medicare policy. In fact, Blue Cross Blue Shield of Alabama explicitly disavows following Medicare policy. ASA's filing of a lawsuit against the Health Care Financing Administration in 1995 quickly resulted in a settlement agreement in which the agency agreed not to bundle any invasive lines with the anesthesia service.

What the Affected Anesthesiologists Are Doing

Anesthesia groups in Wisconsin promptly retained counsel and began pursuing small claims court actions. Any anesthesiologist who does not have a contractual or state law impediment (or personal objection) to pursuing the patient directly may follow this course. The Wisconsin groups' lawyer is considering bringing a consolidated lawsuit to compel BCW to change its policy once all seven appeals to the Circuit Courts have been won.

Wisconsin anesthesiologists also worked with and through the state ASA component society to obtain state legislation that would prevent private payers from adopting bundling policies more restrictive than Medicare's. The following amendment has been included in the lower-house version of the budget bill that is currently pending in the Wisconsin legislature:

"An insurer may not deny payment under a disability insurance policy or group certificate for a medical or surgical service or procedure on the basis that the service or procedure is an integral component of a second medical or surgical service or procedure unless, under Medicare Part B, payment for the first service or procedure is included in the payment for the second service or procedure."

In the other states, the anesthesiologists and practice administrators who have brought the problem to ASA's attention are still formulating strategies. If appeals within the carriers' own hierarchy fail, including physician-to-physician discussions with the carrier medical directors, it will become important to coordinate an approach with other anesthesiologists whose claims are being rejected.

What ASA Is Doing

Eugene P. Sinclair, M.D., Vice-Speaker of the House of Delegates and a Wisconsin anesthesiologist himself, has been consulting with Washington Office staff and serving as an expert witness in the litigation in his state. ASA members Robert Purtock, M.D., and Joseph Bernstein, M.D., have also served as expert witnesses in the Wisconsin courts. We have provided Dr. Sinclair with documentation including materials prepared by Dr. Novak. We have also begun assisting Maryland counsel.

We have involved the AMA's State Medical Society Litigation Center in the Wisconsin activity and have drawn its interest to the situation developing in other states. The Litigation Center is a consortium of the AMA and 45 state medical societies whose "purpose is to concentrate resources in order to bring lawsuits of significant interest to organized medicine." The AMA's support for the Wisconsin litigation is not yet determined, but it may take the form of funding, of lending the AMA's prestige to the action or even of sharing its own expertise.

There is much more that we will be able to do and perhaps much that we will need to do. Our starting point is information. Please contact your state component society and the Washington Office if you are encountering private payer bundling policies similar to those discussed above.



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