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ASA NEWSLETTER
 
 
October 2000
Volume 64
Number 10
   
Obstetric Anesthesia: Reimbursement Issues

L. Charles Novak, M.D. Chair
Committee on Ecnomics


Chaos reigns in the area of coding, billing and reimbursement for obstetric anesthesia services. Wide variation exists across the country with regard to Current Procedural Terminology (CPT) codes used to describe services, methodologies to account for time during neuraxial analgesia for labor, and reimbursement formulas for obstetric anesthesia. Among the charges to the ASA Committee on Economics are monitoring issues related to reimbursement and the development of procedure codes and relative values for anesthesia services. This article will describe areas of confusion and concern, current ASA Relative Value Guide (ASA-RVG) guidance and future directions relating to billing and payment for obstetric anesthesia services.

Areas of Confusion and Concern

Coding: Codes specifically developed for describing obstetric anesthesia services appear in the ASA-RVG both in the regular numeric listing of codes and in a special section, "Obstetric Anesthesia." Codes 00955 and 00857 are the only two CPT codes that describe neuraxial analgesia followed by either vaginal delivery or cesarean section. They are valued at five and seven basic units respectively, plus time. Since most computer billing programs are set up to handle only one set of times per code, a potential problem exists for code 00857. Certain methods for accounting for time during neuraxial analgesia for labor involve a discounting of usual time units. When a cesarean section becomes necessary, there is no way to indicate the point in time when time units should be given full value (as with any other surgical anesthetic). In some instances, anesthesiologists do find that third-party payer systems are counting time at one or two units per hour right through the cesarean section.

Use of surgical codes with anesthesia modifiers to describe neuraxial analgesia for labor followed by vaginal delivery or cesarean section does not adequately describe the anesthesia service. Descriptors for the codes 59409 and 59514 refer only to vaginal delivery and cesarean section and make no reference to labor (epidural) analgesia.

Using the code for continuous lumbar epidural (62319) for labor analgesia is also incorrect. There is no provision for time associated with this code in the ASA-RVG. Nevertheless, this is not an uncommon setup in many localities for billing and payment for labor analgesia.

Code 62311 is appropriate for use when performing a single-shot spinal containing opiod and frequently for a low dose of local anesthetic. Theoretically, code 00955 could also be used for this service with a limited number of time units.

Time Accounting: Traditions have been built, locality by locality, with regard to accounting for time during continuous labor analgesia. There seems to be no universally best way to accomplish the task. Anesthesiologists do have an ethical obligation to establish policies that are fair both to themselves and to their patients. Within the realm of fairness, there are a number of methodologies that can work. ASA's position on the issue appears later in this article.

Billing and Reimbursement: Because of the issues related to coding and time accounting, anesthesiology practices need to pay particular attention to their billing methodology and the payment policies of the third-party payers with whom they have agreements. Errors can be costly. For example, a large anesthesiology group discovered after many years that a third-party payer with which it contracted had been paying anesthesia time at one unit per hour during cesarean sections that followed epidural analgesia for labor. On the flip side, in one state (although Medicaid regulations provided for discounted time during epidural analgesia), the agency had been paying anesthesiologists full time units. As governmental agencies will do, they asked the anesthesiologists to return the overpayments. A thorough understanding by both anesthesiologists and payers of reimbursement arrangements surrounding obstetric anesthesia is an essential element of good practice management.

"Our goal is to have order emerge from the chaos that now exists in the area of coding, billing and reimbursement for obstetric anesthesia services and thus to make this important medical care more readily available to patients."

ASA Relative Value Guide

To assist members with coding and billing, the ASA-RVG contains a separate section for obstetric anesthesia. Preceding the code and relative value listings, the following introductory statements appear:

Unlike operative anesthesia services, there is no single, widely accepted method of accounting for time for neuraxial labor analgesia.

Professional charges and reimbursement policies should reasonably reflect the intensity and time involved in performing and monitoring any neuraxial labor analgesic.

Methods to determine professional charges consistent with these principles include:

1. Basic units plus patient contact time (insertion, management of adverse events, delivery, removal) plus one unit hourly.
2. Basic units plus time units (insertion through delivery), subject to a reasonable cap.
3. Single fee.
4. Incremental fees (e.g., 0-2 hrs, 2-6 hrs, >6hrs).

Future Directions

James P. McMichael, M.D., has led a workgroup within the Committee on Economics in preparing revisions to coding and relative values relating to obstetric anesthesia. During this project, he has worked closely with the Board of Directors of the Society for Obstetric Anesthesia and Perinatology (SOAP). The revisions have received the endorsement of the ASA House of Delegates and are ready for presentation to the CPT Editorial Panel for its approval. The changes may be summarized as follows:

• Codes relating to anesthesia services in the peripartum period will be grouped and renumbered into sections of the ASA-RVG and the CPT manual that are specifically set aside for "obstetric anesthesia. "

• A single code will cover neuraxial analgesia for labor and planned vaginal delivery. This will be the only code for which time accounting may vary from standard methods used for surgical anesthesia.

• Cesarean delivery following neuraxial labor analgesia will be covered by an add on code with additional basic units and an understanding that time will be accounted for as it is for all other surgical anesthesia.

• A series of codes will also cover the unusual occurrence of hysterectomy either at the time of cesarean section or immediately following vaginal delivery.

At this time, the Committee on Economics has not decided whether to publish these changes in the 2001 ASA-RVG. The coding changes will not appear in CPT before 2002. Publishing in 2001 would give members a chance to learn the new system and lobby private third-party payers for its implementation. That would occur, however, against a background of a mismatch with CPT. Waiting until 2002, when both publications should match, would allow for better coordination of educational efforts and a smoother transition for all concerned parties.

As national medical organizations develop and promulgate policies related to the economics of medical practice, they must remain cognizant of the wide variation in medical practice across our country. Such national policies must therefore remain somewhat general to allow for local interpretation. When the revisions relating to reimbursement for obstetric anesthesia are released for implementation, ASA and its Committee on Economics will make significant efforts to inform members and third-party payers regarding their interpretation and use. The committee's goal is to have order emerge from the chaos that now exists in the area of coding, billing and reimbursement for obstetric anesthesia services and thus to make this important medical care more readily available to patients.



    L. Charles Novak, M.D., is a practicing anesthesiologist, Wenatchee Anesthesia Associates, Wenatchee, Washington. He is also the Director for District 23 (Washington, Alaska).


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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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