Healthcare cost and policy

Upcoding: a common practice that needs to end

Originally posted by

What’s up(coding)? Let’s talk about a common practice that needs to end.

After you leave the doctor’s office, what happens to your chart?

It goes to a billing office, where someone trained in medical billing maximizes the revenue for that visit by ensuring the services performed are properly coded.

But many times they also:
• Increase the severity of billing codes
• Add additional codes the payer’s algorithm will accept

But here’s the catch: these enhanced or additional services often never happened.

It’s billing for a level-five office visit when you were only seen for pinkeye for three minutes.
(Here’s a chart to break it down: https://lnkd.in/emkiytjB)

Or adding a weight loss consultation to your visit because the algorithm will allow it—even though it wasn’t actually performed.
(Novo Nordisk’s coder handout teaches how to code, but doesn’t explicitly endorse fraud: https://lnkd.in/eqw6yQjZ)

In any other field, we’d call this fraud.
• A lawyer bills you 1.0 for a task that took 0.1? Fraud.
• A mechanic charges you for brakes they didn’t replace? Fraud.

But in healthcare? We call it “upcoding.”

Let’s be clear: this is not a hospital “winning.” It’s stealing—billing for procedures that never happened.
And when it targets Medicaid or Medicare? It’s a federal crime.

Here’s what needs to change:
• Stop “both-siding” this issue. The American Hospital Association doesn’t need equal airtime here like it’s a legitimate revenue issue.
• Ramp up prosecution. Use the False Claims Act for treble damages and penalties.
• Demand integrity. Pay people fairly for the value they add, but punish fraudsters.

Have you been the victim of upcoding? Were you able to fight back?

https://lnkd.in/erTDZcuM

Sources

  • False Claims Act, 31 U.S.C. §§ 3729-3733

Originally posted on LinkedIn, where the discussion and source links live in the comments.

About the author

Chris Vanderwolk is Director of Compliance and Innovation at OneDigital | Kistler Tiffany Benefits General Agency, where he helps brokers and employers navigate the regulatory complexity of employee benefits. An ERISA attorney with more than 19 years in the benefits industry, he specializes in translating what the law actually requires into language people can use.

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