A Comprehensive Guide to Common Medical Coding Errors and How to Avoid Them

Medical coding is a vital component of the healthcare industry as it serves as a bridge between providers and payors. Coding involves the translation of medical diagnoses, procedures, equipment and other services into universal alphanumeric codes. Accurate coding is essential for proper billing and ensuring that providers are reimbursed appropriately. This guide aims to help coders understand and avoid common errors in ICD-10 and CPT coding; emphasizing the importance of proper documentation.

1. Incorrect Code Selection

Explanation:

• What are they? Errors in selecting the appropriate ICD-10 or CPT code for a diagnosis or procedure.
• Common errors: Claims rejections, denials, or inaccurate reimbursement.

Examples:

• Selecting a code that describes a diagnosis or procedure that is more severe or less severe than the actual condition.
• Using outdated codes or not updating to the latest version of ICD-10 or CPT codes.
• Selecting a code that was not addressed in the medical encounter. “If it is not documented, it did not happen.”

How to Avoid:

• Continuing education: Stay updated with the latest coding guidelines and annual updates.
• Cross-reference: Use the ICD-10-CM and CPT code books alongside reliable electronic sources such as APC, CMS.gov, AHIMA, AMA
• Coding audits healthcare: “Conduct audits on a monthly to quarterly basis ensuring coding accuracy is maintained at 95% or higher”

2. Upcoding and Downcoding

Explanation:

• What are they? Upcoding is the practice of using a code that provides a higher reimbursement than the actual service provided. Downcoding is the opposite, where a lower level code is used.
• Common errors: Upcoding can lead to legal issues (e.g., fraud, payment recoupment, etc.) and audits; downcoding results in loss of revenue.

Examples:

• Reporting a procedure as more complex than it was (upcoding).
• Reporting a higher level of evaluation and management (E/M) services than provided.
• Using a nonspecific code when a more specific code exists (downcoding).

How to Avoid:

• Accurate documentation: Ensure all services and diagnoses are documented accurately and comprehensively. Query provider if there is contradicting or missing information”. Never assume or infer.
• Coding compliance programs: Implement robust compliance programs to regularly review coding practices.
• Education: Regularly educate coding staff on the importance of compliance and accurate coding in addition to regularly scheduled audit and training for coders

3. Unbundling of Codes

Explanation:

• What are they? Unbundling refers to the practice of using multiple CPT codes for parts of a procedure instead of a single comprehensive code. Be mindful of payor guidelines as well. These override coding guidelines.
• Common errors: When caught, these can lead to claim denials and potential fines.

Examples:

• Separately coding components of a surgical procedure when a single code encompasses the entire procedure.
• Using individual codes for lab tests that should be grouped under a single panel code.

Read More: A Comprehensive Guide to Common Medical Coding Errors and How to Avoid Them