Hospice Billing

Appropriate Use of Condition Code 85

The Medicare claims processing system requires the OSC 77 be reported on the claim when the physician certification is untimely or when the NOE is submitted untimely. Medicare systems cannot differentiate the two uses of OSC 77 during processing. Currently, claims are rejected in error when the occurrence code 27 falls within the OSC 77 dates and the OSC 77 was used to report an untimely NOE.

As of 1/1/2017, the CMS has developed a new CC, 85, to use when reporting OSC 77 for an untimely certification. The new condition code 85 is defined, “Delayed recertification of hospice terminal illness." When hospices report this code, Medicare systems will ensure the occurrence code 27 date(s) do not fall within the OSC 77 dates when reporting OSC 77 for untimely certification.

Untimely Certification

Effective on and after 1/1/2017 hospices are required to put a CC 85 on the claim with OSC 77 to indicate that there are non-covered provider liable days for an untimely physician certification.

Hospice claims will continue to be RTP if the occurrence code 27 date on a hospice claim falls within the OSC 77 from/through dates, even when the CC 85 is present. The date of the physician certification (OC 27) should not fall within the noncovered provider liable days for a late physician certification.

Untimely Notice of Election

Since October 2014, Medicare regulations require that hospice NOEs shall be filed within five calendar days after the hospice admission date. In instances where a NOE is not timely-filed, Medicare does not cover the days of hospice care from the hospice admission date to the date the NOE is submitted to and accepted by the Medicare contractor. These days are a provider liability and the provider may not bill the beneficiary for them. Hospices report OSC 77 to report provider liable non-covered days when the NOE was not submitted within five days. Medicare systems compare incoming hospice claims to the NOE receipt date and enforce the presence of OSC 77 for the appropriate dates.

Effective 1/1/2017, you will not report a condition code 85 on the claim when using OSC77 to indicate an untimely filed NOE. The hospice will only report the OSC 77 with the dates (from and through date) of the non-covered days. If a provider feels that the NOE was untimely but met one of the identified exceptional circumstances continue to put a KX modifier on the first line item with the site of service code.