Common Coding Errors and How to Avoid Them

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Common Coding Errors and How to Avoid Them

→ Including Upcoding, Unbundling, Modifier Misuse, and More

1. Upcoding

  • What It Is:
    Reporting a higher-level service than what was actually performed to receive higher reimbursement.

  • Example:
    Coding a moderate-level visit (99214) when the documentation supports only a low-level visit (99213).

  • How to Avoid:

    • Always match codes to the actual documentation.

    • Use official coding guidelines and audit regularly.

    • Stay current with payer rules and code descriptions.

2. Unbundling

  • What It Is:
    Billing separately for procedures that are normally included in a bundled code.

  • Example:
    Coding for a surgical procedure and separately billing for anesthesia, sutures, or post-op care when they’re already included.

  • How to Avoid:

    • Refer to National Correct Coding Initiative (NCCI) edits.

    • Use bundled CPT codes when appropriate.

    • Learn which services are inherently part of another.

3. Modifier Misuse

  • What It Is:
    Using the wrong modifier or applying it without medical necessity to alter payment.

  • Example:
    Using Modifier -25 (significant E/M service) on a visit that was not separate from the procedure.

  • How to Avoid:

    • Understand when and how each modifier applies.

    • Do not use modifiers to force payment.

    • Train staff on correct documentation support for modifiers.

4. Incorrect Code Selection

  • What It Is:
    Selecting a code that does not reflect the provider’s note.

  • Example:
    Using a general diagnosis when a more specific ICD-10 code is available.

  • How to Avoid:

    • Use updated code books or software.

    • Double-check with documentation.

    • Seek clarification from providers when unclear.

5. Missing or Incomplete Documentation

  • What It Is:
    Submitting codes without proper chart notes or provider signatures.

  • How to Avoid:

    • Verify that all services are fully documented.

    • Encourage providers to complete documentation in real-time.

    • Don’t code from memory or assumptions.

6. Duplicate Coding

  • What It Is:
    Reporting the same procedure or diagnosis multiple times.

  • How to Avoid:

    • Check EHR and billing software for duplicate alerts.

    • Carefully review claims before submission.

Best Practices to Avoid Coding Errors

  • Conduct internal audits regularly

  • Stay updated with coding guidelines (ICD-10, CPT, HCPCS)

  • Train coders and billers on payer-specific rules

  • Use certified coding software

  • Maintain clear communication with providers

 

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Posted on

June 17, 2025

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