NPL Compliance Policies

 

HIPAA

Northern Plains Laboratory, LLC, is committed to complying with all Health Insurance Portability and Accountability Act (HIPAA) privacy and security standards.  Northern Plains Laboratory has implemented policies and procedures to ensure compliance with the privacy and security standards. 

 

Our employees maintain confidentiality of protected health information (PHI).  Northern Plains Laboratory limits the protected health information (PHI) that is used, disclosed, and requested to that which is necessary to accomplish the intended purpose.

 

If you have questions about NPL’s compliance activities, please contact the Compliance Officer at 1-800-659-0395.

 

Medical Necessity

Only tests that are medically necessary for the diagnosis or treatment of a Medicare or Medicaid patient will be reimbursed. The Office of Inspector General takes the position that when medically unnecessary tests are ordered which result in false claims to Medicare or Medicaid, the physician may be subject to civil penalties under the False Claim Act.

 

The ordering physician/provider must submit diagnosis information, preferably an ICD-10 code, for each test ordered. The diagnosis must be consistent with the diagnosis recorded in the patient’s medical record on the date of service.

 

Medicare may not pay for non-FDA approved tests or those considered to be experimental.

 

Medicare generally does not pay for screening tests except for certain specifically approved procedures that have frequency limits.

 

Advance Beneficiary Notice of Noncoverage (ABN)

If there is reason to believe that Medicare will not pay for a test, the patient should be informed of that fact. The patient should sign a properly completed Advance Beneficiary Notice of Noncoverage (ABN) to indicate that they have been informed and are responsible for payment of the test if Medicare denies payment.

 

National Coverage Determinations (NCDs) and Local Coverage Determinations (LCDs)

The NCDs for 23 clinical laboratory tests went into effect November 25, 2003. The NCDs promote consistency and standardization of medical necessity nationwide. The Medicare Administrative Contractor (MAC) have LCDs for additional tests that are not among the NCDs.  Both the NCDs and LCDs specify whether a service is reasonable and necessary, what documentation will support the need for the service, and limit coverage to specific medical diagnosis.

 

Organ and Disease Oriented Panels

Organ and disease related panels will only be billed and paid by Medicare when all components are medically necessary. 

 

Tests ordered as part of a non-AMA panel will be coded and billed separately.

 

Reflex Tests

NPL generates orders for reflex tests that are consistent with regional and national standards of practice in an attempt to provide appropriate or useful information to the clinician.  The option of ordering any one of these tests without the reflex is available. 

 

CPT Codes

CPT codes published by NPL in the electronic or hard copy versions are provided for informational purposes only. The codes reflect our interpretation of CPT coding requirements based on AMA guidelines published annually.  NPL assumes no responsibility for billing errors due to reliance on CPT codes published by NPL.

 

 

 

Document Number:  CMP.226.002