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The approaching switch to ICD-10 codes in 2011 has been making physicians and billers nervous for some time now, so the recent news that the compliance deadline has been postponed for two years will come as a relief to many. This change, released as part of a Medicare regulation in the final days of the Bush administration, gives consideration to the high cost of the switch to practices in this current economic downturn. MGMA has estimated the price tag for upgrading to the more extensive, detailed codes to be about $84,000 for a three-physician practice.  MGMA’s cost estimate includes $7,500 in practice management and medical billing software upgrades – although this estimate assumes that physicians are using client-server technology. If you get free upgrades with your Internet-based practice management software, you’ll save that $7,500 instantly. 

Last month, the U.S. Senate did not pass House Resolution 6331, which would prevent scheduled 10.6 percent reductions in Medicare payments. Although there is a good chance that the bill, with some potential modifications, will be put in front of Congress again in the next couple of weeks, physicians are currently trying to find the best way to deal with this significant drop in reimbursement. For some, this means closing their doors temporarily; for others, it means refusing to accept patients with Medicare plans for all but emergency cases. The problem is compounded for those that do not have an efficient medical practice management and billing system, because their reimbursement cycles are even longer. Medicare pays paper claims no sooner than 29 days after receipt, but electronic claims as little as 14 days after receipt. Additionally, medical billing software such as NueMD allows users to file claims cleanly the first time, meaning rejection rates from Medicare and other payers drop to between zero and three percent. Having that extra money coming in promptly might prove vital for practices that would be impacted by the reduced Medicare reimbursement rates.