This is a free excerpt from the authors of

The Medical Massage Office Manual 4th edition

David Luther and Margie Callahan

WWW.TMMO.biz

 

CHAPTER # 14

 

USUAL AND CUSTOMARY CHARGES

 

 

Learning Objectives

 

After completing Chapter 14, the student will have an understanding of…

 

 

 

 

 

 

 

 

 

 

 

 

 

 


What Usual and Customary Charges Represent

 

Within the system that bona fide medical massage therapists want to practice, there is a structure for the pricing of procedures and services.  The system is known as Usual and Customary (UC) charges.  There is no debate about UC charges.  It is a system set up by the AMA in conjunction with economic and medical realities, and insurers have every reason to expect providers who bill them to follow this agreed-upon system. 

 

medical realities of charges

 

Usual and Customary charges encompass several of the rules we have already stressed throughout this manual that have to do with medical realities.  Choosing procedure codes that best represent what was provided is one crucial aspect of achieving UC charges.  Treating only to Maximum Medical Improvement and within the units allowed for the number of diagnosed body areas is also required for curative results, and anything else does not qualify as Usual and Customary charges.  Introducing variables that disqualify a treatment for UC charges has a negative impact on the system.  This chapter demonstrates how to bill charges that qualify as UC from both the economic and medical standpoints.

 

economic realities of charges

 

While medical realities have to do with curative treatment and appropriate treatment time (a.k.a. efficacy), the economic realities that comprise Usual and Customary charges have to do with charging the appropriate amount for each unit based on the education, skill, and operating costs that are required to provide the CPT™ procedure, and the appropriate amount for the type of insurance payor. There are several types of payors involved: Government-subsidized insurers, private insurance, and self-payors who do not have insurance.  But if you are not paying attention to the rules you learned about appropriate treating and charging (medical realities), the economic realities you learn here will be meaningless.

 

RELATIVE VALUE UNITS AS an economic reality FOR PRICING

 

The Board of Directors of the American Medical Association appoints committees to direct CPT™ coding and pricing.  One of the committees they set up is the Relative Unit Committee, a.k.a. RUC.   RUC gives every CPT™ procedure an initial value based upon the education, skill, and operating costs that are required to provide the CPT™ procedure.  The value of each procedure is known as the Relative Value Units, or RVU.  The RVU provides a level starting point of charges for each CPT™ procedure or service in the entire country.  All of these economic realities are based on the assumption that the medical reality of curative care is taking place whenever a CPT™ code is billed.

The Significant Impact of Improper Charging

 

Before we show you how to use a formula that achieves the motives of the UC pricing system, we want to share some misconceptions within the massage industry that result in a negative impact on UC, and triggers the menacing scrutiny of all massage therapy billing.

 

 

 

the assumption of curative care

 

A CPT™ procedure must first be deemed curative to make its way into the CPT™ codebook.  So the first assumption an insurer makes when they pay a bill is that curative care took place.  But just because a CPT™ code was billed doesn’t mean curative care really took place.  First, the appropriate code must be utilized.  Second, it is the context of the procedure that makes it curative.  Example:  A massage therapist provides Swedish massage for an hour.  Insurance intended to pay for treatment of a rotator cuff injury.  So billing 97124 for 4 units does not constitute curative care.  This is an extreme example, but variations of this problem are rampant.

 

where massage industry misconceptions come from

 

Many massage therapists come out of massage school with a one-hour full-body routine and don’t understand that it doesn’t apply to medical massage.  They don’t know about Maximum Medical Improvement and don’t know enough about specific and curative care.  They assume a prescription for massage means one hour of massage. We’re not saying it’s their fault; in fact, that’s what we thought when we started billing insurance.  But things have changed since then, and we need to get on board with what the insurance companies, doctors, and patients want, or we will all be out of business. 

 

When massage therapists provide a one-hour routine of Swedish massage ala American, and even if they throw in a modicum of manual therapy, therapeutic exercise, or neuromuscular reeducation, it cannot be curative to the standards intended by the medical and insurance industries.  As already stated in this book, Swedish massage techniques may be used to warm the tissues or provide palliative care in the few instances it is called for, but curative care comes from using manual therapy, neuromuscular reeducation, and therapeutic exercise in accordance with the Current Procedural Terminology.  A scrap of these curative therapies thrown in with wellness massage that is billed to insurance is not appropriate.  Insurance shouldn’t be continually forced into paying for wellness massage just because they are stuck with liability issues.

 

lowering the per-unit charge is not the answer

 

Both David and Margie have spent endless hours countering published articles written by massage therapists who argue that the way to handle the insurers who don’t want to pay for massage is to bill for an hour but ask for less money!  This effectively lowers the per-unit charge.  But lowering the per-unit charge is not the answer.  1.) Providing curative care,  2.) in the appropriate amount of time, are what really matter.

 

Many of the articles insist: Why should massage therapists cater to the system?  We’ve always done it this way, so why should we change?  These massage therapists are not considering their responsibility to be accountable for taking seriously the meaning of the codes and the medical and insurance systems that pay them.  They insist that the system is a mess and this justifies their not taking part in it.  They believe their own system is better just because it is working for them (but only because of insurer liability).  They believe they are providing curative care, and we grant that they probably are, some of the time. But insurance is not intended to pay for “curative care some of the time.” 

 

The articles say that insurers already know the efficacy of massage, and therefore they shouldn’t have to prove it.  This idea is irresponsible and untrue.  The purpose of evaluations is to document the curative care that is taking place and that the care is cost-effective (i.e., charges are for the appropriate time allowance).  Proper evaluations provide this proof of efficacy.

 

proper evaluations direct curative care

 

A proper initial evaluation is the starting point that directs a curative treatment, and efficacy is documented by comparing the initial evaluation with progress reports and interim evaluations.  Along with the physician’s documentation, our documentation justifies payment for the curative care we bill to insurance.  In the previous example, curative care could not have been documented because an hour of Swedish techniques cannot effect the cure of, say, a rotator cuff injury.  Efficacy in the treatment of injuries is not to be assumed, it is to be proven via proper evaluations and a documented outcome that is expected as the result of curative and efficient treatment.  

 

The omission of curative care causes lost faith in the providers who are billing for care that is not producing the expected results.  High standards for evaluating, treating, and documenting that align with the high standards of the medical and insurance industries is the only means by which the medical massage industry can exist with integrity as a member of allied healthcare. 

 

THE REPERCUSSIONS OF CODE MISUSE

 

Insurers can assume a code is properly used only if the documented results meet the expected curative results of the procedure.  This is why understanding the meaning of the CPT™ codes you bill, and following the instructions to use the CPT™ code that best describes the procedure provided are so important.  If treatment results do not meet expectations, it tells the story that a CPT™ code has been misused.  That is irresponsible misrepresentation at best and fraud at worst. 

Unfortunately, too many massage therapists misuse codes, or simply provide Swedish massage and bill 97124 for excessive time (via too many units) without understanding the repercussions.  Using 97124 in a limited manner is its only legitimate use.  This is one of the reasons medical massage therapists fight downcoding.  We don’t want insurers to accept the myth that we only provide Swedish techniques.  Manual Therapy, Neuromuscular Re-education, and Therapeutic Exercise are the vehicles through which we provide curative care.

 

the problem of charging for too many units of time 

 

True medical massage therapists recognize the necessity of proficiency in Neuromuscular Re-education, Manual Therapy, Therapeutic Exercise, Orthopedic Evaluation, and proper documentation.  They also understand the problem of our industry allowing some therapists to provide primarily Swedish massage for an excessive amount of time and then lower the per-unit charge to try and make up for deficiencies in cure (that they believe keeps the insurance companies happy and paying them).  However, the issue insurance companies have is not about wanting to be charged less per unit (although we agree that they probably appreciate—and laugh at—the price breaks some therapists give them).  The primary issue they take up with massage therapists is charges for excessive time via too many units. 

 

Many treatments have been billed for an hour when they could have and should have been billed for only a half hour.  Automatic 4-unit charges are a hindrance to the medical massage industry because it is excessive time and gives insurance companies cause for not paying us.  Until such time that we provide only curative care when under prescription, this is the one of the best recourses insurers can use to reduce excessive charges or mitigate their losses in paying for non-curative care.

 

We hope our message in this chapter helps remedy this problem.  Remember, often the only reason insurance companies pay us is to appease their customers and avoid litigation.  Since their customers love massage, insurers are pretty much stuck paying for our treatments, curative or not.  The massage industry has held itself back by allowing some of its factions to provide non-curative care topped by the billing of excessive numbers of units.  Fortunately, the massage industry is finally checking on its own integrity in this game, through the work of the United States Medical Massage Association and the Medical Massage National Certification Board.  The future is bright.

 

cheating the rest of us

 

Insurers continually monitor the prices charged within regions, and shift UC charges accordingly.  Those who lower their per-unit charges to justify what they are not doing are cheating those who actually provide what the procedure codes define and bill for time that represents efficacy.  Those who believe that lower per-unit charges are the way to keep insurance paying them do not understand how the system works and the damage their actions cause. 

The Expectation of Accountability for Efficacy in Healthcare

 

Every healthcare provider must be accountable for providing curative care.  Unaccountability for curative care in the massage industry has caused great frustration for the medical massage therapists who deal with the ensuing collateral damage.  These are the medical massage therapists who provide the curative care that pull the statistics up enough to keep substandard therapy in the game. 

 

three reasons massage lacks accountability with insurance and medicine

 

There are three reasons the massage industry has previously lacked accountability: 1) The liability issues that have kept insurers paying those who don’t deserve it, 2) The massage industry not having standardized a higher set of skills that meet the definition of curative, and 3) The massage industry not making the different sets of skills known to the doctors who, because of this, unwittingly prescribe non-curative massage along with curative massage. 

meeting the standards of medicine and the insurers who pay us

 

Although the insurer liability issue will remain, the massage industry finally has a system of standards that meets the intended standards of the medical and insurance systems many of us have chosen to work within.  Meanwhile, those who do not understand how the system is intended to work do not notice the collateral damage they are causing to patients, medical massage therapists, insurers, the general public that pays too much for insurance because of wrongful billing, and the prescribing physicians who are misled about where the efficacy of curative care in massage comes from.

 

take a stand for high standards

 

As long as you are providing curative care, charging the appropriate amount of units according the Rules in Chapter 7, and using UC for the type of payor, you should not have problems getting paid.  Massage therapists who misapply codes, charge excessive amounts and/or units, undercharge per unit, do not provide curative care, and do not understand how to arrive at UC for the type of payor create problems for all of us.  If you know of any massage therapist misunderstanding and misusing the system in these ways, please advise them.  If they do not care, then please advise us, the authors, and we will personally take up the issue with them, because we feel it is our duty, as stated in our mission statement, to do what we can to maintain the well-being of the medical massage industry.

 

 “Good Cause” for Pricing Differentials

 

pricing for medical massage versus non-medical massage

 

Practicing medical massage requires much more than when you treat clients who come to you with a prescription.  Providing prescribed medical massage to treat injuries is a matter of providing a higher level of service that requires more knowledge, responsibilities, time, effort, and expense above massage therapy provided as a personal service. 

 

In the NON-medical massage model (involving CLIENTS, not patients), a massage therapist has no restrictions on setting charges other than what the market will bear.  The time, knowledge, and responsibilities necessary to the practice of medical massage differ greatly from the non-medical model, and charges should reflect these differences within Usual and Customary charges.

 

When the massage therapist chooses to work within the medical model, they have agreed to accept PATIENTS while they may still have CLIENTS.  While the relationship with and charges to their CLIENTS should remain the same for that level of service, their charges to ALL PATIENTS should reflect the higher level of service.  The patients the doctor refers to a medical massage therapist inherently receive a different service than clients, and must be charged a fee that reflects the additional time, effort, and expense due to the required knowledge and responsibilities.  The authors believe that the following “good cause” statement by the Office of the Inspector General supports this.

 

good cause for higher charges

 

A medical equipment retailer wanted to “charge Medicare prices which are higher than it charges retail customers for the same products.”  The OIG’s Advisory Opinion 98-8 re: Discounts states:

 

 “if the higher costs are ‘due to unusual circumstances or medical complications requiring additional time, effort, expense or other good cause,’ due to claims processing, documentation… and delays/denials in Medicare payment, then suppliers are allowed to charge Medicare more than their ‘usual charge’.”

 

Because insurance industry standards very often comply with Medicare standards, the OIG’s opinion may be applicable to all medical massage insurance claims.  Whether patients pay you directly or insurance pays you, prescribed medical massage still requires considerably more time, effort and expense than non-medical massage.  The Different Levels of Service chart below makes clear the dramatic differences in levels of service for CLIENTS versus PATIENTS.  Notice the service for a SELF-PAYING PATIENT and INSURANCE PATIENT are very similar, while the differences between the CLIENT and the two types of PATIENT are huge.  If someone comes to you with a prescription for medically necessary massage and pays you directly, you will follow the protocol of charging for a self-paying PATIENT and you will bill at your PATIENT rate because you are rendering services similar to that which you render to insurance patients.  We support this statement further in the next section on Price Discrimination.


DIFFERENT LEVELS OF SERVICE

 

TIME

KNOWLEDGE

RESPONSIBILITIES

  CLIENTS

$60 - $80

PER HOUR

 

  • 60 MIN.
    TREATMENT
  • 3-5 MIN
    PREP/CLEANUP
  • BASIC 500
    HOUR
    CERTIFICATION
    COURSE
  • CLIENT
  • IRS REPORTING
  • BOARD OF
    MASSAGE

 

 

self-paying
  PATIENT

$30 - $50
PER UNIT

  • MMI TREATMENT
  • 3-5 MIN. PREP/CLEANUP
  • 10-15 MIN. PATEINT INTERVIEW
  • 10-15 MIN. DOCUMENTATION
  • COMMUNICATION TIME WITH:

-- DOCTORS

-- ATTORNEYS

-- COURTS

-- PATIENT

 

  • BASIC 500 HOUR CERTIFICATION COURSE
  • ADDITIONAL TRAINING IN:

-- DOCUMENTATION

-- MEDICAL

   TERMINOLOGY

-- COMMUNICATION

    SKILLS

-- ADVANCED

    TRAINING IN

    PATHOLOGIES &

    PROTOCOLS

  • PATIENT
  • IRS REPORTING
  • BOARD OF MASSAGE
  • REFERRING PHYSICIAN
  • ATTORNEYS
  • COURTS
  • MMNCB

 

 

INSURANCE
  PATIENT

$30 - $50
PER UNIT

  • MMI TREATMENT
  • 3-5 MIN. PREP/CLEANUP
  • 10-15 MIN. PATEINT INTERVIEW
  • 10-15 MIN. DOCUMENTATION
  • COMMUNICATION TIME WITH:

-- DOCTORS

-- ATTORNEYS

-- COURTS

-- PATIENT

-- INSURANCE

   COMPANIES

 

  • BASIC 500 HOUR CERTIFICATION COURSE
  • ADDITIONAL TRAINING IN:

-- DOCUMENTATION

-- MEDICAL

   TERMINOLOGY

-- COMMUNICATION

    SKILLS

-- ADVANCED

    TRAINING IN

    PATHOLOGIES &

                PROTOCOLS

  • PATIENT
  • IRS REPORTING
  • BOARD OF MASSAGE
  • REFERRING PHYSICIAN
  • ATTORNEYS
  • COURTS
  • INDEPENDENT MEDICAL EXAMINER
  • INSURANCE COMPANIES
  • MMNCB

Price Discrimination

 

If you charge a PATIENT the same amount as for a CLIENT, and end up doing all the same work as you do for a PATIENT, you have broken the law by charging some patients differently than others.  This is known as price discrimination, is illegal, and insurers who find out you have done this may decide to make it known to the authorities.  This is why we advise you to charge all patients the same, regardless of who is paying you. 

 

a look at the law

 

The following statement was written for the medical industry and is a paraphrase from about a half dozen different state’s laws.  It does not take clients into consideration because the medical industry is not concerned with clients.  However, the point is well taken by medical massage therapists: if you take a prescription, even if the person self-pays, the person is still a PATIENT and must be charged the same as all other patients.

 

 “Any physician, hospital, clinic, or other person or institution lawfully rendering treatment to an injured person for a bodily injury covered by a personal injury protection insurance may charge only a reasonable amount for the product, service, and accommodations rendered.  In no event, however, may such a charge be in excess of the amount the person or institution customarily charges for the product, service or accommodation in cases involving no insurance...”

 

In other words, they are all patients requiring a similar level of service, and cannot be charged less than insurance is charged just because they self-pay.  If you do charge the self-paying patient less than insurance patients, you had better reduce all future charges to insurance down to the same rate, but then you will not be charging UC, which is not productive given what the economic realities of providing medical massage are.   

 

handling PATIENTS WHO insist on the Client rate

 

You now understand that if someone comes to you with a prescription for massage but wants to pay you directly and then seek reimbursement from their insurance company themselves, you must charge for medical massage at your PATIENT rate.  We have seen resistance on the part of some patients about this.  If they insist on being charged at your client rate, you need to have them sign a Release of Responsibility Form (#7a), stating that they will submit their own documentation and claims, and that if you later have to assist them in procuring reimbursement, they will pay you for the added services requiring additional time, knowledge, and responsibilities.  Also have them sign your Price List so there can be no misunderstanding about how much more they will have to pay you if they come a-beggin’ later on. 


You may choose not to take the prescription

 

Sometimes a patient has a prescription but no insurance.  You are not required to treat a person at the patient level of service just because they have a prescription.  You are not required to take the prescription, and if you do not, you can choose to forgo the higher level of service and charge at the client rate to make it more affordable.  However, we offer this caveat:  Be careful about the actual level of service you provide, and be alert to how quickly this can change.  For example, if you take a lien from an attorney, your services are automatically increased from the level of client to patient, and you need to take all the steps required of patient-level service for your and the patient’s protection.  Another example would be if you communicate with the doctor or anyone else about the patient’s case, which is illegal until you take steps to make it legal.

 

LEGAL CONSIDERATIONS IN INCREASING PRIOR SERVICES FROM THE CLIENT LEVEL TO THE PATIENT LEVEL

 

If a client suddenly needs you to increase prior client services to the patient level, you can give copies of your office notes or reports to the client without receiving patient-level compensation, but do not give anything to anyone else, such as the doctor, the insurer, or an attorney until such point that the client is converted to a patient at the completion of appropriate compensation and patient signature on your HIPAA privacy notice and other documents. This is for your own protection as well as the patient’s.  Until all appropriate paperwork is completed, you have no legal relationship with the patient’s doctor, attorney, or insurance, and it is strictly up to the client to give out their private information, while it is illegal for you to do so until the patient signs that right over to you and pays you accordingly.

 

what to do about inappropriate chart notes

 

If you have not been producing the type of S.O.A.P., story-format reports you normally do for insurance and the doctor, be sure to mark your checksheet with large letters: “IN-OFFICE NOTES ONLY.  NOT FOR PRESENTATION TO DOCTOR OR INSURANCE.  STORY-FORMAT S.O.A.P.  NOTES AVAILABLE UPON COMPLETION OF APPROPRIATE PAPERWORK AND PAYMENT OF APPROPRIATE SERVICE-LEVEL COMPENSATION.”  Do not turn ANY of the client file over to insurance or the doctor or an attorney, or anyone other than the patient or their legal guardian until the conversion from client to patient is complete.

 

How Usual and Customary Works Within the Free Market System

 

The UC system was set up to work as follows: A Relative Value of every CPT™ code is first established, as already explained.  Next, a percentage multiplier for variations in expenses between geographic areas then adjusts the Relative Value of every CPT™ procedure code.  This allows the marketplace to have some force in the price of healthcare.  Finally, a dollar conversion factor is applied to yield a fee that is acceptable to the provider’s or payor’s financial objectives.  For example, the dollar conversion factor for billing private auto or work injury insurance will be higher than for Medicare, Medicaid, and state work injury insurance.  This helps the government-subsidized insurers meet their financial objectives while keeping private insurance paying enough so

that the supply of healthcare providers doesn’t dry up.  So you see, even private insurance companies do their part.

 

shifts of usual and customary due to market influence

 

We mentioned earlier in this chapter that once UC is established for a region, insurance companies monitor and shift the accepted UC by how much providers are charging for procedures within a recent time period within a given region.  This is another way that allows marketplace forces to affect pricing.  If your per-unit charges exceed UC, insurance will pay you what they determine to be UC.  (If your number of units exceeds UC, they will not pay you, and you have trouble on your hands.)  Although UC may shift and change within each year, fee changes are published annually, and you will want to have a current edition of the National Fee Analyzer or other medical reimbursement guide to stay reasonably close to current UC charges for your area.  Otherwise, you will waste a lot of your and the insurance companies’ time, and may bring a rash of unreasonable scrutiny onto the entire medical massage industry.  The National Fee Analyzer is published annually by Ingenix and sold by Medicode.  To order it, call Medicode at 1-800-999-4600.

 

 

Using National Fee Averages

 

A quicker way to find UC

 

The National Fee Analyzer is a commonly used reference book that provides annually updated percentiles of average national charge data for each procedure code.  The percentile amount tells the percentage of surveyed healthcare providers who charged the listed price or less.  This analysis saves providers from the guesswork of where insurers are at with UC based on individual decisions within regions and a current time period about profit.  The percentile replaces the dollar conversion factor, and is chosen based on the type of insurance the provider is billing.  The chosen percentile of charges is multiplied by the geographic conversion factor for the region where charges are taking place.  This reduction to two steps allows providers to quickly find the percentile that reflects pricing that will be satisfactory to the type of insurer being billed.  Using this easier system is acceptable and saves time.

 

 

STEP #1: USING THE 75TH PERCENTILE

 

The 75th percentile is appropriate for charges to auto and private work injury insurance.  Find the 75th percentile of charges for a procedure you provide.

 

For state work injury insurance, you will need to contact your state’s office as addressed in an earlier chapter.  You may also go online at www.workerscomp.org and conduct a keyword search for your state’s acceptable charges.

 

 

75TH PERCENTILE OF CHARGES

 

                97110                              57.39                                                          97002                              69.38

 

            97112                    56.17                                         99050                    62.12

 

            97124                    37.85                                         99052                    62.12

 

                97140                              43.96                                                          99054                              62.12

 

                97010                              28.50                                                          99056                              81.03

 

                97014                              32.07                                                          99058                              83.73

 

                97032                              37.16                                                          99075                              no stats

 

                97035                              36.52                                                          99080                              no stats

 

                97001 138.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CPT™ only Copyright 2005 American Medical Association.  All Rights Reserved.

 


STEP #2: USING THE GEOGRAPHIC ADJUSTMENT

 

Now that you have an average nationwide price that reflects average cost and the type of insurance you are billing, take that price and multiply by the appropriate Geographic Conversion Factor for your region, listed in the chart that follows.  The GCF reflects both the cost of living and the provider expense adjustment. 

 

The formula of multiplying the 75th percentile by the GCF tells you that 75% of other providers in your area are charging that amount or less, while 25% are charging more.  Because we do live in a market economy, you may use your own discretion in setting your own charges while knowing where insurance expects you to be.  This should be a charge that is very likely to be acceptable to the private insurance companies you are billing—unless there are a number of fools in your area who charge inappropriately low to justify providing less than the procedures call for, and suddenly bring the UC average unreasonably down. 

               

geographic adjustments

Alabama

                                Birmingham,                                                                                          0.811

                                Florence, Huntsville, Decatur                                                            0.755

                                Gadsden, Anniston                                                                             0.723

                                Mobile, Prichard                                                                                   0.735

                Montgomery, Dothan, Monroeville, Selma                                     0.735

                Tuscaloosa, Bessemer, Collman                                                        0.743

                                               

Alaska

                                Fairbanks, Anchorage                                                                         1.263

                                Juneau, Kodiak                                                                                     1.128

                                Ketchikan,Wrangell                                                                             1.157

 

Arizona

                                Flagstaff, Window Rock                                                                     0.929

                                Mesa, Tempe, Scottsdale                                                                   0.954

                                Phoenix  0.973

                                Prescott, Kingman, Globe                                                                   0.896

                Tucson And Area                                                                                0.892

 

 

Arkansas

                                Jonesboro, Fayetteville, Fort Smith                                                  0.876

                                Little Rock And Area                                                                          0.840

                                Pine Bluff, Hot Springs, Russellville                                                 0.810

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


California

                                Bakersfield, Visalia, Lancaster0.901

                                Burbank, North Hollywood                                                                0.889

                                Downtown Los Angeles                                                                     1.137

                                Escondido, Vista, Oceanside                                                             0.930

                                Fresno, Clovis, Madera                                                                       0.910

                                Glendale, Arcadia                                                                                 0.975

                                Long Beach, Torrance, Whittier                                                        0.997

                                Oakland, Berkeley, Fremont, Napa                                                    1.008

                                Ontario, Pomona, W Covina, Alhambra                                           0.981

                Oxnard, Ventura                                                                                   0.970

                                Palo Alto                                                                                               1.379

                Pasadena                                                                                               1.023

                                Redwood City, South San Francisco                                                1.093

                Riverside, San Bernardino, Palm Springs                                         0.935

                                Sacramento,                                                                                          1.179

                Salinas, Seaside, King City                                                                 0.992

                San Diego                                                                                              1.053

                                San Francisco                                                                                       1.227

                                San Jose, Santa Clara, Santa Cruz                                                     1.085

                                San Mateo                                                                                             1.002

                                Santa Ana, Anaheim, Newport Beach                                              0.987

                                Santa Barbara                                                                                       1.003

                Santa Clarita, Van Nuys                                                                      1.060

                                Santa Maria, San Luis Obispo,                                                          0.867

                                Santa Monica, Inglewood,

Redondo Beach                                                                                    1.036

                                Santa Rosa, Redding, Chico, Yuba City                                           1.027

                                Stockton, Modesto, Merced, Lodi                                                    0.956

                                Woodland, Davis, Placerville                                                             0.905

 

Colorado

                                Arvada, Boulder, Golden                                                                    0.999

                                Aspen, Glenwood Springs, Vail                                                         1.028

                                Castlewood, Highlands Ranch                                                          0.995

                Colorado Springs, Pueblo                                                                   0.978

                                Denver                                                                                                   0.972

                                Fort Collins, Greeley, Sterling                                                            0.946

                                Grand Junction, Durango, Alamosa                                                  0.896

 

Connecticut

                                Bristol, New London                                                                           1.065      

                                Hartford                                                                                                 1.110

                Meriden, Torrington, Waterbury                                                      1.060

                                New Haven, Bridgeport                                                                      1.058

                Stamford, Norwalk, Danbury                                                              1.129

Fee data and the geographic adjustment factors are used by permission of Medicode.

Delaware

                                Dover, Georgetown                                                                             0916

                                Newark, Wilmington                                                                            0.990

 

District of Columbia

                                Washington DC                                                                                   1.074

 

Florida

                                Altamonte Springs, Kissimmee, Deltona                                          0.995

                Daytona Beach, Port Orange                                                             0.903

                Fort Lauderdale                                                                                    1.117

                Fort Myers                                                                                            0.927

                                Fort Pierce, Stuart, Palm City                                                              0.961

                Gainsville                                                                                               0.846

                                Jacksonville                                                                                          0.985

                Kendall, Hialeah                                                                                   1.088

                                Lakeland, Bartow, Sebring                                                                  0.911

                Lakeside, Lake City, Live Oak                                                            0.929

                Melbourne, Palm Bay, Merritt Island                                                0.886

                                Miami                                                                                                     1.117

                Naples, Bonita Springs                                                                       1.024

                                Ocala, Inverness                                                                                  0.795

                                Orlando,                                                                                                 1.001

                Sarasota, Clearwater, Spring Hill                                                       0.843

                St. Petersburg, Lutz                                                                             0.938

                                Tallahassee, Pensacola, Panama City                                               0.901

                                Tampa                                                                                                    1.022

                                West Palm Beach, Lake Worth                                                          0.980

 

Georgia

                                Albany, Columbus                                                                               0.975

                Atlanta                                                                                                   1.070

                                Augusta, Athens, Dalton, Gainesville                                              0.934

                                La Grange, Rome, Douglasville                                                          0.991

                Macon,  Milledgeville                                                                         0.976

                                Marietta, Smyrna, Roswell                                                                  1.021

                Savannah, Hinesville                                                                           0.988

                Statesboro, Waycross, Valdosta                                                       0.918

                               

Hawaii

                                Hawaii                                                                                                    0.953

 

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


Idaho

                                Boise                                                                                                      0.879

                                Idaho Falls, Pocatello, Rexburg                                                         0.801

                                Lewiston, Moscow, Twin Falls                                                          0.850

 

Illinois

                                Aurora, Naperville, Downers                                                             1.087

                                Belleville, Carbondale, Marion                                                           0.887

                Bloomington, Pontiac                                                                          1.044

                Champaign, Urbana, Rantoul                                                             1.252

                                Charleston, Paris                                                                                  0.984

                                Chicago                                                                                                 1.167

                Effingham, Centralia                                                                            0.867

                                Elgin, Oak Park                                                                                     1.188

                                Freeport, Rock Island                                                                          0.899

                Galesburg, Pekin, Kewanee                                                                0.859

                                Granite City, Hillsboro, Jersyville                                                      0.926

                Joliet, Oak Lawn, Harvey                                                                    1.057

                Kankakee, Paxton                                                                                 0.912

                                Peoria                                                                                                     0.960

                                Quincy, Decatur, Jacksonville                                                           0.942

                                Rockford                                                                                                1.064

                                Springfield                                                                                             1.077

                                Waukegan, Arlington Heights, Evanston                                       1.089

                    

Indiana

                Anderson, Muncie, Indianapolis Area                                             0.922

                Bloomington, Terre Haute, New Albany                                          0.902

                Evansville, Vincennes, Washington                                                 0.925

                Fort Wayne, Huntington                                                                    0.883

                Gary, Hammond, East Chicago                                                          1.001

                Indianapolis, Lawrence                                                                       1.026

                Kokomo, Lafayette, Marion                                                               1.075

                South Bend, Mishawaka, Elkhart, Goshen                                       0.959

 

Iowa

                                Council Bluffs, Creston, Sheldon                                                      0.804

                                Des Moines, Marshalltown, Ames                                                   0.872

                Dubuque, Davenport, Cedar Rapids                                                 0.857

                                Mason City, Waterloo, Decorah, Spencer                                       0.887

                                Sioux City                                                                                              0.915

                    

 

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.

 

Kansas

                                Kansas City, Lawrence                                                                       0.854

                Manhatten, Holten, Emporia                                                              0.771

                                Newton, El Dorado, Independence                                                   0.815

                                Overland Park, Shawnee, Prairie Village                                           0.906

                                Salina, Hutchinson, Dodge City                                                        0.805

                Topeka,                                                                                                  0.860

                Wichita                                                                                                  0.871

                    

Kentucky

                                Corbin, Harlan, Somerset,

                                Elizabethtown                                                                                       0.832

                                Fort. Knox, Radcliff, Lebanon                                                            0.841

                Lexington-Fayette, Frankfort,                                                            0.969

                Louisville, Fern Creek, Okolona                                                         0.896

                                Middlesborough, Ashland, Pikeville                                                0.951

                                Nicholasville, Danville, Florence                                                       0.866

                                Owensboro, Hopkinsville,

Bowling Green                                                                                      0.866

 

Louisiana

                                Baton Rouge, New Roads, Gonzales                                                0.911

                                Chalmette, Laplace, Slidell                                                                  0.955

                                Lafayette, Lake Charles, Houma                                                        0.909

                                New Orleans                                                                                         0.978

                Shreveport, Alexandria, Monroe                                                       0.935

 

Maine

                                Augusta, Presque Isle, Waterville                                                    0.886      

                                Bangor, Ellsworth, Rockland, Woolrich                                           0.873

                                Biddeford, Sanford                                                                              0.886

                                Lewiston, Androscoggin                                                                    0.999

                Portland                                                                                                 1.024

 

Maryland

                                Baltimore, Dundalk, Towson                                                              1.043

                                Bowie, Greenbelt, Coral Hills                                                              1.041

                                Columbia, Annapolis, Bel Air South                                                 0.931

                                Easton, Salisbury,                                                                                0.833

                                Frederick, Hagerstown, Cumberland                                                 0.859

                                Silver Spring, Bethesda, Gaithersburg                                              1.026

                St. Charles, Waldorf, Lexington Park                                                0.957

                    

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


Massachusetts

                                Belmont, Lexington, Watertown                                                        1.044

                                Boston, Cambridge                                                                              1.090

                                Brockton, Fall River, New Bedford                                                    0.946

                                Buzzards Bay, Barnstable                                                                   0.966

                                Fitchburg, Leominster, Greenfield                                                     1.014

                                Holden, Southbridge, Uxbridge                                                         1.042

                                Lowell, Lynn, Lawrence                                                                      1.004

                                Natick, Maynard                                                                                  1.005

                                Pittsfield, North Adams                                                                      0.935

                                Springfield, Chicopee,                                                                         0.998

                                Worcester,                                                                                            1.069

 

Michigan

                                Ann Arbor, Dearborn, Wyandotte                                                   0.901

                Detroit                                                                                                    0.944

                Escanaba, Marquette   0.960

                                Flint, Burton                                                                                          0.849

                                Grand Rapids, Muskegon, Cadillac,

                                Alpena                                                                                                   0.827

                                Kalamazoo, Battle Creek, Jackson                                                     0.846

                                Lansing, Mount Pleasant, Okemos                                                   0.808

                                Pontiac                                                                                                   0.886

                                Saginaw, Bay City, Midland                                                               0.872

                                Troy, Roseville, Port Huron                                                               0.885

 

Minnesota

                                Anoka, Chaska, Watertown                                                               1.069

                                Brainerd, St. Cloud, Little Falls                                                          0.946

                                Duluth                                                                                                    1.054

                                Hastings, Northfield, Stillwater                                                          1.118

                                Mankato                                                                                                1.032

                                Minneapolis, Bloomington, Edina                                                     1.060

                                Moorhead, Hibbing, Bemidji                                                              0.965

                                Rochester, Winona, Austin                                                               1.214

                                St. Paul                                                                                                   1.033

                                Wilmar, Morris, Windom                                                                    0.957

 

Mississippi

                                Grenada, Meridian, Yazoo City                                                          0.884

                                Hattiesburg, Biloxi, Brookhaven                                                        0.886

                Jackson                                                                                                  0.924

                Oxford, Ripley, Southaven                                                                 0.957

                Tupelo, Greenville, Columbus                                                            0.868

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


Missouri

                                Cape Girardeau, Farmington                                                               0.888

                                Carthage, Branson, West Plains                                                        0.855

                                Charleston, Poplar Bluff, Rolla                                                           0.852

                                Jefferson City, Columbia, Mexico                                                      0.936

                                Kansas City, Independence                                                               0.915

                                Springfield                                                                                             0.969

                                St. Charles, Chesterfield, Hannibal                                                    0.896

                St. Joseph, Kirksville, Chillicothe                                                      0.829

                                St. Louis And Area                                                                              0.994

 

Montana

                                Billings, Lockwood                                                                              0.932

                                Great Falls, Butte-Silver Bow                                                             0.816

                Missoula                                                                                               0.881

 

Nebraska

                                Lincoln                                                                                                   0.921

                                North Platte, Scottsbluff, Norfolk                                                      0.811

                                Omaha, Bellevue, Freemont                                                                0.897

 

Nevada

                                Las Vegas And Area                                                                           1.049

                                Reno, Nevada Miscellaneous                                                            0.981

 

New Hampshire

                                Concord, Keene, Lebanon                                                                  0.979

                                Dover, Portsmouth, Rochester                                                          0.890

                                Manchester, Nashua                                                                           1.005

 

New Jersey

                                Brick Township, Lakewood                                                                0.979

                Edison, Somerville                                                                               1.061

                Middletown, Trenton                                                                          1.023

                                Morristown, Shore Hills, Dover                                                         1.044

                                New Brunswick                                                                                    1.269

                                Newark, Jersey City,                                                                            1.173

                                Paterson, Hackensack                                                                         1.124

                                South Jersey                                                                                         0.999

                                Union City Elizabeth                                                                            1.078

 

 

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


 

New Mexico

                                Albuquerque                                                                                        0.917

                                Gallup, Santa Fe, Grants                                                                      0.957

                     Las Cruces, Roswell. Alamogordo                                                               0.935

 

New York

                                Albany, Schenectady, Kingston                                                       0.903

                                Binghamton, Vestal, Oneonta                                                            0.888

                                Brooklyn, Queens, Jamaica                                                                1.165

                                Buffalo, Niagara Falls                                                                          0.740

                Jamestown, Olean                                                                                0.801

                                Manhattan                                                                                            1.379

                                Nassau And Suffolk Counties                                                           1.080

                                New Rochelle, Yonkers, Somers                                                        1.084

                                Plattsburgh, Glen Falls                                                                        0.897

                                Poughkeepsie, Beekman, Monticello                                                0.965

                                Rochester, Elmira, Ithaca                                                                    0.894

                                Rockland County, New City                                                               1.010

                                Staten Island, Bronx                                                                            1.089

                                Syracuse, Auburn, Cortland                                                              0.882

                                Utica, Rome, Watertown                                                                     0.903

                                White Plains,                                                                                        1.193

 

North Carolina

                                Asheville, Hickory, Western NC                                                       0.924

                                Cary, Goldsboro                                                                                   0.978

                                Charlotte                                                                                                1.083

                                Durham                                                                                                  1.152

                                Fayetteville, Jacksonville, Wilmington                                             0.958

                                Gastonia, Kannapolis, Monroe                                                          0.964

                                Greensboro, Highpoint, Burlington                                                  1.176

                                Raleigh,                                                                                                  1.039

                                Winston-Salem                                                                                     0.969

 

North Dakota

                                Bismarck, Minot, Grand Forks                                                           0.932

                                Fargo                                                                                                      0.969

 

 

 

 

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.

 

Ohio

                                Akron, Stowe, Kent                                                                             0.919

                                Canton                                                                                                   0.866

                                Cincinnati                                                                                              0.902

                                Cleveland                                                                                              1.029

                                Columbus                                                                                              0.983

                                Dayton, Beaver Creek                                                                         0.939

                                Elyria, Mentor                                                                                       0.967

                                Hamilton, Middletown, Portsmouth                                                  0.898

                                Lima, Findlay                                                                                        0.870

                                Mansfield                                                                                              0.904

                                Marion, Norwalk, Tiffin                                                                       0.901

                                Newark, Westerville, Lancaster                                                         0.942

                Springfield, Fairborn, Xenia                                                               0.851

                                Toledo, Bowling Green                                                                       0.936

                Youngstown, Warren                                                                          0.827

                                Zanesville, Massillon, Cambridge                                                     0.868

 

Oklahoma

                                Enid, Ponca City, Woodward                                                             0.810

                                Lawton, Durant, McAlester                                                               0.847

                                Muskogee Shawnee, Miami                                                               0.848

                                Oklahoma City, Edmund, Norman                                                     0.908

                Tulsa, Bartlesville, Stillwater                                                              0.893

 

Oregon

                                Beaverton, Hillsboro                                                                           1.000

                                Eugene, Altamont, Bend, Medford                                                   0.957

                                Pendleton, Baker City, Ontario                                                          0.762

                                Portland                                                                                                 1.035

                                Salem, Corvallis, Albany                                                                     0.968

 

Pennsylvania

                                Allentown, Easton,                                                                              0.860

                                Altoona, Huntingdon                                                                          0.853

                                Beaver Falls, McCandless                                                                  0.830

                                Butler, Clarion, New Castle                                                                 0.834

                                Carbondale, Scranton                                                                          0.801

                                Chambersburg, York, Ephrata                                                            0.816

                                Du Bois, Oil City, Bradford                                                                 0.832

                Erie, Union City                                                                                    0.911

                                Greensburg, Johnstown                                                                      0.781

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.

 


Pennsylvania (continued)

                                Harrisburg, Lebanon, Hampden                                                        0.859

                                Hazleton, Wilkes-Barre                                                                       0.930

                                Indiana, Punxsutawney, Bell                                                              1.009

                                Lancaster                                                                                               1.033

                                Norristown, Warminster, West Chester                                           1.172

                                Philadelphia                                                                                          1.047

                                Philadelphia Area, Leavittown,

Upper Darby                                                                                         0.987

                                Pittsburgh                                                                                             0.960

                                Reading, Pottsville, Muhlenberg                                                       0.773

                                Stroudsburg, Pocono, Milford                                                           0.955

                                Washington, Uniontown, Somerset                                                 0.841

                                Williamsport, Sunbury, Wellsboro                                                   0.870

 

Puerto Rico

                                Puerto Rico                                                                                           0.664

 

Rhode Island

                                Rhode Island                                                                                        0.904                      

 

South Carolina

                                Aiken, Hilton Head Island                                                                  0.924

                                Charleston, Summerville                                                                     0.935

                                Columbia                                                                                               0.910

                                Greenville, Anderson                                                                          0.920

                Spartanburg, Rock Hill                                                                        0.921

                Sumter, Orangeburg                                                                            0.900

 

South Dakota

                                Rapid City, Mitchell, Watertown

Yankton                                                                                                 0.867

                                Sioux Falls                                                                                             0.957      

                    

Tennessee

                                Brownsville, Dyersburg                                                                      0.986

                                Chattanooga, Tullahoma                                                                    0.972

                Clarksville, Columbia, Murfreesboro                                                0.945

                                Cookeville, Johnson City, Morristown                                             0.921

                                Knoxville                                                                                               0.973

                                Memphis                                                                                               1.025

                                Nashville                                                                                               1.035

                                Union City, Jackson                                                                            0.941

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.

 

Texas

                                Abilene, Lubbock                                                                                0.949

                                Amarillo, Plainview, Dumas                                                                0.923

                Arlington, Fort Worth                                                                         1.016

                Austin, San Marcos, LaGrange                                                         1.087

                                Beaumont, Port Arthur                                                                        1.000

                                Brownsville, McAllen                                                                         1.019

                                Conroe, Pasadena, Galveston                                                            0.992

                                Corpus Christi, Portland                                                                     0.868

                Dallas                                                                                                     1.167

                El Paso                                                                                                   0.932

                                Garland, Irving, Sherman, Denison                                                   1.063

                                Houston                                                                                                1.092

                Killeen, Bryan, College Station                                                          1.003

                                Longview, Tyler, Lufkin                                                                      1.001

                                San Angelo, Odessa, Del Rio, Midland                                            0.963

                                San Antonio, Laredo, Kerrville                                                          0.987

                                Victoria, Beeville, Karnes City                                                           0.902

                                Wichita Falls, Denton                                                                         1.007

 

Utah

                                Ogden, Logan, Brigham City                                                              0.779

                                Provo, Cedar City, St. George, Moab                                                0.785

                                Salt Lake City                                                                                        0.806

                                Sandy, Orem, West Jordan, Layton                                                  0.784

 

Vermont

                                Burlington, St. Albans                                                                        1.019

                                White River Junction, Montpelier                                                     0.867

 

Virgin Islands

                                Virgin Islands                                                                                       0.664

 

Virginia

                                Arlington, Alexandria                                                                          1.030

                                Charlottesville, Harrisonburg, Winchester                                      0.849

                                Fredericksburg, Tappahannock                                                         0.954

                                Lynchburg, Chase City                                                                       0.822

                                Manassas, Leesburg, Falls Church                                                   1.010

                Richmond, Petersburg,                                                                        0.891

                                Roanoke, Wytheville, Tazewell                                                         0.920

                Virginia Beach, Norfolk, Newport News                                           0.909

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


Washington

                                Bellevue, Kent, Kirkland                                                                     0.954

                                Everett, Bellingham                                                                              0.905

                                Olympia, Centralia, Lacey                                                                   0.946

                                Seattle                                                                                                    0.971

                                Spokane, Pullman                                                                                 0.791

                                Tacoma, Bremerton, Port Angeles                                                    0.934

                                Vancouver, Kelso, Hazel Dell                                                             0.986

                Yakima, Richland, Walla Walla                                                          0.897

 

West Virginia

                                Charleston, Huntington, Summersville                                             1.002

                                Fairmont, Morgantown, Wheeling                                                    0.982

                Parkersburg, Martinsburg, Clarksburg                                             0.894

 

Wisconsin

                                Ea Claire, Menomonie, Chippewa Falls                                            1.219

                Green Bay                                                                                              1.207

                                Janesville, Beloit, Southwest Wis.                                                    1.155

                                La Crosse, Sparta, Tomah                                                                   1.259

                                Madison                                                                                                1.332

                                Manitowoc, Kaukauna, Marinette                                                    1.160

                                Milwaukee                                                                                             1.247

                                Oshkosh, Appleton, Fond Du Lac                                                    1.110

                Portage, Beaver Dam, Montello                                                         1.128

                                Racine                                                                                                    1.170

                                River Falls Rhinelander, Spooner                                                      1.095

                                Sheboygan, West Bend                                                                      1.240

                                Waukesha, Elkhorn, Muskego                                                          1.192

                                Wausau, Wisconsin Rapids                                                              1.198

 

Wyoming

                                Wyoming                                                                                              0.826      

 

go out and make a great living!

 

After calculating usual and customary charges, you can see that you will be able to make a great living if you work diligently to build your practice, follow the rules, and serve by the expected medical standards in spite of all the extra services required over wellness/spa massage. 

 

 

 

 

Fee data and the geographic adjustment factors are used by permission of Medicode.


Posting Your Prices

 

To protect yourself, post your prices in a conspicuous place in your office so there is no confusion about differing prices for different levels of service.  Then have each patient and client sign a copy of it and keep it in their files.  This way, everyone understands the difference in charges, and clients who want to seek reimbursement from their insurance company know what they will owe you if you suddenly must take on the responsibilities of patient services.  Here is an example of a price list.  It is also available in the forms as Form #7b.  We make it clear with the $00 amounts that we are not suggesting what to charge.  You have just learned how to determine your own UC charges based on a formula that is not ours. 

 

 

 


HEALING HANDS CLINIC

THERAPEUTIC MASSAGE PRICE LIST

 


$00.00 PER HOUR

$00.00 PER ˝ HOUR

 

 


MEDICAL MASSAGE

(PRESCRIBED BY YOUR DOCTOR)

PER 15 MINUTES

 

97110  Therapeutic exercise                                     $00.00

97112  Neuromuscular Re-education                     $00.00

97124  Massage Therapy                                          $00.00

97140  Manual Therapy Techniques                       $00.00

97010  Hot or Cold Packs                                       $00.00

 

        97001  Evaluation                                                      $00.00

97002  Re-Evaluation                                                $00.00

 

I understand the different pricing for the differing levels of service to be provided by Healing Hands Clinic.

 

Signature:_____________________________Date:_________


Summary of Chapter 14

 

You now know the rhyme and reason to price setting for healthcare services, and you understand that we are not setting nor suggesting what to charge.  All procedures and services are given a nationwide value that is adjusted to accommodate the type of insurer and geographic location.  This is done in an effort to serve as many people as possible while working within our free-market system and paying commensurate fees that keep healthcare strongly available.

 

You have the tools to set your prices within Usual and Customary charges.  You have learned the dangers of charging for too many units, overpricing, over-treating, under-pricing, poor documentation, and the lack of accountability for curative care.  You also know that these problems are quickly becoming things of the past because of the recent high standards set in the medical massage industry.  Accountability and integrity are gaining speed in our industry, while anything less is on the wane.

 

You know the risk of legal exposure in not having all the required paperwork completed for patients, and you understand why compensation is different for patients versus clients.

You have learned to avoid problems with patients who want to seek reimbursement from their insurance company themselves by having them sign two forms: #7a to provide for additional compensation if you are later required to perform the higher level services, and #7b so that the amount of extra compensation is agreed upon in advance.  Having everyone else sign your Price List acts as an advisory regarding the prices you will charge on the HCFA-1500, as well as any increases that would be due to a change in status from client to patient.

 

 

 

 

 

 

 

We hope this is of value to you. Please use this information responsibly. Protecting our industry is vital to our future. It doesn’t take but a few to damage our image and destroy opportunity to help so many.

 

Thank you

David and Margie