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Coding and Billing Paper

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Submitted By rcarter1078
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Coding and Billing Paper Richard Carter
Grand Canyon University: HCA 530
Professor King
July 18, 2015

This paper will discuss how Community Mental Health Rehabilitative Services (CMHRS) are billed under Medicaid in comparison to other industries and the impact that private and government insurers and payers have on the reimbursement process.
How Medicaid is administered and funded
Medicaid is a government program that is administered through the U.S. Department of Health & Human Services (HHS) in order to assist low-income people pay for part or all of their medical bills. It was created by the 1965 Social Security Act. It is federally governed but locally administered by each State. States use private health insurance companies to administer their Medicaid programs. These providers are essentially HMOs that contract with the state Medicaid department to provide services for an agreed-upon price. Other states work directly with the service providers. How to Code and Bill Medicaid for CMHRS Services In Virginia Magellan Health is the Behavioral Health Services Administrator or BHSA that the Virginia Department of Medical Assistance Services (DMAS) contracted to manage and direct Virginia’s Medicaid programs. All community mental health and rehabilitative services providers under contract with the Virginia’s Department of Medical Assistance Services must contact Magellan Health directly for information on the reimbursement and claims processing instructions. Magellan Health adjudicates claims, processes claims, and reimburses providers by the amount of units that have been billed (Magellan Health, 2015). When billing Medicaid community mental health and rehabilitative services in Virginia providers are responsible for checking the member’s eligibility prior to the first appointment and throughout the course of treatment and submitting

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