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Continuous Airway Positive Pressure (CPAP) Pre-Pay Review Quarterly Status Report

Below is the analysis of claim denials for CPAP HCPCS codes A7027-A7034, A7044, and E0601 reviewed between April 1 and June 30, 2024. The error rate for this quarter is 18.42%. The top ten reasons for claim denials are as follows:

Rank Reason Percent
1. The standard written order (SWO) is missing a description of the item. 20.03%
2. Documentation does not include a valid sleep study that meets all LCD requirements. 19.23%
3. Documentation does not include a valid in-person evaluation that meets all LCD requirements. 15.30%
4. Payment for supplies billed above normal policy usage is being denied due to lack of documentation to support that they are reasonable and necessary. 13.36%
5. The documentation was not timely (within the preceding 12 months) to support continued need by the beneficiary. 7.85%
6. The documentation does not have a valid SWO. 6.52%
7. The medical record documentation did not include an in-person evaluation conducted following Medicare eligibility or the evaluation did not confirm a diagnosis of obstructive sleep apnea and continued use of the positive airway pressure device. 6.41%
8. The claim is billed for greater quantity than the order indicates. 3.18%
9. There is not a valid handwritten or electronic signature by the author of the medical record. 2.31%
10. The supply or accessory is denied as the base equipment is denied. 1.10%

*The total percentage will be greater than 100% because some claims denied for multiple reasons.

**The error rate included is an overall average for the supplier specific reviews as a part of the Targeted Probe and Educate program. This is not meant to be an overall error rate for the HCPCS code or policy under medical record review.

Resources:

Updated: July 30, 2024

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