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Spinal Orthosis Pre-Pay Review Quarterly Status Report

Below is the analysis of claim denials for lumbar sacral orthoses (LSO) HCPCS codes L0450-L0651 reviewed July 1 – September 30, 2024. The error rate for this quarter is 36.93%. The top 10 reasons for claim denials are as follows:

Rank Reason Percent
1. The HCPCS procedure code on the claim is not correct for the item billed. 56.50%
2. The medical records received lack sufficient information concerning the beneficiary’s condition to determine if medical necessity coverage criteria were met. 12.99%
3. Medical records do not support one of the 4 criteria for a spinal orthosis. 6.21%
4. No medical record documentation was received. 5.08%
5. The records do not support that the person who did the custom fitting for the orthosis has the expertise of a certified orthotist or an individual who has equivalent specialized training in the provision of orthotics such as a physician, treating practitioner, an occupational therapist, or physical therapist in compliance with all applicable federal and state licensure and regulatory requirements. 3.95%
6. The documentation does not have a valid written order prior to delivery. 2.82%
7. There is not a valid handwritten or electronic signature by the author of the medical record. 2.26%
8. The documentation does not include verification that the equipment was lost, stolen, or irreparably damaged in a specific incident.  2.26%
9. The supplier provided the item prior to an inpatient hospital admission or Part A covered skilled nursing facility stay and its use began during the stay. 1.69%
10. The file does not have a valid Advance Beneficiary Notice. 1.69%

*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: November 5, 2024

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