Zurich seems committed to a policy of improperly denying reimbursement for telehealth services, during a pandemic in which remote treatment is crucial to maintaining care for workers.
Zurich denies reimbursement by applying bill adjustment reasoning that California’s Division of Workers’ Compensation (DWC) specifically identified as inapplicable. Despite clear DWC instructions, Zurich justifies the invalid denials by citing providers’ failure to apply a billing code modifier, which designates services as occurring via telehealth.
The question is: why?
As of this writing, Zurich has improperly denied reimbursement for telehealth services to injured employees of the following companies:
7-UP Bottling ADL Painting and Wallcovering AEGIS Mission American Justice Inc Andeavor Anthem Blue Cross Atrium Windows and Doors Bay Home & Window Bayview Environmental Bergelectric Corporation Bold Quail Holdings BSA Framing, Inc. C & H Sugar Centric Parts Inc. Cognizant Technology Solutions Columbus Manufacturing Concordia University Denny's Restaurant Fairmont Miramar Hotel Flagship Facility Services Flying Flood Group LLC Four Seasons Landscaping Frank Crum, Inc. Frontier Communications GHP Management Giampolini & Co Greystone Plastering, Inc. Home-goods Inc. Household Finance Corp Iron Mountain |
JR Filanc Construction Johanson Dielectrics Kingsburg Center La Jolla Nursing and RehabLifelong Medical Care Macom Tech Makeup Art Cosmetics, MAC Martin Luther King, Jr. Community Hospital MCM Construction Merry Plumbers Old Republic Insurance Pacific Coast Manor Prospect Medical Holdings Red Lobster Management San Jose Job Corps/CSD Santa Clara Health Authority Skyta Inc Superior Gunite Taylor Farms Food Service Terminix Tesla Motors The Fairmont Sonoma The Kingdom Group TJX Companies/Marshall’s TJX COMPANIES/ MARSHALL'S ToysRUs Transforce TTX company Worldwide Tech Services Zumiez Distribution Center |
By incorrectly denying reimbursement to providers, Zurich does a disservice to the above companies and their employees. Worse, Zurich does so by exploiting a technicality peculiar to telehealth billing, in contravention of DWC guidelines, when remote services are more important than ever.
Zurich denies the bills in question using Claims Adjustment Reason Code (CARC) 4. CARCs represent standardized universal language for common denial reasons. CARC 4 states:
The “required modifier” in question is modifier 95, which providers use to bill for medical services furnished via telehealth. In April of 2020, the DWC adjusted its telehealth regulations to include the use of modifier 95 when providers bill for telehealth services.
However, the DWC Medical Billing and Payment Guide specifically addresses CARC 4, stating:
As shown below, the Billing and Payment Guide is unambiguous:
In other words, as long as the billing code reflects the correct authorized service, claims administrators have no reason to deny reimbursement for lack of the modifier. Unless, of course, the reason is to strip providers of due reimbursement.
If your office faces similar denials from Zurich or other claims administrators, submit a Second Review appeal within 90 days, with the following language:
If the claims administrator stands by the incorrect denial — as Zurich has — be prepared to file a request for Independent Bill Review, and possibly an audit complaint.
Unfortunately, providers must be ready to battle blatantly invalid denials like Zurich’s. At this point, Zurich cannot plausibly claim ignorance of the relevant DWC guidelines, as DaisyBill clients and our own agents consistently appeal these telehealth denials with the language above.
And yet, the denials continue. So must the fight to keep payers like Zurich from making it even harder to treat injured workers than COVID already has.
DaisyBill provides content as an insightful service to its readers and clients. It does not offer legal advice and cannot guarantee the accuracy or suitability of its content for a particular purpose.