Five Gotcha Medicare Myths That Can Do Harm

Because the healthcare world is so highly regulated, assertions that you “must” or “can’t” perform a particular action are common. Because the penalties for legal violations are so draconian, there is a strong incentive to heed these warnings.

But sometimes the warnings mischaracterize the law. It may be that a well-intentioned employee wants to be sure that the organization isn’t even close to violating the law. Sometimes the motivation is less pure, and a payer, lawyer, or consultant overstates the law in the hopes that your reaction will benefit them financially.

To start the new year, here are five multiple-choice questions that highlight common Medicare myths. 

1. If you discover that a physician failed to sign about 400 office visits, you should:

A)  Before 60 days elapse, refund all payments for the services.
B)   Before 60 days elapse, refund all Medicare payments, but not other payments.
C)  Have the physician sign the charts, dating them the date of service.
D)  None of the above.

2.  A review of 20 chart finds that the documentation does not meet the E&M Guideline for the code billed. You should:

A)  Before 60 days elapse, refund the whole payment received.
B)   Before 60 days elapse, refund the difference between the code billed and the code supported.
C)  Before 60 days elapse, refund Medicare claims for the difference between the code billed and the code supported.
D)  None of the above.

3.  You are engaging a consultant for a routine review of billing practices:

A)  If you use an attorney to engage the consultant, you can be certain the review isn’t discoverable.
B)   In order for the review to be protected, your lawyer must write a check to pay the consultant’s bill.
C)  The review is privileged only if the lawyer personally does the work.
D)  None of the above.

4.  Which of the following statements about Medicare’s two-midnight rule is false?

A)  The patient must stay for two midnights.
B)   If the patient stays for two midnights, there is no need to worry about a physician order.
C)  There is no requirement to use InterQual to decide whether to admit a Medicare patient.
D)  None of the above.

5.   When setting prices for your healthcare services:

A)  You must have the same fee for every patient.
B)   You must charge Medicare your lowest price.
C)  You may not ever waive a copayment.
D)  None of the above.

While these may be tricky questions, they are certainly not trick questions. Most hospitals and clinics will have to address most of these questions each year. Many of the questions touch on several different laws. In some cases, both state and federal law must be considered, and this means that the answers may not be obvious. 

When in doubt, guess “D.”  

Program Note

To get the answers, as well as a detailed explanation of the underlying rationale, register for  the upcoming webcast,“Debunking 5 Medicare Myths That Can Hinder and Hamper Your Judgment,” 1:30 p.m. EST on Tuesday, Jan. 24 by clicking here.  

 

Facebook
Twitter
LinkedIn

David M. Glaser, Esq.

David M. Glaser is a shareholder in Fredrikson & Byron's Health Law Group. David assists clinics, hospitals, and other health care entities negotiate the maze of healthcare regulations, providing advice about risk management, reimbursement, and business planning issues. He has considerable experience in healthcare regulation and litigation, including compliance, criminal and civil fraud investigations, and reimbursement disputes. David's goal is to explain the government's enforcement position, and to analyze whether this position is supported by the law or represents government overreaching. David is a member of the RACmonitor editorial board and is a popular guest on Monitor Mondays.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering OB GYN Coding Accuracy: Precision Coding for Compliance and Reimbursement

Gain clarity and confidence in OB‑GYN coding with this expert‑led webcast featuring Stacey Shillito, CDIP, CPMA, CCS, CCS‑P, CPEDC, COPC. You’ll learn how to apply global maternity package rules accurately, select the right CPT codes for procedures and visits, and identify documentation gaps that lead to denials. With practical guidance and real examples, this session helps you strengthen compliance, reduce audit risk, and ensure accurate reimbursement for women’s health services.

May 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover essential coding insights with nationally recognized coding authority Kay Piper, RHIA, CDIP, CCS. Through ICD10monitor’s interactive, on‑demand webcast series, Kay walks you through the AHA’s 2026 ICD‑10‑CM/PCS Quarterly Coding Clinics, translating each update into practical, easy‑to‑apply guidance designed to sharpen precision, ensure compliance, and strengthen day‑to‑day decision‑making. Available shortly after each official release.

April 13, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Fourth Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s fourth quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

December 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Third Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s third quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

October 12, 2026

Trending News

Featured Webcasts

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

BLOOM INTO SAVINGS! Get 25% OFF during our spring sale through March 27. Use code SPRING26 at checkout to claim this offer.

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24