CMS Showing Favoritism, Insurers Hiding Intent and 2026 IPPS TEAM Preview

CMS Showing Favoritism, Insurers Hiding Intent and 2026 IPPS TEAM Preview

Many of you may be aware last year the Centers for Medicare & Medicaid Services (CMS) added HCPCS code G2211 that physicians can use in addition to their office or other outpatient visit code that CMS labels as a code to compensate for the inherent complexity of the longitudinal care of patients but really was designed to allow doctors to earn a little more money in the face of continuing payment cuts.

Well, that movement goes on in the 2025 physician fee schedule proposed rule where CMS has proposed adding a code for use by infectious disease doctors to describe intensity and complexity inherent to hospital inpatient or observation care associated with a confirmed or suspected infectious disease. CMS does note that the COVID-19 pandemic has, as they state, “ignited a hypervigilance for infectious diseases.”

Now this is great; ID doctors absolutely deserve this boost in payment, but so does every other doctor who cares for hospitalized patients. Pulmonary physicians are exposed to airborne infectious diseases all day long. Do they not also deserve to have an add-on code? The ED doctor is encountering the patient with an infectious disease even before the diagnosis is made; do they not deserve an add-on code?

Now how did this code come about? Well, according to social media, this was an intensive lobbying effort by the Infectious Disease Society of America. They spoke to CMS and Congress and advocated for their physician members. That’s awesome but CMS really needs to take a wider look when they add payment specific to one specialty to ensure they are not playing favorites.

In other news, I am going to call this section “the words they use to hide their evil.” Credit to Dr Al Gore, physician advisor from Santa Rosa, California who shared online this quote from Humana- “The company saw ‘higher-than-anticipated’ inpatient admissions in the quarter and we continue to assess the durability of the higher admissions, including clinical appropriateness and potential mitigation activities.”

Potential mitigation activities? Why don’t they just come out and say they are going to start being more aggressive with auditing and denying of claims.

Then credit to Brian Murphy, the past head of ACDIS, now branding director at Norwood, who posted a Cigna policy update. In this update, Cigna noted that they stop paying for serum folic acid levels “when billed with a diagnosis that is considered not medically useful.” “Medically useful”? Why would they not use the common terminology “medically necessary”? Perhaps because usefulness allows them to deny payment without having to justify it.

Finally, the 2025 IPPS final rule was released, and it is 2,987 pages. CMS is finalizing their TEAM model, Transforming Episode Accountability Model, a bundled payment program for coronary artery bypass graft surgery, lower extremity joint replacement, major bowel procedure, surgical hip/femur fracture treatment, and spinal fusion covering all services from hospitalization to 30 days after discharge.

Don’t panic yet – this program won’t start until 2026, so we all have time to understand it. There are 188 metropolitan areas that will be included in this program. If you want to know if you are included, go to page 1885 of this display version of the rule- https://public-inspection.federalregister.gov/2024-17021.pdf. CMS does try to explain their rationale, but the math is, as usual, incomprehensible. It is interesting to note that Spearfish, South Dakota is included, where there is one hospital with under 30 beds but the Chicago metropolitan area, with many hospitals including several academic medical centers, is not included.

Now all is not lost for those areas not selected; CMS will allow hospitals to opt in but only if they are participating in or have participated in either CJR or BPCI in the past.

I promise to provide more information as I read the 731 pages describing this new model, but I can report that CMS will waive the 3-day SNF rule but only if the chosen SNF has three or more stars and will once again forbid steering of patients to partner providers, requiring full patient choice.

Programming note:

Listen to Dr. Ronald Hirsch on Monitor Mondays when he makes his Monday rounds, 10 Eastern and sponsored by R1-RCM.

EDITOR’S NOTE:

The opinions expressed in this article are solely those of the author and do not necessarily represent the views or opinions of MedLearn Media. We provide a platform for diverse perspectives, but the content and opinions expressed herein are the author’s own. MedLearn Media does not endorse or guarantee the accuracy of the information presented. Readers are encouraged to critically evaluate the content and conduct their own research. Any actions taken based on this article are at the reader’s own discretion.

Facebook
Twitter
LinkedIn

Ronald Hirsch, MD, FACP, ACPA-C, CHCQM, CHRI

Ronald Hirsch, MD, is vice president of the Regulations and Education Group at R1 Physician Advisory Services. Dr. Hirsch’s career in medicine includes many clinical leadership roles at healthcare organizations ranging from acute-care hospitals and home health agencies to long-term care facilities and group medical practices. In addition to serving as a medical director of case management and medical necessity reviewer throughout his career, Dr. Hirsch has delivered numerous peer lectures on case management best practices and is a published author on the topic. He is a member of the Credentials Council and Government Affairs Committee of the American College of Physician Advisors, on the advisory board of the National Association of Healthcare Revenue Integrity, a member of the American Case Management Association, and a Fellow of the American College of Physicians. Dr. Hirsch is a member of the RACmonitor editorial board and is regular panelist on Monitor Mondays. The opinions expressed are those of the author and do not necessarily reflect the views, policies, or opinions of R1 RCM, Inc. or R1 Physician Advisory Services (R1 PAS).

Related Stories

War and Medicare Enrollment

Combat is often described as hours of boredom intermixed with moments of sheer terror.  I fear that that metaphor is increasingly applicable to Medicare enrollment. Few

Read More

The OIG, ABN, IMM, and DND in the News

Let’s start with a recent (U.S. Department of Health and Human Services Office of Inspector General) OIG audit of a Medicare Advantage plan. Now these

Read More

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