Make certain your computer billing system is Y2K compliant

Practitioners may need to ask vendors for proof their computer system won't fail.

By Lisa Rabasca
Monitor staff

Fears of a year-2000 computer glitch have practitioners scrambling to make sure their computers will work properly next Jan. 1. The problem is particularly worrisome for practitioners who use their computers to bill clients.

Most practitioners use only the last two digits of the year to record the date because computers have been programmed to assume the first two digits are 19, says Scott Werkstell, a senior manager in the health-care and insurance technology practice at PricewaterhouseCoopers in Atlanta. But, unless computer codes are rewritten and embedded chips are replaced by next Jan. 1, computers will read the year 2000 as the year 1900.

A computer that assumes the year is 1900 could present problems for practitioners who use their computers to bill their patients. Because computers often calculate whether a patient is eligible for insurance, the computer could calculate the patient's age and years of employment as negative numbers and possibly cancel a patient's health insurance or not pay the claim, says Werkstell.

This mistake can have dire consequences for the provider. 'If your practice is doing $20,000 worth of billing and all of a sudden you can't bill [clients or insurance companies], then you can't pay employees, yourself or your rent,' Werkstell says.

Officials at the Health Care Financing Administration (HCFA) agree that if a provider's computerized billing system is not updated, filing claims could be difficult in the year 2000. 'If a provider bills claims to multiple sources-Medicare, Medicaid and a managed-care company-they could face problems if they are not Y2K compliant,' says a HCFA spokesman. Practitioners who use a billing service also need to make sure their service is Y2K compliant, he says.

According to HCFA, a Y2K compliant computer can accurately process dates and time in the 19th, 20th and 21st centuries including years 1999 and 2000 and leap years. Computer experts and HCFA officials offer these suggestions for updating your computer:

 Inventory your computer equipment. Werkstell suggests that practitioners inventory their equipment, particularly any computers that are linked together to allow two or more users to run programs simultaneously.

 Contact your software vendor to verify that the software you are using is Y2K compliant. If it's not, 'most vendors will supply an upgrade to be compliant, depending on your maintenance agreement and how old your software is, Werkstell says.

 Ask your vendor to evaluate your computer hardware to determine if it is Y2K compliant and whether it will work with updated software. 'The best case scenario is that you are on a system where you stayed current with every software release, you are actively paying your maintenance agreement and upgrades are included,' Werkstell says. Depending on your computer system and maintenance agreement, it can cost anywhere from several hundred dollars to a couple of thousand dollars to upgrade your equipment, he says.

 Get a letter from your vendor, signed by an officer of the company, certifying that your computer system is Y2K compliant. 'The vendor usually has a solution,' Werkstell says. 'If not, you need to find another vendor. You also need to find another vendor if they can't give you a guarantee.'

 Test your system. Don't assume a system or software program is ready just because a dealer says it is, HCFA warns. HCFA officials suggest calling HCFA to arrange to test your system with Medicare, Medicaid and a managed-care plan. Government systems are expected to be Y2K compliant by March 31, 1999, a HCFA spokesman says.

 Develop a contingency plan in case something unexpected goes wrong. Decide now what you will do if your claims can't be sent in the right format, if your electronic reimbursement for Medicare is not working and if your checks cannot be deposited or credited accurately, a HCFA spokesman says. For example, some practitioners may have to use a manual back-up system and process claims by hand, he says.Y

This article is the first in the series 'Marketplace Matters,' which will report on the trends and developments affecting psychology practice and the innovative ways psychologists are addressing them.

For more information

The following web sites offer more information on Y2K computer glitches that may affect psychologists:

 Rx Solutions Institute (www.rx2000.org/). This web site is solely devoted to Y2K issues related to the health-care industry. The site includes a sample letter requesting a guarantee from a vendor that your equipment is Y2K compliant, an example of a Y2K policies and procedures manual and a personal checklist for Y2K compliance.

 Health Care Financing Administration (www.hcfa.gov/y2k/default.htm). This site provides information about the HCFA Y2K project, including specific information about Medicare, Medicaid and managed-care organizations.

 Government Accounting Office (www.gao.gov/special.pubs/publist.htm). GAO has issued two reports on the year 2000 and they are available at this site. The reports are: 'Year 2000 Computing Crisis: An Assessment Guide' and 'Year 2000 Computing Crisis: Business Continuity and Contingency Planning.'



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