Insurance Handbook, Chapter 7

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clean claim
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A claim (paper or electronic) was submitted within the program or policy time limit and contains all necessary information so that it can be processed and paid promptly. (pg. 217)
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Clean claim means the following:
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1. The claim has no deficiencies and passes all electronic edits. 2. The carrier does not need to investigate outside of the carrier's operation before paying the claim. 3. The claim is investigated on a postpayment basis. A claim is not delayed BEFORE payment and may be paid. But after investigation, may be considered \"payment not due\" and refund may be requested from provider. 4. Claim subject to medical review with attached informaqtion or forwarded simultaneously with EMC records.
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deleted claim
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A claim canceled, deleted, or voided by a Medicare Fiscal intermediary
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Some reasons a claim may be deleted:
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CMS-1500 (08-05) or current CMS-1450 is not used, itemized charges are not provided, more than 6 line items are submitted on CMS-1500 patient's address is missing, internal clerical error was made, Certificate of Medical Necessity (CMN) not with Part B claim, or incomplete or invalid, and name of the store is not on the receipt that includes the price of the item.
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dirty claim
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A claim submitted with errors, one requiring manual processing for resolving problems, or one rejected for payment.
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durable medical equipment number
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Medicare providers who charge patients a few for supplies and equipment, must bill Medicare using a DME number. These claims are NOT sent to regional fiscal intermediary but to another specific location.
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electronic claim
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Digital files that are not printed on paper claim forms when submitted to the payer. These claims are submitted in one of several ways: via dial-up modem (telephone line or computer modem), direct data entry, DSL (digital subscriber line) or FTP (file transfer protocol).
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employer identification number
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Issued by IRS for income tax purposes, regardless if physician is in a medical group or solo practice, each physician must have own federal tax identification number (EIN) or tax identification number (TIN). Some physicians may have more than one EIN number.
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facility provider number
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Number used by the performing physician to report services done at the location. Each facility (e.g., hospital, laboratory, radiology office, skille dnursing facility) is issued a facility provider number.
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group National Provider Identifier
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The group NPI is used instead of the individual NPI for the performing provider who is a member of a group practice that submits claims to insurance companies under the group name.
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Health Insurance Claim Form (CMS-1500 [08-5])
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Form required when submitting Medicare claims and is accepted by nearly all state Medicaid programs and private 3-rd party payers, as well as by TRICARE and workers' compensation.
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incomplete claim
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Any Medicare claim missing required information. Identified to provider so that it can be RESUBMITTED on a NEW claim.
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intelligent character recognition
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same as optical character recognition
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invalid claim
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Any Medicare claim that contains complete, necessary information but is illogical or incorrect (e.g., listing an incorrect provider number for a referrin physician). An i
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National Provider Identifier
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Lifetime 10-digit number that will replace all other numbers assigned by various health plans. Identifying system for health care providers that became effecive May 27, 2007, in connection with electronic transactions identified in HIPAA. Each health care provider will be assigned only one NPI, which is retained for a lifetime even if moves to another state.
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optical character recognition
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OCR, A device that can read typed characters at very high speed and convert them to digitized files that can be saved on disk. also known as intelligent character recognition (ICR).
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\"other\" claims
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Medicare claims not considered \"clean\" claims which require investigation or development on a prepayment basis (developed for Medicare Secondary Payer information).
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paper claim
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A claim that is submitted on paper including optically scanned claims that are converted to electronic form by insurance companies. Paper claims may be typed or generated via computer.
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pending claim
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An insurance claim that is held in suspense for review or other resons by the 3rd-party payer. These may be cleared for payment or denied.
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Pending or Suspense Claim category
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Other claims placed in \"dirty claim\" category because something is holding the claim back from payment, perhaps review or some other problem.
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physically clean claim
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A claim that has no staples or highlighted areas and on which the bar code area has not been deformed.
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rejected claim
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A claim that has not be processed or cannot be processed for various reasons (e.g., the patient is not Identified in the payer system, the records, or the claim was not submitted in a timely manner.)
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Rejected claim process
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A rejected claim is one that requires investigation and needs further clarification and possibly answers to some questions. Such a claim should be resubmitted after proper corrections are made.
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Social Security Number
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If provider DOES NOT have an EIN, then SSN may be required.
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state license number
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To practice within a state, a physician must obtain state license number. Sometimes this number is requested on forms and is used as a provider number.
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Taxonomy code
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administrative code set under HIPAA that is used to report a physician's specialty when it affects payment (see pg. 222)
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CMS-1500
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Centers for Medicare and Medicaid Services claim form. Form developed so that insurance carriers could process claims efficiently by OCR.
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DME
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Durable medical equipment
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DNA
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does not apply
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EIN
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employer identification number
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EMG
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emergency
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EPSDT
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early periodic screening, diagnosis, and treatment
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FDA
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Food and Drug Administration. The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.
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HHA
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Home Health Agency
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ICR
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intelligent character recognition
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IDE
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investigation device exemption
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LMP
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last menstrual period
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MG
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Medigap
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MSP
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Medicare Secondary Payer
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NA, N/A
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not applicable
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NOC
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not otherwise classified
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NPI
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National provider Identification
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OCNA key
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other carrier name and address key
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OCR
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optical character recognition (OCR), also less commonly referred to as intelligent character recognition (ICR).
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PAYERID
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payer identification
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PRO
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peer review organization or professional review organization
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SOF
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signature on file
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SSN
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social security number
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TMA
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Tricare Management Activity
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Abstracting from Medical Records
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3 situations: 1. to complete insurance claim form 2. when sending a letter to justify a health insurance claim after professional services are rendered 3. when patient applies for life, mortgage, or health insurance
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dual coverage
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two insurance polices are involved, also called duplication of coverage, one is considered primary and the other secondary.
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provider numbers
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claims may require several NPI numbers, one for referring physician, one for the ordering physician, and one for the performing physician (billing entity).
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Non clean claims
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other types of claims are called dirty when a claim is submitted with errors, incomplete when missing required information, invalid when illogical or incorrect, pending when a claim is held in suspense for review, rejected when the claim needs investigation and answers to some questions, or deleted when the Medicare fiscal intermediary cancels, deletes, or voids a claim.
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A diagnosis should never be submitted on an insurance claim without supporting documentation in the medical record.
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true
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Every insurance claim should be proofread for completeness and accuracy of content before it is submitted to the insurance carrier.
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true
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Be aware of common billing errors and learn how to correct them for quicker claim settlements and to reduce the number of appeals.
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true
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HIPAA transactions and code sets standards only apply to electronic transactions conducted by covered entitites.
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true
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Copies of submitted insurance claim forms should be filed in a tickler file and reviewed for follow-up every 30 days unless the computer system maintains the files.
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true
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Be sure the correct NPI is shown on the claim by the physician rendering the medical service to the patient
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true
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When two insurance policies are involved (dual coverage or duplication of coverage), one is considered primary and the other secondary. First an insurance claim is submitted to the primary plan, and after payment the secondary carrier is billed with a copy of the explanation of benefits from the primary carrier.
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true
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There are two types of claims submitted to insurance companies for payment: paper claims and electronic claims.
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true
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