Skip to Main Content

Print | Bookmark | Email | Font Size: + |

March 4, 2013 - Revised: 08.06.13

Billing MSP Claims With Value Code 44

Value code 44 is defined as the amount a provider agreed to accept from a primary insurer as payment in full. You may also see this referred to as "Obligated to Accept as Payment in Full," or OTAF.

Value code 44 should be submitted on MSP claims when the amount the provider agreed to accept is:

  • Less than the charges; and
  • Higher than the payment received from the primary insurer.

Value code 44 should not be submitted when:

  • The provider did not agree to accept a lesser amount than their charges from the primary payer as payment in full; or
  • Charges are equal to the amount the provider agreed to accept; or
  • Payment from the primary insurance is more than the amount they agreed to accept.

In addition, when the primary insurer has applied the charges to the patient's deductible or a coinsurance amount is due, value code 44 can be used to capture this information.

Example: A beneficiary has a working aged insurance (value code 12) that is primary to Medicare. Covered charges for the claim are $5,000.00. An allowed amount of $3,500.00 is expected from the primary payer and the provider agrees to accept this as payment in full (value code 44). The primary payer paid $3,000.00 and applied $500.00 toward the patient's deductible.

MSP value code 12 should be reported with dollar amount of $3,000.00, and value code 44 with $3,500.00 as the amount.

When submitting the claim to Medicare, report the following information, in addition to the other data as required by the type of bill (TOB).

UB-04 Form Locator (FL) Code Entered Date/Dollar Amount
Value Code (FL 39-41) 12 $3,000.00
Value Code (FL 39-41) 44 $3,500.00

Reference:

spacer

26 Century Blvd Ste ST610, Nashville, TN 37214-3685 © CGS Administrators, LLC. All Rights Reserved