Adjustments/Cancels
Submitting an adjustment or a cancel to a claim can be submitted electronically, or via the Fiscal Intermediary Standard System (FISS) Direct Data Entry (DDE). In addition to the usual claim information, below you will find what fields are required on the UB-04 and in FISS DDE on adjustments and cancel claims. For additional information about adjusting/canceling claims using FISS DDE, refer to the FISS DDE Guide, Chapter Five: Claims Correction.
Adjustment claims (type of bill XX7) are submitted when it is necessary to change information on a previously processed claim. The change must impact the processing of the original bill or additional bills in order for the adjustment to be performed. The claim being adjusted must be in a finalized status location (i.e., P B9997 or R B9997).
If a claim in a P status has been reviewed by Medical Review and has one or more line items denied, adjustments can be made to the paid line items. Please note: Adjustments cannot be made to any part of a denied line item on a partially paid claim.
In addition, only rejected claims (R B9997) that have posted information to the Common Working File (CWF) should be adjusted, such as a claim that rejected due to an open Medicare Secondary Payer (MSP) record or a home health date of service that overlaps a beneficiary's stay in an inpatient facility.
A hospice election date on a Notice of Election (NOE) or a revocation date on a Notice of Termination/Revocation may be corrected. Refer to the following web pages for additional information.
- Claim Page 01 – Correcting a Notice of Election (NOE)
- Claim Page 01 – Correcting a Notice of Termination/Revocation – NOTR (8XB)
- Submitting a Hospice Notice of Election (NOE) quick resource tool
- Submitting a Hospice Notice of Termination/Revocation of Election quick resource tool
Adjustment claims must include the following information, in addition to the usual field locators and the information that you are adjusting:
Data |
UB-04 | Fiscal Intermediary Standard System (FISS) | ||
---|---|---|---|---|
Form Locator (FL) | Data | Field (FISS Page #) |
Data | |
Type of Bill | FL 4 | 3rd digit = 7 327-home health 817 or 827-hospice |
TOB (FISS Page 01) | 3rd digit = 7 (done automatically by FISS) |
Claim Change Reason Code | FL 18-28 | Choose the one claim change reason code that best describes the adjustment request. |
COND CODE (FISS Page 01) | D0 – change dates of service |
Document Control Number | FL64 | Document Control Number (DCN) of the claim being adjusted | DCN (FISS Page 01) | DCN of claim being adjusted (done automatically by FISS when using Claim Adjustments option 33 or 35) |
Total Charges | FL 47 | Enter changes to charges. | TOT CHARGE (FISS Page 02) | N/A unless adjusting a rejected claim. If rejected, all revenue code lines must be deleted and rekeyed to show charges as covered (TOT CHARGE field). |
Adjustment Reason Code | N/A | ADJUSTMENT REASON CODE (FISS Page 03) | RF – change dates of service RG – change charges RH – change revenue/HCPCS code RM – Other/multiple changes RN – change patient status |
|
Remarks | FL 80 | Remarks indicating reason for adjustment (required when Claim Change Reason Code D9 is reported) | REMARKS (FISS Page 04) | Remarks indicating reason for adjustment (required when Claim Change Reason Code D9 is reported) |
Cancel claims (type of bill XX8) may be necessary when the incorrect provider number was submitted, an incorrect Medicare ID number was submitted, or a duplicate payment was received.
Claims needing canceled must be in a finalized status/location (P B9997). Due to a change in the way FISS processes provider-submitted cancels to rejected claims, home health and hospice agencies will need to check FISS using Inquiry Option 12 to ensure their cancel has finalized prior to resubmitting the services to Medicare.
Cancel claims must include the following information, in addition to the usual field locators:
Data | UB-04 | Fiscal Intermediary Standard System (FISS) | ||
---|---|---|---|---|
Form Locator (FL) | Data | Field (FISS Page #) |
Data | |
Type of Bill | FL 4 | 3rd digit = 8 328-home health 818 or 828-hospice |
TOB (FISS Page 01) | 3rd digit = 8 (done automatically by FISS) |
Claim Change Reason Code | FL 18-28 | D5 – cancel to correct provider/Medicare ID number D6 – cancel duplicate payment |
COND CODE (FISS Page 01) | D5 – cancel to correct provider/Medicare ID number D6 – cancel duplicate payment |
Document Control Number | FL64 | Document Control Number (DCN) of the claim being canceled | DCN (FISS Page 01) | DCN of claim being canceled (done automatically by FISS when using Claim Adjustments option 53 or 55) |
Adjustment Reason Code | N/A | ADJUSTMENT REASON CODE (FISS Page 03) | RI – cancel to correct provider/Medicare ID number RJ – cancel duplicate payment |
|
Remarks | FL 80 | Remarks indicating reason for cancel | REMARKS (FISS Page 04) | Remarks indicating reason for cancel |
Reopenings
CGS performs four types of reopenings:
- Claim Correction Reopening (beyond the claims timely filing limit);
- Untimely Filing (rejected claims (R B9997) with reason code 39011)
- 56900 Reopenings (denials due to no medical review additional development request (ADR) documentation received by CGS); and
- Ordering/Referring Denial Reopenings (home health only).
Review the information available on the Reopening webpage to determine the appropriate process to follow when submitting these types of requests.
Limitation on Recoupment (935) Overpayments
The limitation on recoupment (935), as required by Section 935 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) changes the process by which CGS can recoup an overpayment resulting from a post payment adjustment, such as a denial or Medicare Secondary Payer (MSP) recovery. For additional information, refer to the Medicare Financial Management Manual, (CMS Pub. 100-06), Ch. 3 §200.
Resources
- Refer to the Claims Correction Menu (Chapter 5)of the Fiscal Intermediary Standard System (FISS) Guide for information about how to submit claim adjustments or cancellations using FISS.
- Refer to the Inquiry Menu (Chapter 3)of the FISS Guide for information on viewing claim information in FISS using Inquiry Option 12.
- Adjustments/Cancel Frequently Asked Questions (FAQs)
- Medicare Claims Processing Manual, Ch. 1 §130.1
- Home health providers
Updated: 12.30.22