Medicare Secondary Payer (MSP) Overview
Medicare Secondary Payer Manual (CMS Pub. 100-05)
Medicare is a secondary payer when the beneficiary is covered by group insurance, Workers' Compensation, or if other third-party liability (no-fault, liability, Federal Black Lung Program) applies. For detailed information on CMS's Medicare Secondary Payer, refer to the CGS web page, CMS Guidelines and Resources for Medicare Secondary Payer (MSP), for links to the various CMS MSP regulations.
IDENTIFYING MSP RECORDS: Check the beneficiary's eligibility using ELGA, the CGS IVR, or myCGS, to determine if a beneficiary has an MSP record. When your claim has dates of services that fall within the Effective and Termination dates of an MSP record, the claim must acknowledge the MSP record by reporting appropriate MSP coding on your claim. Refer to the Checking Beneficiary Eligibility (Chapter 2) of the Direct Data Entry (DDE) Manual for information on using ELGA to identify MSP records that may impact your Medicare billing.
SUBMITTING MSP CLAIMS TO MEDICARE: Claims that include MSP information must be submitted either electronically (ANSI ASC X12N 837 format) or by entering the MSP claim directly into the Fiscal Intermediary Standard System (FISS) via Direct Data Entry (DDE). For more information, refer to the Submitting Medicare Secondary Payer (MSP) Claims and Adjustments web page. Effective January 1, 2016, paper UB-04 claims can only be submitted if your agency meets the small provider exception, (CMS Pub. 100-04, Ch. 24 §90), or if the services are related to Black Lung.
MSP BILLING RESOURCES: Specific data elements are required on an MSP claim to ensure correct processing and payment. Some of these data elements include occurrence codes, value codes, payer codes, and insurer information. CGS offers the following tools to assist providers with billing appropriate MSP claims.
- Medicare Secondary Payer (MSP) Billing & Adjustments quick resource tool – This tool is a flow chart that guides you to appropriate data elements that are required on your claim based on the type of MSP record.
- The Medicare Secondary Payer (MSP) Billing & Adjustments Online Tool – This is an online decision tree based on the quick resource tool. Simply answer the questions and you will be directed to complete billing information specific to the type of MSP record.
- Billing MSP Claims With Value Code 44 web page explains when it is appropriate to submit Value Code 44 on MSP claims. Value Code 44 should not be billed on conditional claims (Payer Code C). Value code 44 is defined as the amount a provider agreed to accept from a primary insurer as payment in full.
- CGS Federal Black Lung (BL) Program web page provides information about billing Medicare secondary for beneficiaries who are covered by the Federal BL Program.
- Medicare Payment for MSP Claims web page explains the four calculations used to determine reimbursement when Medicare is the secondary payer.
- Medicare Secondary Payer FAQs web page includes answers to the most common MSP questions. MSP is one of the most common reasons why providers call the CGS Provider Contact Center. Therefore, CGS encourages providers to review these FAQs, as well as the Medicare Secondary Payer (MSP) Billing & Adjustments quick resource tool
SUSPENDED MSP CLAIMS: Claims/adjustments with MSP information may require Medicare staff intervention and suspend for more than 60 days. Providers may call the Provider Contact Center if their MSP claim has been in the same "S MXXXX" status/location for longer than 60 days.
MSP Resources from the Centers for Medicare & Medicaid Services (CMS)
- Medicare Secondary Payer Web page
- Medicare Secondary Payer Fact Sheet
- Other Insurer Intake Tool
- CMS Guidelines and Resources for Medicare Secondary Payer
- Claims Processing Medicare Secondary Payer (MSP) Policy and Procedures Regarding Ongoing Responsibility for Medicals (ORM) (MM8984)
- Instructions on utilizing 837 Institutional CAS segments for Medicare Secondary Payer (MSP) Part A Claim
- Clarification of Conditional Payment Policy for Liability, No-Fault and Workers' Compensation (MLN Matters article 7355)
- MLN7748519 – Medicare Secondary Payer: Don't Deny Services & Bill Correctly
- Contact the Benefits Coordination & Recovery Center (BCRC)
- MSP provisions (including information about situations in which Medicare pays as secondary): CMS Medicare Secondary Payer Manual (Pub. 100-05), chapter 2
- MSP billing/claim submission requirements: CMS Medicare Secondary Payer Manual (Pub. 100-05), chapter 3
- Processing MSP Claims Related or Unrelated to an Accident or Injury for Non-GHP Claims with ICD-9-CM Diagnosis Codes 500-508 and 800-999 or Related ICD-10-CM Diagnosis Codes – Medicare Secondary Payer (MSP) Manual (Pub 100-05, Ch. 6, Section 40.10
- Coordination of benefits: CMS Benefits Coordination & Recovery Center (BCRC) web page
- Medicare Secondary Payer (MSP) Status/Location R B75XX
Reviewed: 12.20.23