Quality Improvement Organization Manual (Pub. 100-10), Ch. 7 § 7105
Notification of Denial - (Rev. 4, 07-18-03)
7105 - Notification of Denial - (Rev. 4, 07-18-03)
Provide written notification of initial denials, technical denials, and DRG assignment
changes to all affected parties, as appropriate (See Exhibits 7-22 through 7-34).
A. Parties to be Notified - Provide Written Notice to:
The beneficiary or his/her representative. Do not notify the beneficiary or his/her
representative of DRG assignment changes or denials based on circumvention of
PPS or billing errors;
The attending physician or other attending health care practitioner. Do not notify
the individual of circumvention of PPS denials. You are only required to notify
the individual of changes to DRG coding information when the changes revise the
DRG assignment;
The provider (if known, include in preadmission/pre-procedure cases). You and
the provider are to specify in your memorandum of agreement who will receive
your notices for the provider. You are only required to notify the provider of
changes to DRG coding information when the changes revise the DRG
assignment; and
The intermediary/carrier. If you notify the intermediary/carrier electronically of
the denial determination (including limitation of liability determinations, if
applicable), you need not provide a hardcopy of the notice. Notify the
intermediary of DRG assignment changes. Do not notify the intermediary of
coding changes that do not affect the DRG assignment.
B. Issuance of Notice
Issue notices on a case-by-case basis as follows:
One notice addressed to the beneficiary or his/her representative with copies to
the provider, attending physician, and intermediary/carrier; or
One notice addressed to the provider (when the beneficiary or his/her
representative is not notified) with copies to the attending physician and
intermediary/carrier (Do not send a copy to the attending physician for
circumvention of PPS denials).
If a case is selected for retrospective review and you find that a HINN was issued, do not
issue a denial notice if you agree with the provider's decision and the beneficiary was not
liable for charges (Issue a notice for all HINN cases reviewed at the beneficiary's or
provider's request).
C. Determination of Beneficiary Address
Ensure that denial notices mailed to beneficiaries who are no longer in the facility are
sent to the correct address. To assist you in determining the beneficiary's correct address,
CMS can provide you with copies of the Carrier Alphabetic State File (CASF) on
microfilm or the Beneficiary Eligibility Status Tapes (BEST) on magnetic tape. Use of
these files is optional. To obtain copies on an ongoing basis, send a written request to
your RO project officer. There is no charge to you for these files.