The Difference Between Advance Beneficiary Notices (ABN) and Private

40.24 - The Difference Between Advance Beneficiary Notices (ABN) and Private Contracts (Rev. 1, 10-01-03) B3-3044.24 An Advance Beneficiary Notice (ABN) allows a beneficiary to make an informed consumer decision by knowing in advance that the beneficiary may have to pay out-of-pocket. An ABN is not needed where the item or service is categorically excluded from Medicare coverage or outside the scope of the benefit. An ABN is used when the physician/practitioner believes that Medicare will not make payment, while private contracts are used for services that are covered by Medicare and for which payment might be made if a claim were to be submitted. See the Medicare Claims Processing Manual, chapter 30, for a description of the ABN.