Use of Advanced Beneficiary Notice (ABNs)

20.7 - Use of Advanced Beneficiary Notice (ABNs) (Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08) Except where an exception applies, a beneficiary has no financial liability to a noncontract supplier that furnishes an item included in the competitive bidding program for a CBA, unless the beneficiary has signed an Advance Beneficiary Notice (ABN). However, if a noncontract supplier in a CBA obtains a signed ABN indicating that the beneficiary was informed in writing prior to receiving the competitively bid item or service that there would be no payment by Medicare due to the supplier's non-contract status, the noncontract supplier may charge the beneficiary for the item or service. In this circumstance, non-contract suppliers cannot bill Medicare and receive payment for the competitively bid item or service. An ABN is a written form provided by the supplier and signed by the Medicare beneficiary in which the beneficiary agrees to pay out of pocket for charges not paid for by Medicare. See Chapter 30 - Financial Liability Protections of this manual for general instructions relating to ABN requirements. In addition to the other uses of an ABN as defined in Chapter 30, an ABN informs a beneficiary before he or she receives specified items or services from a noncontract supplier that Medicare will probably not pay for the specified items or services for that particular beneficiary on that particular occasion if furnished by a noncontract supplier.