Medicare Claims Processing Manual (Pub. 100-04), Ch. 6 § 40.9
Other Billing Situations
40.9 - Other Billing Situations
(Rev. 10880, Issued: 08-06-21, Effective: 11-08-21, Implementation: 11-08-21)
A. Demand Bills
Where the SNF believes that a covered level of care has ended but the beneficiary
disagrees, they report occurrence code 21 (UR notice received) or 22 (date active care
ended) as applicable and condition code 20 indicating the beneficiary believes the
services are covered beyond the occurrence date.
See the Medicare Claims Processing Manual, Chapter 1, “General Billing Requirements,”
§60.3, for instructions on advance beneficiary notices and demand bills.
Refer to the Medicare Claims Processing Manual, Chapter 25 for further information
about billing.
B. Request for Denial Notice for Other Insurer
The SNFs complete a noncovered bill and enter condition code 21 to indicate a request
for a Medicare denial notice. Refer to Chapter 25 further information about billing.
C. Another Insurer is Primary to Medicare
See the Medicare Secondary Payer (MSP) Manual, Chapter 3, “MSP Provider Billing
Requirements” and Chapter 5, “Contractor Prepayment Processing Requirements,” for
submitting claims for secondary benefits to Medicare. Refer to the Medicare Claims
Processing Manual, Chapter 25 for further information about billing.
D. Special MSN Messages
The Medicare Prescription Drug Improvement and Modernization Act of 2003 requires
that Medicare Summary Notices (including SNF claims for post-hospital extended care
services provided under Part A) report the number of covered days remaining in the given
spell of illness. This requirement became effective July 6, 2004.
E. Interrupted Stay
Refer to the Medicare Claims Processing Manual, Chapter 6, “Interrupted Stay Policy,”
§120.2, for information about billing when a patient returns to a covered level of care
after an interrupted stay.