Medicare Claims Processing Manual (Pub. 100-04), Ch. 6 § 90.1
Beneficiaries Disenrolled from MA Plans
90.1 - Beneficiaries Disenrolled from MA Plans
(Rev. 1618, Issued: 10-24-08, Effective: 04-01-09; Implementation: 04-06-09)
If a beneficiary voluntarily or involuntarily dis-enrolls from a risk MA plan while an
inpatient of an SNF and converts to original Medicare (i.e., fee for service) the
requirement for a three day hospital stay will be waived if the beneficiary meets the level
of care criteria found in 42 CFR 409, Subpart D, up through the effective date of dis-
enrollment. The beneficiary will then be eligible for the number of days that remain out
of the 100 day SNF benefit for that particular SNF stay minus those days that would have
been covered by the program under original Medicare while the beneficiary was enrolled
in the risk MA plan. However, in cases where the beneficiary disenrolls from a risk MA
plan after discharge from the SNF, and then is readmitted to the SNF under the 30 day
rule, all requirements for original Medicare (i.e., fee for service), including the 3-day
hospital stay must be met. Rules regarding cost sharing apply to these cases. That is,
providers may only charge beneficiaries for SNF coinsurance amounts.
If the beneficiary voluntarily disenrolls from a risk MA plan and converts to original
Medicare (i.e., fee for service) before admission to a SNF then the beneficiary must meet
all original Medicare requirements for a SNF stay, including that of a three day inpatient
hospital stay.
SNFs submit all applicable fee-for-service inpatient SNF claims with condition code “58”
to indicate a patient was disenrolled from an MA plan and the 3-day prior stay
requirement was not met. Claims with condition code 58 will not require the 3-day prior
inpatient hospital stay. The A/B MAC (A) must use CWF files to validate the beneficiary
was enrolled in an MA organization upon admission to the SNF and that the MA
enrollment period ended prior to the “from” date on the claim. The A/B MAC (A) does
not need to verify that the MA plan was the one that terminated.