Medicare Secondary Payer Manual (Pub. 100-05), Ch. 6 § 40.5
MSP Cost Avoided Claims
40.5 - MSP Cost Avoided Claims
(Rev. 12078; Issued:06-14-23; Effective: 05-29-23; Implementation: 05-29-23)
A/B MACs and DME MACs shall follow the instructions cited in Pub. 100-05, Chapter 5
for counting savings on MSP cost avoided claims.
They shall submit ALL MSP cost avoided claims to CWF.
Payment/Denial codes are used to identify the reason a claim was denied. Specific codes
for MSP are listed and defined in §10.2 under the MSP/ Contractor Number chart in
that section. A/B MACs (Part B) and DME MACs submit the appropriate code to CWF
in the Health Utilization Part B Claim ("HUBC") claim record in field 63
"Payment/Denial Code" for line item denials. They complete the appropriate code for
full claim denials in the "HUBC" claim record, field 16 "Payment/Denial". A/B MACs
(Part A) submit the appropriate code in the Health Utilization Inpatient Claim (HUIP)
CWF record field 58 "Nonpayment" code for inpatient hospital and SNF claim denials.
They submit the appropriate code in field 59 "No Pay Code" of the CWF record for the
specific type of claim identified in the chart below.
PAYMENT/DENIAL CODE FIELDS IN CWF CLAIM RECORD
Contractor
Type of Claim
CWF
Record
Field
A/B MAC (Part B)
and DME MAC
Full Claim Denial
HUBC
16 Payment/Denial
A/B MAC (Part B)
and DME MAC
Full Line Item
Denial
HUBC
63 Payment/Denial Code
A/B MAC (Part A)
and DME MAC
Inpatient hospital
and inpatient SNF
Denial
HUIP
58 Nonpayment Code
A/B MAC (Part A)
and DME MAC
Health Utilization
Outpatient (HUOP)
HUOP
59 No Pay Code
A/B MAC (HH&H)
Health Utilization
Home Health
(HUHH)
HUHH
59 No Pay Code
A/B MAC (HH&H)
Health Utilization
Hospice Claim
(HUHC)
HUHC
59 No Pay Code
If a denial indicator is incorrect, the CWF software will correct the denial indicator based
on the matching MSP auxiliary record and send the correct value back to the contractor
on the response record header. It is not necessary for an MSP auxiliary record to be
present in order to post MSP cost avoided savings. If one is present, the A/B MAC or
DME MAC uses the "X" or "Y" override code as appropriate.