Medicare Program Integrity Manual (Pub. 100-08), Ch. 7 § 7.2.2.12
Postpay Provider Specific Medical Record Review
7.2.2.12 - Postpay Provider Specific Medical Record Review
(Rev. 721, Issued: 06-09-17; Effective: 07-11-17; Implementation: 07-11-17)
Medical record review requires a licensed medical professional to use clinical review
judgment to evaluate medical records. Provider specific postpay medical record review
of claims requires that a benefit category review, statutory exclusion review, and/or
reasonable and necessary review be made after claim payment directed at an individual
provider. This includes requests for, collection and evaluation of medical records or any
other documentation. The review is as a result of vulnerabilities determined by data
analysis and identified in the Medical Review strategy. The failure of the provider to
submit documentation shall result in a denial. Contractors shall use Group Code: CO -
Contractual Obligation and Claim Adjustment Reason Code (CARC) 50 - these are non-
covered services because this is not deemed a “medical necessity” by the payer and
Remittance Advice Remark Code (RARC) M127 - Missing patient medical record for
this service. For the purpose of calculating and reporting MR workload, cost and
savings, this is postpay medical record review and is not to be counted as a probe review.