Medicare Program Integrity Manual (Pub. 100-08), Ch. 7 § 7.2.2.13
Postpay Service Specific Medical Record Review
7.2.2.13 - Postpay Service 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. Service 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 a certain
service. 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. If the requested documentation is
not received, it is not considered a medical record review. 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.