Medicare Program Integrity Manual (Pub. 100-08), Ch. 7 § 7.2.2.6
Prepay Service Specific Medical Record Review
7.2.2.6 - Prepay 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 prepay medical review of claims
requires that a medical review determination be made before claim payment directed at a
certain service. It 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,
contractors shall count these denials as automated review or non-medical record review
depending on whether the denial is automated or requires manual intervention.