Denial code M109

Remark code M109 indicates a bundled teleconsultation payment, with instructions to send 25% to the referring practitioner.

Accelerate your revenue cycle

Boost patient experience and your bottom line by automating patient cost estimates, payer underpayment detection, and contract optimization in one place.

Get a Demo

What is Denial Code M109

Remark code M109 is an indication that the payer has issued a single, consolidated payment for a teleconsultation service, and it is the responsibility of the billing provider to distribute 25 percent of this payment to the practitioner who made the referral for the teleconsultation.

Common Causes of RARC M109

Common causes of code M109 are typically related to the contractual agreement between healthcare providers and payers regarding bundled payment arrangements. These causes may include:

1. Incorrect calculation of the percentage owed to the referring practitioner, leading to an improper distribution of the bundled payment.

2. Failure to adhere to the terms of the contract that stipulate the division of payment for services rendered in a teleconsultation scenario.

3. Miscommunication or lack of clarity between the healthcare providers involved in the teleconsultation regarding their respective shares of the payment.

4. Administrative errors in processing the payment, which result in the incorrect amount being allocated to the referring practitioner.

5. The referring practitioner's billing information may be incomplete or incorrect in the billing system, causing a delay or error in the transfer of the appropriate percentage of the teleconsultation payment.

Ways to Mitigate Denial Code M109

Ways to mitigate code M109 include establishing a clear internal process for managing bundled payments for teleconsultations. Ensure that your billing system can identify and allocate the correct percentage of the payment to the referring practitioner. Train your billing staff on the importance of adhering to the payment distribution requirements for teleconsultations. Regularly audit your payment distributions to confirm compliance and prevent this code from being triggered. Implementing a robust tracking system can also help in monitoring the flow of payments and ensuring that the referring practitioner receives the appropriate share promptly.

How to Address Denial Code M109

The steps to address code M109 involve several actions to ensure proper payment distribution and compliance. First, review the payment received for the teleconsultation to confirm that it is indeed a bundled payment. Next, calculate 25 percent of the total payment amount. Once the amount is determined, initiate a transfer of funds to the referring practitioner for the calculated percentage. It is important to document this transaction thoroughly, including the date, amount, and recipient details for your records and potential auditing purposes. Ensure that the referring practitioner acknowledges receipt of the payment. Lastly, update your billing system to reflect the completed transaction to maintain accurate financial records.

CARCs Associated to RARC M109

Get paid in full by bringing clarity to your revenue cycle

Full Page Background