DENIAL CODES

Denial code MA56

Remark code MA56 indicates a provider opted out of Medicare and can't bill Medicare. The patient must pay, but charges are limited by law.

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 MA56

Remark code MA56 indicates that the provider has previously made an agreement to opt out of Medicare and has agreed not to bill Medicare for services, tests, or supplies provided. Consequently, Medicare will not process payment for this claim. The financial responsibility for the cost of these services falls to the patient. However, it is important to note that under Federal law, the provider is prohibited from charging the patient more than the established Medicare limiting charge for the services rendered.

Common Causes of RARC MA56

Common causes of code MA56 are:

1. The healthcare provider has not properly updated their Medicare participation status, leading to confusion about their opt-out status.

2. There was an administrative error when submitting the claim, incorrectly indicating that the provider has opted out of Medicare.

3. The provider has indeed opted out of Medicare, but this was not clearly communicated to the patient or properly documented.

4. The claim was submitted for a service or supply that is not covered under the patient's Medicare plan, and the provider is mistakenly believed to have opted out.

5. The patient may have misunderstood their responsibility for payment due to the provider's opt-out status and filed a claim with Medicare.

6. The provider's opt-out affidavit may have been filed with Medicare, but the effective date of the opt-out was not correctly applied to the date of service in question.

7. There is a mismatch between the National Provider Identifier (NPI) used on the claim and the NPI associated with the opt-out status in the Medicare system.

Ways to Mitigate Denial Code MA56

Ways to mitigate code MA56 include ensuring that your billing staff is aware of the Medicare opt-out status of each provider within your practice. Regularly update and verify the opt-out list to prevent accidental billing of Medicare for services rendered by opted-out providers. Additionally, educate your patients about the implications of receiving services from an opted-out provider, including their payment responsibilities and the limiting charge rules. Implement a system to flag services provided by opted-out physicians so that they are not mistakenly submitted to Medicare. Lastly, establish clear communication channels with opted-out providers to confirm the services that should be billed directly to the patient, adhering to the limiting charge as required by Federal law.

How to Address Denial Code MA56

The steps to address code MA56 involve several actions to ensure compliance and proper patient billing. Firstly, confirm the accuracy of the opt-out status in your records. If the provider has indeed opted out of Medicare, you must adhere to the terms of the private contract with the patient, which should outline the limiting charge as per Federal law. Ensure that the patient is billed only up to the limiting charge amount and not beyond it. If the opt-out status is incorrect, you will need to update your records and resubmit the claim with the correct information. Additionally, educate your billing staff about the implications of this code to prevent future occurrences and maintain transparency with patients regarding their financial responsibilities.

CARCs Associated to RARC MA56

Improve your financial performance while providing a more transparent patient experience

Full Page Background