DENIAL CODES

Denial code N558

Remark code N558 is an alert that the claim isn't payable in the current service area and must be filed to the correct Payer/Plan.

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What is Denial Code N558

Remark code N558 is an indication that the claim or service submitted is not eligible for payment because it falls outside the payer's designated service area. This means that the healthcare provider must submit the claim to the correct payer or insurance plan that covers the geographical area where the equipment or service was provided.

Common Causes of RARC N558

Common causes of code N558 are:

1. The healthcare provider submitted the claim to the wrong insurance payer, one that does not cover services in the area where the equipment was received.

2. The patient received medical equipment or services outside of the insurance plan's designated service area, and the claim was not directed to the appropriate regional or local payer that covers that specific location.

3. Incorrect or outdated patient insurance information was used when filing the claim, leading to a mismatch between the service area covered by the payer and the area where the service was actually provided.

4. The claim was submitted without verifying the patient's current insurance plan's service area or without updating the insurance information to reflect changes in the patient's coverage area.

5. There was a misunderstanding or lack of knowledge about the specific geographic restrictions or service area requirements of the patient's insurance plan, resulting in the claim being filed to a payer that does not cover services in the location where the equipment was received.

Ways to Mitigate Denial Code N558

Ways to mitigate code N558 include ensuring that patient information is accurately and thoroughly verified at the time of service. This involves confirming the patient's current address and the specific coverage area of their insurance plan. Additionally, it's crucial to maintain an updated database of payer service areas and to cross-reference this information before filing claims. Implementing a system to automatically flag claims that may fall outside of a payer's service area can also help prevent this issue. Training staff to recognize and address potential service area discrepancies before claims submission is another effective strategy. Lastly, establishing direct communication channels with payers to quickly resolve any uncertainties regarding service areas can minimize the risk of encountering code N558.

How to Address Denial Code N558

The steps to address code N558 involve a multi-faceted approach to ensure the claim is redirected and processed correctly. Initially, it's crucial to verify the service area associated with the patient's coverage by reviewing the patient's insurance information and the specifics of the plan. This may involve contacting the insurance provider directly to confirm the correct service area and obtaining the appropriate payer or plan details for where the equipment was received.

Once the correct service area and corresponding payer or plan have been identified, the claim should be refiled with this updated information. Ensure that all details regarding the location where the equipment was received are accurately documented on the claim to prevent further issues.

Additionally, it's advisable to review internal processes for verifying insurance coverage and service areas prior to claim submission to minimize the recurrence of this issue. Implementing a system for double-checking the service area against the patient's plan details before initial filing can save time and reduce the number of claims rejected for this reason.

If the claim has been mistakenly filed to your facility despite being outside of your service area, facilitating the transfer of the claim to the correct payer or plan, along with any necessary documentation, can expedite the resolution. Communication with the patient may also be necessary to clarify coverage details and ensure they understand the reason for the claim's redirection.

Lastly, keeping a record of these occurrences can help identify patterns or common issues related to specific plans or service areas, allowing for more proactive management of similar claims in the future.

CARCs Associated to RARC N558

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