Denial code 108

Denial code 108 means the guidelines for renting or purchasing were not followed. Check the 835 Healthcare Policy Identification Segment for more information.

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What is Denial Code 108

Denial code 108 means that the rent or purchase guidelines for a specific healthcare service or item were not met. To understand the specific details of this denial, you can refer to the 835 Healthcare Policy Identification Segment (loop 2110 Service Payment Information REF) in the payment information. This segment provides more information about the guidelines that were not met and can help in resolving the denial.

Common Causes of CARC 108

Common causes of code 108 are:

1. Failure to meet rent or purchase guidelines: This denial code indicates that the healthcare provider did not meet the specific guidelines for renting or purchasing a particular medical equipment or device. It could be due to not following the required documentation or not meeting the necessary criteria for reimbursement.

2. Lack of supporting documentation: Insufficient or missing documentation to support the need for renting or purchasing the medical equipment can result in code 108. This could include a lack of medical records, physician orders, or other necessary documentation to justify the expense.

3. Inadequate medical necessity: Code 108 may be triggered if the medical necessity for the rented or purchased equipment is not adequately demonstrated. Insurance payers require clear evidence that the equipment is necessary for the patient's diagnosis or treatment, and if this requirement is not met, the claim may be denied.

4. Non-compliance with payer policies: Each insurance payer has its own specific guidelines and policies regarding the rental or purchase of medical equipment. If the healthcare provider fails to adhere to these policies, such as obtaining prior authorization or following specific billing procedures, it can lead to a denial with code 108.

5. Incorrect coding or billing errors: Mistakes in coding or billing can also result in code 108 denials. This could include using incorrect procedure or diagnosis codes, entering incorrect dates of service, or other errors in the billing process that do not align with the payer's guidelines.

It is important for healthcare providers to review the denial code and associated explanation carefully to identify the specific cause of the denial. By addressing the underlying issues and taking corrective actions, providers can improve their revenue cycle management and reduce the occurrence of code 108 denials.

Ways to Mitigate Denial Code 108

Ways to mitigate code 108 include:

  1. Ensure that all rental or purchase guidelines are met before submitting a claim. This includes verifying that the equipment or supplies being billed for meet the necessary criteria outlined by the payer.
  2. Double-check the documentation and coding to ensure accuracy. Make sure that the medical records clearly support the need for the rental or purchase and that the correct codes are used.
  3. Communicate effectively with the payer. If there are any questions or concerns regarding the rental or purchase guidelines, reach out to the payer's representative for clarification. This can help prevent any potential denials related to this code.
  4. Implement a robust internal auditing process. Regularly review claims before submission to identify any potential issues related to rental or purchase guidelines. This proactive approach can help catch any errors or discrepancies before they result in denials.
  5. Stay updated with payer policies and guidelines. Keep track of any changes or updates to the rental or purchase guidelines provided by the payer. This can help ensure compliance and prevent denials related to this code.
  6. Provide thorough and detailed documentation. Include all necessary information in the medical records to support the medical necessity of the rental or purchase. This can help prevent any disputes or denials related to this code.
  7. Train and educate staff members involved in the revenue cycle process. Make sure that everyone is aware of the specific rental or purchase guidelines and understands the importance of adhering to them. Regular training sessions can help reinforce this knowledge and prevent denials.

By implementing these strategies, healthcare providers can effectively mitigate code 108 and reduce the likelihood of denials related to rental or purchase guidelines.

How to Address Denial Code 108

The steps to address code 108 are as follows:

  1. Review the documentation: Carefully examine the documentation related to the claim to ensure that the rent/purchase guidelines were indeed not met. Look for any missing or incomplete information that may have contributed to the denial.
  2. Identify the specific issue: Determine the exact reason why the rent/purchase guidelines were not met. This could include factors such as incorrect coding, lack of supporting documentation, or failure to meet specific criteria outlined by the payer.
  3. Correct any errors: If any errors or discrepancies are identified, take the necessary steps to correct them. This may involve updating the coding, obtaining additional documentation, or addressing any other issues that contributed to the denial.
  4. Provide additional information if required: If the denial was due to insufficient documentation, gather any additional information or supporting documents that may be necessary to meet the rent/purchase guidelines. Ensure that all relevant information is included in the resubmission of the claim.
  5. Submit a well-documented appeal: If you believe that the denial was unjustified or that the rent/purchase guidelines were indeed met, consider submitting an appeal. Compile a comprehensive appeal letter that clearly outlines the reasons why the denial should be overturned, providing any supporting evidence or documentation as necessary.
  6. Monitor the status of the claim: Keep track of the status of the claim to ensure that it is being processed correctly after addressing the code. Follow up with the payer if necessary to ensure that the claim is being reevaluated and processed in a timely manner.

By following these steps, healthcare providers can effectively address code 108 and work towards resolving the denial related to rent/purchase guidelines not being met.

RARCs Associated to CARC 108

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