DENIAL CODES

Denial code 131

Denial code 131 is when a claim is denied because it includes a negotiated discount that is specific to that claim.

Table of Contents
What is Denial Code 131
Common Causes of CARC 131
Ways to Mitigate Denial Code 131
How to Address Denial Code 131
RARCs Associated to CARC 131
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 131

Denial code 131 means that the claim has been denied because it is requesting a specific negotiated discount that is not allowed according to the terms of the agreement between the healthcare provider and the payer.

Common Causes of CARC 131

Common causes of code 131 are:

1. Incorrectly applied negotiated discount: This code may be triggered if the healthcare provider has applied a negotiated discount to the claim that is not in line with the agreed-upon terms with the payer. It could be due to an error in applying the correct discount percentage or not considering any limitations or exclusions specified in the contract.

2. Lack of supporting documentation: Payers often require specific documentation to support the application of negotiated discounts. If the healthcare provider fails to provide the necessary documentation or submits incomplete or inaccurate information, it can result in the code 131 denial.

3. Inadequate verification of patient eligibility: Before applying negotiated discounts, healthcare providers need to verify the patient's eligibility for the specific discount. If the provider fails to confirm the patient's eligibility or incorrectly determines their eligibility status, it can lead to a denial with code 131.

4. Failure to follow proper billing procedures: Each payer may have specific billing procedures that need to be followed when applying negotiated discounts. If the healthcare provider deviates from these procedures or fails to submit the claim correctly, it can result in a denial with code 131.

5. Out-of-network services: Code 131 may be triggered if the healthcare provider applies a negotiated discount to services that were performed out-of-network. Payers often have different reimbursement rates for in-network and out-of-network services, and applying the negotiated discount to out-of-network claims can result in a denial.

6. Exceeded contracted limits: Some negotiated discounts may have limitations or maximums specified in the contract. If the healthcare provider exceeds these limits when applying the discount, it can lead to a denial with code 131.

7. Contractual changes or termination: If there have been changes to the negotiated discount contract or if the contract has been terminated, the healthcare provider may receive a denial with code 131. It is essential for providers to stay updated on any changes to their contracts and ensure they are applying the correct discounts accordingly.

8. Coding errors: In some cases, code 131 denials may occur due to coding errors. If the healthcare provider incorrectly assigns a code or fails to accurately document the services provided, it can result in a denial with this code.

It is important for healthcare providers to review their billing processes, contracts, and documentation to avoid denials with code 131. Regular training and communication with billing and coding staff can help minimize these denials and ensure accurate application of negotiated discounts.

Ways to Mitigate Denial Code 131

Ways to mitigate code 131 include:

  1. Ensure accurate contract management: Maintain a comprehensive and up-to-date record of all negotiated discounts with payers. Regularly review and update contracts to ensure that the agreed-upon discounts are correctly applied to claims.
  2. Verify eligibility and coverage: Before submitting a claim, verify the patient's eligibility and coverage with the payer. This helps identify any potential discrepancies or issues that may lead to the application of code 131. By confirming the patient's coverage, you can ensure that the negotiated discount is applicable.
  3. Accurate coding and documentation: Ensure that all services provided are accurately coded and documented. Use the appropriate CPT, HCPCS, and ICD-10 codes to reflect the services rendered. Proper documentation helps support the claim and reduces the chances of a denial with code 131.
  4. Timely submission of claims: Submit claims in a timely manner to avoid any potential delays or issues that may result in the application of code 131. Delays in claim submission can lead to complications in the reimbursement process, including the potential denial of negotiated discounts.
  5. Monitor and track claims: Implement a robust claims tracking system to monitor the status of submitted claims. Regularly review claim status reports to identify any denials with code 131 promptly. By proactively addressing these denials, you can take appropriate actions to resolve them and prevent future occurrences.
  6. Conduct regular audits: Perform regular internal audits to identify any potential issues or gaps in the revenue cycle process that may contribute to the application of code 131. These audits can help identify areas for improvement and allow you to implement corrective measures to prevent future denials.
  7. Stay updated with payer policies: Stay informed about any changes in payer policies and guidelines related to negotiated discounts. Regularly review updates from payers to ensure compliance with their requirements and prevent denials with code 131.

By implementing these strategies, healthcare providers can mitigate code 131 and improve their revenue cycle management processes.

How to Address Denial Code 131

The steps to address code 131, which indicates a claim specific negotiated discount, are as follows:

  1. Review the claim details: Carefully examine the claim to ensure that all the necessary information, such as patient demographics, insurance details, and service codes, are accurate and complete.
  2. Verify the negotiated discount: Cross-check the negotiated discount mentioned in the claim with the contract or fee schedule agreed upon with the insurance provider. Ensure that the discount applied is in line with the agreed-upon terms.
  3. Confirm the billed amount: Verify that the billed amount reflects the negotiated discount. If the billed amount does not match the agreed-upon discount, make the necessary adjustments to align them correctly.
  4. Check for coding errors: Review the coding used for the services provided. Ensure that the correct codes are used and that they accurately represent the services rendered. If any coding errors are identified, correct them promptly.
  5. Communicate with the insurance provider: If there are any discrepancies or issues related to the negotiated discount, reach out to the insurance provider's representative. Provide them with the necessary information and documentation to support your claim and request a resolution.
  6. Document all actions taken: Keep a detailed record of all the steps taken to address code 131. This documentation will be helpful for future reference and can serve as evidence of your efforts to resolve any disputes or discrepancies.
  7. Follow up on the claim: Monitor the progress of the claim to ensure that it is processed correctly. If the issue persists or if there are any delays in reimbursement, continue to follow up with the insurance provider until the matter is resolved satisfactorily.

By following these steps, healthcare providers can effectively address code 131 and ensure that the negotiated discounts are accurately applied to their claims.

RARCs Associated to CARC 131

Improve your financial performance while providing a more transparent patient experience

Get a Demo

Related Denial Codes

Full Page Background