Denial code 27

Denial code 27 is when expenses are incurred after coverage has ended, resulting in a claim denial.

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What is Denial Code 27

Denial code 27 means that the expenses were incurred after the coverage for the specific service or treatment had already ended. This code indicates that the insurance company will not provide reimbursement for the expenses incurred during this period.

Common Causes of CARC 27

Common causes of code 27 are:

1. Failure to update patient's insurance information: When a patient's coverage terminates, it is crucial for healthcare providers to update their records accordingly. If the provider continues to bill for services after the coverage termination date, it can result in a denial with code 27.

2. Delay in submitting claims: Sometimes, healthcare providers may experience delays in submitting claims to insurance companies. If the claim is submitted after the patient's coverage termination date, it can lead to a denial with code 27.

3. Incorrect termination date recorded: Mistakes can happen when recording the termination date of a patient's insurance coverage. If the termination date is incorrectly entered, it can result in claims being submitted after the coverage has actually ended, leading to a denial with code 27.

4. Lack of communication with the patient: If the patient fails to inform the healthcare provider about the termination of their insurance coverage, the provider may continue to bill for services. This lack of communication can result in claims being submitted after the coverage termination date, leading to a denial with code 27.

5. Inadequate verification of coverage: Healthcare providers need to verify a patient's insurance coverage regularly to ensure they are billing for services within the covered period. If there is a failure to adequately verify coverage, claims may be submitted after the termination date, resulting in a denial with code 27.

6. Changes in insurance plans: Patients may switch insurance plans without notifying their healthcare provider. If the provider continues to bill the previous insurance plan after the coverage has terminated, it can lead to a denial with code 27.

7. Billing errors: Mistakes in the billing process, such as incorrect dates or coding errors, can result in claims being submitted after the patient's coverage has ended. These billing errors can trigger a denial with code 27.

It is important for healthcare providers to address these common causes and implement effective revenue cycle management practices to minimize denials with code 27 and ensure timely reimbursement for services rendered.

Ways to Mitigate Denial Code 27

Ways to mitigate code 27 include:

  1. Timely verification of coverage: Ensure that the patient's insurance coverage is verified before providing any services. This will help identify any gaps or termination in coverage, preventing expenses from being incurred after coverage has ended.
  2. Effective communication with patients: Maintain open lines of communication with patients to keep track of any changes in their insurance coverage. Encourage patients to inform your practice immediately if there are any changes or termination in their coverage.
  3. Streamlined claims submission process: Implement a robust claims submission process that includes thorough checks for accurate and up-to-date insurance information. This will help identify any potential coverage termination issues before submitting the claim.
  4. Regular audits and reviews: Conduct regular audits of your claims and billing processes to identify any potential errors or issues that could lead to code 27 denials. Reviewing claims for accuracy and completeness will help catch any expenses incurred after coverage termination.
  5. Utilize technology and automation: Leverage technology solutions, such as revenue cycle management software, to automate the verification of insurance coverage and claims submission processes. This will help reduce the chances of human error and improve efficiency in identifying coverage termination.
  6. Stay updated with payer policies: Stay informed about the latest policies and guidelines from payers to ensure compliance with their requirements. This will help you understand any changes in coverage termination rules and adjust your processes accordingly.
  7. Educate staff on insurance coverage: Provide comprehensive training to your staff on insurance coverage and the importance of verifying coverage before providing services. This will help them identify potential issues and take necessary steps to prevent code 27 denials.

By implementing these strategies, healthcare providers can mitigate code 27 denials and improve their revenue cycle management processes.

How to Address Denial Code 27

The steps to address code 27, which indicates expenses incurred after coverage terminated, are as follows:

  1. Review the patient's insurance coverage termination date: Verify the exact date when the patient's insurance coverage ended. This information can usually be found in the patient's insurance policy or by contacting the insurance company directly.
  2. Check for any billing errors: Ensure that the services or procedures in question were performed before the coverage termination date. Double-check the dates of service, as well as any other relevant details such as the patient's eligibility status at the time of service.
  3. Communicate with the patient: Reach out to the patient to discuss the situation and gather any additional information that may be needed. It is important to explain the reason for the denial and provide guidance on how to resolve the issue.
  4. Appeal the denial if necessary: If you believe that the denial is incorrect or unjustified, consider filing an appeal with the insurance company. Compile all relevant documentation, including proof of timely submission and any supporting medical records, to strengthen your case.
  5. Explore alternative payment options: If the denial is upheld or the patient is unable to pay out-of-pocket, discuss alternative payment options with the patient. This may include setting up a payment plan or exploring financial assistance programs that could help cover the expenses.
  6. Document all actions taken: Keep a detailed record of all steps taken to address the denial, including dates, times, and individuals involved. This documentation will be valuable if further action is required or if similar issues arise in the future.

Remember, addressing denial code 27 requires thorough investigation, clear communication with the patient, and proactive follow-up to ensure a resolution is reached.

RARCs Associated to CARC 27

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