DENIAL CODES

Denial code P21

Denial code P21 is a payment denial based on jurisdictional regulations or payment policies for Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP) Benefits. It is used for Property and Casualty Auto claims.

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 P21

Denial code P21 is used when a payment is denied based on the jurisdictional regulations or payment policies related to Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP) Benefits. If this denial code is at the Claim Level, the payer must send and the provider should refer to the 835 Insurance Policy Number Segment (Loop 2100 Other Claim Related Information REF qualifier 'IG') if the jurisdictional regulation applies. If the denial code is at the Line Level, the payer must send and the provider should refer to the 835 Healthcare Policy Identification Segment (loop 2110 Service Payment information REF) if the regulations apply. It is important to note that this denial code is specific to Property and Casualty Auto claims only.

Common Causes of CARC P21

Common causes of code P21 are:

1. Non-compliance with Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP) jurisdictional regulations: The denial may occur if the healthcare provider fails to meet the specific requirements set by the MPC and/or PIP regulations in the given jurisdiction.

2. Inadequate documentation: Insufficient or incomplete documentation provided by the healthcare provider can lead to the denial of payment based on MPC and/or PIP regulations.

3. Incorrect coding: Errors in coding, such as using incorrect diagnosis or procedure codes, can result in the denial of payment under the MPC and/or PIP regulations.

4. Lack of supporting information: If the necessary supporting information, such as accident reports or other relevant documentation, is not provided by the healthcare provider, the payment may be denied based on the MPC and/or PIP regulations.

5. Failure to follow specific payment policies: The denial may occur if the healthcare provider does not adhere to the specific payment policies outlined by the payer or the MPC and/or PIP regulations.

6. Ineligibility of the claim: If the claim does not meet the criteria specified by the MPC and/or PIP regulations, the payment may be denied.7. Incorrect submission of claims: Errors in submitting the claims, such as missing or incorrect information, can lead to the denial of payment under the MPC and/or PIP regulations.

It is important for healthcare providers to ensure compliance with the jurisdictional regulations, accurately document and code the services provided, and submit complete and accurate claims to avoid denials based on code P21.

Ways to Mitigate Denial Code P21

Ways to mitigate code P21 include:

1. Familiarize yourself with the Medical Payments Coverage (MPC) and Personal Injury Protection (PIP) Benefits jurisdictional regulations: Stay updated on the specific regulations related to MPC and PIP benefits in your jurisdiction. This will help you understand the requirements and avoid potential denials.

2. Verify insurance coverage: Before providing services, verify the patient's insurance coverage and ensure that it includes MPC and PIP benefits. This will help you determine if the claim is eligible for payment under these benefits.

3. Accurate documentation: Ensure that all documentation related to the claim is accurate and complete. This includes medical records, treatment plans, and any other supporting documents. Accurate documentation will help justify the need for payment under MPC and PIP benefits.

4. Clear communication with payers: Maintain open lines of communication with payers to understand their specific payment policies and requirements related to MPC and PIP benefits. This will help you align your billing practices accordingly and reduce the chances of denials.

5. Regular staff training: Provide regular training to your staff members involved in the revenue cycle management process. This will help them stay updated on the latest regulations and payment policies, enabling them to submit accurate claims and prevent denials.

6. Utilize technology: Implement revenue cycle management software or tools that can help automate claim submission and verification processes. These tools can help identify any potential issues or errors before submitting the claim, reducing the risk of denials.

7. Monitor and analyze denials: Regularly monitor and analyze denial trends related to code P21. This will help you identify any recurring issues and take proactive measures to prevent future denials.

By implementing these strategies, healthcare providers can mitigate code P21 and improve their revenue cycle management process.

How to Address Denial Code P21

The steps to address code P21 are as follows:

1. If the adjustment is at the Claim Level, the payer must send and the provider should refer to the 835 Insurance Policy Number Segment (Loop 2100 Other Claim Related Information REF qualifier 'IG') if the jurisdictional regulation applies. This segment will provide specific information related to the Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP) Benefits jurisdictional regulations.

2. If the adjustment is at the Line Level, the payer must send and the provider should refer to the 835 Healthcare Policy Identification Segment (loop 2110 Service Payment information REF) if the regulations apply. This segment will provide detailed information regarding the specific regulations that are being applied.

3. It is important to note that code P21 is applicable only for Property and Casualty Auto claims. Therefore, providers should ensure that the claim being processed falls under this category.

By following these steps, healthcare providers can effectively address code P21 and navigate the payment denial based on the Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP) Benefits jurisdictional regulations or payment policies.

RARCs Associated to CARC P21

Get paid in full by bringing clarity to your revenue cycle

Full Page Background