CMS Pub. 100-05, ch. 5, § 20.4.3

Compensation Situations

(Rev. 11550; Issued: 08 -12-22; Effective: 10 -13-22; Implementation:10 -13-22)

The A/B MACs, DME MACs and shared system maintainers shall accept and process a revised

MSP 03 trailer response from CWF that will now include the 1- byte ORM indicator with valid

values.

The A/B MACs, DME MACs and shared systems shall accept and process the three (3) new

overridable utilization error codes (68xx) when returned with an 08 trailer. These 3 new error codes

will be for Liability (including self-insurance), No-Fault, and Workers’ Compensation records on

CWF. These error codes are:

6816 --“No-Fault record exists with a valid (Y) ORM indicator. A/B MAC and DME MAC

payment is not allowed.”

6817--“Workers’ Compensation record exists with a valid (Y) ORM indicator. A/B MAC and

DME MAC payment is not allowed. “

6818 - - “Liability record exists with a valid (Y) ORM indicator. A/B MAC and DME MAC

payment is not allowed.”

When determining whether to apply any of the above 3 new error codes, as applicable, CWF shall

take the following steps by referencing the MSP auxiliary file:

(1) Validate that the ORM indicator on the open MSP ORM record on CWF equals “Y”;

and

(2) Determine if the diagnosis codes on the NGHP claim match the diagnosis codes (or

match within the family of diagnosis codes) on the open MSP ORM record on CWF.

If CWF determines that any of the 68xx error codes discussed in the previous paragraph above apply,

it shall return them to the A/B MAC or DME MAC with disposition code equal to a UR. In addition,

when CWF returns any of the 68xx edits to the A/B MACs and DME MACs, CWF shall also return a

trailer 39 to the A/B MACs and DME MACs to make certain that, as applicable, they can determine

to which service detail line the 68xx edit applies.

Additionally, CWF shall ensure that error code 68xx may be overridden by A/B MACs, DME

MACs and shared systems as follows:

• Allow the 68xx to be entered in the claim header if applicable to the entire claims

on which MSP NGHP diagnosis codes do not apply; or

• Allow for individual claim service lines on which MSP NGHP diagnosis codes do not

apply to be overridden with an "N." (NOTE: In these cases, CWF shall not apply the line

level override to the entire claim but only to the identified claim service detail lines.)

The A/B MACs, DME MACs and shared systems shall accept the three (3) new overridable

utilization error codes (68xx) when returned via the 08 trailer.

When applying the 68xx editing logic to the applicable Liability, No-Fault, or Workers’

Compensation record, CWF shall ensure that open NGHP MSP records with a “Y” ORM indicator

are given precedence over another NGHP record, where all other variables except the ORM indicator

match.

A/B MACs Claims Processing Instructions

When the A/B MACs (Part A), A/B MACs (Part HHH) and shared systems deny a claim, with an

open ORM occurrence (with an indicator of “Y”), they shall create a “22” No Pay Code in the

appropriate claim line and header of their HUIP, HUOP, HUHH, HUHC claim before sending it to

CWF.

When the A/B MACs (Part B) and DME MACs and shared systems deny a claim, with an open

ORM occurrence (with an indicator of “Y”), they shall create a “22” Payment Denial indicator in the

HUBC and HUDC claim header transactions before sending them to CWF. In addition, they shall

create a “22” in the claim detail pay process field before sending the claim to CWF.

Specified CARCs to Use in Denying Claims Due to ORM

The A/B MACs, DME MACs and shared systems shall include the existing Claim Adjustment

Reason Codes (CARCs) 19, 20, and 21, as applicable, on the outbound 835 and the 837

crossover claims when denying claims due to ORM, together with CAS Group Code PR. These

three (3) CARC codes are defines as follows:

CARC 19 -- “This is a work-related injury/illness and thus the liability of the Workers’

Compensation Carrier.” [Associated Remittance Advice Remark Code (RARC) is N728.]

CARC 20 – “This injury/illness is covered by the liability carrier.” [Associated

RARC=N725.]

CARC 21 – “This injury/illness is the liability of the no-fault carrier.” [Associated

RARC=N727.]

In conjunction with the three (3) CARCs mentioned above, the A/B MACs, DME MACs and shared

systems shall make certain that the three (3) new Remittance Advice Remark Codes (RARCs) for a

D, E, or L records—namely, N725, N727, and N728, —are matched up and applied to the

corresponding CARC codes for these same types of records, as appropriate.

These 3 new RARC codes shall be applied to the outbound 835 Electronic Admittance Advices

(ERAs) and 837 crossover claims when denying claims due to an ORM indicator of “Y” on an open

NGHP MSP record.

NOTE: Additionally, three (3) new Medicare Summary Notices (MSN) messages have been

developed specifically for the three (3) types of NGHP MSP ORM types of records. These will be

communicated elsewhere in the IOM.

Exceptions to Denial of Claims Policy Due to ORM

The A/B MACs, DME MACs and shared systems shall not allow or make Medicare payments on

open ORM occurrences that contain an ORM indicator of “Y,” unless the Claim Adjustment Reason

Codes (CARCs) on the claim—specifically, CARCs 26, 27, 31, 32, 35, 49, 50, 51, 53, 55, 56, 60, 96,

119, 149, 166, 167, 170, 184, 200, 204, 242, 256, B1 (if a covered Medicare visit), and B14—permit

Medicare to make a payment.

The A/B MACs, DME MACs and the shared systems shall make a payment, as appropriate, for those

services related to diagnosis codes associated with the ORM MSP Auxiliary record when the claim’s

service date falls outside the termination date on the MSP auxiliary record or deleted.

Possible A/B MAC and DME MAC Review of Suspended Claims

A/B MACs and DME MACs shall still be required, on occasion and part of normal

process/procedures, to make determinations on claims that are suspended for review with an

associated ORM occurrence if:

(1) The ORM indicator on the CWF MSP record equals “Y”; and

(2) The diagnosis codes on the NGHP claim match the diagnosis codes (or match within

the family of diagnosis codes) on the MSP ORM record on CWF.

Reopenings and Appeals for ORM Situations

In a reopening or separate claim appeal situation where the appellant or individual initiating the

reopening is stating that ORM no longer applies due to benefits exhaustion, A/B MACs and DME

MACs shall continue to follow their current procedures for determining sufficiency of the

information received as a basis for overturning or paying the claim at issue.

If an A/B MAC and DME MAC appeals or claims staff obtain an itemized schedule of payments

from a third-party payer (ORM entity) that confirms exhaustion of available benefits as of a specified

date, these individuals, together with internal MSP staff, shall take the following steps, as applicable:

• Appeals or claims staff shall contact your internal MSP personnel who regularly

submit ECRS requests to the MSP Contractor to request that they alert the MSP Contractor

that they have received documentation confirming exhaustion of benefits for a given MSP

ORM occurrence.

• MSP staff shall initiate an ECRS Assistance Request using existing action codes that

will alert the MSP Contractor that the benefits tied to a given MSP ORM occurrence have

been exhausted.

(NOTE: A third party payer letter indicating benefits were exhausted without an accompanying

itemized schedule of payments is not sufficient evidence for initiating an alert to the MSP Contractor

via the ECRS process.)

Submitting ECRS Assistance Requests to the MSP Contractor For ORM-Related Matters

When submitting the ECRS Assistance Request to the MSP Contractor, the A/B MACs and DME

MACs shall indicate this relates to an open MSP record with ORM indicator=Y and shall provide

the following:

• The name of the third-party payer; and

• A request to apply a termination date of the record that equals the benefits

exhaustion date, in accordance with the third-party payer’s itemized schedule of payment

notice.

From a claims processing scenario, should an A/B MAC and DME MAC obtain an incoming claim

that contains PR*119 (benefits exhaustion) or any of the CARCs specified in CR 8821 they shall pay

primary, in accordance with current procedures.

(NOTE: A/B MACs or DME MACs shall not initiate ECRS Assistance Requests to the MSP

Contractor in these situations.)