Denial code P18 is when a procedure is not listed in the fee schedule, but an allowance is made for a similar service. This code is specific to Property and Casualty claims.
Denial code P18 is used when a procedure is not listed in the jurisdiction fee schedule. This means that the healthcare provider has billed for a service that is not included in the fee schedule set by the jurisdiction. However, an allowance has been made for a comparable service. It is important to note that this denial code is specific to Property and Casualty insurance claims only.
Common causes of code P18 are:
1. Procedure not covered by the insurance plan: The specific procedure performed by the healthcare provider may not be covered under the patient's insurance plan. In such cases, the insurance company will deny the claim and provide code P18 as the reason for denial.
2. Lack of pre-authorization: Some insurance plans require pre-authorization for certain procedures. If the healthcare provider did not obtain the necessary pre-authorization before performing the procedure, the claim may be denied with code P18.
3. Inadequate documentation: Insufficient or incomplete documentation provided by the healthcare provider can lead to a denial with code P18. The insurance company may require specific details or supporting documentation to justify the procedure, and if these are not provided, the claim may be denied.
4. Coding errors: Errors in coding, such as using an incorrect procedure code or failing to include necessary modifiers, can result in a denial with code P18. It is essential for healthcare providers to accurately code the procedures performed to avoid such denials.
5. Out-of-network provider: If the healthcare provider is not in the patient's insurance network, the claim may be denied with code P18. Insurance plans often have different fee schedules for in-network and out-of-network providers, and if the procedure is not listed in the fee schedule for out-of-network providers, the claim will be denied.
6. Lack of medical necessity: Insurance companies require procedures to be medically necessary for coverage. If the insurance company determines that the procedure was not medically necessary based on the information provided, the claim may be denied with code P18.
7. Billing errors: Errors in the billing process, such as incorrect patient information or missing required fields, can lead to a denial with code P18. It is crucial for healthcare providers to ensure accurate and complete billing information to avoid such denials.
Ways to mitigate code P18 include:
1. Conduct thorough research: Before performing any procedure, healthcare providers should ensure that the procedure is listed in the jurisdiction fee schedule. This can be done by consulting with the relevant authorities or using online resources that provide up-to-date fee schedules.
2. Verify coverage and reimbursement: It is essential to verify the coverage and reimbursement policies of the patient's insurance plan. This can be done by contacting the insurance company directly or utilizing electronic tools that provide real-time information on coverage and reimbursement for specific procedures.
3. Communicate with payers: In cases where a procedure is not listed in the fee schedule, healthcare providers should proactively communicate with the payer. This can involve providing documentation and evidence to support the medical necessity and appropriateness of the procedure. Open and transparent communication with payers can help in resolving any discrepancies and ensuring proper reimbursement.
4. Document accurately and thoroughly: Accurate and detailed documentation of the procedure performed is crucial to prevent denials. Healthcare providers should ensure that all relevant information, including the procedure code, is documented correctly in the patient's medical record. This documentation should support the medical necessity and appropriateness of the procedure, as well as any comparable services that may be considered for reimbursement.
5. Stay updated with coding guidelines: Healthcare providers should stay updated with the latest coding guidelines and regulations. This includes being aware of any changes or updates to the jurisdiction fee schedule. Regular training and education on coding practices can help in preventing denials related to incorrect coding or lack of knowledge about specific procedures.
6. Implement a robust revenue cycle management system: Investing in a comprehensive revenue cycle management system can help streamline the billing and coding process. Such systems often include built-in checks and balances to ensure accurate coding and prevent denials. Automation and technology can significantly reduce the risk of errors and improve overall revenue cycle efficiency.
By implementing these strategies, healthcare providers can mitigate code P18 and minimize the risk of denials related to procedures not listed in the jurisdiction fee schedule.
The steps to address code P18 are as follows:
1. Review the procedure code: Start by reviewing the procedure code that was submitted for reimbursement. Ensure that it is accurate and matches the service provided.
2. Verify the jurisdiction fee schedule: Check the fee schedule for the specific jurisdiction in which the service was rendered. Confirm if the procedure code is listed and if there are any specific guidelines or restrictions associated with it.
3. Determine if a comparable service was provided: Assess whether the service provided can be considered comparable to another procedure that is listed in the fee schedule. Look for similarities in terms of the nature of the service, complexity, and resources utilized.
4. Calculate the allowable reimbursement: If a comparable service is identified, calculate the allowable reimbursement based on the fee schedule. This will help determine the amount that can be reimbursed for the procedure.
5. Document the rationale: It is crucial to document the rationale behind the selection of a comparable service and the calculation of the allowable reimbursement. This documentation will be useful for future reference and potential appeals.
6. Submit a revised claim: Once the above steps have been completed, submit a revised claim with the appropriate procedure code and the calculated allowable reimbursement. Ensure that all supporting documentation is included to substantiate the selection of a comparable service.
7. Monitor the claim status: Keep track of the claim's status to ensure that it is processed correctly. If any further denials or issues arise, be prepared to take appropriate action, such as filing an appeal or seeking clarification from the payer.
By following these steps, healthcare providers can effectively address code P18 and work towards resolving the denial and obtaining the appropriate reimbursement for the services provided.
Get paid in full by bringing clarity to your revenue cycle
Subscribe to the
Healthcare Clarified newsletter
Get the latest insights on RCM and healthcare policy in your inbox
