Revenue Cycle

CMS seeks to end remittance advice confusion

Recovery Auditor Report, April 29, 2010

In a recently released transmittal, CMS has addressed an issue that has been a thorn in the side for providers since the RAC demonstration project.

Transmittal 659 addresses the issue of reporting of recoupment for overpayment on the remittance advice (RA).  A remittance advice is a notice of payments and adjustments sent to providers, billers and suppliers. After a claim has been received and processed, a Medicare contractor produces the RA, which may serve as a companion to a claim payment (or payments) or as an explanation when there is no payment.

The issue and confusion surrounding remittance advice involved the inability to track RAC recoupments back to prior claims electronically, according to Kimberly Anderwood Hoy, JD, CPC, director of Medicare and compliance for HCPro, Inc.

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