Interim billing guidelines for inpatient acute-care PPS hospitals, inpatient rehabilitation facilities (IRFs), long-term care hospitals (LTCHs) and inpatient psychiatric facilities (IPFs)

Interim billing allows hospitals to receive partial payments while a patient remains admitted, instead of waiting until discharge to submit the entire claim for payment.

Interim billing is common due to long lengths of stay because LTCHs treat complex, long-stay acute patients.

  • Medicare allows interim billing during extended admissions

  • Type of bill (TOB) 11X with interim claims typically every 30 days, up to 60-day intervals

  • Interim billing does not end the inpatient stay, only the submission of the final discharge claim does

  • Final payment is settled upon discharge

  • Accurate documentation and compliance with CMS guidance are critical

Type of bill (TOB)

For a continuous course of treatment, claims must be submitted in the order in which the services were delivered. 

TOB 11X for inpatient services:

  • 111 – Admit through discharge (final bill)

  • 112 – Interim – First claim

  • 113 – Interim – Continuing claim

  • 114 – Interim – Last claim (if applicable before final) 

  • 117 - Adjustment or Interim

Patient status

The patient discharge status code in UB-04 form locator 17 (or electronic equivalent) is a required field and must align with the type of bill. 

For any interim claim with a bill type code concluding in frequency code 2 or 3, the mandatory discharge code required in field 17 is 30, which signifies "Still a Patient.” 

The last bill shall contain a discharge patient status code.

Codes used for Medicare claims are available from Medicare contractors. Codes are also available from the NUBC (www.nubc.org) via the NUBC’s Official UB-04 Data Specifications Manual.

Final discharge submission

Medicare billing guidelines allow for interim bills in at least 60-day intervals, using type of bill 112 (patient status 30), and subsequent interim bills when the beneficiary is still receiving inpatient care.  

Hospitals must submit a final discharge bill when any of the following occur: 

  • Benefits are exhausted or

  • The beneficiary ceases to need a hospital level of care (all hospitals); or

  • The beneficiary is discharged or expired. 

When a beneficiary’s Medicare benefits exhaust in an IPF or an LTCH, the hospital is allowed to submit a no-pay bill (TOB 110) with a patient status code 30 in 60-day increments until discharge. These providers do not have to continually adjust bills until physical discharge or death. The last bill shall contain a discharge patient status code.

References