Important instructions for paper claim form CMS-1500 (version 02/12)

Optical Character Recognition (OCR)

Submitting accurate CMS-1500 (02-12) claim forms is critical to successful Optical Character Recognition (OCR) processing and timely payment. To reduce errors and avoid delays, providers should follow the guidance in CMS IOM Pub. 100-04, Medicare Claims Processing Manual, Chapter 26, Section 30, which outlines proper completion of Items 1–33.

Failure to follow these instructions may result in billing errors, denials, or claims being returned as unprocessable. Errors during OCR scanning of paper claims can often be prevented with careful attention to submission requirements and formatting standards.

To improve claim accuracy and minimize processing issues, consider the following helpful hints for paper claim submissions. These best practices support cleaner OCR reads, reduce errors, and help ensure smoother processing. 

  • All paper claims are required to be submitted using an original red / white CMS-1500 (02/12) form.

    • Black and white copies will be returned as unprocessable.

  • Submission of the CMS 1500 (02/12) claim form should either be typed or computer printed forms. Handwritten forms can cause delays and errors in processing and slow down time for reimbursement.

  • Ensure to use all capital typeface with Courier New or Times New Roman font style and size 10. This is especially important when indicating letter "I" and "L" in Item 24E.

    • Maintain the same font type and size on the entire form.

  • Use black ink only. Do not use red or blue ink as the scanner is unable to “read” the data and can cause your claims to be rejected as unprocessable.

  • Do not use a rubber stamp for any fields on the CMS-1500 (02/12) claim form.

  • Do not use correction fluid or correction tape.

  • Avoid the use of special characters.

  • Do not highlight the claim form or attachments.

  • Periodically review the fields spacing and placement of information contained within Items 1-33 when using computer printed or typed CMS 1500 (02/12) claim forms. Information should only be located within the specified block placement on the form.

ASCA reminder

Only providers that meet the Administrative Simplification Compliance Act (ASCA) exception requirements are permitted to submit their claims to Medicare on paper, which must be submitted on a valid CMS-1500 claim form. 

More information about ASCA exceptions can be found in CMS IOM Pub. 100-04, Medicare Claims Processing Manual, Chapter 24, Section 20.4. 

Reference