How is a Medicare secondary payment determined?

Member for

6 months
Submitted by Courtney.Miller on

The Medicare secondary payment is determined by a series of calculations and comparisons. The primary insurer’s claim processing details on their explanation of benefits (EOB) is needed to determine the secondary payment amount.

Three calculations are made per procedure. The lowest of the three is the secondary payment. 

Calculation 1 

If the Obligated to Accept payment in Full (OTAF) amount is present, 

My claim was denied because the patient was in a skilled nursing facility (SNF) and consolidated billing applies. What is included in consolidated billing?

Member for

6 months
Submitted by Charles.Johnson on

One of the provisions of the Balanced Budget Act (BBA) of 1997 (Section 4432b) requires consolidated billing for SNFs. The consolidated billing requirement confers on the SNF the billing responsibility for the entire package of care residents receive during a covered Part A SNF stay, as well as physical, occupational, and speech therapy services received during a non-covered stay.

I have contacted the overlapping facility numerous times and have asked them to correct their claim, but the claim has not been corrected. What steps can be taken to get the other facility's claim updated?

Member for

6 months
Submitted by Charles.Johnson on

While providers and facilities are required and expected to work together to resolve the billing issue, providers may occasionally require assistance from the MAC. In that case, First Coast will work with both the provider and the facility for resolution. In addition, when the overlapping claim is processed by another MAC, First Coast will work with that other MAC.

Complete and submit 'Request for Assistance Form'

You may request assistance from First Coast to resolve your overlapping claims. Please complete, print and fax:

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  • February 18, 2025

What is an overlap?

Member for

6 months
Submitted by Charles.Johnson on

An overlap is when an incorrect claim is processed and posted to the Common Working File (CWF) resulting in claim overlap rejection(s) of subsequent claim(s) submitted by the same or a different provider. When more than one provider is involved, the providers must work together to resolve the error. Some overlapping claim examples include:

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