Hospice Billing

Correcting Hospice Claims Sequentially to Avoid Reason Code U5181

Hospice Sequential Billing

Sequential billing is required in order for the Medicare claims processing system to appropriately match claims to benefit periods and ensure accurate payment. The Medicare system stores data from submitted notices and claims to edit and process claims for payment. Sequential billing of claims is essential for efficient and accurate processing of claims.

Hospices are required to bill claims sequentially per calendar month billing and not a thirty-day billing period. For example an April claim (0401XX) must be submitted before a May (0501XX) claim. The April claim must process and finalize before the May claim will process. FISS will search the claim history for a prior a claim. There cannot be any skipped dates between the “TO’ date and the next month’s claims “FROM” date, or the claim will move to RTP.

When sequential billing requirements are not followed, the claim will RTP (status/location T B9997). If the prior claim is in the RTP file (T B9997) and needs correcting, the subsequent claim will be sent to the RTP file with reason code 37402. FISS does not search the RTP file (T B9997) for prior claims.

Correcting Claims Sequentially

When claims need corrected it is important to correct claims in sequential order, the FISS system will not search the RTP file (T B9997) for prior claims. Claims are returning to providers with reason code U5181 when claims are adjusted out of order. RTP claims must be adjusted and corrected out of RTP and sequentially.

For example if claims have been submitted for April and May. The April claim needs to be adjusted. The May claim will need to be cancelled, and the April claim adjusted. Once the April claim has processed and finalized the May claim can be resubmitted.

If the April claim RTPs for example an invalid HCPCS code, and the May claim was submitted, The May claim would go to RTP because no prior claims was found. You must first correct the April claim. Once the April claim is corrected and moved to a suspended status/location, the May claim can be PF9ed out of RTP.