Denied MTM Claims Due to New vs Established Patient Coding Errors
Definition
Claims are denied when pharmacies incorrectly code a member as both new (99605) and established (99606) patient on the same date of service, preventing reimbursement for MTM consultations. Providers must use precise CPT codes based on prior service history within three years, leading to systemic claim rejections. This billing restriction enforces strict patient status tracking but results in unbilled services.
Key Findings
- Financial Impact: $52-$148 per denied CMR/A service
- Frequency: Per erroneous claim on same-day multiple MTM services - recurring coding issue
- Root Cause: Complex patient status rules combined with same-day service billing limitations
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Retail Pharmacies.
Affected Stakeholders
claims processors, pharmacists, compliance officers
Deep Analysis (Premium)
Financial Impact
$1,040-$2,960/month per pharmacy location (20 denied claims Γ $52-$148); increases with claim volume β’ $1,560-$4,440/month per pharmacy (30 Medicaid MTM claims Γ $52-$148); Medicaid volume typically higher β’ $10,000-$30,000/month per multi-location pharmacy (assumed 200 MTM services/month across locations Γ 5-10% denial rate Γ $100 avg); hidden compliance fines ($5,000-$50,000) if patterns show systematic abuse
Current Workarounds
Asks patient 'Have we done this before?'; documents verbatim patient answer; submits claim with uncertainty; faces rejection post-billing β’ Asks patient verbally; searches patient file manually; defaults to 'established' code when unsure; handles claim denial post-billing with rework β’ Calls clinic manager before each MTM; checks printed Medicaid plan summary; documents ruling on session notes; codes conservatively
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Medicare Fraud Risk from Unbilled Parallel MTM Services
Incorrect MTM Billing Codes Leading to Zero Reimbursement
Overcharging MTM Services Beyond State-Regulated Amounts
Failure to Receive 340B Ceiling Prices from Manufacturers
Diversion and Duplicate Discount Violations in Contract Pharmacies
HRSA Audit Failures and Required Repayments for Diversion/Duplicate Discounts
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