Patient claims processing in Medicare 011-43010000
This document explains details about the lodgement and processing of claims for Medicare benefits.
On this page:
How to process a Medicare patient claim
How to process a Medicare patient claim for a business or organisation
How to process a claim for customers experiencing financial hardship
How to process a Reciprocal Health Care Agreements (RHCA) claim when claimant has left the country
Unauthorised agents or carers acting on behalf of claimants with a disability
Late lodgement of patient claims - date of service between 2-5 years
Late lodgement of patient claims with date of service between 5-7 years
Assessing process for late lodgement of patient claims with a date of service over 5 years
Assessing process for late lodgement claim with DOS over 7 years
Service Officer - requesting a manual EFT payment
Quality Assurance Officer - managing requests for manual EFT payments
Program Officer - managing requests for manual EFT payments
How to issue a duplicate statement of benefit
How to issue a manual Statement of Benefit
How to process a Medicare patient claim
Table 1
Step |
Action |
1 |
Go to claimant processing screen + Read more ... Using the details on the Medicare claim form (MS014):
For claims where the patient is using a previously issued card number, see Patient claim requirements for payment of Medicare benefits. If the return messages 1-EXP>28, 2-AFT EXP, or 8-EXP 28DY show, see Table 9 in Medicare online claiming. |
2 |
Follow the prompts + Read more ...
|
3 |
Confirming address + Read more ... Does the address on the claim form match the address recorded on the system?
|
4 |
Confirm address already recorded + Read more ...
|
5 |
Update the address + Read more ... If the claimant's address needs updating, place cursor under the return message 8-ADDR CK, select [F1] and action as per message.
If a permanent address change is reversed while processing the claim due to an incorrect claimant card number:
|
6 |
Add, amend, or confirm electronic funds transfer (EFT) details + Read more ... Key one of the following values in the EFT field on line 6 of the screen to add, amend or confirm the claimant 's EFT details:
|
7 |
EFT statement + Read more ... Key 'P' in the STM field to issue a statement to the claimant. For claims processed in a service centre, key ‘R’ in the STM field to print a receipt for the customer to verify bank details and sign. |
8 |
Date of lodgement + Read more ... The date of lodgement is the date the agency got the claim for Medicare benefits.
|
9 |
Recipient provider or locum + Read more ... Is there a recipient provider or locum on the claim?
|
10 |
Check account/invoice details + Read more ... Check the details on the account/invoice match the claim form and that both documents contain all required information. Do the details on the account/invoice and the claim form match and both are complete?
See also: |
11 |
Key service details using the account or invoice + Read more ... Key all the service details, in the:
The Medicare system correctly calculates the maximum amount of the Medicare benefit payable to the claimant. |
12 |
Referral details + Read more ... Does the account/invoice include referral details?
|
13 |
Key referral details + Read more ...
|
14 |
Assessing the claim + Read more ...
For ‘1-INVEST’ messages and how to proceed see Suspected Medicare fraud and Business Integrity (BI) flags. If a claim is confirmed as fraudulent, do not pay the claim:
Note: if RSN 8-CONFIRM shows, see Process Medicare Safety Net claims and action accordingly. |
15 |
Two-way claims + Read more ... Where the claim is a Medicare Two-way claim:
If in-hospital items are keyed, Service Officers will be prompted to complete the FUND field. See Medicare Two-way claims processing for more details. |
16 |
Finalise the claim + Read more ...
|
17 |
Finalise the claim in PaNDA + Read more ...
Note: see Work Optimiser for staff for more details using PaNDA. |
How to process a Medicare patient claim where the claimant and patient are on different Medicare cards
Table 2
Step |
Action |
1 |
Go to claimant processing screen + Read more ... Using details on the Medicare claim form (MS014):
|
2 |
Follow the prompts + Read more ...
|
3 |
Confirming address + Read more ... Does the address on the claim form match what is recorded on the system?
|
4 |
Confirm address already recorded + Read more ...
|
5 |
Update the address + Read more ... If the claimant's address needs updating, place cursor under the return message 8-ADDR CK, select [F1] and action per message.
|
6 |
Add, amend, or confirm electronic funds transfer (EFT) details + Read more ... Key one of the following values in the EFT field on line 6 of the screen to add, amend or confirm the claimant 's Electronic Funds Transfer (EFT) details:
|
7 |
EFT statement + Read more ... Key P in the STM field to issue a statement to the claimant. For claims processed in a service centre, key ‘R’ in the STM field to print a receipt for the customer to verify bank details and sign. |
8 |
Date of lodgement + Read more ... The date of lodgement is the date the agency got the claim for Medicare benefits.
|
9 |
Recipient Provider or Locum + Read more ... Is there a recipient provider or locum on the claim?
|
10 |
Key service details using the account or invoice + Read more ... Key all the service details, in the:
The Medicare system correctly calculates the maximum amount of the Medicare benefit payable to the claimant. |
11 |
Referral details + Read more ... Does the account/invoice include referral details?
|
12 |
Key referral details + Read more ...
|
13 |
Assessing the claim + Read more ...
|
14 |
Two-way claims + Read more ... Where the claim is a Medicare two-way claim:
If in-hospital items are keyed, Service Officers will be prompted to complete the FUND field. See Medicare Two-way claims processing for more details. |
15 |
Finalise the claim + Read more ...
|
16 |
Finalise the claim in PaNDA + Read more ...
Note: see Work Optimiser for staff for more details using PaNDA. |
How to process a Medicare patient claim for a business or organisation
Table 3
Step |
Action |
1 |
Go to claimant identification + Read more ... Using the details on the Medicare claim form:
|
2 |
Follow the prompts + Read more ...
|
3 |
Confirm address + Read more ...
|
4 |
Business/organisation bank account details + Read more ... Has the business or organisation provided bank account details on the claim form?
|
5 |
Add temporary bank account details for the claimant + Read more ... In the EFT field, key T - EFT details keyed are temporary and used for this claim only. Note: businesses and organisations cannot have banking details stored permanently in CDMS unless the customer is under financial management or other guardianship order. See Power of Attorney, Guardianship, Administrative Orders and Authorised Representative for Medicare. |
6 |
Bank account details missing from the claim form + Read more ... Has the claim been paid?
|
7 |
Issue EFT statement + Read more ... Key 'P' in the STM field to issue a statement to the claimant. Note: a statement must be issued when the claimant is a business or organisation. |
8 |
Date of lodgement + Read more ...
The date of lodgement is the date the agency got the claim for Medicare benefits. |
9 |
Process items using details on account/invoice + Read more ... Key all of the following items:
Repeat this step for each service being claimed. Has the Medicare system calculated the maximum amount of the Medicare benefit payable to the claimant without returning any restriction or warning messages?
Note: for locum-tenens see Professional services related to Medicare patient claims. |
10 |
Assessing the claim + Read more ...
|
11 |
Finalise the claim + Read more ...
|
How to process a claim for customers experiencing financial hardship
Table 4
Step |
Action |
1 |
Claim type proficiency + Read more ... Is the Service Officer proficient in processing the claim?
|
2 |
Processing the claim + Read more ... Tell the customer the agency minimum standard processing times. If the customer states that they need their money as soon as possible, are experiencing hardship and the benefit amount of the claim is:
If the customer identifies as at risk of family or domestic violence:
If Service Officer identifies family and domestic violence concerns with a customer:
See also: Procedure ends here. |
3 |
Escalating a claim Service Officers non-proficient in + Read more ...
|
4 |
LPS action + Read more ...
See also: |
How to process a Reciprocal Health Care Agreements (RHCA) claim when claimant has left the country
Table 5: this process must only be completed by Medicare Customer Local Peer Support (LPS).
Step |
Action |
1 |
Assess Medicare claim form (MS014) + Read more ... Is the MS014 correct and complete?
|
2 |
Search for customer + Read more ... In CDMS:
|
3 |
Amend group end dates + Read more ...
|
4 |
Validate amended details + Read more ... Once the date has been amended:
|
5 |
Process claim + Read more ... Using the details on the claim form, in Mainframe:
Once completed, go to Step 6 |
6 |
Amend CDMS + Read more ... Once the claim has been processed:
|
Unauthorised agents or carers acting on behalf of claimants with a disability
Table 6
Late lodgement of patient claims - date of service between 2-5 years
Table 7
Step |
Action |
1 |
Proof of payment/account/invoice + Read more ... Claim must be supported by:
Sort claims into date order for each patient. Medicare benefits for fully paid accounts/invoices can only be paid by Electronic Funds Transfer (EFT). If no EFT details are provided or stored in CDMS for the claimant, the payment will be ‘held’ until EFT details are provided Check the patient history to assess if the claim has been processed after the cull history date. Is there evidence of a duplicate payment on the history?
|
2 |
Culled history date + Read more ... Check the patient history to locate the date the patient’s Medicare history was culled.
The cull history line shows the date the patient’s Medicare history was culled. This will show as CULL against the patient’s name and the date. Medicare Mainframe system maintains about 2 years of claimed treatment history.
Does the claim have a date of service after or before the cull history date?
|
3 |
Claims with date of service after the culled history date + Read more .. If there is no evidence of a duplicate payment on the history, the claim can be processed and paid. See Table 1. |
4 |
Return message GT-2YR + Read more ... The return messages GT-2YR and 6-REJ/PEND will show for claims with a date of service greater than 2 years ago.
|
5 |
Assessing and finalising the claim + Read more ... Review and apply assessing restrictions by following warning messages.
|
6 |
Claims with date of service before the culled history date + Read more ... Search the claims history for each date of service by keying 'DOS/DDMMYY' at the end of the NHSI control line. The Service Officer can process the claim where there is no evidence of a duplicate payment made after the cull history date. Is the Service Officer skilled to process claims over 2 years old and have access to the SAS Portal?
|
7 |
Changing proficiency level on a work item in PaNDA + Read more ...
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Processing late lodgement of patient claims with a date of service between 2-5 years requiring SAS report
Table 8: this table is for Service Officers processing patient claims with a date of service between 2-5 years requiring SAS report as services are culled on Mainframe.
Step |
Action |
1 |
Proof of payment/account/invoice + Read more ... Make sure all relevant paperwork has been received:
|
2 |
Get PIN number of each patient + Read more ...
|
3 |
Generate a 2-5 years claims history report + Read more ... Service Officers are required to have access to the SAS Portal. Access the SAS Information Delivery Portal:
Service Officers need to save a copy of the report and attach it to the PaNDA work item. |
4 |
Check accounts/invoices against claims history + Read more ... Anaesthetic services displayed on the SAS patient history report may not show all item numbers. Verify accounts/invoices:
|
5 |
Go to the claims processing screen + Read more ... Using the details on the Medicare claim form (MS014):
Follow the prompts:
Confirming address:
|
6 |
Confirm EFT details and EFT statement + Read more ... Key one of the following values in the EFT field:
Key 'P' in the STM field to issue a statement to the claimant. |
7 |
Date of lodgement + Read more ...
The date of lodgement is the date the agency got the claim. |
8 |
Key claim details + Read more ... Keying claim details that have been previously paid When services appear on SAS history report and there is no note to say a second service is payable:
Keying claim details where restrictive items have been previously paid Where restrictive services appear on SAS history report and there is no note to say a second service is payable:
Keying claim details that have not been previously paid Where services are not appearing on SAS history, the Medicare benefit is payable. See Table 1. The return message GT-2YR will display for claims with a date of service greater than 2 years, 6-REJ/PEND is also displayed.
|
9 |
Assessing and finalising the claim and work item + Read more ...
|
Late lodgement of patient claims with date of service between 5-7 years
Table 9
Step |
Action |
1 |
Proof of payment/account/invoice + Read more ... Claim must be supported by:
Service Officers should:
Medicare benefits for fully paid accounts/invoices can only be paid by Electronic Funds Transfer (EFT). If no EFT details are provided or stored in CDMS for the claimant, the payment will be ‘held’ until EFT details are provided. |
2 |
Re-categorise work item in PaNDA + Read more ... Select the Reassign button. Service Officers may be prompted to enter additional work item details. If so, enter as per standard process for the work type being re-categorised and press Reassign again.
The work item will then be processed in date of lodgement order. |
Assessing process for late lodgement of patient claims with a date of service over 5 years
Table 10
Step |
Action |
1 |
Check accounts/invoices + Read more ... Check all accounts/invoices and receipts are sorted into order with earliest date to latest date for each patient. |
2 |
Get PIN number of each patient + Read more ... To get a patient’s PIN number:
|
3 |
Access the SAS Information Delivery Portal + Read more ... Service Officers are required to have access to the SAS Portal - Medicare GT 5 Year. Go to the SAS Information Delivery Portal:
|
4 |
Request culled history + Read more ...
Feedback will be displayed in a new window.
The system will display the confirmation page with the Request and Report date available. To make sure no time restrictions, the time range requested must reflect the time dependency of the item claimed. For example, item 2715 can only be claimed once every 12 months. The report needs to cover the 12 months before and post item being claimed. It may take up to 3 weeks to access the culled history report. Culled history can only be viewed when the report is available. Once the claims history report has been requested, the Service Officer must add a note to the work item stating the:
Take a snip of confirmation of request page and upload it to PaNDA. Save the snip to their team's Customer Information secure folder. The file name must include the Service Officer's logon ID, or P Number. For example: P11111.PaNDAWID The Service Officer must Pend the work item to themselves:
|
5 |
Second culled history request + Read more ... If a second report is requested for the same patient within the same 2 week cycle, the system will not allow Service Officers to proceed.
The system will then state Request Removed and a new report can be re-ordered within an expanded date range to include all dates of service for the relevant claim/s. |
6 |
Report available + Read more ... On the date the report is available:
|
7 |
Download report + Read more ... To filter the reports:
If the report does not appear, check the date range. The system will only display a date range 2 weeks from the current date. If the report was ordered before the 2 weeks, expand the date range to include the date the report was ordered. |
8 |
Search result + Read more ... All available reports matching the search criteria are listed in the new window.
The system will email all reports displayed on this page to the requesting Service Officers email address. Reports are accessible by the original requestor. If no report is available, check the View Requests tab and enter the customers PIN to check if a report has been ordered. In the event the original requestor is unable to retrieve the report, another service officer can retrieve the report.
In the event more than one report is returned, as the report will return all reports requested for that date, narrow your search to customers PIN and select Email Reports. Note: save SAS report to their team's secure folder Customer Information under Staff member. The file name must include the Service Officer's logon ID, or P Number. For example: P11111.PaNDAWID. |
9 |
Key claims over 5 years from date of service + Read more ...
|
10 |
Update claim + Read more ... Claims previously paid Where services appear on SAS history report and there is no note to say a second service is payable:
Claims over 7 years can be keyed and rejected with RSN 162. Claims where restrictive items have been previously paid Where restrictive services appear on SAS history report and there is no note to say a service is payable:
Claims not previously paid Where services are not appearing on SAS history then the benefit is payable:
|
11 |
Assessing and finalising the claim + Read more ...
|
Assessing process for late lodgement claim with DOS over 7 years
Table 11
Step |
Action |
1 |
Check if claim has been previously paid + Read more ... Confirm from the SAS (culled history report) that the service(s) has not previously been paid. |
2 |
Check QITI + Read more ... Log on to Mainframe:
This screen also displays, Greatest Permissible Gap, Standard percent, Standard benefit, whether EMSN Cap applies, Maximum cap amount and the Safety Net threshold amounts. Check all assessing rules in Qiti, and gender at DOS in CDMS. Note: assessing rules may have changed from the date of service to the date of claim. Some assessing rules are not retroactive. |
3 |
Safety Net benefit payment + Read more ... Determine if the claim has Safety Net benefit payment considerations. Open CDMS and check if safety net balances. Are safety net balances available for the relevant year?
|
4 |
Extended Medicare Safety Net payments + Read more ... Services Australia does not process Extended Medicare Safety Net payments for patients in previous years where they had not taken steps to register as a family. In cases where CDMS does not display the safety net threshold amounts, Services Australia are unable to calculate family level out of pocket (OOP) expenses. As a result, the calculation should consider the below assumptions:
|
5 |
Processing patient claims + Read more ...
This can be calculated as below. Safety Net calculation example Item, DOS and charge: 13200, 01 Jan 2015, $6000.00 General Safety Net threshold amount from QITI for the calendar year 2015 = $2000.00 Standard benefit (from QITI for DOS): $ 3032.35 OOP from this service = $ 6000 - $3032.35 = $2967.65 OOP after SafetyNet threshold for the year 2015 reached = $2967.65 – $2000.00 = $967.65 EMSN benefit to be paid @80% (with cap amount as per QITI $1675.50) = $967.65 * 0.8 = $774.12 (check for capping amount or %capping if applicable) Total Benefit paid after all calculations = $3032.35 + $774.12 = $3806.50. (rounded to nearest 5 cent) Amount to be entered on Z2261 and requested as manual EFT for this claim = $3806.50
Patient DOB (oldest to youngest) - Paid/Unpaid account – DOS (earliest to latest) – Capped/Uncapped items. See also, the Resources page in Extended Medicare Safety Net (EMSN). for examples on processing a patient claim for a multiple operation where the EMSN cap is less than 80% of out-of-pocket expenses. |
Service Officer - requesting a manual EFT payment
Table 12: for Service Officers who have received appropriate training to request a manual EFT payment.
Step |
Action |
1 |
Confirm bank account details + Read more ... View CDMS (for Claimant) to confirm valid bank account details are stored. Are valid bank account details stored?
|
2 |
Valid bank details not stored + Read more ... If no banking details are stored:
|
3 |
Manual Statement of Benefit + Read more ... Complete the Your statement of Medicare Benefits template (Z2261). See Table 16. Your statement of Medicare Benefits template (Z2261). See Table 16. As these claims cannot be keyed and paid in Mainframe, the manual statement of benefit must be completed with great care and attention to detail while calculating the benefits to be paid. Save and attach a copy to the PaNDA work item. Complete the statement of benefits table with the following details: Addressee and Signatory tab
Benefits details tab For each separate item and DOS:
If multiple service rules (MSR) apply, manually calculate the correct schedule fees and benefits. Enter the correct schedule fee and benefit amounts on the manual statement. Notional charges where the Multiple Operation Rule (MOR) has been applied, these must be keyed for the first item only, along with the total derived schedule fee and total benefit amounts. The rest of the related MBS Items will have a ‘0’ value for charge, schedule fee and benefit. See also:
See the Resources page for multiple processing rules and adjacent statement of benefit reason (RSN) codes to decide the reason code to be included in the Z2261.
There are also Remove and Edit Information buttons in the Z2261 template if a line needs to be amended or removed. Once all items have been keyed correctly:
Change the Save as Type from 'Word Macro-Enabled Document' to 'PDF' using the dropdown list. |
4 |
Complete Manual EFT Payment Request form + Read more ... Open the Manual EFT Payment Request form (PP048) template and complete the relevant fields. Save the completed Manual EFT payment Request form as a PDF as it is an interactive form:
|
Quality Assurance Officer - managing requests for manual EFT payments
Table 13
Step |
Action |
1 |
Check manual EFT Payment Request forms + Read more ...
|
Program Officer - managing requests for manual EFT payments
Table 14
Step |
Action |
1 |
Manual EFT payment requests + Read more ... Manual EFT payment requests are received in Medicare Payments MC SDST PaNDA. Add the request to both the Vendor Bulk Upload and Payment Run templates. Refer to resources tab on how to complete these. To obtain a vendor maintenance number:
The AO team will create a new vendor maintenance number. Add the allocated vendor number to the Vendor Request spreadsheet. |
2 |
Update Payment Run Request template + Read more ... Access the Payment Run Request Template. Update the following:
|
3 |
Delegate approval for payment + Read more ... Once the templates have been completed:
|
4 |
Forward both templates to the AO team + Read more ... Once approval is received by the delegate, email the templates to the Accounting Operations (AO) team. Use the following details:
|
5 |
Remittance Advices + Read more ... Accounting Operations will email the remittance advice once payment has been processed and released to the RBA. Once confirmation of the payment has been received:
|
How to issue a duplicate statement of benefit
Table 15
Step |
Action |
1 |
Identity the claim details + Read more ...
If a Latter Day Adjustment (LDA) has been done or the claim is for an amount over $9,999.00, duplicate statements cannot be issued. See Table 16 to issue a manual Statement of Benefit. The date of processing of the claim is needed for issuing a duplicate Statement of Benefit. |
2 |
Check group contact + Read more ... Is the patient/claimant requesting the duplicate statement the group contact?
|
3 |
Update contact before issue statement of benefit + Read more ...
If the person requesting the duplicate statement is not the group contact (for example, a business organisation is the claimant):
|
4 |
Confirm service details + Read more ... Check the NDSI screen:
Does the statement have the correct processing date, patient, and health professional?
|
5 |
Multiple claims processed on the same day or within 30 days of the date of processing + Read more ... If multiple claims are processed on the same day, the system lists a separate statement for each health professional. Use the [F2] and [F3] keys to move from statement to statement until the correct one is located. |
6 |
Multiple Services from the health professional on the statement + Read more ... Each screen displays up to 8 services. If there are more than 8 services, use [F7] and [F8] function keys to view all the services for that health professional. |
7 |
Print statement + Read more ... To print:
When printing statement on-site, an additional screen will show and the Service Officer must press [Ctrl] + [Alt] + [P]. |
How to issue a manual Statement of Benefit
Table 16
Step |
Action |
1 |
Check details of services + Read more ... Check details of the services to be included in the manual Statement of Benefit (Z2261):
Are there any adjustment codes (888 or 816)?
|
2 |
List of adjustments + Read more ... Change control line to NHSI, Medicare number, patient name or IRN,ADJ/PC. The Patient History (NHSI) screen shows all the adjusted payments including original and revised lines. The Service Officer must check each claim/ adjustment to be included on the manual statement. |
3 |
Manual Statement of Benefits + Read more ... To prepare a manual Statement of Benefits:
Note:
|
4 |
Continue with the Benefits Details tab + Read more ... For each claim to be included on the statement, select Benefits Details tab, and then for each individual item and service:
Service Officers must:
Any previous assessing RSN codes will be overwritten if a Latter Day Adjustment has been actioned. See Charges $10,000 or more (greater than $9,999.99) for Medicare patient claims. |
5 |
Multiple Operation Rules (MOR) and Multiple Service Rules (MSR) + Read more ... The reason code usually shows in Mainframe. However, if an adjustment has been made where the MOR or MSR rule(s) have been applied, the original code will not show. The Service Officer must check the MOR/MSR and identify the reason code to be used in the letter. Press [Shift] + [F4] on history screen to find out if an MOR and/or MSR has been applied. Has a MOR and/or MSR been applied?
|
6 |
Decide the corresponding reason code to be included in the Z2261 + Read more ... See the Resources page for multiple processing rules and adjacent statement of benefit reason (RSN) codes to decide the reason code to be included in the Z2261. See Indicators, codes, modifiers and control lines for claims processing in Medicare for more details. |
7 |
Continue with the Benefits Details tab + Read more ...
Do not refer to the QITI for schedule fees because:
Notional charges must be placed for the first item only with the derived schedule fee and benefit where the MOR has been applied. The rest of the MBS Items will have a ‘0’ value for charge, schedule fee and benefit. If there are any remaining items, enter them individually and add to the statement. There are also REMOVE and Edit Information buttons in the Z2261 template. Note: save the document to the Customer Information folder located on the team’s shared drive. Customer information must not be saved to desktops or personal H drives. |
8 |
Quality assurance + Read more ... Service Officers in telephony Service Officers in telephony must follow the quality assurance process before mailing out the manual Statement of Benefit to the customer. See Preparing, quality and peer to peer checking of Medicare external mail. Service Officers in service centres Service Officers in service centres must follow their branch’s quality assurance process before handing out the manual Statement of Benefit to the customer. See Preparing, quality and peer to peer checking of Medicare external mail. |
9 |
Upload a copy of the manual Statement of Benefits to PaNDA and update comments + Read more ... Service Officers must upload a copy of the manual Statement of Benefit and attach it to the PaNDA work item. Add a processing comment in PaNDA. |
10 |
Record comments in CDMS + Read more ... Add a note:
For example - "Manual Statement of Benefit issued for DOS DD/MM/YY patient FULL NAME." |