Affiliate Offsetting Notification for Part B Providers

Effective 1/4/2016, CMS has implemented a change to the Part B system to begin netting (offsetting) affiliated provider payments across related or affiliated providers. What this means is that providers with the same EIN (Tax ID Number), with different Medicare provider numbers will have their money applied to affiliated provider’s account receivables (AR). For example: Provider ABC and provider 123 have the same EIN. Provider ABC is to receive a payment of $1,000 on today’s remittance advice and provider 123 has ARs with a balance owed of $200. Provider ABC $1,000 payment will have the $200 applied against provider 123’s ARs resulting in a net payment of $800. This will be reflected on the remittance advice by the same PLB code as seen today for offsets for the $200.

MAC J6 for Wisconsin, Illinois, and Minnesota

MAC JK for Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, Connecticut and New York

Source: https://www.ngsmedicare.com/ngs/portal/ngsmedicare/newngs/home-lob/!ut/p/a1/04_Sj9CPykssy0xPLMnMz0vMAfGjzOJNHD1dDQ2dDbz9nV0dDRxNXPzM_BzdDP0NTIEKIlEUGPtbABW4Obm4BAYYuzsZEaffAAdwNCCkP1w_Ck0JpgvACvBYUZAbGmGQ6agIAL1i1Es!/dl5/d5/L2dBISEvZ0FBIS9nQSEh/