Correction to the Claims Processing Internet Only Manual (IOM) to Reinstate Previous Instructions Regarding Payment Jurisdiction for Reassigned Services

In CR 6627, CMS inadvertently changed the billing instructions for reassigned services in a way that is not supported by CMS’s systems or Medicare policy. This CR corrects this error and reinstates the instructions in place prior to the implementation of CR 6627. Basically, language was added back to the Medicare Claims Processing Manual to show that although a supplier or provider may reassign payment for his services to another entity, suppliers are still required to bill the correct Medicare contractor for reassigned services when they are paid under the Medicare Physician Fee Schedule. The billing entity must submit claims to the Medicare contractor that has jurisdiction over the geographic area where the services were rendered. Suppliers and providers must also meet current enrollment criteria stated in chapter 10 of the Program Integrity Manual in order to be able to bill for reassigned services.

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