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Common Rejection Reasons and Fixes

Ian G.
  • Updated

Check on this article. Locked in MCPv3

Common Failed Claim Reasons and Fixes

Invalid Payer ID

  • Failed Claim Reason: The Payer address you are using has been marked as invalid in the Change Clearinghouse system. Please verify the address with the payer and correct the address.
  • Explanation: The Payer ID listed for this Insurer is incorrect.
  • Fix: 

Invalid CPT Code

 

Invalid Diagnosis Code

Failed Claim Reason: Diagnosis code requires further division.
Explanation: A claim has been submitted with an invalid diagnostic code.
How to Fix:

  1. Go to the Client Profile, then select Notes.
  2. Navigate to the Initial Assessment & Diagnostic Codes
  3. Remove All Signatures in order to edit the Initial Assessment. Only administrators can remove the signature from an Initial Assessment. 
  4. Correct the Diagnosis Code, then Save and E-Sign the Initial Assessment. 

 

Referring Provider Error

Failed Claim Reason: Expected value '1' for element 'NM102_EntityTypeQualifier' Loop 2310A - NM1*DN*6*9[referring provider value]*****XX*1609281542
Explanation: Unnecessary information has been entered in the Referring Provider section of the client's Bill To & Insurance Info tab.
How to Fix: 

Unless the customer was referred by a different organization or clinician than the providers of your practice, this section should be left blank. 

  1. Go to the client's Bill To & Insurance Info.
  2. Scroll down to the Referring Provider section
  3. Remove the referring provider information.
  4. Save your work.

 

Future Claim Date

Failed Claim Reason: Claim cannot be submitted with future date of service.
Explanation: A claim has been submitted for a service date that has not occurred yet.
How to Fix: 

Claims cannot be submitted before the date of service. Resubmit the claim on or after the date of service.

 

Missing Client Signature

Failed Claim Reason: Patient Signature is Missing
Explanation: The "Client authorized release of information necessary to process claims" option is marked as "Not Required" in the client's Bill To & Insurance Info tab.
How to Fix: 

"Client authorized release of information necessary to process claims" confirms that the client has given consent to release necessary information (like diagnosis codes and CPT codes) to the insurance payer in order to submit claims. 

Always have this option checked to "Yes".

  1. Go to the client's Bill To & Insurance Info 
  2. Scroll down to Manage Insurance and hit Edit. 
  3. Find the "Client authorized release of information necessary to process claims" option and check "Yes".
  4. Save your work.

 

Adjustments for Secondary Claims

Failed Claim Reason: Secondary Claim Information Missing or Invalid - Each line must balance; Line Charge Amount = Line sum of Adjustment Amts + Line Payer Paid Amt.
Explanation: A secondary claim has been submitted without correct invoice adjustments.
How to Fix: 

In order to submit secondary claims you will need to explain how primary processed the claim. In WebABA we do this with Adjustments. Payments + Adjustments must = the total amount billed of the invoice. 

Follow these instructions on how to enter Adjustments for secondary claims. 

If the primary insurance remitted $0 on the claim and the claim needs to be submitted to secondary insurance, please reach out to a WebABA Billing Specialist.

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