Orthopedic Coding Alert

Reader Questions:

Levels Matter on Medicare Appeals

Question: I filed a claim for a Medicare Part B patient with my Medicare Administrative Contractor (MAC), but it was rejected. I intend to challenge this decision. Could you explain the different levels of the Medicare appeals process?

Minnesota Subscriber

Answer: The Medicare appeals process consists of five stages. Prior to initiating an appeal, you need a claim that Medicare has either completely or partially rejected. The stages of appeals include the following:

  • Level 1: Redetermination, which goes through your MAC. Caution: For a redetermination Level 1 appeal to be considered complete, the provider must include all of the following information: the beneficiary’s name, the Medicare beneficiary number, the requested service, the date of service, and the name and signature of the requesting individual. If every one of these elements are not included with your initial Level 1 appeal, your MAC will dismiss the case as incomplete.
  • Level 2: Reconsideration, which goes through the qualified independent contractor (QIC). Requests for Level 2 appeals can only be made in writing.
  • Level 3: Administrative law judge (ALJ) hearing. Requests for Level 3 appeals can be made in writing only. Also, the amount in controversy must be at least $180 to file a Level 3 appeal.
  • Level 4: Medicare Appeals Council Department Appeals Board (DAB). Claims for a Level 4 appeal must also be worth at least $180.
  • Level 5: U.S. Federal District Court. Claims for a Level 5 appeal must be worth at least $1,840.