I get this denial a lot with my Florida Medicaid Claims.
Usually one of our AR people just calls and has the claim reprocessed. For my local Medicaid they don't pay for Mirena, they pay for a generic one (I'm sorry the name escapes me). They do pay the insertion though. We are in the process of ordering the one they pay for, and I've yet to bill it out, so I don't know the code for it. As far as the insertion and the device on separate claims , I've not heard of that, but I don't know what state you're in. I'm thinking (and this is just my thought) that maybe they want two separate claims, the one for insertion to go electronic, and the one for the device on paper with the invoice.