Medi-Cal Update

Part 1 - Program and Eligibility | May 2020

Print Medi-Cal Update

1. Remittance Advice Detail Code 010: Denials for Duplicate Claims

A frequent cause of claim denials by Medi-Cal is due to incorrect recipient admission and discharge dates and/or incorrect patient status codes submitted by providers. Erroneous “from-through” dates or patient status billed by one provider and paid by Medi-Cal can result in the denial of correct claims billed by another provider. This often occurs between hospitals and nursing homes during the transfer of the recipient. Providers see this on their Remittance Advice Details (RADs) as a claim denied by RAD code 010.

Should the denied provider choose to dispute the claim and there is no resolution between the two providers regarding the dates in question, Medi-Cal could recoup the full reimbursement of the original erroneously paid claim, and will not make an adjustment without a correction request from that provider.

Incorrectly paid and denied claims can also create incorrect provider reimbursement data and inaccuracies in the health service records that may impact beneficiary share of cost, access to services and estate recovery.

For assistance in resolving these issues, providers are advised to write to the Correspondence Specialist Unit at:

Correspondence Specialist Unit
P.O. Box 13029
Sacramento, CA 95813-4029

For information about proper claim form completion, refer to the claim completion section in the appropriate Part 2 manual.

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2. COVID-19 Diagnostic Testing and Treatment-Related Services

Effective for dates of service on or after April 8, 2020, Aid Code V2 will allow individuals to seek all medically necessary care for COVID-19 diagnostic and testing related services, including all associated medical, outpatient, inpatient and pharmacy related services at no cost to them.

Aid Code V2 is limited scope, does not have a share of cost and is not eligible for Local Educational Agency (LEA) or Child Health Disability and Prevention (CHDP) services. Aid Code V2 is also limited to diagnosis code U07.

This information is reflected in the following provider manual(s):

Provider Manual(s) Page(s) Updated
Part 2 aid codes (16)
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3. New Benefits for Aid Code 7F

Effective February 4, 2020, HCPCS codes U0001 (CDC 2019 Novel Coronavirus [2019-nCoV] Real-Time RT-PCR Diagnostic Panel) and U0002 (2019-nCoV Coronavirus, SARS-CoV-2/2019-nCoV [COVID-19], any technique, multiple types or subtypes [includes all targets], non-CDC) are benefits under Aid Code 7F.

Effective March 13, 2020, CPT® code 87635 (Infectious agent detection by nucleic acid [DNA or RNA]; severe acute respiratory syndrome coronavirus 2 [SARS-CoV-2] (Coronavirus disease [COVID-19], amplified probe technique) is a benefit under Aid Code 7F.

This information is reflected in the following provider manual(s):

Provider Manual(s) Page(s) Updated
Part 1 aid codes (28)
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4. Medi-Cal Procedure/Drug Code Limitation List Update

The Medi-Cal Procedure/Drug Code Limitation List section of the Part 1 provider manual (proc list) has been updated. Always refer to the Procedure/Drug Code Limitation (P/DCL) list when determining provider procedure/drug code limitations.

Providers placed on the P/DCL list do not receive Medi-Cal reimbursement for services under restriction. In addition, providers who fill orders for lab tests, drugs, medical supplies or any other restricted services prescribed or ordered by a provider under restriction are not reimbursed by Medi-Cal.

The limitation is effective after the Department of Health Care Services (DHCS) gives the provider notice of the proposed limitation and no appeal is submitted within 45 days or following denial of an appeal. Limitations automatically cease after 18 months, except for those with “indefinite” time frames.

List of Codes covered by providers placed on Procedure/Drug Code Limitation can be found separately on the Medi-Cal website.

No action is required of providers. An Erroneous Payment Correction (EPC) will be implemented to reprocess affected claims.

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5. New Medi-Cal Provider Website: Implementation Postponed

The Department of Health Care Services (DHCS) is postponing implementation of the new Medi-Cal Provider website and server upgrade for at least two months. This postponement will ensure that vital services remain consistent while DHCS addresses other priority activities.

It is recommended that providers continually check the Medi-Cal website for updates. Providers are also encouraged to subscribe to the convenient and free Medi-Cal Subscription Service (MCSS) to ensure they receive the latest policy news and program updates immediately and regularly.

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6. Medi-Cal Suspended and Ineligible Provider List is Updated

The monthly-updated Medi-Cal Suspended and Ineligible Provider List (S&I List) is available on the Suspended and Ineligible Provider List page of the Medi-Cal website.

Always refer to the S&I List when verifying ineligibility. Eligibility or ineligibility must also be verified through the Health and Human Services (HHS) Federal Office of Inspector General (OIG) List of Excluded Individuals/Entities.

Suspension of Entities Submitting Claims for Suspended Providers
Entities submitting claims for services rendered by a health care provider suspended from Medi-Cal or excluded from Medicare or Medicaid by the OIG are subject to Medi-Cal suspension.

Welfare and Institutions Code (W&I Code), section 14043.61, subdivision (a), states, in relevant part, that “a provider shall be subject to suspension if claims for payment are submitted under any provider number used by the provider to obtain reimbursement from Medi-Cal for the services, goods, supplies or merchandise provided, directly or indirectly, to a Medi-Cal recipient by an individual or entity that is suspended, excluded, or otherwise ineligible because of a sanction to receive, directly or indirectly, reimbursement from Medi-Cal and the individual or entity is listed on either the Medi-Cal Suspended and Ineligible Provider List or any list published by the Federal Office of Inspector General regarding the suspension or exclusion of individuals or entities from the Federal Medicare and Medicaid programs, to identify suspended, excluded, or otherwise ineligible providers.”

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7. Medi-Cal Hotlines

Medi-Cal Hotlines  
Border Providers (916) 636-1200
DHCS Medi-Cal Fraud Hotline 1-800-822-6222
Telephone Service Center (TSC) 1-800-541-5555
Provider Telecommunications Network (PTN) 1-800-786-4346

For a complete listing of specialty programs and hours of operation, refer to the Medi-Cal Directory in the provider manual.

Mailing Address:
California MMIS Fiscal Intermediary
PO Box 13029
Sacramento, CA 95813-4029

Medi-Cal Fraud is Against the Law
Medi-Cal fraud costs taxpayers millions each year and can endanger the health of Californians. Help protect Medi-Cal and yourself by reporting violations today.

DHCS Medi-Cal Fraud Hotline: 1-800-822-6222

The call is free and you can remain anonymous. Knowingly participating in fraudulent activities can result in prosecution and jail time. Help prevent Medi-Cal fraud.

Stop Illegal Tobacco Sales
The simplest way to stop illegal tobacco sales to persons under the age of 21 is for merchants to check ID and verify the age of the tobacco purchasers. Report illegal tobacco sales to 1-800-5-ASK-4-ID. For more information, see the California Department of Public Health – California Tobacco Control Program website.

Free Smoking Cessation Resources
The California Smokers’ Helpline provides free help for quitting smoking in multiple languages. Services can be accessed via toll-free hotline 1-800-NO-BUTTS, text, online chat or mobile app. For more information, see the California Smokers’ Helpline website.

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