Coordination of Benefits
Last Updated on May 21, 2020
- If a member carries other insurance through more than one insurer, Security Health Plan will coordinate the benefits to ensure maximum coverage without duplication of payments.
Order of Benefit Determination
- If covered expenses are incurred by a member who is eligible to apply for Medicare and for whom Medicare is primary, Security Health Plan will determine the benefits payable, if any, using the rules and regulations of Medicare in determining whether Medicare or Security Health Plan is primary.
- If Medicare is primary for a Medicare eligible member, the member is considered enrolled in and covered under Medicare Parts A & B, whether or not a member is actually enrolled in one or both parts of Medicare.
- To learn more about coordination of benefits and secondary payer, please visit https://www.cms.gov/Medicare/Medicare.html
- The provider must submit claims to the primary carrier before submitting to Security Health Plan. After a claim is processed by the primary carrier, a claim should be submitted to Security Health Plan along with either the primary carrier’s Explanation of Benefits (EOB) or their electronic payment/denial information. The affiliated provider must submit the claim within 365 days from the date of service or within 60 days of the primary payer’s statement, whichever is later.
- If the provider fails to comply or is unaware of the primary insurance carrier, claims for which Security Health Plan is secondary will be denied using ANSI code 22. This denial reason will print on the provider’s reimbursement statement.
- If a primary insurance is discovered after charges have been processed by Security Health Plan, and the primary insurance makes payment, the provider may have an overpayment. The provider should submit a copy of the original claim and a copy of the EOB from the primary insurance. Claims will be reprocessed based on the primary insurance payment. The adjustment will be reflected on the provider’s reimbursement statement.
- If Security Health Plan discovers a primary insurance after charges have been processed, Security Health Plan will reverse its original payment. The adjustment will be reflected on the provider’s statement using ANSI 22.
- If the primary insurance denies a claim because of lack of information, Security Health Plan will also deny.
- If the primary insurance denies a claim with Claim Adjustment Group Code “CO,” financial responsibility for the unpaid charge is assigned to the provider as a contractual obligation. As a secondary or tertiary payer, Security Health Plan will also deny these charges using Claim Adjustment Reason Code (CARC) 276: “Services denied by the prior payer are not covered by this payer”. Affiliated providers may not balance bill members for CARC 276 denials.
- If the provider has any questions regarding coordination of benefits, call 715-221-9503 or 1-800-548-4831 Monday through Friday, between 8:00 a.m. and 4:30 p.m. or email firstname.lastname@example.org
If a Security Health Plan member has another insurance, follow these instructions to ensure a claim will be processed correctly and in a timely manner.
- Complete information must be on the CMS 1500 claim or UB-04 claim, or must be included with the electronic claim.
- On the CMS 1500 claim, box 11d should be checked “Yes” if there is any other insurance information. If box 11d is checked “Yes”, boxes 9a – 9d on the CMS 1500 claim must be completed with the other insurance information.
- On the UB-04 claim, field 50 should be completed if there is any other insurance information.
- On electronic CMS 1500 or UB-04 claims, loop 2320 should include other insurance information.
- EOBs or electronic payment/denial information must accompany each CMS 1500 claim and UB-04 claim if other primary insurance is indicated on the claim.