Find-A-Code Articles, Published 2018, October 11

Type of Bill Codes

by Find-A-Code™
Oct 11th, 2018

Type of bill codes identifies the type of bill being submitted to a payer. Type of bill codes are four-digit alphanumeric codes that specify different pieces of information on claim form UB-04 or form CMS-1450 and is reported in box 4 on line 1.

First Digit = Leading zero. Ignored by CMS
Second Digit = Type of facility
Third Digit = Type of care
Fourth Digit = Sequence of this bill in this episode of care. Referred to as a "frequency" code

Type of Bill (TOB) is not required when a Physicians office reports claim on a CMS-1500. Below are three charts, for the second, third, and fourth digits of your Type of Bill code.

The second digit in your billing code specifies the Facility Type you are billing for. This is for the location, or place of service, only. These are used by institutions whether it be a clinic, hospital, skilled nursing facility or an ASC. Use one of the following:

2nd Digit	Description
1	Hospital
2	Skilled Nursing Facility
3	Home Health
4	Religious Nonmedical Hospital
5	Religious Nonmedical Extended Care (Discontinued)
6	Intermediate Care
7	Clinic or Hospital ESRD Facility
8	Special facility or Hospital (CAH or ASC)
9	Reserved for National Assignment

The third digit is more specific, and each digit has three possible meanings depending on the type of facility or institution. Use one of the following:

For Bill Classification: If the first digit is 1-5 the 2nd digit will be 1-8
For Clinics only: if the 1st digit is 7 the 2nd digit is 1-6
For Special Facilities only: If the 1st digit is 8 then the 2nd digit is 1-6

3rd Digit	Description
1	Except Clinics & Special Facilities: Inpatient Part A Clinics Only: Rural Health Center Special Facilities Only: Hospice (non-hospital based)
2	Except Clinics & Special Facilities: Inpatient Part B Clinics Only: Hospital or Independent Renal Dialysis Center Special Facilities Only: Hospice (hospital based)
3	Except Clinics & Special Facilities: Outpatient Clinics Only: Free-Standing Provider-Based FQHC Special Facilities Only: ASC Services to Hospital Outpatient
4	Except Clinics & Special Facilities: Other (Part B) Clinics Only: Other Rehabilitation Facility Special Facilities Only: Free Standing Birthing Center
5	Except Clinics & Special Facilities: Intermediate Care - Level I Clinics Only: Comprehensive Outpatient Rehabilitation Facility Special Facilities Only: CAH
6	Except Clinics & Special Facilities: Intermediate Care - Level II Clinics Only: Community Mental Health Center Special Facilities Only: Residential Facility (not used for Medicare)
7	Except Clinics & Special Facilities: Subacute Inpatient Eight Swing Bed (Rev code 019x req) Clinics Only: Reserved for National Assignment Special Facilities Only: Reserved for National Assignment
8	Except Clinics & Special Facilities: N/A Clinics Only: Reserved for National Assignment Special Facilities Only: Reserved for National Assignment
9	Except Clinics & Special Facilities: Reserved for National Assignment Clinics Only: Other Special Facilities Only: Other

The fourth digit specifies the frequency of billing. Use one of the following:

4th Digit	Description
0	Non-payment/Zero Claim: Use when it does not anticipate payment from payer for the bill, but is informing the payer about a period of non-payable confinement or termination of care. "Through" date of this bill (FL 6) is discharge date for this confinement, or termination of plan of care
1	Admit Through Discharge: Use for a bill encompassing an entire inpatient confinement or course of outpatient treatment for which it expects payment from payer or which will update deductible for inpatient or Part B claims when Medicare is secondary to an Employer Group Health Plan
2	Interim - First Claim: Use for first of an expected series of bills for which utilization is chargeable or which will update inpatient deductible for same confinement of course of treatment. For HHAs, used for submission of original or replacement RAPs
3	Interim - Continuing Claims (Not valid for PPS Bills): Use when a bill for which utilization is chargeable for same confinement or course of treatment has already been submitted and further bills are expected to be submitted later
4	Interim - Last Claim (Not valid for PPS Bills): Use for a bill for which utilization is chargeable, and which is last of a series for this confinement or course of treatment
5	Late Charge Only: These bills contain only additional charges; however, if a late charge is for: Services on the same day as outpatient surgery subject to ASC limit; Services on same day as services subject to Outpatient PPS (OPPS); ESRD services paid under composite rate; Inpatient accommodation charges; Services paid under HH PPS; and Inpatient hospital or SNF PPS ancillaries It must be submitted as an adjustment request (xx7)
7	Replacement of Prior Claim (See adjustment third digit): Use to correct a previously submitted bill. Provider applies this code to corrected or "new" bill
8	Void/Cancel of Prior Claim (See adjustment third digit): Use to indicate this bill is an exact duplicate of an incorrect bill previously submitted. A code "7" (Replacement of Prior Claim) is being submitted showing corrected information
9	Final claim for a Home Health PPS Episode
A	Admission/Election Noticee for Hospice: Use when hospice or Religious Non-medical Health Care Institution is submitting Form CMS-1450 as an Admission Notice
B	Hospice Termination/Revocation Notice: Use when Form CMS-1450 is used as a notice of termination/revocation for a previously posted Hospice/Medicare Coordinated Care Demonstration/Religious Non-medical Health Care Institution election
C	Hospice Change of Provider Notice: Use when Form CMS-1450 is being used as a Notice of Change to Hospice provider
D	Hospice Election Void/Cancel: Use when Form CMS-1450 is used as a Notice of a Void/Cancel of Hospice/Medicare Coordinated Care Demonstration/Religious Non-medical Health Care Institution election
E	Hospice Change of Ownership: Use when Form CMS-1450 is used as a Notice of Change in Ownership for hospice
F	Beneficiary Initiated Adjustment Claim: Use to identify adjustments initiated by beneficiary. For FI use only
G	CWF Initiated Adjustment Claim: Use to identify adjustments initiated by CWF. For FI use only
H	CMS Initiated Adjustment Claim: Use to identify adjustments initiated by CMS. For FI use only
I	FI Adjustment Claim (Other than QIO or Provider): Use to identify adjustments initiated by FI. For FI use only
J	Initiated Adjustment Claim/Other: Use to identify adjustments initiated by other entities. For FI use only
K	OIG Initiated Adjustment Claim: Use to identify adjustments initiated by OIG. For FI use only
M	MSP Initiated Adjustment Claim: Use to identify adjustments initiated by MSP. For FI use only. Note: MSP takes precedence for other adjustment sources
P	QIO Adjustment Claim: Use to identify adjustments initiated by QIO. For FI use only
Q	Reopening/Adjustment: Use when the submission falls outside of period to submit an adjustment bill

Reporting Corrected Claims: Do not write "Corrected Claim" on the claim form. If you need to submit a VOIDED or corrected claim use the following claim frequency code.

7	Replacement of Prior Claim (See adjustment third digit): Use to correct a previously submitted bill. Provider applies this code to corrected or "new" bill
8	Void/Cancel of Prior Claim (See adjustment third digit): Use to indicate this bill is an exact duplicate of an incorrect bill previously submitted. A code "7" (Replacement of Prior Claim) is being submitted showing corrected information

References/Resources

Noridian Medicare CMS 1450 Claim Form Instructions

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Find-A-Code Articles, Published 2018, October 11

Type of Bill Codes

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