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Review period and reopening of initial denial determinations and changes as a result of DRG validations.

42 CFR § 476.96

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42 CFR § 476.96

42 CFR § 476.96

Review period and reopening of initial denial determinations and changes as a result of DRG validations.

(a)

General timeframe. A QIO or its subcontractor—

(1)

Within one year of the date of the claim containing the service in question, may review and deny payment; and

(2)

Within one year of the date of its decision, may reopen an initial denial determination or a change as a result of a DRG validation.

(b)

Extended timeframes.

(1)

An initial denial determination or change as a result of a DRG validation may be made after one year but within four years of the date of the claim containing the service in question, if CMS approves.

(2)

A reopening of an initial denial determination or change as a result of a DRG validation may be made after one year but within four years of the date of the QIO's decision if—

(i)

Additional information is received on the patient's condition;

(ii)

Reviewer error occurred in interpretation or application of Medicare coverage policy or review criteria;

(iii)

There is an error apparent on the face of the evidence upon which the initial denial or DRG validation was based; or

(iv)

There is a clerical error in the statement of the initial denial determination or change as a result of a DRG validation.

(c)

Fraud and abuse.

(1)

A QIO or its subcontractor may review and deny payment anytime there is a finding that the claim for service involves fraud or a similar abusive practice that does not support a finding of fraud.

(2)

An initial denial determination or change as a result of a DRG validation may be reopened and revised anytime there is a finding that it was obtained through fraud or a similar abusive practice that does not support a finding of fraud.