What is “reason code” in medical billing?

Reason Code in Medical Billing

A reason code is a numerical code used to explain why a claim was denied, adjusted, or paid differently than expected.

Reason Code in Medical Billing Explained

In medical billing, reason codes provide clarity on why a claim was not paid in full or was denied. Understanding these codes helps providers correct issues and resubmit claims if necessary.

For example, a claim is denied with a reason code indicating that the service was not medically necessary.

Discover common acronyms and abbreviations in Medical billing glossary.

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