non participating provider medicare, Non-Participating Providers

Billing Guidelines For Medicare Non Participating Providers (2023)

Being non-par does not mean you don’t have to bill Medicare. All Medicare part B covered services must be billed to Medicare by the provider or the provider could face penalties. This is known as the “Mandatory Claim Submission Rule” (an exception to this is when the beneficiary has signed a valid Advance Beneficiary Notice of Noncoverage (ABN), Form CMS-R-131, with Option #2 selected.

What Is a Non-Participating Provider?

A non-par provider is someone who has enrolled to be a Medicare provider but chooses to receive payment in a different method and amount than Medicare providers classified as participating. Non-par providers may receive reimbursement for rendered services directly from their Medicare patients; however, they still must submit a bill to Medicare so the beneficiary may be reimbursed for the portion of the charges for which Medicare is responsible.

Can A Non-Participating Provider Accept Assignments?

It is important to note that non-par providers may also choose to accept assignment; therefore, the amount paid by the beneficiary must be reported in Item 29 of the CMS 1500 claim form or its electronic equivalent. This ensures that the beneficiary is reimbursed (if applicable) prior to Medicare sending payment to the provider.

Whether or not non-par providers choose to accept assignment on all claims or on a claim-by-claim basis, Medicare reimbursement is five percent less than for a participating provider, as reflected in the annual Medicare Physician Fee Schedule. 

Medicare Participating Provider Agreement

You can find a copy of the Medicare Participating Provider Agreement on the CMS website at The form contains important information regarding participation and the annual opportunity to make or change your participation decision. Additional information is available in the Medicare Benefit Policy Manual (Chapter 15; Covered Medical and Other Health Services) at and the Medicare Claims Processing Manual (Chapter 12; Physician/Nonphysician Practitioners) at on the CMS website.

Claims Reviews For Non Participating Providers

It is not true that ‘If you are a non-par provider, you will never be audited nor have claims reviewed, etc.’  Any Medicare claim submitted can be audited/reviewed; the physician’s participation status does not affect the possibility of this occurring. CMS audits/reviews are intended to protect Medicare trust funds and identify billing errors so providers and their billing staff can be alerted and educated on how to avoid future errors. Correct coverage, reimbursement, and billing requirements are readily available to assist you in understanding Medicare requirements.

Sources That Can Be USed By Non Participating Providers

This information is in Medicare manuals at on the CMS website. In addition, an excellent way to stay informed about changes to Medicare billing and coverage requirements is to monitor MLN Matters® Articles, which are available at on the same site.

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