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How To Fix Denial Code 134 | Common Reasons, Next Steps & How To Avoid It

Denial Code 134 means that technical fees have been removed from the charges on a claim. In this article, we will provide a description of Denial Code 134, common reasons for its occurrence, next steps to resolve the denial, tips on how to avoid it in the future, and examples of cases involving Denial Code 134.

2. Description

Denial Code 134 is a Claim Adjustment Reason Code (CARC) that indicates technical fees have been removed from the charges on a claim. This means that the insurance company has determined that certain fees associated with the services provided are not eligible for reimbursement. It is important to review the specific details of the denial to understand which technical fees were removed and why.

2. Common Reasons

The most common reasons for Denial Code 134 include:

  1. Non-covered Services: The technical fees that were removed may be for services that are not covered by the patient’s insurance plan. It is essential to verify the coverage and benefits of the patient’s plan before providing any services to avoid potential denials.
  2. Incorrect Coding: If the services were coded incorrectly, it could result in the removal of technical fees. It is crucial to ensure accurate and appropriate coding to avoid denials related to coding errors.
  3. Lack of Medical Necessity: The insurance company may determine that the technical fees were not medically necessary for the patient’s condition. It is important to provide sufficient documentation and justification for the services rendered to demonstrate medical necessity.
  4. Policy Limitations: Some insurance plans have limitations on certain technical fees or services. If the fees exceed the plan’s limitations, they may be removed from the charges. It is essential to be aware of the policy limitations and communicate them to the patient to avoid denials.
  5. Pre-authorization Requirements: If the services requiring technical fees did not receive proper pre-authorization, the insurance company may deny the charges. It is crucial to follow the pre-authorization process outlined by the insurance company to ensure reimbursement.

3. Next Steps

To resolve Denial Code 134, follow these next steps:

  1. Review Denial Explanation: Carefully review the explanation provided with the denial to understand the specific technical fees that were removed and the reason for their removal.
  2. Verify Coverage and Benefits: Confirm the patient’s insurance coverage and benefits to determine if the removed technical fees are indeed not covered by the plan. If there is any confusion or discrepancy, contact the insurance company for clarification.
  3. Appeal the Denial: If you believe the removal of the technical fees was incorrect or unjustified, prepare an appeal. Include any supporting documentation, such as medical records, coding documentation, or policy information, to demonstrate the necessity and eligibility of the fees.
  4. Communicate with the Patient: Keep the patient informed about the denial and the steps being taken to resolve it. Discuss any potential financial responsibility the patient may have due to the removed technical fees.
  5. Follow Up with the Insurance Company: Stay in contact with the insurance company throughout the appeal process. Provide any additional information or documentation they may request promptly.

4. How To Avoid It

To avoid Denial Code 134 in the future, consider the following tips:

  1. Verify Coverage and Benefits: Before providing any services, verify the patient’s insurance coverage and benefits. Ensure that the technical fees associated with the services are covered by the plan.
  2. Accurate Coding: Use accurate and appropriate coding for all services rendered. Stay updated on coding guidelines and ensure proper documentation to support the codes used.
  3. Medical Necessity Documentation: Document the medical necessity of the services provided. Include detailed notes and supporting documentation to demonstrate the need for the technical fees.
  4. Pre-authorization: Follow the pre-authorization process outlined by the insurance company for services requiring technical fees. Obtain proper authorization before providing the services.
  5. Stay Informed: Stay updated on the policy limitations and requirements of the insurance plans you work with. Communicate these limitations to the patient to manage expectations and avoid denials.

5. Example Cases

Here are two examples of cases involving Denial Code 134:

  • Example 1: A patient undergoes a procedure that requires the use of specialized equipment. The insurance company denies the technical fees associated with the equipment, stating that it is not covered under the patient’s plan.
  • Example 2: A provider submits a claim for a service that requires pre-authorization. The claim is denied, and the technical fees are removed because the pre-authorization was not obtained prior to providing the service.

Source: Claim Adjustment Reason Codes

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