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How To Fix Denial Code P17 | Common Reasons, Next Steps & How To Avoid It

Denial Code P17 means that a claim has been denied because the referral was not authorized by the attending physician as required by regulatory guidelines. This denial code is specific to Property and Casualty claims. Below you can find the description, common reasons for denial code P17, next steps, how to avoid it, and examples.

2. Description

Denial Code P17 is a specific denial code used for Property and Casualty claims. It indicates that the referral for the service in question was not authorized by the attending physician as required by regulatory guidelines. This means that the insurance company will not make the payment for the billed service due to the lack of proper authorization. It is important to note that this denial code is applicable only to Property and Casualty claims.

2. Common Reasons

The most common reasons for denial code P17 are:

  1. Lack of Authorization: The attending physician did not provide the necessary authorization for the referral, as required by regulatory guidelines. This could be due to oversight, miscommunication, or failure to follow proper procedures.
  2. Missing Documentation: The claim may be denied under code P17 if the necessary documentation supporting the referral authorization is missing or incomplete. This could include referral forms, medical records, or other relevant documentation.
  3. Non-Compliance with Regulatory Requirements: Denial code P17 may be triggered if the referral does not meet the specific regulatory requirements set forth by the insurance company or governing bodies. This could include limitations on the types of services that require authorization or specific criteria that must be met for the referral to be valid.
  4. Expired Authorization: If the referral authorization has expired by the time the claim is submitted, it may result in denial under code P17. Insurance companies often have time limits on the validity of referrals, and claims submitted after the expiration date may be denied.
  5. Incorrect or Incomplete Information: Errors or omissions in the information provided on the claim, such as incorrect patient identifiers, referral dates, or attending physician details, can lead to denial under code P17. It is crucial to ensure that all information is accurate and complete when submitting the claim.

3. Next Steps

You can address denial code P17 by following these steps:

  1. Review Referral Authorization: First, review the referral authorization requirements set forth by the insurance company or regulatory guidelines. Ensure that the attending physician has provided the necessary authorization for the specific service in question.
  2. Check Documentation: Verify that all required documentation supporting the referral authorization is complete and included with the claim. This may include referral forms, medical records, or any other relevant documentation specified by the insurance company.
  3. Appeal or Resubmit: If the denial was in error or due to missing documentation, prepare an appeal or resubmit the claim with the necessary documentation. Clearly explain the reasons for the appeal or resubmission and provide any additional information requested by the insurance company.
  4. Communicate with Attending Physician: Engage in communication with the attending physician to ensure that they understand the referral authorization requirements and are aware of any necessary updates or corrections. This collaboration can help prevent future denials under code P17.
  5. Stay Updated on Regulatory Guidelines: Regularly review and stay updated on the regulatory guidelines and requirements related to referral authorizations. This will help ensure compliance and minimize the risk of denials under code P17.

4. How To Avoid It

To avoid denial code P17 in the future, consider the following steps:

  1. Educate Attending Physicians: Provide clear and comprehensive education to attending physicians regarding the referral authorization requirements. Ensure that they understand the importance of proper authorization and the potential consequences of non-compliance.
  2. Implement Documentation Processes: Establish robust documentation processes to ensure that all necessary referral authorization documentation is obtained and included with the claim. This may involve creating checklists, implementing electronic systems, or providing training to staff members responsible for gathering documentation.
  3. Regularly Review Claims: Regularly review claims before submission to ensure that all information is accurate and complete. Double-check referral dates, attending physician details, and any other relevant information to minimize the risk of denials under code P17.
  4. Stay Informed: Stay informed about any updates or changes to regulatory guidelines related to referral authorizations. This can help you proactively adapt your processes and ensure compliance with the latest requirements.

5. Example Cases

Below are two examples of denial code P17:

  • Example 1: A patient seeks treatment for a specific condition and is referred to a specialist by their primary care physician. However, the specialist fails to obtain the necessary authorization from the insurance company before providing the service. As a result, the claim is denied under code P17.
  • Example 2: A patient is involved in a car accident and requires physical therapy as part of their recovery. The attending physician refers the patient to a physical therapist, but the referral authorization is not obtained within the specified time frame set by the insurance company. Consequently, the claim for the physical therapy services is denied under code P17.

Source: Claim Adjustment Reason Codes

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