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Medicare fee-for-service (Parts A and B) is the federal program administered regionally through Medicare Administrative Contractors (MACs). It is the reference frame for the entire US payment system: most commercial fee schedules are expressed as a percentage of the Medicare Physician Fee Schedule. Treat this page as orientation; payer’s change their habits often and without notice.

Structure

Find your MAC through CMS. Your MAC issues local coverage determinations (LCDs) that affect medical necessity in your region: two practices in different MAC jurisdictions can get different answers on the same service.

Enrollment

Through PECOS: Expect 60–120 days. Ownership and managing control disclosure on the 855B requires care in an MSO-PC structure: see Enroll in Medicare. On approval you receive a PTAN, a MAC-assigned identifier distinct from the NPI. Record group and individual PTANs.

Timely filing

12 months from the date of service: set by statute and regulation.1 One of the few limits that is fixed rather than contractual.

Appeals: the five levels

Each level has its own deadline; levels 3 and 5 have amount-in-controversy thresholds. Most provider appeals resolve at level 1 or 2.

Revalidation

Every five years for most providers (three for DMEPOS). Notices go to the correspondence address in PECOS: if nobody monitors it, the first you’ll hear is when billing privileges are deactivated and claims stop. Check your date directly in the Medicare Revalidation Lookup Tool.

Quirks worth knowing

  • Sequestration appears as CO-253, a statutory payment reduction. Write it off.
  • Opt-out physicians cannot reassign benefits to your group: check status during clinician vetting
  • Incident-to and split/shared rules are Medicare-specific and frequently misapplied
  • Crossover to secondary payers is automatic for many claims: submitting the secondary separately produces duplicate denials
  • The 60-day overpayment rule applies to Medicare. See Report and return overpayments.

Sources

  1. Social Security Act § 1842(b)(3)(B); 42 C.F.R. § 424.44. CMS, Medicare Claims Processing Manual.
Last modified on September 5, 2026