What are Frequency Codes in Medical Billing? (2024)

• Healthcare, Information Technology

• Feb 13, 2023

Medical billing is a demanding yet rewarding field that requires extensive knowledge of the different codes used so e business coding operations are smooth and accurate. When it comes to this career, it is important to be able to determine what a frequency code in medical billing means. Understanding what frequency codes are, what they mean, and how to break them down can help you improve your role in medical billing.

Working in the Healthcare Industry

The healthcare industry is full of unique and rewarding career opportunities. People within this field, from administration to surgical staff, have an important role to play so that patients receive the best possible care. For those interested in the clerical side of this industry, it is important to understand code input and its meaning. Codes help ensure that billing is properly filed and represents the accurate state of the bill, what is due, and who is responsible for paying. One common aspect of medical billing is frequency codes.

What is Frequency Code in Medical Billing?

Proper medical billing uses three-digit alphanumeric codes on the various claim forms to accurately describe the type of bill a provider is submitting to the individual paying. In some instances, this may be referred to as a four-digit code, but the first digit is a leading zero, which is ultimately ignored by the system. Each digit has a specific purpose, which is why accuracy is essential. Utilizing the proper digits is a requirement for all UB-O4 claims.

The three-digit code includes a facility type code followed by the type of care code which is then followed by a one-character claim frequency code.

For example, a facility code could be:

• 1- Hospital
• 2- Skilled Nurse Facility
• 3- Home Health

These codes continue to encompass the possible facility options for medical care a person can pursue.The type of care codes can include:

• 1- Inpatient Part A
• 2- Inpatient Part B

This list continues to address the different types of care a facility can provide. Once it is established where the services took place, as well as what the service was, the frequency code is then used to describe what type of billing it is.

Valid third-digit frequency codes include:

• 0- Non-Payment or Zero Claim – when a payment is not anticipated
• 1- Admit Through Discharge Claim – encompasses treatment
• 2- Interim for the First Claim – first of an expected series of bills
• 3- Interim for Continuing Claims – the initial bill has been submitted, but additional bills expected
• 4- Interim for the Last Claim – the last of a series of bills
• 5- Late Charges
• 7- Replacement of a Prior Claim
• 8- Voiding or Canceling a Prior Claim
• 9- Final Claim for Home Health PPS
• A- Admission or Election Notice for Hospice
• B- Hospice Termination/Revocation Notice
• C- Hospice Change of Provider Notice
• D- Void/Cancel Hospice Election
• E- Hospice Change of Ownership
• F- Adjustment Claim Beneficiary Initiated
• G- CWF Initiated Adjustment Claim
• H- CMS Initiated Adjustment Claim
• I- FI Adjustment Claim
• J- Initiated Adjustment Claim/Other
• K- Adjustment Claim OIG Initiated
• M- Adjustment Claim MSP Initiated
• O- Non-Payment/Zero Claims
• P- Adjustment Claim QIO
• Q- Reopening/Adjustment
• X- Void/Cancel a Prior Abbreviated Encounter Submission
• Y- Replacement of Prior Abbreviated Encounter Submission
• Z-New Abbreviated Encounter Submission

When you are responsible for proper medical billing coding, you must understand what each digit of the code means, as well as make sure you are using the right frequency coding.

Pursuing a Career in Medical Billing

Medical billing is an expanding field full of opportunities for interested individuals. Understanding frequency coding is just a small part of what an individual will learn while pursuing this type of employment. Medical Billing and Coding Programs can help you better dive into the skills, education, and requirements to excel in this field.

Start Your Career with Berks Tech Institute

When considering the right location to pursue your medical billing education, Berks Technical Institute can provide you the tools to help you succeed in this industry. Our programs are uniquely designed to provide a blend of traditional classroom learning as well as specialized hands-on training. This approach is helpful in learning so that you will excel quickly, allowing you to enter the workforce faster and more confidently. Let our admissions office help you get started today.