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What Is Reimbursement Classification?

Reimbursement classification breaks down payment arrangements in contracts into structured, comparable formats. It ensures consistency across payers and networks.

Fee Schedules

Each schedule includes:
  • Title (Specialist Rates, Primary Care Schedule)
  • Primary Methodology (current year Medicare, fixed year Medicare, custom, payer-controlled, unknown)
  • Scope Summary (services, providers, networks covered)
  • Effective Dates

Payment Methodologies

  • Current Year Medicare: Rates tied to the current year’s schedule
  • Fixed Year Medicare: Based on a specified past Medicare schedule
  • Custom: Explicit dollar amounts or custom tables
  • Payer Controlled: Determined by the payer’s internal fee schedule
  • Unknown: Not clearly defined

Reimbursement Sections

  • Individual payment rules
  • Network applicability (commercial, Medicare Advantage, Medicaid, Tricare)
  • Billing codes associated with each rule

Materialization Process

  1. Rate Calculation
    • Medicare-based: Uses PriceMedic’s schedule builder
    • Custom: Extracted from attachments or tables
    • Payer-controlled: Linked from payer’s internal schedules
  2. Output Format
    Standardized tables with:
    • Billing code
    • Modifier
    • Setting (facility or non-facility)
    • Allowable amount
  3. Source Documentation
    • Page references
    • Contract excerpts
    • Cross-references to exhibits or appendices
Materialized schedules create a consistent dataset for analysis, comparison, and negotiation.
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