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RCM glossary

ABN (Advance Beneficiary Notice)

A Medicare form telling the patient a service may not be covered, before it is provided.

An Advance Beneficiary Notice of Noncoverage (form CMS-R-131) is given to a Medicare patient before a service that Medicare may not cover. If signed, it allows the provider to bill the patient if Medicare denies the claim.

Without a valid ABN, the provider usually cannot bill the patient for a service Medicare denies as not medically necessary.

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Related terms

Medical necessity
The requirement that a service is reasonable and needed for the patient's condition.
Claim denial
A payer's decision not to pay a claim that it received and processed.
Patient responsibility
The part of a bill the patient owes: copay, deductible, coinsurance and non-covered services.

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