August 21, 2025
Medicare Secondary Payer (MSP) Claims – Billing Reminders
The term Medicare Secondary Payer (MSP) is used when Medicare considers payment after a primary insurance company makes their payment determination. This happens when the beneficiary has other insurance primary to Medicare such as Employer Group Health Plans, Accident/Injury Insurance, Other Government Sponsored Health Plans, etc.
If Medicare is the secondary payer, you must include information on the claim about what the primary insurance paid.
For electronic MSP claims, use the correct MSP type code in the 2000B (Loop), SBR05 (segment) of the claim. Here are the type codes:
| Type Code | Description |
|---|---|
| 12 | Working Aged Beneficiary/Spouse Group Health Plan Working Aged |
| 13 | ESRD Beneficiary in a Medicare Coordination Period with an Employer Health Plan ESRD |
| 14 | No-fault, including auto/other |
| 15 | Workers' Compensation |
| 16 | PHS, Other Federal Agency |
| 41 | Black Lung |
| 43 | Disabled Beneficiary Under Age 65 with GHP Disability |
| 47 | Any Liability Insurance Liability Provision |
If you submit a claim with the wrong MSP type codes, we’ll reject the claim for incomplete/invalid information. These claims don’t have appeal rights. You must correct and resubmit the claim.
Note: These instructions only apply where Medicare is the secondary payer. Don’t submit Explanation of benefits (EOBs) for Medigap plans or supplemental insurance as an MSP claim. This will cause a claim rejection.
myCGS DME Web Portal Users:
You can locate the beneficiary’s MSP information under Beneficiary Information menu. Keep in mind that the myCGS® Portal can only display what CMS HIPAA Eligibility Transaction System (HETS)
provides. HETS is updated once daily on Tuesdays through Saturdays, between 9 pm – 6 am, CT.
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