Claim Frequency Type Codes

Claim Frequency Type Codes

In medical billing, the Claim Frequency Type Code (also known as the Submission Reason Code) indicates the status of the claim in the billing lifecycle (e.g., is it a new bill, a correction, or a cancellation?).

This code is found in Loop 2300, Segment CLM05-3 of the electronic 837 file. On paper forms, it corresponds to Box 22 (CMS-1500) or the third digit of the Type of Bill (UB-04).

The "Big Three" (Most Common)

These are the standard codes used for Professional (CMS-1500) and most Institutional billing.

Code       NameDescriptionWhen to Use
1Original ClaimThis is the very first claim submitted for a specific encounter.Use for new claims or when billing a secondary payer for the first time.
7Replacement / CorrectedThis claim replaces a previously processed claim.Use to fix a mistake (e.g., wrong code, missing modifier) on a claim the payer already accepted. You must include the original claim ID (ICN).
8Void / CancelThis claim cancels a previously processed claim entirely.Use if you billed the wrong patient or a duplicate claim was processed in error. This eliminates the claim from the payer's history.

Institutional / Interim Billing Codes

These codes are primarily used by hospitals, nursing homes, and home health agencies (UB-04 forms) for patients who are hospitalized for long periods. They tell the payer "this is just part of the bill."

Code       NameDescription
2Interim - First ClaimThe first bill in a series for a continuous stay (e.g., the first month of a long hospital stay).
3Interim - Continuing ClaimA bill for a subsequent period of the same stay (e.g., the second or third month).
4Interim - Last ClaimThe final bill for the stay; signals that the patient has been discharged.

Special Situation Codes

These are used in specific administrative scenarios.

Code       NameDescription
5Late Charge(s) OnlyUsed to bill only for items that were forgotten on the original bill. (Note: Most modern payers prefer you use Code 7 to replace the full claim rather than submitting late charges separately).
9Final Claim (HHA)Specifically used for Home Health Agency PPS Episodes to indicate the final bill.
0Non-Payment / Zero ClaimUsed when you do not expect payment (e.g., billing only to update the patient's deductible or for denial tracking purposes).

Important Note for Your Lab Claims

Most commonly used:

  • Code 1 (Original): Use this for almost all your initial submissions.

  • Code 7 (Replacement): Use this to fix the "Missing Diagnosis" or "Wrong Modifier" denials we discussed. (Remember to include the Payer's original Claim ID in the "Original Ref Number" field).

  • Code 1 vs. 7 for Denials: If a claim was rejected as "Unprocessable" (e.g., Invalid Patient ID), you usually treat it as Code 1 (Original) because the payer never technically "accepted" it into their system to be replaced.




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