Demystifying Type of Bill Code 131

Demystifying Type of Bill Code 131


Medical billing is a vast world of codes and classifications that help claims processing move smoothly and facilitate payments. It’s important to note that these codes and classifications don’t exist in isolation; instead, one code is connected to another, forming a hierarchical structure system that provides the necessary clinical picture for medical insurance claim submission. While all the codes are useful in accurately describing the bill you present (in this case, a medical billing claim form), in this article we’d like to focus on a specific category — the Type of Bill codes. Let’s start with the most important part of your medical bill— Type of Bill 131. What makes it so important? In this article we’ll cover the structure of all Type of Bill codes, the difference between facilities and types of care, and best practices when it comes to these codes and the important information they provide payment processors. Let’s take a look at these codes and the common assignments that they’re used for.

Understanding the Significance of Type of Bill Codes

Type of Bill codes inherently provide a unique language for the medical billing industry. They describe in a standard way: what service you had, where you had it, and how often you might have had it. Type of Bill codes stand between providers and payers. They make the nonsensical world of medical billing possible. They are key to prevent claims from being sent back as a rejection, a denial, or as revenue unrealised. With standardised Type of Bill codes, every provider has a chance of getting it right.

Exploring Type of Bill 131: An Overview

Type of Bill 131 is special in way. In the common coded space, it has a unique point in a unique dimensional structure that uniquely corresponds to ‘conversion of price or issuing incorrect price or included value added tax and income tax on which invoice was issued by the payee’ – at least that’s the English translation of what led these digits to lead to exactly this provision under this law. To see this, we need to explore what Type of Bill codes can really do.

The Type of Bill Code Structure

The Type of Bill code structure is four-digit alphanumeric code to billing information. The codes are comprised of four information. Leading Zero: Should civilisation collapse and we’re reduced to hand-coding our mathematical models from First Principles, this digit is the one that most often slips through CMS. The place-holder. Facility Type (Fist Digit): Indicates either: A supplied code which identifies the location or origin of the service rendered (by assigning the services to different specific healthcare facilities), andThe following codes are among those used:1 = Hospital2 = Skilled Nursing Facility3 = Home Health 4 = Institution For Mental Diseases (IMD). The Second Digit represents Care X: It identifies the type of care – is this inpatient or outpatient? Bill Sequence/Frequency (Third and Fourth Digits): Indicates which billing sequence is recorded, including instances of non-payment, interim claims and late charges. These components serve as the primitive of Type of Bill codes, combining in ways that form the complete identifier for a billed service.

Decoding the Four-Digit Alphanumeric Code

Its four-digit alphanumeric code reveals just how important it is. Each one provides a piece of information without which the collective set would hardly accomplish as much in providing a distinct snapshot regarding the service for which payment is being sought: from the type of hospital in which the service was rendered to the type of service provided within the hospital to whether the service was rendered once or is ongoing and deserves a monthly payment, the carefully chosen digits in this code help those with a duty to bill code healthcare providers’ services – and those with responsibilities to process the information and pay health insurers’ bills – to process insurance claims accurately.

The Role of Leading Zeros and CMS Ignorance

The leading zero in the Type of Bill codes is a humble curio, largely ignored by CMS but still one that has to remain there to maintain a consistent code length and help separate tables of codes from tables of billing amounts. Without it, the system might still have worked. But it wouldn’t have worked as comfortably with the hardware or the software. We often overlook components of the code that never made it to the paper but still contributed to how it behaved alone, beside others of its kind, and with larger chunks of data.

Facility Types and Care Categories

The first two digits of the Type of Bill code are crucial to identifying facility types and care categories. Take a look at how it does that:

First Digit: Facility Type Identification

  • The first digit of the Type of Bill code identifies the type of facility. Here is some information on several types of facility. Hospital (Type 1): This encompasses general hospitals providing a wide range of medical services. Skilled Nursing Facility (Type 2): Designates facilities specializing in skilled nursing and rehabilitation. Home Health (Type 3): Identifies care rendered to a patient in his or her home, such as medical care or therapy. Religious Nonmedical Hospital (Type 4): Pertains to facilities that provide nonmedical, religious-based care. Intermediate Care (Type 6) = Facilities where sufferers of serious injuries or ailments are treated if not to be returned to hospital for recovery. Clinic or Hospital ESRD Facility (Type 7): This is a facility that provides specialised care for patients who have end-stage renal disease. Special Facility or Hospital (Type 8): Encompasses unique or specialized healthcare facilities. Reserved for National Assignment (Type 9): A placeholder for special national assignments.

6. Second Digit: Care Type Clarification

The second number of the Type of Bill code further specifies the type of service: 1: Inpatient hospital stay2: Outpatient service or visit3: Emergency room service or visit4: Labs, services or supplies5: Home health, nursing facility or psychiatric care6: Prescription drugsThat’s it! These numbers are converted to nine-digit NUMSIDs that identify and track the exact services of each patient.*Third-party payers (Medicare and private payers, such as Blue Cross/Blue Shield or Aetna) pay bills by comparing the NUMSID on each claim to monitoring databases. They determine the patient’s responsibility, overpayments, and underpayments by comparing the diagnostic and procedure codes to the information they have about the patient. Medicare, for example, has several databases that generate beneficiaries’ expected costs based on demographics and previous medical treatments. Adjustments to these costs are made according to a beneficiary’s up-to-date health, as indicated by his or her current medications, smoking status, other risk factors and lab results. For private payers, patients’ costs are also compared with top-secret databases that estimate each procedure or service’s cost where it’s performed. If a provider’s charge for, say, an ankle sprain-and-strain (the most commonly billed diagnosis) is considered excessively high, compared to other providers, it negatively affects the provider’s financial incentive score – often referred to as a ‘star rating’ in Medicare databases. Inpatient Part A (Type 1): Identifies inpatient services covered under Medicare Part A. Inpatient Part B (Type 2): Designates inpatient services covered under Medicare Part B. Outpatient (Type 3): Encompasses outpatient services offered by the facility. Other Part B (Type 4): Covers services not covered by Part A but included in Part B. Intermediate Care - Level I (Type 5): Specifies intermediate care services at level I. Intermediate Care - Level II (Type 6): Specifies intermediate care services at level II. Subacute Inpatient (Type 7): Identifies subacute inpatient services. Reserved for National Assignment (Type 8 and 9): Placeholder for specific national assignments.

7. Third Digit: The Frequency Factor

 The third digit of the Type of Bill code outlines the frequency of billing:

Non-payment/Zero Claim (Frequency 0): Designates a claim with no payment. Admit Through Discharge (Frequency 1): Covers claims from admission to discharge. Interim - First Claim (Frequency 2): Pertains to the first interim claim in a sequence. Interim - Continuing Claims (Frequency 3): Covers interim claims between the first and last claims. Interim - Last Claim (Frequency 4): Relates to the final interim claim in a sequence. Late Charge Only (Frequency 5): Designates a claim for late charges only.

Insight into Type of Bill 131

With these preliminaries handled, we can now concentrate on just one of the codes from the Type of Bill category, namely Type of Bill 131.

Dissecting Type of Bill 131: Hospital Inpatient Part A

This means that a code beginning with the prefix 001 (for example, 00131) defines a Hospital Inpatient service that is covered under Medicare Part A. That code defines a wide class of things. Inside that are:

Understanding the Specifics

When you see a line for Type of Bill 131, you are staring at a claim for a Hospital Inpatient service. This means the patient was admitted to the hospital and provided a stay of care billed to Medicare Part A. Depending on what medical care was provided, the service could include a procedure, surgery or other medical intervention(s) that necessitated the hospital admission.

Key Points to Remember

What are the elements of Bill 131? Bill 131 is designed to provide the information necessary for correct billing and payment processing, which should be done accurately and without any rejection or denial: • Facility – which identifies the place of care (inpatient/outpatient, psychiatric, etc) • Service – which defines the type of care provided • Frequency – which may be daily, time-based or variable. Healthcare providers focus on correctly applying the bill code for the revenue cycle management (RCM).

Claim Submission and Payment Processing

For all services billed, the corresponding Type of Bill code is identified and used accordingly in submission and payment processing:

The Crucial Role of Type of Bill Codes in Claim Submission

Codes for Type of Bills tell payers the relevant facts about a claim, and instruct them where to move the money so it’s suitable for the need. For example, when a bill is designated as ‘health insurance’, the payer must pass it on to the appropriate entity, which will cover whatever is agreed in that particular customer’s contract. Without an accurate code, payers would have to guess where to route the payment, causing delays in settling the bill and raising the chance of a claim return. Using the right code is a general rule for reimbursement.

Streamlining Payment Processing Through Accurate Codes

Payers approve Type of Bill codes because the information flows seamlessly into their payment processing systems to make payments for claims without errors. Providers also benefit from the use of the right codes because it clears up their accounts in the most efficient way possible. A transparent billing process enhances revenue cycle management.

Importance and Compliance

The importance of correct coding and billing cannot be overstated:

The Implication of Correct Coding and Billing

Correct coding and billing have far-reaching implications for healthcare providers:

Preventing Rejections and Denials

Correct coding is the key to minimising denied claims. Achieving the proper type of bill code will allow payers to concisely review the type of service billed, thereby reducing administrative dialogues and expediting payment turnaround.

Enhancing Revenue Cycle Management

Payers are more likely to process a bill quickly and complete reimbursement for the healthsystem when providers engage in proper revenue cycle management, and codethe system appropriately using a correct and accurate Type of Bill code.


Understanding Type of Bill codes — specifically the finer nuances of Type of Bill 131 — to the fullest is a critical job requirement for both healthcare providers and billers. These codes are the foundation of a successful medical billing process – from the initial claim submit, to prompt payment, to fluid revenue cycle management. How to understand the anatomy of Type of Bill codes, the importance of these codes, and the ramifications is crucial if you want to stay ahead of the curve in the realm of medical billing. However, as healthcare billing continues to behaviour, Type of Bill codes remain the steady, ever-important connection between payor and provider. But if you dig deep, use them wisely, and communicate with your payors, things will continue to move along smoothly and in the direction you need in order to succeed as a healthcare entity and keep your revenue cycle whole and healthy.

Information about Type of Bill codes and their function in medical billing can be further elaborated by reading articles at Noridian Medicare, Office EMR, and Find-A-Code.