MedicaidPrior AuthMedium impact
Medicaid Alert - MA-2003-02
New Jersey Medicaid·NJ · Psychiatry·Provider Notice
Effective date
Jul 1, 2003
We identified it
Jun 20, 2026
Summary
New Jersey Medicaid is reprocessing previously denied claims for mental health clinic van transportation services (HCPCS Z0330, Z0335) for Partnership for Children beneficiaries that were denied due to missing prior authorization. Providers should expect automatic reimbursement within 4-6 weeks with no resubmission needed. Going forward, ValueOptions will issue separate authorization numbers for transportation services, which must be submitted on separate claims from other mental health services.
Action Required
REQUIREMENTS:
Immediate actions:
- Billing team: DO NOT resubmit previously denied claims with error codes 770 or 423 for HCPCS Z0330/Z0335 transportation services. The state will automatically reprocess these claims.
- Billing team: Monitor remittance advice for reimbursement of previously denied transportation claims, expected within 4-6 weeks from policy effective date.
For future claims:
- Billing team: Beginning immediately, obtain separate prior authorization numbers from ValueOptions (1-877-652-7624) for transportation services (Z0330, Z0335) distinct from other mental health clinic services.
- Billing team: Submit claims for mental health clinic van transportation services on SEPARATE claims from other mental health services, ensuring each claim includes the correct authorization number for that specific service.
- Billing team: For any NEW claims that do not yet have a prior authorization number from ValueOptions, submit hard copy claims directly to Division of Medical Assistance & Health Services (Office of Utilization Management, PO Box 712, Trenton, NJ 08625-0712) rather than through standard submission channels. This applies ONLY to Partnership for Children beneficiaries.
- Administrative staff: Retain this policy chronologically behind the Medicaid Alerts tab (Green Tab marked "4") in compliance files.
Consequences: Claims without proper authorization numbers will be denied. Resubmitting previously denied claims will create duplicate submissions and payment delays.