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Incarceration Town Hall Presentation

Alaska Medicaid·AK · Psychiatry, Pharmacy, General Practice +1 more·Program Update
Effective date
Dec 1, 2025
We identified it
Jun 25, 2026
Days to comply

Summary

Alaska Medicaid updated its incarceration policy to comply with federal Section 5121 requirements (CAA 2023). Key changes: (1) Most Medicaid services suspend when members are incarcerated, except Division of Behavioral Health services and qualifying hospital stays (24+ hours); (2) Claims for incarcerated members now suspend for manual review instead of auto-denying, requiring providers to wait ~45 days post-discharge before submitting claims to avoid denials; (3) Justice-Involved Youth (ages up to 21, or up to 26 if former foster care) now receive Medicaid coverage for medical, dental, and behavioral health screenings 30 days before and 30 days after release, plus targeted case management.

Action Required

Action needed
IMMEDIATE ACTIONS REQUIRED: 1. Billing Team - Update Claim Submission Process: - Implement 45-day hold before submitting claims for members with incarceration indicators on file. Do NOT submit immediately after discharge to avoid unnecessary denials. - When claims suspend with exception code 2957 (DBH services), route to back-and-pay process—do not appeal these automatically. - For all other incarceration-related suspensions, allow HCS/DOC/DPA manual review to complete before taking action (process typically takes 30+ days). 2. Billing Team - Appeals Process Change: - File first-level appeals ONLY if you disagree with incarceration determination (not for other claim denials). Use the Provider First-Level Appeal Request form. - Do NOT contact HCS before manual review completes—wait for the process to conclude. - File appeals within 180 days of denial date or DOC will not pay. 3. Billing Team - Verify Clean Claims: - Ensure all claims meet billing requirements: member TPL billed first, service authorization obtained, timely filing met (12 months from date of service). - Evaluate ALL edit codes before assuming incarceration caused denial—many other reasons exist for denials. - Do not assume incarcerated members' claims deny due to incarceration status alone. 4. Providers & Front Desk - Member Communication: - Support members in notifying DPA of release from incarceration by providing contact information: * Virtual Contact Center: 800-478-7778 * Email: doh.dpa.info@alaska.gov * In-person: DPA offices with release papers/documents - Educate members that eligibility updates are the member's responsibility, but providers can submit updates with documentation. - Advise members that release papers should be sent to DPA to trigger review span updates (done monthly, not real-time). 5. All Staff - Recognize Justice-Involved Youth (JIY) Coverage: - Flag members ages up to 21 (or up to 26 if former foster care) with incarceration history for coverage of: medical/dental/behavioral health screenings, diagnostic services, and targeted case management during 30-day pre-release and 30-day post-release periods. - These services are now Medicaid-covered under Section 5121 federal mandate; ensure they are billed to Alaska Medicaid, not DOC. 6. Billing Team - Claim Responsibility Tracking: - Understand: If member was incarcerated on date of service → DOC pays (file claim to Alaska Medicaid; if denied, DOC won't pay regardless). - If member was released before date of service → Alaska Medicaid pays (assuming current eligibility span in place). - Claims will NOT be paid by DOC if not filed to Alaska Medicaid within timely filing (12 months) or if appeal not filed within 180 days.