MedicaidAdministrativeMedium impact
BT2025155: Reimbursement policy regarding inpatient transfers and appropriate patient status codes reminder
Indiana Medicaid (IHCP)·IN·Claims & Billing
Effective date
Nov 4, 2025
We identified it
Jun 18, 2026
Summary
Indiana Medicaid (IHCP) issued a reminder about proper billing for inpatient hospital transfers using DRG-prorated daily rates. Transferring hospitals must use specific patient status codes (02, 05, 62, 63, 65, 66, 70) and receiving hospitals must use admission source code 4 to ensure accurate reimbursement.
Action Required
Immediately: Hospital billing teams must verify proper use of patient status codes (02, 05, 62, 63, 65, 66, 70) for transferring patients and admission source code 4 for receiving transfers in billing systems. Update UB-04 claim forms (fields 15 and 17) and 837I electronic transactions (Loop 2300 CL102) to include correct codes. Ensure single billing for intra-facility transfers within the same hospital.