Understanding Fiscal Intermediary (FI) (Health Care) and Its Functions

Definition & Meaning

A fiscal intermediary (FI) is an organization or private company that has a contract with the Centers for Medicare and Medicaid Services (CMS). Its primary role is to process and pay certain Medicare Part A and Part B bills, such as those from hospitals, based on cost. FIs are also known as intermediaries and are responsible for making local coverage determinations (LCDs) that guide healthcare providers on coverage policies.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A hospital submits a claim for a patient's treatment under Medicare Part A. The fiscal intermediary reviews the claim, determines its validity, and processes the payment based on established cost guidelines.

Example 2: A physician seeks clarification on coverage for a specific procedure. The fiscal intermediary provides written guidance based on local coverage determinations (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Fiscal Intermediary (FI) An entity that processes Medicare claims and makes coverage determinations. Specifically focused on Medicare Part A and B billing.
Carrier An organization that processes Medicare Part B claims. Handles only Part B claims, while FIs handle both Part A and B.

What to do if this term applies to you

If you are a healthcare provider or a patient dealing with Medicare claims, it's important to understand the role of fiscal intermediaries. Ensure that you have the necessary documentation for claims and consider using legal templates from US Legal Forms to streamline the process. If you encounter complex issues, seeking professional legal assistance may be beneficial.

Quick facts

  • FIs are contracted by CMS to manage Medicare claims.
  • They provide guidance to healthcare providers.
  • FIs must comply with the Medicare Intermediary Manual.
  • They play a key role in local coverage determinations.

Key takeaways

Frequently asked questions

The main role of an FI is to process Medicare claims and make coverage determinations for services covered under Medicare Part A and Part B.