Appealing a Medicare OA-23 Denial
A Medicare OA-23 denial (prior payer adjustment (coordination of benefits)) is one of the most common claim rejections behavioral health therapists face. This guide explains exactly what caused the denial and the most effective appeal strategy for behavioral health practices.
What this denial means
This is a coordination-of-benefits code, not a prior-authorization denial. It means the client has more than one insurance plan, and this payer reduced or adjusted the payment based on what the primary payer already paid or adjusted. It shows up when the payer is the secondary plan on a claim, not when they are questioning whether authorization was obtained.
Your appeal strategy
Request the payer's coordination-of-benefits breakdown showing exactly how the primary payer's EOB or adjustment was applied to this claim. If the client has no other coverage on file, or the COB calculation looks wrong, submit the primary payer's EOB and dispute the specific numbers with the payer.
What Medicare requires
60 calendar days (Level-1 appeal)
180 days from Level-1 denial
Traditional Medicare (Parts A/B) follows the five-level appeals process: Redetermination → Reconsideration (QIC) → ALJ → Medicare Appeals Council → Federal Court. Medicare Advantage (Part C) provides an analogous five-level process under 42 CFR § 422.560 et seq. Federal MHPAEA does NOT apply to Medicare; do not raise a 29 CFR § 2590.712 parity argument on a Medicare or Medicare Advantage denial. Base the appeal on Medicare coverage criteria and the applicable LCD/NCD.
Generate your Medicare OA-23 appeal letter
Therapists get 5 free letters every month. Appealing your own denial? It's $19 per letter, one-time, no subscription. No credit card needed to start.
Generate my appeal letter →Frequently asked questions
How long does Medicare have to respond to a OA-23 appeal?
Under federal regulations, Medicare must respond to a Level-1 internal appeal within 60 calendar days. State insurance law, including your state's prompt-payment statute, does not apply to this federal program — confirm the current response-window rules directly with the program administrator before filing. If you receive an adverse determination, you typically have 180 calendar days from the date of the Level-1 denial to request external review. Send the appeal via certified mail or through the payer's portal and keep documentation of the submission date.
Does MHPAEA apply to OA-23 denials?
No. Medicare is not subject to the federal Mental Health Parity and Addiction Equity Act (MHPAEA) at all, so a parity argument does not apply to a OA-23 denial — or any denial — from this payer. Base your appeal on Medicare's own coverage rules and appeal process. Traditional Medicare (Parts A/B) follows the five-level appeals process: Redetermination → Reconsideration (QIC) → ALJ → Medicare Appeals Council → Federal Court. Medicare Advantage (Part C) provides an analogous five-level process under 42 CFR § 422.560 et seq. Federal MHPAEA does NOT apply to Medicare; do not raise a 29 CFR § 2590.712 parity argument on a Medicare or Medicare Advantage denial. Base the appeal on Medicare coverage criteria and the applicable LCD/NCD.
Can I appeal a OA-23 denial more than once?
Yes. Most payers, including Medicare, allow at least two levels of internal appeal (Level-1 and Level-2 or "expedited" review). Keep copies of every appeal, submission confirmation, and payer response. After exhausting the plan's internal reconsideration, Medicare Advantage appeals follow the federal ladder under 42 CFR Part 422 Subpart M: plan reconsideration → independent review entity → Administrative Law Judge (ALJ) → Medicare Appeals Council → federal court. Traditional Medicare appeals follow 42 CFR Part 405 Subpart I. Your state insurance commissioner has no authority over Medicare appeals.
What documentation do I need to appeal a OA-23 denial from Medicare?
At minimum: the original Explanation of Benefits (EOB) or Remittance Advice (RA) showing the OA-23 denial, the original claim details (CPT code, date of service, NPI, charge amount), and any clinical documentation supporting medical necessity. Submit everything in one packet with a cover letter citing the specific denial code, the date of service, and the claim number.