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Denial code · group PR

PR-1: Some or all of the allowed amount went to the deductible, and the patient owes that part

Short answer

PR-1 is not a denial. The payer allowed the service, applied some or all of the allowed amount to the deductible and paid any remainder. The PR-1 amount is patient responsibility: bill the patient that amount, the part of the allowed amount applied to the deductible, never the full charge, and only after any secondary plan has been billed. Never bill it to a patient in the Qualified Medicare Beneficiary program.

Look up other codes in the denial code library.

Last reviewed by the Remitwright billing team. Editorial policy

  • Group PR · Patient responsibility

Group PR means patient responsibility: the balance may be billed to the patient. The number is the reason; the two-letter group says who carries the balance.

Common causes

The plan year has just started

Deductibles reset with the plan year, often in January, and the first claims of the year carry the full allowed amount to the patient until the deductible is met. High-deductible plans keep this going for months.

The service is subject to the deductible

Plans exempt some services, typically preventive visits, and apply the deductible to others. A visit coded as problem-oriented because of the diagnoses or an added procedure can shift from exempt to deductible-applied.

An out-of-network deductible was applied

Plans carry separate, higher deductibles for out-of-network care. If the practice is not in network with the specific plan product on the card, the allowed amount falls into the out-of-network deductible and the patient's share is larger than they expected.

The payer has not yet counted claims from other providers

The patient may have met the deductible at a hospital or another office, but those claims were processed after yours. The payer's accumulator was still open when your claim adjudicated.

Medicare Part B deductible with secondary coverage pending

Original Medicare applies its Part B deductible each year. A patient with Medigap or Medicaid as secondary often has that amount picked up, but only once the secondary claim is processed, through crossover or by direct submission.

How to fix it and resubmit

  1. 1

    Post the 835 exactly as adjudicated

    Record the allowed amount, the contractual adjustment (usually CO-45) and the PR-1 amount as the patient balance. The patient owes the allowed amount applied to the deductible, not the difference between your charge and the payment.

  2. 2

    Bill any secondary plan before the patient

    Check the patient record and the eligibility response for a secondary payer. Send the secondary claim with the primary's adjudication, or confirm the crossover went through for Medicare patients, and bill the patient only what the secondary leaves.

  3. 3

    Check QMB status on every Medicare patient

    Federal law prohibits Medicare providers and suppliers from billing people in the Qualified Medicare Beneficiary group for Medicare cost sharing, and the remittance advice carries QMB information. Bill the state Medicaid program as its rules allow, and send no statement to the patient.

  4. 4

    Send the statement promptly with a plain explanation

    A statement that arrives weeks after the visit, with no reference to the EOB, gets ignored. Show the allowed amount, the payer's payment and the deductible applied, and give the patient the payment options your practice offers.

  5. 5

    Query the payer when the deductible looks wrong

    If the patient has proof the deductible was already met, or an in-network deductible should have applied, call the payer with the accumulator details and ask for reprocessing. This is a reprocessing request, not an appeal.

How to prevent it

  • Eligibility verification before each visit that returns the deductible remaining, so the front desk can collect an estimate at the time of service where the contract allows it
  • A written financial policy that explains deductibles and payment options, signed at intake, with a card on file where the practice uses one
  • Network status checked per plan product, not per insurer name, before scheduling
  • QMB indicator and secondary coverage checked on every Medicare eligibility response and flagged on the account before a statement can go out
Worked example · hypothetical

A PR-1 on the first visit of the plan year

A family practice sees a patient with a high-deductible plan in the first week of January. The payer allows the visit, pays nothing, and returns the full allowed amount as PR-1 with the difference between the charge and the allowed amount as CO-45. The biller posts the contractual adjustment, moves the PR-1 amount, here the full allowed amount, to the patient balance, confirms from the eligibility response that there is no secondary plan, and sends a statement that week with the EOB figures on it. This is a hypothetical example.

Official text: the X12 claim adjustment reason code list. The meaning above is our paraphrase for billers; the list is the authority.

Next step

The fix for PR-1 sits with patient billing support.

See patient billing support

FAQ

Questions about PR-1

Do I bill the patient the full charge, the allowed amount or the PR-1 amount?

Neither of the first two. Bill the PR-1 amount on the remittance, which is the part of the allowed amount applied to the deductible. In network, the contract caps what the patient can be charged at the allowed amount, less what the payer paid, and the difference between your charge and the allowed amount is written off as a contractual adjustment. Out of network, federal and state balance billing rules decide what can be charged.

Can I waive the deductible for patients who cannot pay?

Most payer contracts prohibit routine waivers of patient cost sharing. A documented hardship policy applied case by case is different from a blanket waiver; get compliance advice before adopting one.

The patient has Medicare and Medicaid. Can I bill the deductible?

If the patient is in the Qualified Medicare Beneficiary group, no. Federal law bars Medicare providers from billing QMB patients for Medicare deductibles, coinsurance and copayments. Check the QMB information on the remittance and bill the state Medicaid program under its rules instead.

Do I need an ABN to collect the Medicare deductible?

No. The Advance Beneficiary Notice of Noncoverage is for situations where Medicare payment is expected to be denied. A deductible applied to a covered service is not a denial, so no notice is involved and the deductible is simply the patient's share.

Should PR-1 go to denial management?

No. It is a paid-as-adjudicated claim with a patient balance, and it belongs with patient billing. Treating it as a denial inflates denial counts and delays the statement.

Next step

Seeing a lot of PR-1?

Tell us the payer and the volume. Three quick questions, no patient data, a written answer from a biller who works that queue.

  • Three questions, about two minutes
  • No patient data, no software to buy
  • A written reply from a biller, not a sales deck

What happens next

  1. You answer three questions

  2. A billing specialist reads them

  3. A written reply by email

Prefer email? sales@remitwright.com

Seeing a lot of PR-1?

See where claims are getting stuck. No patient data needed.

Step 1 of 3

What do you bill for?

A little about your volume
How many providers? (Medical practice)

Trips per month? (NEMT)

Active clients? (Home care / home health)

Orders per month? (DME)

How many clinicians? (Behavioral health / therapy)

Claims per month, roughly? (Something else)

What's the biggest problem right now?

Where should we send the review?

Add details (optional)

We work inside your system; this tells us which login to ask for.

Please don't include patient information in this form.

  • No patient data requested
  • No obligation
  • Reply in writing
Get a billing review
Billing review

Get a billing review

See where claims are getting stuck. No patient data needed.

Step 1 of 3

What do you bill for?

A little about your volume
How many providers? (Medical practice)

Trips per month? (NEMT)

Active clients? (Home care / home health)

Orders per month? (DME)

How many clinicians? (Behavioral health / therapy)

Claims per month, roughly? (Something else)

What's the biggest problem right now?

Where should we send the review?

Add details (optional)

We work inside your system; this tells us which login to ask for.

Please don't include patient information in this form.

  • No patient data requested
  • No obligation
  • Reply in writing

BAA signed before any access, a user you create, MFA on. Patient data stays in your systems. How access works