Glossary
Value code
Short answer
A value code is a two-character code paired with an amount on an institutional claim, reported in UB-04 form locators 39-41, that gives the payer a monetary or numeric fact it needs to process the claim, such as the area where home health care was given.
Browse more terms in the medical billing glossary.
Last reviewed by the Remitwright billing team. Editorial policy
Also written asvalue codes
The UB-04 has three value code columns, form locators 39, 40 and 41, each with four lines, a through d. Every entry is a two-character code and an amount of up to nine digits, and only form locator 41 accepts a negative amount. Codes run in ascending numeric order, and the a line of all three columns fills before the b line. Some values are reported as cents and others as whole numbers placed to the left of the dollars and cents delimiter, so each code’s instructions decide the format. The NUBC maintains the list1.
For a home health agency, value codes set the rate. Medicare pays home health according to where the patient was served, so every claim carries value code 61 with the Core Based Statistical Area number for that location and value code 85 with the FIPS state and county code. If the patient moves during the period, the codes describe the location at the end of it. Other value codes appear only after processing: Medicare adds 17 for an outlier payment, 62 to 65 to split visits and dollars between Part A and Part B, and QF for a late notice of admission penalty. Agencies never submit those2.
The mistake is entering a number in the wrong part of the amount field. A CBSA number is not money, but it goes in the dollar portion, right justified, with two zeros in the cents. Typed as cents, it can point the payer to another area or to none. Check each code’s format before the claim leaves.
Value code in practice
A home health patient moves to her daughter's house in another county partway through a period of care. The agency's claim reports value codes 61 and 85 for the daughter's address, the location at the end of the period, because Medicare pays home health by where the care was given. Hypothetical example.
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