What does MSP stand for in healthcare billing?

In healthcare billing, MSP stands for "Medicare Secondary Payer." This term refers to a situation where Medicare is not the primary insurance responsible for paying claims. Instead, there is another primary payer, such as an employer's insurance, private insurance, or another governmental program, that must first cover the costs before Medicare will pay for any remaining eligible expenses.

Understanding the function of MSP is crucial for billing professionals as it determine how claims are processed and which payer is billed first. Correctly identifying the primary payer helps ensure that healthcare providers receive timely payments and that patients are billed appropriately based on their insurance coverage. This concept plays a significant role in managing the revenue cycle effectively, maximizing reimbursements, and minimizing denials in claims processing.