Practice Support Services

New Upfront Claim Rejections Begin April 1, 2026: What Providers Need to Know

Written by Practice Support Team | Feb 18, 2026 12:00:00 PM

Beginning April 1, 2026, several Medicaid managed care plans in North Carolina will change how certain claims are handled. Carolina Complete Health, Trillium Physical Health, and Partners Physical Health will move from post‑payment denials to upfront claim rejections when provider information on a claim is incorrect or incomplete.

This change applies broadly and will impact all provider types that submit claims—not just hospitals.

What’s Changing?

Under this new process, claims with provider data that does not match NCTracks will be rejected immediately, rather than processed and denied later.

Upfront rejections may occur when information such as:

  • National Provider Identifier (NPI)
  • Taxonomy
  • Rendering or billing provider details
  • Service location information

is missing, inactive, or does not align with what is on file in NCTracks.

If a claim is rejected upfront, it will not enter adjudication. Providers must correct the information and resubmit the claim.

Who Is Impacted?

These changes apply to ALL enrolled providers who submit claims, including:

  • Primary Care Providers (PCPs)
  • Medical and surgical specialists (cardiology, orthopedics, neurology, GI, OB/GYN, and others)
  • Behavioral health providers
  • Group practices
  • Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs)
  • Urgent care centers
  • Outpatient clinics
  • Ancillary providers (physical therapy, occupational therapy, speech therapy, labs, imaging centers)

If you submit claims, these rules apply to you.

Common Reasons Claims Will Be Rejected

Claims may be rejected upfront if any of the following issues are identified:

NPI Issues

  • NPI is not active with Medicaid or Health Choice for the date of service
  • NPI is not found on file
  • Required billing or rendering NPI is missing

Taxonomy Issues

  • Taxonomy does not match NCTracks enrollment
  • Taxonomy is not active for the date of service
  • Taxonomy is missing or invalid
  • Claim is billed under the wrong taxonomy

Service Location Issues

  • Service facility NPI is missing or inactive
  • Required service location fields are not completed when services are rendered at a location different from the billing address (e.g., CMS‑1500 Box 32/32a/32b)

What Providers Should Do Now

To reduce the risk of upfront rejections starting April 1, practices should take the following steps as soon as possible:

✅ Verify Your NCTracks Enrollment

Confirm that all of the following are current, active, and accurate in NCTracks:

  • Billing NPI
  • Rendering provider NPIs
  • Taxonomy codes
  • Service locations

✅ Bill Using the Correct Taxonomy

Ensure the taxonomy on your claim matches your NCTracks enrollment for the services being billed.

✅ Review Claim Form Accuracy

Double‑check that claim fields are completed correctly, including:

  • Billing provider information
  • Rendering provider information
  • Service facility location fields

✅ Use the Provider Billing Manual

Refer to the Carolina Complete Health Provider Billing Manual, particularly sections detailing:

  • Where NPIs must be reported
  • Where taxonomy codes must be placed
  • When service facility location fields are required

If You Receive an Upfront Rejection

If a claim is rejected upfront:

  1. Review the rejection code provided.
  2. Correct the provider information on the claim.
  3. Resubmit the claim.

No appeal is required for upfront rejections.

A Note for Hospital Providers

In addition to upfront rejection changes, beginning April 15, 2026, hospital inpatient claims billed at $250,000 or more will move to pre‑payment review rather than post‑payment review. These reviews will continue to be conducted by 6 Degrees Health and apply to claims processed for Carolina Complete Health, Trillium Health Resources, and Partners Health Management.

Hospitals should be prepared to submit itemized bills proactively for high‑dollar inpatient claims to avoid processing delays.

Bottom Line

Starting April 1, 2026, accurate provider data matters more than ever.

These upfront rejection changes apply to all providers submitting claims. Ensuring that your NPI, taxonomy, rendering provider, and service location information exactly match what is on file in NCTracks is essential to avoid immediate claim rejections and payment delays.

How Practice Support Can Help

Your Northwest AHEC Practice Support Team is available to help practices:

  • Review common claim errors
  • Understand NCTracks enrollment alignment
  • Prepare billing staff for upcoming changes

If you have questions or would like assistance, please reach out to your local practice support coach.