Medicare Encounter MAO-002 Processing Status Report – Layout, Example, and Best Practices

CMS generates several key reports — MAO-001, MAO-002, and MAO-004 — that provide critical feedback on the outcome of the Encounter Data Processing System (EDPS) editing process. Together, these reports allow Medicare Advantage Organizations (MAOs) to monitor the status of submitted encounter data, identify rejections, review summary counts, and understand why records failed processing. In this article, we focus on the MAO-002 Processing Status Report, which is the primary tool for record-level reconciliation.

The MAO-002 Encounter Data Processing Status Report provides a detailed record of whether submitted encounters were accepted or rejected, including error codes at the file, record, and service-line levels. It is generated only after a file successfully passes all stages of front-end processing and is transmitted to the Encounter Data Processing System (EDPS) for back-end processing. This report is one of the most critical feedback mechanisms available to MAOs and serves as the foundation for timely error correction and resubmission workflows.

Purpose of the MAO-002 Report

The MAO-002 report serves as the official acknowledgement from CMS for each encounter data file received and processed. It indicates disposition for each record and line item, communicates error codes explaining rejections, and enables MAOs to reconcile internal submissions with CMS processing results.

Front-End vs. Back-End Processing

Encounter data files must first clear front-end edits (format validation, submitter ID checks, HIPAA compliance). Only after passing these edits are the files sent to the EDPS back-end. The MAO-002 report confirms this transition and provides the outcome of back-end edits at a granular level.

Encounter Data Submission Workflow

Flow of encounter data from the submitter through CMS front-end and EDPS back-end processing, resulting in MAO-001 (duplicates, when applicable) and MAO-002 (record/line-level status).

Key Components of MAO-002

MAO-002 provides status at the file, record (encounter/claim), and service-line levels; identifies each item with Report ID, dates, interchange identifiers, MA contract/encounter IDs, and line numbers; and includes disposition (Accepted/Rejected), error codes/descriptions, and trailer totals for errors, lines, and records accepted/rejected/submitted. Asterisks (*) act as delimiters; field lengths and data types are fixed per the layout.

MAO-002 Report Layout

This table reflects the most recent CMS guidance as of 05/26/2022. If you are aware of a more recent CMS update or notice information here that is no longer current, please reach out so we can ensure this resource stays accurate and up to date.

0*MAO-002*20250912*20250912*Encounter Data Processing Status Report*     *SUBMITTERID10004000020250912  *PRO*PROD*                                              
1*MAO-002*H1234*CCN5552221101                         *ICN23456789101                     *PA *    *000*Accepted*     *                                        *
1*MAO-002*H1234*CCN5552221101                         *ICN23456789101                     *   *    *001*Accepted*     *                                        *
1*MAO-002*H1234*CCN5552221101                         *ICN23456789101                     *   *    *002*Accepted*     *                                        *
1*MAO-002*H1234*CCN5552221101                         *ICN23456789101                     *   *    *003*Accepted*     *                                        *
1*MAO-002*H1234*CCN5552221102                         *ICN23456789102                     *PA *    *000*Accepted*     *                                        *
1*MAO-002*H1234*CCN5552221102                         *ICN23456789102                     *   *    *001*Accepted*03102*I:Invalid Provider Type/Specialty       *
1*MAO-002*H1234*CCN5552221103                         *ICN23456789103                     *FR *FR  *000*Rejected*00265*Correct/Replace or Void ICN Not in EDP  *
1*MAO-002*H1234*CCN5552221103                         *ICN23456789103                     *   *    *001*Rejected*     *                                        *
1*MAO-002*H1234*CCN5552221103                         *ICN23456789103                     *   *    *002*Rejected*     *                                        *
9*MAO-002*00000001*00000004*00000002*00000006*00000002*00000001*00000003*                                                                                       

Report Cadence

The MAO-001 and MAO-002 reports are posted to the submitter’s designated SFTP mailbox within five (5) business days of CMS receiving the encounter data files. Medicare Advantage Organizations (MAOs) should monitor their SFTP mailboxes regularly to ensure reports are retrieved promptly, processed internally, and any necessary error corrections or resubmissions are made without delay.

Common Uses by MAOs

The MAO-002 Processing Status Report plays a central role in an MAO’s encounter data management workflow. Some of the most common uses include:

• Reconciliation: Matching submitted encounter files to CMS feedback to ensure that every record has been processed and accounted for.
• Error Resolution: Identifying rejected records or lines and using the error codes/descriptions to correct data before resubmitting.
• Tracking Acceptance Rates: Monitoring trends in accepted vs. rejected encounters to improve overall encounter data quality.
• Operational Reporting: Providing internal teams with summaries of accepted, rejected, and pended encounters for compliance tracking.
• Audit Preparedness: Maintaining a record of CMS feedback to demonstrate adherence to encounter data submission requirements.

Best Practices

To maximize the value of the MAO-002 Processing Status Report and maintain high-quality encounter data submissions, Medicare Advantage Organizations should consider the following best practices:

• Automate Retrieval: Set up scripts or jobs to download MAO-001 and MAO-002 reports from the SFTP mailbox as soon as they are available.
• Daily Review: Incorporate review of MAO-002 reports into your daily encounter processing workflow to quickly identify and correct rejected records.
• System Integration: Feed MAO-002 results into internal claim/encounter tracking systems so operational teams can work from a single source of truth.
• Error Trending: Regularly analyze error codes to detect recurring issues and address root causes, reducing future rejection rates.
• Resubmission Tracking: Maintain a log of corrected and resubmitted encounters to ensure full reconciliation with CMS.
• Compliance Monitoring: Use acceptance and rejection rates as key performance indicators to meet CMS compliance requirements and internal SLAs.

In Part 2 of this series, we will cover the MAO-001 Encounter Data Duplicates Report. This report is generated and returned by the EDPS only when duplicate errors are identified on submitted encounters. Medicare Advantage Organizations (MAOs) and other submitters will not receive the MAO-001 report if no duplicate errors are present.