Reason Code 39998

Published 10/08/2026

Reason Code Description
The provider is out of compliance. There is a stay of enrollment.

Education 
A stay of enrollment (or "stay") is a Centers for Medicare & Medicaid Services (CMS) action that is less burdensome on providers and suppliers than a deactivation or revocation of Medicare enrollment. A stay is a preliminary, interim status representing a pause in enrollment.

Claims Processed During a Stay Period
Medicare will reject claims submitted with dates of admission within the stay period.

  • Rejected with reason code 39998 — Stay of Enrollment
  • Claim with admission dates outside the stay period will process

Once a stay is removed due to provider compliance to remedy the issue, the provider will need to submit new claims for the stay rejections. Do not adjust the 39998 rejected claims, as they will be returned.

Key Points of a Stay 

  • The provider remains enrolled in Medicare during the stay
  • A stay is not considered an adverse legal action of any kind
  • The stay of enrollment lasts no longer than 60 days
    • Thirty days for missed revalidations
    • Sixty days for not reporting changes of information 
  • A stay ends on the earlier, of the following dates:
    • The date on which CMS or your contractor decides the provider resumed compliance with all Medicare enrollment requirements
    • The day after the imposed stay period expires
  • CMS may impose a stay multiple times for separate instances of non-compliance; for example, a stay in June 2024 and another stay in December 2025

Resolution
Ensure that you have completed your Revalidation, if applicable. Also complete or update any application that may pertain to your enrollment. Please refer to your stay notification letters. 

The Medicare Administrative Contractor (MAC) will send all stay notification letters by hard-copy mail and e-mail if a valid email address is available. We will also send the notice via fax if a valid fax number is available. We will mail all the notification letters on the same date listed.

Resources


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