This field is stored in the CMS Integrated Data Repository (IDR) as the final action indicator; however, CMS has verified that for 2015 encounter records, this field should not be used to identify the final version of the record. Note that the term “final action” is used differently in encounter data, compared to fee-for-service (FFS) claims.
Duplicate services across multiple final action records may exist, and users should make appropriate adjustments when identifying distinct services. Additional information regarding identification of distinct services – or identification of populations appears in the Medicare Encounter Data User Guide.
Final action records are only indicative of the latest accepted record within a claim family that has been linked by the Medicare Advantage Organization (MAO) and may not be indicative of risk-adjustment eligibility.
Source: CMS Integrated Data Repository (IDR)