New coding guidance: Medicare adds a new twist to drug screen coding, keeps 2014 guidelines

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains how Medicare’s 2015 clinical laboratory fee schedule and related guidance affected drug screen and therapeutic drug testing claims, while noting that private payers may adopt different policies. It is intended for coding, billing, and laboratory staff who need to track payer-specific lab test rules, denials, and local coverage updates. The article also discusses the broader transition from older CPT-based guidance to newer HCPCS-based approaches and the need to monitor carrier policy notices.

Why This Topic Matters

Laboratory drug testing claims can be denied when payers apply different definitions, code sets, or effective-date rules. Understanding the scope of Medicare’s position and how private payer policies may differ helps reduce denials and supports more consistent billing workflows.

Article Sections

  1. Medicare’s 2015 drug testing guidance

    Summarizes Medicare’s position on retaining prior-year lab test guidance and the general context of the 2015 clinical laboratory fee schedule. It also notes the relationship between older CPT-based guidance and newly introduced HCPCS coding changes.

  2. Examples of differing payer rules

    Describes broad categories of payer variation affecting laboratory drug testing, including specimen considerations, test purpose, and treatment of unspecified test services. The section compares how different payer policies may align with either older or newer guidance.

  3. Use denials to determine payer policy

    Explains the operational need to review denials and compare them with billed services in order to identify payer-specific expectations. The section focuses on workflow and documentation practices rather than clinical details.

  4. Watch for Medicare policies

    Highlights the importance of monitoring carrier updates and local coverage materials for drug testing claims. It also notes that policy changes may affect whether claims are processed under revised coding structures.

What You Will Learn

  • How Medicare’s 2015 guidance affected drug testing claim processing
  • Why payer-specific lab test rules can differ from one another
  • How denial patterns can help reveal a payer’s billing expectations
  • Why carrier policy updates and local coverage notices matter for lab claims

Who Should Read This

  • Medical coders
  • Billing staff
  • Laboratory managers
  • Compliance personnel
  • Revenue cycle teams

Codes Discussed

Code Ranges Discussed


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