Program_Memos / 2001 / B-01-30

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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 program memorandum from HCFA/HCFA Carriers explains a set of HCPCS coding and modifier changes tied to Medicare billing for non-covered or not reasonable-and-necessary items and services. It covers the replacement of certain legacy codes and a modifier, a status change for one HCPCS code, the addition of new codes and modifiers, and related claim narrative and notification requirements. The article is relevant to billing staff, coding professionals, carriers, DMERCs, and providers who handle Medicare claims involving coverage-related denials or beneficiary notices.

Why This Topic Matters

It helps readers understand a Medicare policy update affecting how coverage-related situations are reported on claims and what accompanying information may be required. Accurate awareness of these changes supports cleaner claim submission and proper handling of non-covered or excluded services.

Article Sections

  1. Program Memorandum

    Introductory memorandum details, including issuing agency, transmittal information, date, and the change request being addressed.

  2. Coding changes effective January 01, 2002

    Summary of the coding updates announced in the memorandum, including retired items, new items, and a status update to an existing HCPCS entry.

  3. Explanatory information to be included

    General narrative and reporting guidance for claims that require additional explanation when the new codes or modifiers are used.

  4. Items and services considered not reasonable and necessary

    Discussion of claim handling for services or items viewed as not reasonable and necessary under Medicare policies and regulations.

  5. Statutorily non-covered items or services

    Guidance addressing statutorily excluded items or services and the associated claim processing approach.

  6. Use of the GA modifier with the new codes and modifiers

    General instructions regarding beneficiary notice, waiver of liability, and the relationship between the GA modifier and the newly added reporting options.

  7. Provider notification

    Instructions to carriers and related entities about informing providers and suppliers of the changes and the implementation timeline.

What You Will Learn

  • The scope of Medicare coding updates addressed by the memorandum
  • Which broad categories of codes and modifiers were revised, added, or retired
  • What types of supplemental claim information are discussed for coverage-related reporting
  • Which organizations and claim-processing audiences are affected by the memorandum
  • The effective and implementation timing of the policy update

Who Should Read This

  • Medical coders
  • Billing staff
  • Compliance staff
  • Providers and suppliers
  • Carriers
  • DMERCs

Codes Discussed

Modifiers Discussed


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