decisionhealth Newsletters, Answer Books - 2006 Issue 3 (March)
Program_Memos / 2002 / B-02-020
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Article Overview
This article summarizes a CMS Program Memorandum for carriers and DMERCs addressing billing treatment for statutorily excluded items, non-covered services, and services considered not reasonable and necessary. It explains the scope of the 2002 HCPCS-related changes, identifies the affected modifiers and code references, and outlines the claim-processing and notification context for providers and suppliers.
Why This Topic Matters
It helps readers understand a Medicare program update that changed how certain non-covered or denied services were represented on claims and how related HCPCS identifiers were handled. The memo is relevant to billing staff, coders, suppliers, and compliance teams working with Medicare claims in the 2002 timeframe.
Article Sections
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Purpose and background
Introduces the memorandum, its CMS context, and the relationship to the prior transmittal and change request. It also notes the effective timing and replacement status of earlier guidance.
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Discontinued codes and modifier
Lists identifiers that were discontinued or superseded and identifies the associated update context. The section frames the transition from prior coding references to the new approach.
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New modifiers
Introduces newly issued modifier identifiers and explains that they were added for Medicare claim reporting. The section situates the changes within the annual HCPCS update.
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Clarification on use of A9270
Addresses the status of a specific HCPCS code and its continued role in Medicare billing. It also notes a processing-file limitation tied to a supplier category.
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Use of the GA, GY, and GZ modifiers for services billed to carriers
Describes how the Medicare claim environment distinguishes among the new and existing modifiers for carrier-submitted services. It also discusses the relationship to specific HCPCS codes and to claims lacking a specific procedure code.
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Use of the GA, GY, and GZ modifiers for items and supplies billed to DMERCs
Covers the same modifier framework as applied to DMERC billing for items and supplies. The section also addresses fallback coding situations when no specific procedure code is available.
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Carriers and DMERCs
Summarizes claim-processing handling for the modifiers in the carrier and DMERC settings. It includes administrative treatment of invalid modifier combinations.
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Explanatory information to be included on claims
Outlines the documentation and narrative placement requirements associated with certain claim submissions. It references paper and electronic claim formats and supplemental narrative handling.
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Provider notification
Provides instructions for communicating the update to providers and suppliers through routine channels. It closes with effective and discard dates for the memorandum.
What You Will Learn
- Which Medicare billing topics were updated in the memorandum
- How the article frames the 2002 modifier and HCPCS changes
- What claim-processing and notification areas the memo addresses
- Which broad billing scenarios are covered for carriers and DMERCs
Who Should Read This
- Medical coders
- Billing staff
- DMEPOS suppliers
- Physicians and practitioners
- Compliance teams
- Medicare claims administrators
Codes Discussed
Modifiers Discussed
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