CMS aligns packaging logic, deletes laboratory modifier in 2017 OPPS final rule

December 6th, 2016

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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 CMS’s 2017 outpatient prospective payment system (OPPS) final-rule updates for hospitals and other outpatient billers. It covers changes to packaging logic, the deletion of a laboratory reporting modifier, new and revised status and comment indicators, and payment-policy updates affecting certain imaging services. The discussion is aimed at coders, compliance staff, and revenue cycle professionals who track annual OPPS rulemaking and claim-reporting changes.

Why This Topic Matters

These OPPS changes affect how outpatient claims are packaged, identified, and paid, so they can influence hospital billing workflows, lab reporting, and payment integrity. Understanding the final-rule updates helps organizations stay aligned with CMS policy and avoid claim-processing issues.

Article Sections

  1. Packaging policy changes

    This section summarizes CMS’s updates to outpatient packaging logic for claim-level processing and related changes affecting when services are packaged or separately addressed.

  2. Laboratory modifier and reference lab billing

    This section discusses the removal of a laboratory reporting modifier and the broader policy context for outpatient laboratory claims and reference laboratory tests.

  3. Packaging exceptions for selected tests

    This section covers newly finalized exceptions from packaging for certain categories of diagnostic testing and how CMS frames those exceptions within OPPS policy.

  4. Status and comment indicators

    This section reviews newly finalized status indicators, deleted legacy status categories, and updated comment indicators used in OPPS final-rule files.

  5. X-ray payments

    This section addresses payment-policy updates for selected x-ray services, including implementation timing and future considerations for additional imaging payment adjustments.

What You Will Learn

  • How CMS changed outpatient packaging logic for the 2017 OPPS year
  • How the final rule affects laboratory reporting and reference lab claims
  • What categories of tests received packaging exceptions
  • What new and revised status and comment indicators CMS finalized
  • How the rule addresses payment adjustments for certain x-ray services

Who Should Read This

  • Hospital coders
  • Outpatient billing staff
  • Revenue cycle professionals
  • Compliance teams
  • APC/OPPS reimbursement specialists

Codes Discussed

  • HCPCS Level II: L1
  • HCPCS Level II: Q1
  • HCPCS Level II: Q2
  • HCPCS Level II: Q4
  • HCPCS Level II: S
  • HCPCS Level II: T
  • HCPCS Level II: V
  • HCPCS Level II: E1
  • HCPCS Level II: E2
  • HCPCS Level II: E
  • HCPCS Level II: NC
  • HCPCS Level II: CH
  • HCPCS Level II: NI
  • HCPCS Level II: NP
  • HCPCS Level II: FX
  • HCPCS Level II: A

Modifiers Discussed

  • HCPCS Level II: -L1
  • HCPCS Level II: -FX

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