If a manufacturer wants to sell a product to durable medical equipment (DME) suppliers who will then sell or rent the product to Medicare patients, the manufacturer will want the item to either fit within an established HCPCS code or be awarded a new HCPCS code.
Full Answer
Are your doctors and DME suppliers enrolled in Medicare?
Doctors and suppliers have to meet strict standards to enroll and stay enrolled in Medicare. If your doctors or suppliers aren’t enrolled, Medicare won’t pay the claims submitted by them. Make sure your doctors and DME suppliers are enrolled in Medicare.
What does Medicare cover for DME devices?
DME that Medicare covers includes, but isn't limited to: 1 Blood sugar monitors 2 Blood sugar test strips 3 Canes 4 Commode chairs 5 Continuous passive motion devices 6 Continuous Positive Airway Pressure (CPAP) devices 7 Crutches 8 Hospital beds 9 Infusion pumps & supplies 10 Lancet devices & lancets More items...
How do I verify the HCPCS code for my product?
Code verification is handled by the PDAC, a Medicare contractor (Palmetto GBA holds the contract). The PDAC can be accessed through dmepdac.com, which lists all of the products that have been code verified. The PDAC can only verify that a product meets the definition of an existing HCPCS code.
How can suppliers reprocess and adjust incorrectly paid claims for HCPCS code/modifiers?
Suppliers may request that the DME MAC reprocess and adjust incorrectly paid claims for these HCPCS code/modifier combinations by providing their PTAN to the DME MAC.
What is the HCPCS code for durable medical equipment?
E0100-E8002The HCPCS codes range Durable Medical Equipment E0100-E8002 is a standardized code set necessary for Medicare and other health insurance providers to provide healthcare claims.
Does Medicare cover HCPCS codes?
The Level II HCPCS codes, which are established by CMS's Alpha-Numeric Editorial Panel, primarily represent items and supplies and non-physician services not covered by the American Medical Association's Current Procedural Terminology-4 (CPT-4) codes; Medicare, Medicaid, and private health insurers use HCPCS procedure ...
How do you get a Medicare product approved?
Go to an in-person doctor visit, where your doctor will write an order for the DME. Take the order to a Medicare-approved DME supplier. Depending on the product, ask the supplier if they will deliver it to your home. Find out if Medicare requires prior authorization for your DME.
Does Medicare require authorization for DME?
Authorization is not required for the purchase, rental, repair or maintenance of DME for recipients covered by both Medicare and Medi-Cal (crossover recipients). However, if Medicare does not approve the purchase, repair or maintenance of DME, the claim is subject to all Medi-Cal authorization requirements.
Who sets HCPCS codes?
There are two organizations that issue HCPCS codes: The Centers for Medicare & Medicaid Services (CMS), located in Baltimore, Maryland, is the agency that issues new HCPCS codes. CMS uses a HCPCS Workgroup to make its decisions on new codes.
What is the difference between a HCPCS and CPT code?
1. CPT is a code set to describe medical, surgical ,and diagnostic services; HCPCS are codes based on the CPT to provide standardized coding when healthcare is delivered.
How do I bill for DME?
Billing for Durable medical equipment servicesVerify the Necessity of the Durable Medical Equipment. ... Credentialing. ... Make sure you have checked the patient's benefits and eligibility for the particular DME or Durable Medical Equipment. ... Make sure you understand the difference between billing out of network and in network.
What is DME accreditation?
Durable Medical Equipment accreditation is available to DME suppliers that provide sleep-related DME to patients. This includes both free-standing suppliers and sleep facilities that provide DME equipment to their patients. Complete your DME application now or contact us for more information.
How do providers bill Medicare?
Payment for Medicare-covered services is based on the Medicare Physicians' Fee Schedule, not the amount a provider chooses to bill for the service. Participating providers receive 100 percent of the Medicare Allowed Amount directly from Medicare.
What is CMS prior authorization?
Prior authorization allows CMS to make sure items and services frequently subject to unnecessary utilization are furnished or provided in compliance with applicable Medicare coverage, coding, and payment rules before they are furnished or provided.
How do you write a prescription for DME?
Your prescription can be handwritten on a standard prescription pad. It must include the physician's name, contact information and signature of the care provider; your name; and a statement about the equipment needed, for example "Oxygen at LPM" “CPAP” , “BiPAP”, “CPAP Mask”, “CPAP Humidifier” or “CPAP Supplies”.
Which of the following are needed to submit a prior authorization request for medical equipment?
Which of the following are needed to submit a prior authorization request for medical equipment? scanning the files and electronically cataloging to the patient's file. You just studied 16 terms!
What percentage of Medicare payment does a supplier pay for assignment?
If your supplier accepts Assignment you pay 20% of the Medicare-approved amount, and the Part B Deductible applies. Medicare pays for different kinds of DME in different ways. Depending on the type of equipment:
What is Medicare approved amount?
Medicare-Approved Amount. In Original Medicare, this is the amount a doctor or supplier that accepts assignment can be paid. It may be less than the actual amount a doctor or supplier charges. Medicare pays part of this amount and you’re responsible for the difference. , and the Part B.
What is Medicare assignment?
assignment. An agreement by your doctor, provider, or supplier to be paid directly by Medicare, to accept the payment amount Medicare approves for the service, and not to bill you for any more than the Medicare deductible and coinsurance. you pay 20% of the. Medicare-Approved Amount.
How to find out how much a test is?
To find out how much your test, item, or service will cost, talk to your doctor or health care provider. The specific amount you’ll owe may depend on several things, like: 1 Other insurance you may have 2 How much your doctor charges 3 Whether your doctor accepts assignment 4 The type of facility 5 Where you get your test, item, or service
Does Medicare cover DME equipment?
You may be able to choose whether to rent or buy the equipment. Medicare will only cover your DME if your doctors and DME suppliers are enrolled in Medicare. Doctors and suppliers have to meet strict standards to enroll and stay enrolled in Medicare.
Why do Medicare and other insurers use level II HCPCS codes?
Because Medicare and other insurers cover a variety of services, supplies, and equipment that are not identified by CPT-4 codes, the level II HCPCS codes were established for submitting claims for these items.
What are the HCPCS codes?
Level II HCPCS codes for hospitals, physicians and other health professionals who bill Medicare#N#A-codes for ambulance services and radiopharmaceuticals#N#C-codes#N#G-codes#N#J-codes, and#N#Q-codes (other than Q0163 through Q0181) 1 A-codes for ambulance services and radiopharmaceuticals 2 C-codes 3 G-codes 4 J-codes, and 5 Q-codes (other than Q0163 through Q0181)
What is level 2 of HCPCS?
Level II of the HCPCS is a standardized coding system that is used primarily to identify products, supplies, and services not included in the CPT-4 codes , such as ambulance services and durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) when used outside a physician's office. Because Medicare and other insurers cover ...
What is CPT 4?
The CPT-4 is a uniform coding system consisting of descriptive terms and identifying codes that are used primarily to identify medical services and procedures furnished by physicians and other health care professionals.
Why is HCPCS code verification not mandatory?
When code verification is not mandatory, the manufacturer may nevertheless seek it in order to get certainty regarding the correct HCPCS code to be used when billing Medicare. The manufacturer can then inform customers of the correct HCPCS code that can be used to bill for the product, and that code will drive the coverage and payment rules for ...
Who handles code verification?
Code verification is handled by the PDAC, a Medicare contractor (Palmetto GBA holds the contract). The PDAC can be accessed through dmepdac.com, which lists all of the products that have been code verified. The PDAC can only verify that a product meets the definition of an existing HCPCS code. The PDAC does not have the authority to create a HCPCS code or amend an existing HCPCS code description. Code verification is mandatory for some products, but not for others. The PDAC maintains a list of which DMEPOS items are subject to mandatory code verification.
What happens if miscellaneous code is used?
If the miscellaneous code option is used, the Medicare Administrative Contractors that process the claims will individually review the claim and determine whether Medicare will cover and pay for the item; this can be a time consuming and predictable process. If there is no existing HCPCS code that describes the product, ...
How long does it take to get a PDAC code?
Code verification takes about 65 days. The application form and accompanying instructions are on the PDAC website. As a matter of practice, all payers generally follow the PDAC’s code verification decisions, not just Medicare.
When are DMEPOS applications due?
The application process for DMEPOS items occurs twice a year. Applications are generally due around January 1 and July 1 every year. Once CMS makes a preliminary decision, it holds a public meeting in which applicants can present more information. CMS then makes a final decision to either grant a new HCPCS code or not.
Can a PDAC verify a product?
The PDAC can only verify that a product meets the definition of an existing HCPCS code. The PDAC does not have the authority to create a HCPCS code or amend an existing HCPCS code description. Code verification is mandatory for some products, but not for others.
When will phase 2 of DME start?
Phase II will begin October 21, 2019 and expands prior authorization of these codes to the remaining states and territories.
When is the CMS call for pressure reducing support surfaces?
CMS will host a call to discuss the addition of pressure reducing support surfaces to the Required Prior Authorization List on Tuesday, June 4, 2019 from 2:00 p.m. to 3:30 p.m. Eastern Time (ET). For more information, please visit the Special Open Door Forums webpage.
When is L5856 required?
Additionally, prior authorization will be required for certain Lower Limb Prosthetics (L5856, L5857, L5858, L5973, L5980, and L5987), with dates of service on or after September 1, 2020 in California, Michigan, Pennsylvania, and Texas. On December 1, 2020, prior authorization for these codes will be required in all of the remaining states ...
When will the DMEPOS process end?
Given the importance of medical review activities to CMS’ program integrity efforts, CMS will discontinue exercising enforcement discretion for the Prior Authorization Process for Certain Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) items beginning on August 3, 2020, regardless of the status of the public health emergency. For Power Mobility Devices and Pressure Reducing Support Surfaces that require prior authorization as a condition of payment, claims with an initial date of service on or after August 3, 2020 must be associated with an affirmative prior authorization decision to be eligible for payment.
How long does it take to get a prior authorization?
Please note that all initial prior authorization decisions should be made in no more than 10 days. In cases where that timeframe could seriously jeopardize the life or health of the beneficiary, you may request an expedited review. Decisions for substantiated expedited reviews should be made within 2 business days.
What chapter does Medicare have to be in before dispensed with DMEPOS?
As noted in the Medicare Program Integrity Manual, Chapter 5 (Items and Services Having Special DME Review Considerations), before you dispense any DMEPOS item to a beneficiary, you need to have an order from the treating physician.
What is a detailed written order?
detailed written order may be a photocopy, facsimile image, electronic, or pen-and-ink original document. For all items, the supplier shall have a detailed written order prior to submitting a claim.
Do you need a written order for DMEPOS?
While many items of DMEPOS can be dispensed based on a verbal order or preliminary written order from the treating physician/practitioner, there are certain items that statutorily require a written order prior to dispensing/delivery and are subject to face-to-face requirements.
What are the items that are not covered by Medicare?
Surgical dressings. Immunosuppressive drugs. Erythropoietin (EPO) for home dialysis patients. Therapeutic shoes for diabetics. Oral anticancer drugs. Oral antiemetic drugs (replacement for intravenous antiemetics) Some items may not meet the definition of a Medicare benefit or may be statutorily excluded.
What are the benefits of DME?
In order for an item to be covered by the Durable Medical Equipment Medicare Administrative Contractor (DME MAC), it must fall within one of ten benefit categories. Medicare Part B covered services processed by the DME MAC fall into the following benefit categories specified in Section 1861 (s) of the Social Security Act: 1 Durable medical equipment (DME) 2 Prosthetic devices 3 Leg, arm, back and neck braces (orthoses) and artificial leg, arm and eyes, including replacement (prostheses) 4 Home dialysis supplies and equipment 5 Surgical dressings 6 Immunosuppressive drugs 7 Erythropoietin (EPO) for home dialysis patients 8 Therapeutic shoes for diabetics 9 Oral anticancer drugs 10 Oral antiemetic drugs (replacement for intravenous antiemetics)
What is Medicare Part B?
Medicare Part B covered services processed by the DME MAC fall into the following benefit categories specified in Section 1861 (s) of the Social Security Act: Durable medical equipment (DME) Prosthetic devices. Leg, arm, back and neck braces (orthoses) and artificial leg, arm and eyes, including replacement (prostheses)