Medicare Blog

how to bill medicare part b rentals

by Reina Berge Published 2 years ago Updated 1 year ago
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Are You Involved in Medicare Part B billing?

In other words, if you're involved in Medicare Part B billing, you'll have to know the specific rules and regulations that you, as the biller or coder, must follow to make sure your office gets paid by Medicare. It's important to remember that even though Part B is somewhat like a commercial insurance plan, it's still not a 100% coverage plan.

What is the pricing code for Medicare Part B?

The pricing code for both of the codes above is 00, indicating that the item or service is not separately priced or separately paid by Medicare under Part B.

How long does it take to bill Medicare Part B?

After you've determined that your patient has active coverage and that the service will be covered, you'll have to bill the claim to insurance. Like other commercial insurances, you should send Medicare Part B claims directly to Medicare for payment, with an expected turnaround of about 30 days.

What does Medicare Part B cover?

Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services. premium deducted automatically from their Social Security benefit payment (or Railroad Retirement Board benefit payment). If you don't get benefits from Social Security (or the Railroad Retirement Board), you'll get a premium bill from Medicare.

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What is modifier RR?

Hence when DME is a rental, the modifier RR is used for enhancing billing and collections. It comes under the Level II HCPCS modifiers which consist of two digits beginning from AA through VP and usually comprise alpha/alphanumeric characters. This modifier must be used on all claim forms for rental DME.

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 place of service is used for DME?

Normally, the correct place of service for DME would be 12 (home).

What is required when billing Medicare for repair of previously purchased equipment?

With respect to Medicare reimbursement for the repair, there are two documentation requirements: Treating physician/practitioner must document that the item being repaired continues to be reasonable and necessary. Treating physician or supplier must document that the repair itself is reasonable and necessary.

Does DME need a modifier?

In addition to an appropriate HCPCS code for the DME item, many HCPCS codes require a modifier. The modifiers are used to provide more information about the item.

What is a DME modifier?

Modifiers provide the detailing/description of the DME item and decides the processing of claims raised on DME. Along with HCPCS code, DME medical billing also includes an ICD-10 diagnosis code that determines the medical condition for which the item has been prescribed.

What is the difference between modifier GT and 95?

What is the difference between modifier GT and 95? Modifier 95 is like GT in use cases, but unlike GT there are limits to the codes that it can be appended. Modifier 95 was introduced in January 2017, and it is one of the newest additions to the telemedicine billing landscape.

What does modifier 95 stand for?

synchronous telemedicine service rendered via a real-95 Modifier Description The 95 modifier is defined as “synchronous telemedicine service rendered via a real-time audio and video telecommunications system.” In other words, this is a way to describe a Telehealth session. Historically, Telehealth coverage varies significantly by insurer.

How does DME reimbursement work?

Once the rental has reached the allowed amount for purchase, covered supplies and maintenance related to an item will be reimbursed according to the provider's contract. Equipment that is purchased without prior rental will be owned by the patient.

What is the RB modifier used for?

In contrast, the RB modifier is used on a DMEPOS claim to denote the replacement of a part of a DMEPOS item (base equipment/device) furnished as part of the service of repairing the DMEPOS item (base equipment/device).

What is code K0739?

K0739 Repair or Nonroutine Service for Durable Medical Equipment Other than Oxygen Equipment Requiring. the Skill of a Technician, Labor Component, Per 15 Minutes.

What is CPT E1399?

E1399 is a valid 2022 HCPCS code for Durable medical equipment, miscellaneous or just “Durable medical equipment mi” for short, used in Used durable medical equipment (DME).

How long does it take to get Medicare Part B?

Like other commercial insurances, you should send Medicare Part B claims directly to Medicare for payment, with an expected turnaround of about 30 days.

What does Part B cover?

CMS holds a great amount of influence over the way insurance companies pay doctors, as well as the services that doctors provide. This is, in large part, because of Medicare Part B restrictions.

What is Medicare Part B for eyeglasses?

Other preventative services are also covered under Medicare Part B: Preventive shots, including the flu shot during flu season, and three Hepatitis B shots, if you're considered at risk.

Why is Medicare important?

Because Medicare is a service provided for the elderly, disabled, and retired, the patients who are covered by Medicare will usually have limited financial resources . Because of this, it's very important to make sure that your office bills and codes within all Part B guidelines and provides only approved Part B services.

What is Medicare for the elderly?

Very simply, Medicare is the federally-funded program that provides healthcare coverage for the disabled and elderly.

What is Part C?

Part C combines Parts A and B (and sometimes D), and is managed by private insurance companies as approved by Medicare. Part D is a prescription drug coverage program which is also managed by private insurance companies as approved by Medicare. Each of these parts provides a different type of coverage, with different limitations ...

What happens if a provider doesn't accept Medicare?

If your provider doesn't accept the assignment of Medicare fees, then he or she will send the claim to Medicare, which pays the patient directly. The patient, in this case, is responsible for paying the entire claim off to the provider.

Why would Medicare allow additional Part B payments?

Specifically, the proposed rule would allow additional Part B payment when a Medicare Part A claim is denied because the beneficiary should have been treated as an outpatient, rather than being admitted to the hospital as an inpatient. The proposed rule, Medicare Program; Part B Inpatient Billing in Hospitals, proposes that if ...

When Part A payment cannot be made for a hospital inpatient claim?

When Part A payment cannot be made for a hospital inpatient claim because the beneficiary has exhausted his or her Part A benefits or is not entitled to Part A, Medicare’s current policy pays for the limited set of ancillary inpatient services under Part B, subject to the timely filing restriction. The proposed rule would not change this policy.

What is the reasonable and necessary standard for Medicare?

The “reasonable and necessary” standard is a prerequisite for Medicare coverage in the Social Security Act. The statutory timely filing deadline, under which claims must be filed within 12 months of the date of service, would continue to apply to the Part B inpatient claims. Also on March 13, CMS Acting Administrator Marilyn Tavenner issued an ...

When Medicare denies a claim, does it accept a new claim?

When the Medicare review contractor denies a Part A claim because a hospital inpatient admission is not reasonable and necessary, Medicare would accept new, timely filed Part B inpatient claims and provide payment for all reasonable and necessary Part B inpatient services, except those that by statute, Medicare definition, or coding definition specifically require an outpatient status (such as observation services).

How long after the date of service can you file a Part B claim?

These claims would be denied for payment if filed more than 12 months after the date of service.

How long after the date of service can a hospital bill?

Also under current policy, the hospital may only bill for the limited list of Part B inpatient ancillary services and those services must be billed no later than 12 months after the date of service.

Does Medicare pay for inpatient services?

Under longstanding Medicare policy, Medicare only pays for a limited number of ancillary medical and other health services as inpatient services under Part B when a Part A claim submitted by a hospital for payment of an inpatient admission is denied as not reasonable and necessary. Hospitals have expressed concern about Medicare’s policy, arguing that all Part B hospital services provided should be billable to Medicare because they would have been reasonable and necessary if the beneficiary had been treated as an outpatient and not as an inpatient.

How long is a medical equipment rental?

If a modification is added to existing equipment and there is a substantial change in medical need, the 13-month rental period for the original equipment continues and a new 13-month rental period begins for the added equipment.

When do you have to give a beneficiary the option to purchase a wheelchair?

Suppliers must give beneficiaries entitled to complex power wheelchairs the option of purchasing at the time the supplier first furnishes the item. No rental payment will be made for the first month until the supplier notifies the DME MAC that the beneficiary has been given the option to either purchase or rent.

What is the pricing code for Medicare Part B?

The pricing code for both of the codes above is 00, indicating that the item or service is not separately priced or separately paid by Medicare under Part B .

How much is the monthly Medicare rental fee?

Based on the median of 2018 prices paid by other payers, CMS has established a 2019 monthly fee schedule amount of $13,237.

How does Medicare determine the fee schedule for DMEPOS?

Under current gap filling guidelines outlined in Chapter 60.3 of the Medicare Claims Processing Manual, Medicare establishes a new fee schedule amount based on (1) the fee schedule amount for a comparable item in the DMEPOS fee schedule, or (2) supplier price lists or retail price lists, such as mail order catalogs, with prices in effect during the base year. In establishing fees for newly covered DMEPOS, Medicare first looks to identify a comparable DMEPOS item for which a fee schedule amount already exists, as existing fee schedule amounts are based on average reasonable charges for items paid during the base year. CMS determines whether a comparable item exists based on the purpose and features of the device, nature of the technology, and other factors, and then applies that fee to the new item.

Is CMS continuing to pay for wheelchairs?

CMS is continuing these payment rates based on several factors . Beneficiaries with disabilities such as amyotrophic lateral sclerosis, cerebral palsy, multiple sclerosis, muscular dystrophy, spinal cord injury, and traumatic brain injury often rely on complex rehabilitative wheelchairs and accessories to maximize their function and independence. It is important to avoid any potential operational difficulties for suppliers, our partners in the Medicaid program, or private payers that have elected to rely on the DMEPOS fee schedule that could result from frequent updates to the Medicare fee schedules. Finally, this action is consistent with prior Medicare program policy actions related to similar accessories for complex power rehabilitative wheelchairs as described in section 2 of the Patient Access and Medicare Protection Act of 2015. CMS is actively reviewing public comments submitted to the agency on related rulemakings, including engaging in future rulemaking, and will update interested stakeholders and suppliers when more information is available.

Can Medicare pay for replacement CPAP?

The supplier furnishing the substitute devices at no additional cost can bill and get paid for accessories used with the replacement devices.

Can a DME MAC reprocess a HCPCS code?

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. If the supplier makes this request, then all of the supplier’s claims affected by the erroneous fee schedule amounts (both overpayments and underpayments) will be reprocessed and adjusted. Please contact the DME MAC (s) for additional information about reprocessing.

How to determine Part B payment?

To determine the Part B payment to a provider other than nominal charge provider, A/B MACs (A) and (HHH) subtract any unmet Part B deductible from the lower of the actual charge or the fee schedule amount for the item or service and multiply the remainder by

How to determine Part B payment to nominal charge?

To determine the Part B payment to a nominal charge HHA , A/B MACs (HHH) subtract any unmet Part B deductible from the fee schedule amount and multiply the remainder by

How long do DME MACs pay rental fees?

For these items of DME, A/B MACs (HHH) and DME MACs pay the fee schedule amounts on a monthly rental basis not to exceed a period of continuous use of 15 months. In the tenth month of rental, the beneficiary is given a purchase option (see §30.5.2). If the purchase option is exercised, A/B MACs (HHH) and DME MACs continue to pay rental fees not to exceed a period of continuous use of 13 months and ownership of the equipment passes to the beneficiary. If the purchase option is not exercised, A/B MACs (HHH) and DME MACs continue to pay rental fees until the 15 month cap is reached and ownership of the equipment remains with the supplier (see §30.5.4). In the case of electric wheelchairs only, the beneficiary must be given a purchase option at the time the equipment is first provided (see §30.5.3).

What is PIM in Medicare?

Chapter 5, section 5.2.1 of the Medicare Program Integrity Manual (PIM) states that, in order for Medicare to make payment for an item of Durable Medical Equipment Prosthetic, and Orthotic Supplies (DMEPOS), the DMEPOS supplier must obtain a prescription from the

What is the CPM code for DME?

The CPM devices (HCPCS code E0935) are classified as items requiring frequent and substantial servicing and are covered as DME as follows (see the Medicare National Coverage Determinations Manual.):

When does a beneficiary rent a wheelchair?

The beneficiary enters a covered a hospital on February 15 and is discharged on April 5.

How to determine liability to a provider other than an HHA?

To determine patient liability to a provider other than an HHA (including nominal charge providers other than a HHA), A/B MACs (A) subtract any unmet deductible from the actual charge and multiply the remainder by 20 percent. The result, plus the unmet deductible is the patient's liability. Coinsurance is applied as applicable.

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