Industry Notes:
Non-contract durable medical equipment
Published on Fri Jan 07, 2011
• Non-contract durable medical equipment suppliers in competitive bidding areas who decided to continue furnishing bid items under the grandfathering exemption may have trouble securing their Medicare reimbursement. The problem: CMS has identified a claims system problem for bid item claims coming from grandfathered suppliers, the agency says in a message to providers. The solution: Such non-contract suppliers must use the "KY" modifier on their bid item claims to secure payment, CMS instructs. "Grandfathered suppliers must use the KY modifier on claims with dates of service on or after Sat. Jan 1, 2011, for purchased, covered accessories or supplies furnished for use with grandfathered equipment," the agency says. The problem applies to 24 HCPCS codes for CPAPs, RADs, hospital beds, and walkers, plus their accessories. Be careful how you use the modifier, though. "Purchase-claims submitted for these codes without the KY modifier will be denied," CMS says. But claims submitted [...]