Again, I agree with CPCCPMA...
Per the 2007 Orthopaedic Pink Sheet...
You can't use both 29877 and G0289 on the same claim as they both describe the same procedure. Each of the codes is meant to be used for a different circumstance:
Use 29877 (arthroscopy, knee, surgical; debridement/shaving of articular cartilage (chondroplasty) when that is the primary procedure performed during the operative session. CPT specifies that you should report 29877 “only one time, regardless of how many areas are debrided or shaved” (CPT Assistant, Aug. 2001). That means that no matter how many compartments the surgeon performs chondroplasty on, you get to bill 29877 just once for the entire procedure.
For Medicare patients only, use G0289 (Surgical knee arthroscopy for removal of loose body, foreign body, debridement/shaving of articular cartilage at the time of other surgical knee arthroscopy in a different compartment of the same knee), an add-on code, when chondroplasty is performed at the same time as a different arthroscopic knee procedure