This is a common issue with the IPPE and the diagnosis Z00.00. According to CMS guidelines a general rule:
Based on coverage provisions in the CMS IOM Publication 100-02, Medicare Benefit Policy Manual, Chapter 16, General Exclusions from Coverage and the CMS IOM Publication 100-04, Medicare Claims Processing Manual, Chapter 18, Preventive and Screening Services. A review of these regulations confirms the conclusion that most dental service and routine services are not part of the Medicare benefit. Although these services may have been paid previously, new edits may now result in the denial of services that are not covered under Medicare.
The routine physical checkup exclusion applies to (a) examinations performed without relationship to treatment or diagnosis for a specific illness, symptom, complaint, or injury; and (b) examinations required by third parties such as insurance companies, business establishments, or Government agencies. .
Which in itself if not helpful. So you move on to the guidelines specifically provided for IPPE and it states only the following:
Since CMS does not require a specific diagnosis code for the IPPE, you may choose any appropriate diagnosis code. You must report a diagnosis code.
We have run into trouble with the Z00.00 as well. In the end we contacted the local MAC to help us navigate this issue. It is very frustrating and Medicare is not clear on this rule.