Skip Prior Authorization for These 4 HCPCS Codes

Effective April 30, four HCPCS Level II codes for certain durable medical equipment (DME) will no longer require prior authorization. If your medical office or facility sells or rents DME, it’s time to update your list.

Master List Agenda

The Centers for Medicare & Medicaid Services (CMS) published a final rule in the March 30 Federal Register to notify the public of updates made to the Master List of Items Frequently Subject to Unnecessary Utilization, which is used to identify durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) subject to prior authorization as a condition of payment.

Master List Criteria

Established in 2015, the Master List includes items that meet the following criteria:

• Appear on the DMEPOS fee schedule list
• Have an average purchase fee of $1,000 or more or an average monthly rental fee schedule of $100 or more (both amounts, referred to as “payment thresholds,” are adjusted annually for inflation)
  • The payment threshold, for example, is $1,018 for an average purchase fee and $102 for the average monthly rental fee.
• Meet either of the following criteria:
  • Identified as having a high rate of fraud or unnecessary utilization
  • Listed in the Comprehensive Error Rate Testing (CERT) program’s annual Medicare Fee-For-Service Improper Payment Rate Report DME and/or DMEPOS Service Specific Report(s)

Master List Update

The Master List is self-updating annually to account for coding and regulatory changes, among other things. The following four HCPCS Level II codes are being removed from the Master List because they no longer exceed the payment threshold:

Click on the link below for the full updated Master List.

FINAL-RULE-MASTER-LIST_2018-03-30

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Renee Dustman

Executive Editor at AAPC

Renee Dustman, BS, AAPC MACRA Proficient, is an executive editor at AAPC. She holds a Bachelor of Science degree in Media Communications - Journalism. Renee has more than 20 years experience in print production and content management. Follow her on Twitter @dustman_aapc.

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