Quoting from my handy dandy flyer -
"What about observation patients?
If a patient is in observation status, the physician of record uses the observation codes (99218-99220 or 99234-99236) without a modifier. Other physicians (consultants) who are called to see the patient should use office and outpatient codes, 99201-99215, keeping in mind the definition of a new versus established patient visit." END
Don't forget to change the place of service to outpatient hospital or else the claim will still be rejected.
Also, I don't know about your state, but in NJ BCBC is still accepting the "old" consult codes that pay a little bit higher. Remember the 9924_'s?
Hope that helps.
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