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Updates to the policies on Modifier 25 reporting and reimbursement

July 24, 2017

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The Modifier 25: FAQ document was updated on September 25, 2017. Please download the latest version and check back often for future updates.

As previously communicated, Independence has updated its policies on Modifier 25 reporting and reimbursement. The following policies were posted as Notifications on May 1, 2017, and will go into effect August 1, 2017:

  • Commercial: #03.00.06n: Modifier 25: Significant, Separately Identifiable Evaluation and Management Service by the Same Physician or Other Qualified Health Care Professional on the Same Day of the Procedure or Other Service
  • Medicare Advantage: #MA03.003c: Modifier 25: Significant, Separately Identifiable Evaluation and Management Service by the Same Physician or Other Qualified Health Care Professional on the Same Day of the Procedure or Other Service

Clarifications to the Notifications

To address questions regarding how we define a minor procedure, the following language was added to the Notifications on May 9, 2017:

    A minor procedure has a zero-day or a ten-day post-operative period.

In addition, a complete list of CPT? codes identifying a minor procedure can be found in Attachment A of the Notifications for commercial and Medicare Advantage. Attachment A and Attachment B also list the specific evaluation and management (E&M) service codes that fall under the 50 percent reduction scenarios.

Note: Procedures without a zero-day or ten-day post-operative period (e.g., immunizations and vaccines, and their associated administration services, as well as EKGs and pulmonary function testing) are not considered minor procedures and are not part of the 50 percent reduction of the Modifier 25 policies.

As part of the update, there are two scenarios outlined within the policies where a payment reduction of 50 percent will be applied to certain services when appropriately billed with Modifier 25. This applies to all professional Modifier 25 claim submissions with a date of service on or after August 1, 2017, that fall into these two scenarios:

  • When Modifier 25 is appropriately appended to an E&M service and is submitted on the same date of service, by the same professional provider or other qualified health care provider, as a minor procedure, the E&M service is reimbursed at 50 percent of the applicable fee schedule amount.

    A minor procedure has a zero-day or ten-day post-operative period.

  • When Modifier 25 is appropriately appended to a problem-focused E&M service and is submitted on the same date of service, by the same professional provider or other qualified health care provider, as a preventive E&M service, the problem-focused E&M service is reimbursed at 50 percent of the applicable fee schedule amount.

More information

To view the Notifications for these policies, which include further detail on the two scenarios where the 50 percent Modifier 25 reduction will be applied, visit our Medical Policy Portal and select Accept and Go to Medical Policy Online. Then select either Commercial or Medicare Advantage under Active Notifications.

For questions about these updates, please review our Modifier 25: Frequently Asked Questions (FAQ) document, which can also be found on Independence NaviNet? Plan Central in the Frequently Asked Questions section under Administrative Tools & Resources. Note: The FAQ will be updated as more information becomes available.

If you still have questions after reviewing the FAQ, email us at modifier25providerquestions@ibx.com. Be sure to include your name, contact number, and provider ID number in your email.

CPT copyright 2016 American Medical Association. All rights reserved. CPT is a registered trademark of the American Medical Association.

NaviNet is a registered trademark of NaviNet, Inc., an independent company.

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