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Medical-Surgical Billing Manual

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Benefits Overview

Providers must be enrolled as a Health First Colorado (Colorado's Medicaid program) provider in order to:

  • Treat a Health First Colorado member
  • Submit claims for payment to Health First Colorado

Health First Colorado reimburses providers for medically necessary medical and surgical services furnished to eligible members.

Providers should refer to the Code of Colorado Regulations, Program Rules (10 CCR 2505-10 8.2.3.D.2), for specific information when providing audiology care.

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General Billing Information

Refer to the General Provider Information Manual located on the Billing Manuals web page for general billing information.

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Anesthesia Services

General Benefits

Anesthesia benefits are provided for medical, surgical and radiological procedures. Anesthesia reimbursement is based on actual anesthesia time. Providers should bill the exact number of minutes during which services were provided. One (1) unit of service equals fifteen minutes of anesthesia time. Anesthesia time begins when the anesthetist starts member preparation for induction in the operating room or an equivalent area and ends when the member may be safely placed under post-operative care. No additional benefits are provided for emergency conditions or the member's physical status.

Reimbursement for anesthesia includes all of the following:

 

Nerve blocks for anesthetic purposes are processed as general anesthesia. Nerve blocks for diagnostic or therapeutic purposes are processed as surgical procedures.

The following services are considered incidental to the anesthesia service and no separate benefit is allowed:

  • Total body hypothermia in combination with or in addition to procedure codes described as "open" or "bypass"
  • Endotracheal intubation or extubation

Payment

Anesthesia payment is the lesser of the billed amount and the amount calculated as follows:
(Relative Value + "reported minutes" divided by 15 equation ) x Allowed Amount

The Relative Value and Allowed Amount for each anesthesia CPT code are found on the Health First Colorado Physician Fee Schedule.
 

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Anesthesia by Surgeon

Local infiltration, digital block, or topical anesthesia administered by the operating surgeon is included in the surgical reimbursement and no additional benefit is available. IV valium or IV pentothal is a benefit when administered by the surgeon. For obstetrical deliveries, local pudendal and paracervical block anesthesia is included in the obstetrical payment and no additional benefits are allowed for the delivering physician.

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Obstetrical Anesthesia

Epidural anesthesia by a provider other than the delivering practitioner is a covered benefit. Member contact time must be documented on the claim. Claims for more than 120 minutes (eight [8] or more time units) of direct member contact epidural time require an attached copy of the anesthesia record.

When CPT codes 01967 and 01968 are performed across two (2) dates of service, both procedures should be reported with a date span that includes both dates of service.  

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Standby Anesthesia

Standby anesthesia is a benefit in conjunction with obstetrical deliveries, subdural hematomas, femoral or brachial artery embolectomies, members with a physical status of four (4) or five (5), insertion of a cardiac pacemaker, cataract extraction and/or lens implant, percutaneous transluminal angioplasty, and corneal transplant. Unusual circumstances or exceptions to allow a benefit for standby anesthesia for other procedures must be fully documented. Documentation must be submitted with claim.

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Family Planning Services

Family planning services including intrauterine devices, implants, diaphragms, and contraceptive drugs are benefits of Health First Colorado.

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Foot Care Services

Foot care services are benefits of Health First Colorado whether provided by a physician or licensed podiatrist. Claims for services provided to dually eligible (i.e., Health First Colorado and Medicare-eligible) members are submitted directly to the fiscal agent.

If the billed service is routine foot care and is identified by the Medicare program as non-reimbursable, use the GY modifier to identify routine podiatric foot care services that are not covered by Medicare. The Medicare non-covered services field on the claim record must also be completed.

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Medical Services

Consultation

Effective April 1, 2010, CPT consultation codes (ranges 99241-99245 for office/outpatient consultations and 99251-99255 for inpatient consultations) will no longer be recognized for payment. This change was implemented to be consistent with Medicare policy.

Please submit claims for consultation services using another Evaluation and Management (E/M) code that most appropriately represents where the visit occurred and that identifies the complexity of the visit performed.

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Annual Physical

Adults may receive one (1) physical examination per year. Sports physicals are not covered.

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Vaccines/Immunizations

Refer to the Immunization Benefits Billing Manual located on the Billing Manuals web page.

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Medical Care and Surgery on the Same Day

Both medical care and surgery are allowed when performed on the same day by the physician when the surgical procedure is minor in nature. Follow-up care requirements are determined by the Department of Health Care Policy & Financing (the Department) and are related to those assigned by Medicare and other sources.

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New Member Services

New member medical care visits are limited to one (1) per member per provider. A medical records administrative fee is included in Health First Colorado reimbursement.

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Nursing Facility Visits

Nursing facility visits are limited to one (1) visit per day per member by the same provider for the same diagnosis or condition.

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Office Visits

Office visits are limited to one (1) visit per day per member by the same provider for the same diagnosis or condition.

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Supplies Provided by a Physician

Providers may bill for non-routine supplies following the instructions in the current CMS bulletin for practitioners.

Billable non-routine supplies are listed in the CMS publication under separate categories. Providers should always refer to the most current publications when billing Health First Colorado as some supplies are considered inclusive in the medical or surgical service.

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Non-Benefit Medical Services

Services for which Health First Colorado assistance is not available include, but are not limited to:

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Psychiatric Services

General Benefits

Psychiatric services refer to services described in CPT under the heading "Psychiatry". Health First Colorado benefits are available for face-to-face member contact services only. Benefits are not available for report preparation, telephone consultation, case presentations, or staff consultation.

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Non-Benefit Psychiatric Services

Psychotherapy services provided for the following specific primary diagnoses are not benefits of Health First Colorado.

 

The following psychiatric services are not benefits:

 

Unusual circumstances or exceptions to allow benefits for these services must be fully documented, reviewed and prior authorized.

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Regional Accountable Entities (RAEs)

Regional Accountable Entities (RAEs) provide all mental health care to members in their geographical area. Non-network practitioners who render emergency mental health services must bill the RAE for payment. The RAE will not pay for non-emergency services provided without RAE prior authorization.

Members who are dually eligible (i.e., Health First Colorado and Medicare-eligible) may obtain services through the RAE or from a non-RAE provider, and the fiscal agent will process submitted Medicare crossover claims. If the mental health service is covered by Health First Colorado only, the member must obtain services from the RAE.

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Radiology Services

Refer to the Outpatient Imaging and Radiology Billing Manual located on the Billing Manuals web page.

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Skin Substitutes

As of September 1, 2019, skin substitute products are categorized and reimbursed based on their composition. The categories for reimbursement include:

  • Allogenic Acellular (product is derived from human cells and does not contain living cells)
  • Allogenic Cellular (product is derived from human cells and contains whole and/or living cells)
  • Xenogenic (product is derived from a non-human species)
  • Injections

Skin substitute products are reimbursed at the same rate as all other products in the same category. The reimbursement rate for each category is based on the average price of the products within that category. 

Covered skin substitute products and corresponding rates can be found on the Provider Rates and Fee Schedule web page under the Health First Colorado Fee Schedule drop-down section.

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Surgical Services

General Benefits

Surgical reimbursement includes payment for the operation, local infiltration, digital block or topical anesthesia when used, and normal, uncomplicated follow-up care. Under most circumstances, the immediate preoperative visit necessary to examine the member is included in the surgical procedure whether provided in the hospital or elsewhere.

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Cosmetic Surgery

Procedures intended solely to improve the physical appearance of an individual, but which do not restore bodily function or correct deformity are not benefits of Health First Colorado.

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Abortion

Therapeutic legally induced abortions are benefits of Health First Colorado when performed to save the life of the mother. Health First Colorado also reimburses legally induced abortions for pregnancies that are the result of sexual assault (rape) or incest. Refer to the Sterilizations, Hysterectomies and Abortions Billing Instructions section for specific instructions on submitting claims for abortions performed for maternal life-endangering circumstances, sexual assault or incest.

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Assistant Surgeon

Assistant surgeon services may be reported by adding the appropriate modifier code 80, 81 or 82 to the surgical procedure code. The only procedures allowable for assistant surgery benefits are procedures listed on the Medicare Physician Fee Schedule Database (MPFSDB) with an assistant surgery indicator of 2.

Payment allowed is up to 20% of the surgeon's maximum allowable reimbursement for the first procedure and 5 percent of the surgeon's maximum allowable reimbursement for second and subsequent procedures. If multiple surgery pricing also applies to services reported with modifier 80, 81 or 82, the assistant surgery pricing will be applied after the multiple surgery discount.

Services rendered by non-physician practitioners should be reported using modifier-AS in addition to 80, 81 or 82.

Surgeries performed by the same rendering provider for the same member on the same date of service must be submitted on a single claim. Each rendering provider's procedures should be submitted on a separate claim, even if the claims are submitted by the same billing provider.

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Bariatric Surgery 

Health First Colorado covers bariatric surgery for eligible members. Providers should refer to the Code of Colorado Regulations, Program Rules (10 CCR 2505-10 8.300.3.C.), for specific information when providing this service.

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Breast Reconstruction

Breast reconstruction is a benefit when:

Removal and replacement of breast implants is considered medically necessary when:

  • The implant is affected by surgical complications such as recurrent infections
  • An implant has ruptured, and the member is experiencing side-effects related to the rupture, such as but not limited to persistent pain
    • Including when implants were originally placed for cosmetic reasons
  • The implant was originally placed for reconstructive reasons and 10 years or longer has elapsed since original placement
  • Procedure otherwise meets the definition of medical necessity in Department rule at 10 CCR 2505-10 8.076.1.8

When replacement of one (1) breast implant is considered medically necessary, replacement of the contralateral implant is also deemed medically necessary when performed at the same time. 
All breast reconstruction and revision procedures require prior authorization.

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Hysterectomy

A hysterectomy is a benefit of Health First Colorado when performed solely for medical reasons. A hysterectomy is not a benefit when:

  • The procedure is performed solely for the purpose of sterilization.
  • There is more than one (1) purpose for the procedure, and it would not have been performed except for the purpose of sterilization.

Refer to the Sterilizations, Hysterectomies and Abortions Billing Instructions section for billing requirements.

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Reconstructive Surgery

Surgical procedures intended to improve the function and appearance of any body area altered by disease, trauma, congenital or developmental anomalies, or previous surgical processes may be benefits of the program if services are prior authorized. Physician documentation on the PAR form is the basis for determining the benefit for reconstructive surgery.

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Sterilization

Voluntary sterilization is a benefit when appropriately documented on the Consent to Sterilization - MED 178 Form. Refer to the Sterilizations, Hysterectomies and Abortions Billing Instructions section for sterilization billing requirements.

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Transplantation

Organ procurement and transplantation are benefits only when prior authorized. Corneal and kidney transplants are benefits and do not require prior authorization.

Donor expenses (i.e., organ procurement associated surgical and laboratory costs) for living organ donations are covered for kidney and liver transplants. Living organ donations for liver transplants require the transplant recipient to have received prior authorization for a living organ transplant procedure.

Reimbursement is only allowed for the approved donor. Expenses for donors who are tested and not approved are not covered.

Donor expenses should be billed on the recipient's transplant claim using the recipient's Health First Colorado identification number.

Important: Organ transplants are not a covered benefit for non-citizens.

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Multiple Surgeries

Health First Colorado utilizes the general surgical guidelines, subsection instructions, and procedure code modifiers found in each year's CPT codebook published by the AMA. The following information is in addition to the CPT guidelines, and should be utilized for billing Health First Colorado and reimbursement purposes.

The Medicare Physician Fee Schedule Data Base (MPFSDB) designates some procedure codes as subject to multiple surgery criteria. When two (2) or more procedures subject to multiple surgery pricing are reported on a claim, the surgery procedure commanding the greatest allowable payment will be reimbursed at 100 percent of the allowed amount, the surgery procedure with the second greatest allowable payment at 50 percent and subsequent surgery procedures at 25 percent.

Services must be billed on the same claim to receive payment for multiple surgical services rendered on the same date of service, for the same member, by the same rendering provider. If a separate claim is billed for the same rendering provider, the subsequent claim will deny. If multiple surgeons provide services to a member on the same date of service, report each rendering provider's procedures on a separate claim.

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Bilateral Procedures - Modifier 50

Unless otherwise identified in the CPT-4 listings, bilateral procedures requiring a separate incision that are performed at the same operative session, should be identified by the appropriate five (5)-digit code describing the procedure with modifier 50 added to the procedure code. Use of this modifier should be limited to procedures for which "bilateral" services are appropriate according to the MPFSDB. See the Unlisted section for information on reporting unlisted procedures performed bilaterally. 

Bilateral procedures indicated using modifier 50 will be reimbursed at 180 percent of the maximum allowable for the procedure. If multiple surgery pricing also applies to services reported with modifier 50, the multiple surgery discount will be applied after the bilateral pricing.

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Two (2) Surgeons - Modifier 62

When two (2) surgeons work together as primary surgeons performing distinct part(s) of a procedure, each surgeon should report his/her distinct operative work by adding modifier 62 to the procedure code and any associated add-on code(s) for that procedure as long as both surgeons continue to work together as primary surgeons. Each surgeon should report the co-surgery once using the same procedure code. If additional procedure(s) including add-on procedure(s) are performed during the same surgical session, separate code(s) may also be reported with modifier 62 added.

Note: If a co-surgeon acts as an assistant in the performance of additional procedure(s) during the same surgical session, those services may be reported using separate procedure code(s) with modifier 80 or modifier 82 added, as appropriate.

The only procedures allowable for co-surgeon reimbursement are listed on the Medicare Physician Fee Schedule Database with a co-surgery indicator of 2.

Report each rendering provider's procedures on a separate claim, even if the claims are submitted by the same billing provider. Procedures reported with modifier 62 will be priced at 62.5% of the maximum allowed amount. Multiple surgery discounting will be applied to eligible procedures after the 62.5% adjustment.

For surgeries requiring prior authorization, prior authorization requests must include sufficient units for each surgeon. For example, if a procedure will be reported by two (2) surgeons, each with one (1) unit, two (2) total units must be prior authorized. One (1) provider may request prior authorization on behalf of both surgeons.

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Endoscopic Procedures

Certain procedure codes are designated as endoscopic and placed into families according to the MPFSDB. A reimbursement reduction is applied to multiple endoscopic procedures within the same family performed by the same physician on the same member on the same day. When a claim contains multiple endoscopy procedures within the same family, the procedure with the highest allowable payment will be reimbursed at 100 percent of that amount, the procedure with the next highest allowable payment will be reimbursed at 80 percent, and subsequent procedures will be reimbursed at 50 percent. Reimbursement for endoscopic procedures within the same family is calculated independently of discounts that might apply to other lines on the claim, including other families of endoscopic procedures, or multiple surgeries.

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Global Surgery

Payment for a surgical procedure includes the pre-operative, intra-operative, and post-operative services routinely performed by the surgeon. The post-operative period for each surgical procedure code is determined by the value given in the MPFSDB, and is either 0, 10, or 90 days. Evaluation and management services rendered by the surgeon during this period that are related to recovery from the surgery are included in the payment for the surgery, and not separately reimbursable. This includes any services required of the surgeon during the post-operative period because of complications which do not require additional trips to the operating room.

Services that are considered related to the surgery include but are not limited to:

  • For dates of service before 5/1/2022: The two (2) procedures are considered to be related E/M services when the first three (3) digits of the diagnoses associated with the E/Mare the same match the first three (3) digits of the diagnoses associated with the surgery.
  • For dates of service 5/1/2022 and after: E/M services when the diagnoses associated with the E/M match exactly any of the diagnoses associated with the surgery.

Modifiers for reporting separately identifiable services during the postoperative period are described at the end of this manual.

The Department will only recognize modifiers 54 and 55 when appended to CPT codes 66821, 66982, 66984 from dates of service June 1, 2022, forward.  Providers may use modifier 54 to report performance of surgical care only and modifier 55 to report postoperative management only.  The global rate will be split between the two (2) providers. Modifier-specific rates can be found on the Health First Colorado Fee Schedule.  

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Unlisted CPT Codes

Unlisted surgery CPT codes are used when there is no CPT or HCPCS code that accurately identifies the services performed. Unlisted surgery codes with dates of service on or after November 1, 2018, will be manually priced by a clinical reviewer with the Department's fiscal agent.

Covered unlisted surgery codes can be found on the Health First Colorado Fee Schedule.

Claims with unlisted codes must include as attachments the operating report from the procedure and the Unlisted Procedure Code Form located on the Provider Forms web page under Claim Forms and Attachments. All lines on the Unlisted Procedure Code Form must be completed. The Department will deny claims lacking the required attachments. Claims denied for incomplete information will have to be resubmitted with the correct information for reimbursement.

When unlisted codes are used to report bilateral surgery, the Unlisted Procedure Code Form should list the total time for both sides of the procedure. The standard bilateral modifier (modifier 50) should not be used. 

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Vision Care Services

Refer to the Vision Care and Eyewear Manual located on the Billing Manuals web page.

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CMS 1500 Paper Claim Reference Table

The following paper form reference table shows required, optional, and conditional fields and detailed field completion instructions for the CMS 1500 claim form.

 

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CMS 1500 Medical Claim Example

CMS 1500 claim example graphic

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CMS 1500 Medical Crossover Claim Example

CMS 1500 crossover claim example graphic

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CMS 1500 Medical Claim with CLIA Number Example

CMS 1500 Medical Claim with CLIA Number Example Graphic

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Sterilizations, Hysterectomies and Abortions

Refer to the Obstetrical Care Billing Manual located on the Billing Manuals web page for more information on Sterilization, Hysterectomies and Abortions.

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Timely Filing

Refer to the General Provider Information Manual located on the Billing Manuals web page for more information on timely filing policy, including the resubmission rules for denied claims.

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Medical-Surgical Services Revisions Log

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