0164-Bilateral Indicator '3': Incorrect Coding

Dynamic List Information
Dynamic List Data
Issue Name
0164-Bilateral Indicator '3': Incorrect Coding
Review Type
Automated
Provider Type
Professional Services
MAC Jurisdiction
All A/B MACs
Date
2019-09-10
RAC Type
Approved

Description

A Bilateral Indicator of "3" indicates the usual payment adjustment for bilateral procedures does not apply.  If the procedure is reported with either a modifier 50 or modifiers RT and LT, and a ‘2’ in the units field, reimbursement is based on 100% of the Medicare allowed amount for each side less any applicable multiple procedure pricing rules. This query identifies claims with underpayments due to code being submitted with a quantity of "2” when performed bilaterally.

Affected Code(s)

Bilateral Indicator ‘3’ codes

Applicable References

1.    Social Security Act (SSA), Title XVIII- Health Insurance for the Aged and Disabled, Section 1862(a)(1)(A)- Exclusions from Coverage and Medicare as a Secondary Payer
2.    Social Security Act (SSA), Title XVIII- Health Insurance for the Aged and Disabled, Section 1833(e)- Payment of Benefits
3.    42 CFR §405.929- Post-Payment Review
4.    42 CFR §405.930- Failure to Respond to Additional Documentation Request
5.    42 CFR §405.980- Reopening of Initial Determinations, Redeterminations, Reconsiderations, Decisions, and Reviews, (b)- Timeframes and Requirements for Reopening Initial Determinations and Redeterminations Initiated by a Contractor; and (c)- Timeframes and Requirements for Reopening Initial Determinations and Redeterminations Requested by a Party
6.    42 CFR §405.986- Good Cause for Reopening  
7.    Medicare Program Integrity Manual, Chapter 3- Verifying Potential Errors and Taking Corrective Actions, §§3.1- 3.6.6
8.    Medicare Claims Processing Manual, Chapter 12- Physician/Nonphysician Practitioners, §40.7- Claims for Bilateral Surgeries C.3 
9.    Medicare Claims Processing Manual, Chapter 23- Fee Schedule Administration and Coding Requirements, §50.6 Physician Fee Schedule Payment Policy Indicator File Record Layout – Bilateral Surgery Indicator (Modifier 50) 3
10.    Medicare Claims Processing Manual, Chapter 23- Fee Schedule Administration and Coding Requirements – Addendum – Medicare Physician Fee Schedule Database (PFSDB) Record Layouts and Field Descriptions 
11.    Physician Fee Schedule | CMS
12.    Physician Fee Schedule Relative Value Files- PFS Relative Value Files | CMS
13.    AMA CPT Codebook