MLN Connects Newsletter for February 26, 2026

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Date
2026-02-26
Title
In This Edition: DMEPOS | Clinical Laboratory | Therapy Services

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News

Compliance

Claims, Pricers & Codes

MLN Matters® Articles

Publications & Multimedia

 

News

Trump Administration Prioritizes Affordability by Announcing Major Crackdown on Health Care Fraud

On February 25, at the White House, Vice President J.D. Vance, HHS Secretary Robert F. Kennedy, Jr., and CMS Administrator Dr. Mehmet Oz announced new steps to crack down on fraud in Medicare and Medicaid to protect patients and taxpayers and improve affordability. The actions include deferring $259.5M of quarterly federal Medicaid funding in Minnesota to prevent payment of questionable claims while further investigation is completed; a nationwide moratorium on Medicare enrollment for certain DMEPOS suppliers; and a nationwide call to action for Americans to support fraud prevention, including stakeholder input on how CMS can continue to expand and strengthen its efforts. Together, these steps reflect a coordinated, data-driven strategy to prevent fraud before it occurs, hold bad actors accountable, and protect taxpayer dollars. 

More Information:

 

MAC MBI Lookup Tool: Keep Your Access During Enhanced Monitoring

CMS identified a concerning trend of malicious actors stealing MBIs and using them to commit Medicare fraud. Some are misusing Medicare Administrative Contractor (MAC) MBI lookup tools. We’re implementing enhanced monitoring controls to prevent this abuse.

What You Need to Know

Only use the MAC MBI lookup tool for people you intend to provide a service or product to that you’ll bill to Medicare. Our enhanced monitoring compares the MBIs you look up against actual claims submitted with NPIs. If we notice an unusually high rate of MBI lookups without associated claims, your access to the lookup tool may be removed.

Take Action to Maintain Access: Complete MAC Portal Updates by May 7

Make sure your MAC portal users are associated with NPIs in your organization on whose behalf they may perform MBI lookups. This helps us verify legitimate use and protects your access to the lookup tool. 

 

Medicare Outpatient Observation Notice: Get Updated Version in English & Spanish 

The Office of Management and Budget approved the updated Medicare Outpatient Observation Notice (MOON), effective now through February 28, 2029. Get the updated version in English and Spanish on the Beneficiary Notices Initiative webpage. CMS improved the readability and design.

You must use the updated notices starting April 21, 2026. We’ll accept the expired and updated versions through April 20, 2026.

You’re required to provide patients MOONs to inform them that they’re outpatients receiving observation services and aren’t inpatients of a hospital or critical access hospital. See the Medicare Claims Processing Manual, Chapter 30 (PDF), section 400 for more information. 

 

Laboratories: Paper Fee Coupons & CLIA Certificates Ending March 1

CMS is improving the Clinical Laboratory Improvement Amendments (CLIA) program by switching to electronic fee coupons and CLIA certificates. After March 1, 2026, paper fee coupons and CLIA certificates will no longer be available; we’ll stop mailing paper versions after this date. In addition, you must pay your CLIA certification and survey fees online; checks will no longer be accepted.

This is the last chance for eligible laboratories and providers that perform laboratory testing to sign up for CMS email notifications to receive electronic CLIA fee coupons and certificates. Failure to switch may result in billing and certification issues.

You can switch to electronic notifications from CMS or update your email address by:

  • Emailing your state agency (PDF)
  • Contacting your Accreditation Organization if you’re an accredited laboratory

Note: This doesn’t apply to CLIA-exempt states.

 

Hospitals: One Month Left to Submit Data for OPPS Drug Acquisition Cost Survey 

The Outpatient Prospective Payment System (OPPS) Drug Acquisition Cost Survey (ODACS) is live. Hospitals paid under OPPS and listed on this ODACS provider table (PDF) must submit their drug acquisition cost data to CMS by March 31, 2026, at 11:59 pm ET.

To complete the survey, you must:

More Information:

 

Compliance

DME: Complying with Proof of Delivery Requirements 

The Comprehensive Error Rate Testing (CERT) Task Force identified missing or incomplete proof of delivery (POD) documents for DME claims. You’re required to maintain POD documentation for 7 years from the date of service regardless of your delivery method.

Use the Complying with POD Requirements (PDF) work guide to learn what you must include and what’s required for each delivery method.

More Information:

 

Spinal Orthoses: Prevent Claim Denials

In 2024, the improper payment rate for lumbar-sacral orthosis was 54.4%, with a projected improper payment amount of $47.8M. Learn how to bill correctly for these services. Review the Spinal Orthoses provider compliance tip for more information, including:

  • Billing codes
  • Denial reasons and how to prevent them
  • Documentation requirements
  • Example of improper payments due to insufficient documentation
  • Resources

 

Claims, Pricers & Codes

Hypoglossal Nerve Neurostimulator: New Codes, Effective January 1, 2026 

CMS is aware of questions regarding coding for hypoglossal nerve neurostimulators for the treatment of obstructive sleep apnea and concerns that the current CPT codes don’t accurately describe some newer hypoglossal nerve neurostimulators.

To address this issue, we’ll add 6 new HCPCS codes to the April 2026 Integrated Outpatient Code Editor, effective January 1, 2026:

  1. C8007: Open implantation of hypoglossal nerve neurostimulator array and pulse generator, not requiring insertion of a separate distal respiratory sensor electrode or electrode array
  2. C8008: Revision or replacement of hypoglossal nerve neurostimulator array including connection to existing pulse generator
  3. C8009: Removal of hypoglossal nerve neurostimulator array and pulse generator
  4. C8011: Open implantation of hypoglossal nerve(s) neurostimulator electrode array(s) and receiver, including external power source and all system components
  5. C8012: Revision or replacement of hypoglossal nerve(s) neurostimulator electrode array(s) and receiver
  6. C8013: Removal of hypoglossal nerve(s) neurostimulator electrode array(s) and receiver

 

Therapy Services: CY 2026 KX Modifier Threshold Amounts

The CY 2026 KX modifier threshold amount is $2,480 for:

  • Physical therapy and speech-language pathology services combined
  • Occupational therapy services

More Information:

 

Screening for Hepatitis C Virus National Coverage Determination: Clarified Billing Requirements

CMS clarified billing requirements for the Screening for Hepatitis C Virus in Adults National Coverage Determination 210.13. We’ll pay for HCPCS code G0567 with modifier QW when billed by Clinical Laboratory Improvement Amendment (CLIA) waived laboratories and without modifier QW when billed by non-CLIA waived laboratories, effective retroactive to June 27, 2024.

There’s no change to the policy. Your Medicare Administrative Contractor (MAC) will adjust claims you bring to their attention.

See the instruction to your MAC (PDF) for more information.

 

Medicare Physician Fee Schedule Database: April Update

See the instructions to your Medicare Administrative Contractor (MAC) (PDF) to learn about the April quarterly updates to the Medicare Physician Fee Schedule Database, including:

  • New codes
  • Procedure status changes
  • Short descriptor code revisions
  • Payment policy indicator changes

Your MAC will give you 30-days notice before they implement these changes. After that, they’ll adjust claims that you bring to their attention.

For more information, see the Medicare Claims Processing Manual, Chapter 23 (PDF), section 30.1.

 

MLN Matters® Articles

Clinical Laboratory Fee Schedule & Laboratory Services Subject to Reasonable Charge Payment: April 2026 Update

Learn about Clinical Laboratory Fee Schedule updates (PDF):

  • The next data reporting period for clinical diagnostic laboratory tests 
  • New CPT codes, effective April 1, 2026

 

HCPCS Codes & Clinical Laboratory Improvement Amendments Edits: April 2026

Learn about updates (PDF), effective April 1:

  • Discontinued codes
  • New codes
  • Codes subject to and excluded from Clinical Laboratory Improvement Amendments  edits

 

Vaccine Administration National Fee Schedule: April 2026 Update

Learn about coding updates (PDF) for TYENNE® (tocilizumab-aazg) for intravenous administration in hospitalized adults with COVID-19.

 

Publications & Multimedia

Intravenous Immune Globulin Items & Services – Revised

CMS added the CY 2026 payment rate for HCPCS code Q2052 (PDF).

 

Medicare Diabetes Prevention Program Expanded Model – Revised

Learn what's changed (PDF):

  • Updated the requirements for conducting Medicare Diabetes Prevention Program (MDPP) sessions in person, through virtual distance learning (live), or online (non-live)
  • Extended the extended flexibilities period through December 31, 2029
  • Updated the requirements for reporting patient weight, including self-reporting
  • Removed the once-per-lifetime enrollment limit
  • Expanded the list of organization types that can become MDPP suppliers to include virtual-only organizations
  • Created a new HCPCS G-code for the online delivery modality and updated the 2026 Fee-for-Service amounts
  • Added G9871 to the list of HCPCS codes for which you can add modifier 76 to indicate a make-up session was held on the same day as a regularly scheduled MDPP session

     


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