CMS Issues Program Transmittal for Partial Device Credits
On November 27, 2007, the Centers for Medicare and Medicaid Services (CMS) issued a program transmittal providing direction for outpatient hospital stays regarding adjustment to payments for partial device credit. Effective January 1, 2008, hospitals are required to report HCPCS modifier FC on the procedure code for all cases in which the device being implanted is on the list of creditable devices, the procedure code in which the device is used is on the list of creditable APCs, and the hospital receives a credit of 50 percent or more of the cost of the new replacement device. The FB modifier continues to be used for devices received at no cost or full credit.
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