Skip to main content

Durable Medical Equipment - DME Coding

Patients come to your office looking for answers to their pain or lack of function. It’s critical that a doctor doesn’t do what one of my clients admitted to recently…“X-raying the patient’s wallet.”

Your patients both deserve and expect your best recommendations. If you provide products or services and are withholding your recommendation because you think the patient may not be able to afford that, it is simply inappropriate. Providers should prescribe what the patient needs, and the team members’ job is to help the patient pay for these items according to your financial policy.

Stabilizing orthotics

Once such profit center that mirrors a patient’s needs is stabilizing orthotics. The number of miles the average person walks in a lifetime, about 110,000 miles, is the equivalent of five trips around the Earth. And it’s estimated that more than 90% of patients overpronate. Some patients see this as a discretionary choice in their treatment plan and others will immediately grasp the necessity.

Seven times out of 10, finances will be a key factor in a patient’s choice to obtain orthotics. Take the guesswork out of this subject by building tremendous perceived value for the necessity of the orthotic, fit the costs into their budget, and you’ll bridge that financial chasm. The doctor’s recommendation is key!

Should I bill insurance for products?

Many insurance carriers cover durable medical equipment (DME), including orthotics. They may require that DME orders go through an approved and contracted DME supplier.

Our experience shows that most offices do not properly verify insurance coverage. Instead, they simply check eligibility and get a general outline of benefits. When a practice provides a robust number of services, including DME like orthotics, a more detailed verification is required. We must dig into the details of coverage like never before or be stuck with an unpaid claim.
You need to:
  • Ensure your current verification form prompts you to ask the more detailed questions on every insured patient.
  • Verify all benefits for every patient, for all the services that may be recommended. Then you’ll know up front how to help the patient understand their potential financial responsibility.
  • Locate the payer’s medical review policy on their website to supplement your verification. Here, you’ll find information about covered DX codes, referrals needed, etc. Sometimes, orthotics are only covered for foot and ankle conditions, and not the spinal stabilization that you may be prescribing for. Search for “orthotics and prosthetics medical review policy.”
  • Make sure you won’t need a referral in order to have the DME paid by the carrier.
If you find that the DME you’re prescribing is not covered by the patient’s carrier, does that mean the patient doesn’t need it? Of course not! Help the patient understand the need for orthotics within your treatment plan, and then offer ways to afford them out of pocket.

For example, if you scan the patient’s feet, the visual that is provided helps the patient “see” the problem, much like X-rays do. It goes a long way toward helping the patient see the medical necessity of the doctor’s recommendation.

Coding and descriptions

Even if the patient is paying cash for the DME prescribed, code it correctly in your billing system. The patient may elect to submit to a Health Savings Account (HSA), a Health Reimbursement Account (HRA) or some other type of non-insurance reimbursement. Don’t choose product codes willy-nilly.

For some example durable medical equipment coding tips, there are many different codes to describe stabilizing orthotics. Each code describes different arch types, molding methodology and other details. If you propose a custom-made, stabilizing orthotic created from a patient scan, for example, that code will be different from one that simply heats up plastic and molds it directly to the patient’s foot.

Coding for DME is usually found in the Health Care Procedural Coding System (HCPCS), pronounced “hick-picks.” These are the codes that typically begin with a letter and are used to describe durable medical equipment. Be sure you bill the correct number of codes.

For example, when billing the orthotic supply code, you must bill two line items to indicate both right and left side. The code billed represents only one, thus the indicator “each.” Don’t make the mistake of billing this code only once.

Prescribe ancillary services if appropriate

Keep in mind that when prescribing DME, other ancillary services may be appropriate to include in your plan as well. Your services in the office are valuable and should be charged and paid. Implementing more orthotics in the practice, for example, might also increase the amount of taping or extra-spinal manipulation you perform.

Prescribing a pillow or lower-back support may require an instructional session for proper use.


These are important reminders for ordering and billing these types of services:



Kinesiology taping is usually considered experimental and investigational by most carriers. Include it in your plan as an out-of-pocket service in these cases. We suggest billing 97799 for the taping service, and then charging for the tape, per 18 inches. Use A4450 if using non-waterproof tape and A4452 if waterproof.

If treating one or more extra spinal regions along with the spinal adjustments, report 98943. The five extra spinal regions are head, upper extremities, lower extremities, anterior ribs and abdomen. Be sure you use it only once per encounter, no matter how many regions are treated.

Report code 97760 the day you dispense orthotics. This includes the one-on-one time the provider spends in fitting the orthotics in the patient’s shoes, explaining break-in schedules, watching the patient ambulate, etc. Because this is a time-based code, include time spent and remember to add it together with other time-based codes billed the same visit.

When dispensing DME, it may be necessary to include therapeutic exercises to restore strength, range of motion and flexibility. Use code 97110 when there is a documented loss or restriction of joint motion, strength, functional capacity or mobility being addressed with exercises. Use it to ease adaptation time by breaking up fixations and strengthening weak muscles in the feet. Have patients exercise by rolling a golf ball or pulling a towel with their toes. Both can be done in the office under direct supervision, and at home.

Prescriptions are powerful

Not all patients have full insurance support for their services in your office. Whether they have partial coverage, no coverage or even a high deductible, that doesn’t mean the patient doesn’t need what you recommend.

Here are some ways you can help make DME and ancillary care affordable when insurance support is not there:

Package all the services for the patient. Consider the total charges for the DME and the associated care. Bundle the charges into a single estimated out-of-pocket amount. Allow the patient to make monthly payments, using an auto-debit system, toward their balance. Ask the patient to pay some down payment toward your cost when ordering. Be sure the down payment covers your costs. Then let them work the remainder into a budgeted payment plan.

Encourage the patient to utilize programs like HSAs, HRAs and other employer-assisted plans that help cover the cost of products and services. Use a network-based discount for out-of-pocket care, such as a Discount Medical Plan Organization. This provides a legal way to discount for members of a plan who must pay cash.

Be creative with your payment plans but, above all, don’t forget the patients’ needs. Find a win-win situation and make DME and orthotics a part of your regular patient care. Include these wonderful profit centers in your practice that are so necessary for the patients.

Comments

Popular posts from this blog

Revenue Cycle Management - RCM

When you enter the field of US Healthcare, the first thing you notice right away is the unique terminology that keeps bombarding you! New medical terms and medical slang keep popping up. Added to it is the abbreviations, acronyms and what not.... You feel overwhelmed at first... But gradually with some patience you can master the terms which are used often in your office. I am listing below some common healthcare terms used in Insurance and Billing in RCM. Check them out and hope you will learn a word or two! BILLING TERMS When both you and your health insurance company pay for your health care expenses, it’s called cost sharing. Deductibles, coinsurance and copays are all examples of cost sharing. Understanding how they work will help you know how much you’ll pay. Deductible A deductible is the amount you pay for health care services before your health insurance begins to pay. How it works: If your plan’s deductible is $1,500, you’ll pay 100 percen

What is Medical Coding?

Medical coding is the transformation of healthcare diagnosis, procedures, medical services and equipment into universal medical alphanumeric codes.” Put simply, this refers to the process of translating important medical information into simple codes for the purpose of documenting medical records and informing accurate medical billing. There are a few different  types of medical codes  used in healthcare settings today, but each of them allows for uniform documentation between medical facilities. Having this standard system allows for a more seamless transfer of medical records and more efficient research and analysis to track health trends. The three main types of codes are ICD-10-CM, CPT-4, and HCPCS What is a medical coder? Medical coders are the individuals responsible for translating physicians’ reports into useful medical codes. These professionals work behind the scenes in a variety of settings, ensuring all pertinent information is coded appropriately to e

Allograft vs Autograft vs Xenograft

Allo – Same species Auto – Same person Xeno – Animal (different species) An autologous transplant uses a person's own stem cells. ... In a reduced-intensity allogeneic transplant, doctors suppress the recipient's immune system enough so the donor stem cells can take root, or “engraft,” there. An autograft is a bone or tissue that is taken from a part of a person’s own body and transplanted into another. Often, surgeons will use a person’s own hamstring tendon to repair a damaged anterior cruciate ligament. Similarly, an autograft bone may be transplanted from a person’s hip to aide in a spinal fusion. Patients who undergo autograft procedures may experience increased postoperative pain from the second surgical (autograft) site. They may also require longer periods of rehabilitation. The use of allograft is advantageous because there is no second procedure required to remove and transfer a portion of the patient’s native bone or tissue. Surgical time may be

Necessity of English Proficiency in Medical Coding

Irish Blessing A moonbeam to charm you, A sheltering angel, so nothing can harm you. A sunbeam to warm you, Naturally, being fluent in English places you at an advantage in the field of Medical Coding. That being said, it does not fully eliminate you from entering Coding. Medical Coding is different from Medical Transcription and does not require the same expertise and fluency in English. Medical Transcription careers demand that you be highly fluent in American English, as we get most of our clients from the USA. You need to be tuned to their culture and lifestyle to name a few. But that is not the case with coding. Of course you should have a working knowledge of English. Or else you will be unable to comprehend a Medical Chart. As you need to peruse a medical chart, understand what is being done for a patient and derive the codes. The requirement for fluency in English is not as high as in Transcription. I keep comparing the two fields of transcription and coding becaus

Spleen - Anatomy

The  spleen  is an organ located in the upper left abdomen, and is roughly the size of a clenched fist. In the adult, the spleen functions mainly as a blood filter, removing old red blood cells. It also plays a role in both cell-mediated and humoral immune responses. The spleen in located in the upper left quadrant of the abdomen, under cover of the diaphragm and  the ribcage – and therefore cannot normally be palpated on clinical examination (except when enlarged). It is an intraperitoneal organ, entirely surrounded by peritoneum (except at the splenic hilum). The spleen is connected to the stomach and kidney by parts of the greater omentum – a double fold of peritoneum that originates from the stomach: The spleen has a slightly  oval  shape. It is covered by a weak capsule that protects the organ whilst allowing it to expand in size. The outer surface of the spleen can be anatomically divided into two: ·          Diaphragmatic surface  – in contact with diaphr

Place Holder X

The letter " x ” serves as a placeholder when a code contains fewer than six characters and a seventh character applies. The " x ” also allows for future expansion of the codes. When reporting ICD - 10 - CM codes, coders must add a placeholder so the seventh character is in the correct position. Not every ICD-10-CM code with a seventh character has a sixth character—or even a fifth or fourth character for that matter. This frequently occurs with poisonings and injuries. The letter "x” serves as a placeholder when a code contains fewer than six characters and a seventh character applies. The "x” also allows for future expansion of the codes. When reporting ICD-10-CM codes, coders must add a placeholder so the seventh character is in the correct position. Without this placeholder to ensure characters appear in the correct positions, codes are invalid. For example, a patient presents with an accidental poisoning by an antiallergic drug. For the initial

US Healthcare - Payment Posting

Payment posting and denial management are two extremely critical steps of the revenue cycle management of any solo practitioner or a healthcare organization. Streamlining these processes improves the RCM cycle leading to lesser delays in the A/R’s, ultimately guiding the way to increasing revenues along with patient satisfaction. Payment posting and its factors: In this process, the payment records of patients are recorded in the billing management software. It also includes attention to be given to claim denials — for identifying the problematic areas and their reasons along with apt actions to be taken on resolving the issues. Insurance Payment Posting: All payers either send an EOB (explanation of benefits) or ERA (electronic remittance advice) towards the payment of a claim. The medical billing staff posts these payments immediately into the respective patient accounts, against that particular claim to reconcile them. The payment posting is handled according to clie

Medical Coding, an excellent career choice!

As we are reeling under the pressure of COVID-19 infection in India, unemployment has reached sky high. Many have tried binge eating, binge cooking and binge watching movies to ward off boredom. So what is an alternative and viable option for our youngsters? Why not try something useful, that will enhance your career, or give a boost to your existing career. Learn something online. Be it a new skill, a new language, or something trending like Medical Coding. Medical Coding is a boon in such testing times. You can learn Medical Coding and re-skill yourself and reshape your career. If you are a graduate looking for an interesting and engrossing profession, Medical Coding checks all the boxes. The basic criteria needed is a college degree. Being tech savvy, which most of the youngsters are already thanks to smart phones, will help you move into this profession quite smoothly. A working knowledge of English is a must, as we receive all the work from USA. Once y