After Sept. 30, 2011, Medicare will deny claims submitted with modifier KY. Previously, non-contract, grandfathered suppliers submitting claims for purchased, covered accessories or supplies were told to use modifier KY on claims with dates of services on or after Jan. 1.
Suppliers of DMEPOS may continue to be paid for certain purchased, covered accessories or supplies furnished to Medicare beneficiaries for use with capped rental equipment, provided the non-contract supplier is also furnishing the capped rental equipment on a grandfathered basis. According to the report, a “grandfathered” supplier is a non-contract supplier who was providing capped rental items for Medicare beneficiaries when the Competitive Bidding Program started.
The supplier may continue to supply and receive payment for certain accessories and related supplies for the capped rental item until the rental cap payment is reached. Purchased, covered accessories and supplies include continuous positive airway pressure devices, hospital beds and related accessories and walkers and related accessories.
Read the AAPC report on modifier KY.
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