100-04 Medicare Claims Processing Manual: Chapter 7 - SNF Part B Billing (Including Inpatient Part B and Outpatient Fee Schedule)

Medicare Claims Processing Manual
Chapter 7 - SNF Part B Billing (Including Inpatient Part B and
Outpatient Fee Schedule)
Table of Contents
(Rev. 10880, 08-06-21)
Transmittals for Chapter 7
10 - Billing for Medical and Other Health Services
10.1 - Billing for Inpatient SNF Services Paid Under Part B
10.1.1 – Editing of Skilled Nursing Facilities Part B Inpatient Services
10.2 – Billing for Outpatient SNF Services
10.3 - Determining How Much to Charge Before Billing Is Submitted
10.4 - Charges for Services Provided in Different Accounting Years
10.5 - General Payment Rules and Application of Part B Deductible and
Coinsurance
20 - Use of Healthcare Common Procedure Coding System (HCPCS)
30 - Billing Formats
30.1 - Frequency of Billing for Skilled Nursing Facilities (SNFs)
30.2 - Guidelines for Submitting Corrected Bills
40 - Billing Part B Rehabilitation Services
40.1 - Audiologic Tests
50 - Billing Part B Radiology Services and Other Diagnostic Procedures
50.1 - Bone Mass Measurements
60 - Billing for Durable Medial Equipment (DME), Orthotic/Prosthetic Devices, and
Supplies (including Surgical Dressings)
60.1 - Billing
60.2 - Determining Payment and Patient Liability
60.3 - Billing for Enteral and Parenteral Nutritional Therapy as a Prosthetic
Device
70 - Drugs
70.1 - Immunosuppressive Drugs Furnished to Transplant Patients
80 - Screening and Preventive Services
80.1 - Pneumococcal Pneumonia, Influenza Virus, and Hepatitis B Vaccines

80.2 - Mammography Screening
80.2.1 - Diagnostic and Screening Mammograms Performed With New
Technologies
80.3 - Screening Pap Smears
80.4 - Screening Pelvic Examinations
80.5 - Prostate Cancer Screening
80.6 - Colorectal Cancer Screening
80.7 - Glaucoma Screening
90 - Billing for Laboratory Tests Under Part B - General
90.1 - Glucose Monitoring
100 - Epoetin (EPO)
110 - Carrier Claims Processing for Consolidated Billing for Physician and Non-
Physician Practitioner Services Rendered to Beneficiaries in a Non-covered SNF Stay

10 - Billing for Medical and Other Health Services
(Rev. 10880, Issued: 08-06-21, Effective: 11-08-21, Implementation: 11-08-21)
See Business Requirements at https://www.cms.gov/Regulations-and-
Guidance/Guidance/Transmittals/Downloads/R20CP.pdf.
There are three situations in which a SNF may submit a claim for Part B services. These
are identified in subsections A through C below.
No bill is required when:
• 	The patient is not enrolled under Part B;
• 	Payment was made or will be made by the Public Health Service, VA, or other
governmental entity;
• 	Workers' compensation has paid or will pay the bill; or
• 	Payment was made by liability, no-fault insurance, group health plan, or a large
group health plan.
A - Beneficiaries in a Part B Inpatient Stay (Part B Residents)
A Part B inpatient stay includes services furnished to inpatients whose benefit days are
exhausted, or who are not entitled to have payment made for services under Part A. A
more detailed description of services covered for beneficiaries in a Part B stay is found at
§10.1 – Billing for Inpatient Services Paid Under Part B.
B - Outpatient Services
Covered Part B services rendered to beneficiaries who are not inpatients of a SNF are
considered SNF outpatient services. They include the services listed in §10.1 below as
well as additional services described in the Medicare Benefit Policy Manual, Chapter 8,
"Coverage of Extended Care (SNF) Services Under Hospital Insurance," §§80 and
Medicare Benefit Policy Manual, Chapter 6, "Hospital Services Covered Under Part B."
Detailed instructions for billing are located in §10.2 – Billing for Outpatient SNF
Services.
C - Beneficiaries in a Part A Covered Stay
SNFs are required to consolidate billing to their intermediary for their covered Medicare
inpatient services. However, certain services rendered to SNF inpatients are excluded
from the SNF Prospective Payment System (PPS) reimbursement and are also excluded
from consolidated billing by the SNF. Those services must be billed to Part B by the
rendering provider and not by the SNF (except screening and preventive services as
described in the next paragraph.) A list of services excluded from consolidated billing is

found in the Medicare Claims Processing Manual, Chapter 6, "SNF Inpatient Part A
Billing," §§20 – 20.4.
Screening and preventive services are not included in the SNF PPS amount but may be
paid separately under Part B for Part A patients who also have Part B coverage.
Screening and preventive services are covered only under Part B. Only the SNF may bill
for screening and preventive services under Part B for its covered Part A inpatients. Bill
type 22X is used in billing screening and preventive services for beneficiaries in a
covered Part A stay and for beneficiaries that are Part B residents. TOB 23x is used for
SNF outpatients or for beneficiaries not in the SNF or DPU. The SNF must provide the
service or obtain it under arrangements.
Coverage, billing and payment guidelines are found in the Medicare Claims Processing
Manual, Chapter 18, "Preventive and Screening Services;" Chapter 17, "Drugs and
Biologicals;" and the Medicare Benefit Policy Manual, Chapter 15, "Covered Medical
and Other Health Services," §50.4.4.2.
There are certain medical and other health services for which payment may not be made
to a SNF. Most of these are professional services performed by physicians and other
practitioners. These services are always billed to the Medicare Part B MAC. Others are
services that have been determined to require a hospital setting to assure beneficiary
safety. Part A MAC shared systems receive an annual file listing these non-payable
HCPCS in November, and, if necessary, a quarterly update via a one-time-only
notification.
Physicians, non-physician practitioners, and suppliers billing the Part B MAC, and
providers billing the Part A MAC should consult the CMS Web site at
http://www.cms.hhs.gov/SNFConsolidatedBilling/ for lists of separately billable services.

10.1 - Billing for Inpatient SNF Services Paid Under Part B
(Rev. 980, Issued: 06-14-06, Effective: 10-01-06, Implementation: 10-02-06)
When the beneficiary in a Medicare-certified SNF is not entitled to Part A benefits,
limited benefits are provided under Part B. Reasons for not being entitled to have
payment made under Part A are that:
• 	The beneficiary does not have Medicare Part A Health Insurance;
• 	The beneficiary is not in a Medicare-certified bed;
• 	The inpatient stay is not at a covered level of care and no Part A program payment
is possible; or
• 	The inpatient stay is not covered because the beneficiary did not have a 3-day
qualifying stay.
When no Part A program payment is possible, some or all services may be medically
necessary and can be covered as ancillary services under Part B. The following services
may be billed by the SNF or the rendering provider or supplier under an arrangement
with the SNF:
• 	Diagnostic x-ray tests, diagnostic laboratory tests, and other diagnostic tests;
• 	X-ray, radium, and radioactive isotope therapy, including materials and
services of technicians;
• 	Surgical dressings, and splints, casts, and other devices used for reduction of
fractures and dislocations;
• 	Prosthetic devices (other than dental) which replace all or part of an internal
body organ (including contiguous tissue), or all or part of the function of a
permanently inoperative or malfunctioning internal body organ, including
replacement or repairs of such devices;
• 	Leg, arm, back, and neck braces, trusses, and artificial legs, arms, and eyes
including adjustments, repairs, and replacements required because of
breakage, wear, loss, or a change in the patient’s physical condition;
• 	Outpatient physical therapy, outpatient speech-language pathology services,
and outpatient occupational therapy (see Pub. 100-02 Medicare Benefit Policy
Manual, chapter 15, “Covered Medical and Other Health Services,” §220 and
230.
• 	Screening mammography services;
• 	Screening pap smears;
• 	Influenza, pneumococcal pneumonia, and hepatitis B vaccines;
• 	Colorectal screening;
• 	Bone mass measurements;

• 	Diabetes self-management;
• 	Prostate screening;
• 	Ambulance services;
• 	Hemophilia clotting factors for hemophilia patients competent to use these
factors without supervision);
• 	Immunosuppressive drugs;
• 	Oral anti-cancer drugs;
• 	Oral drug prescribed for use as an acute anti-emetic used as part of an anti-
cancer chemotherapeutic regimen; and
• 	Epoetin Alfa (EPO).
See chapter 6 of Pub. 100-02, Medicare Benefit Policy Manual for a discussion of the
circumstances under which the above services may be covered as Part B Inpatient
services.
Coverage rules for these services are described in Pub. 100-02, Medicare Benefit Policy
Manual, Chapters 10, 14, or 15. Specific billing instructions are found in the Medicare
Claims Processing Manual, Chapters 13, 15, 16, 18, 20, or 23.
Outpatient physical therapy, outpatient speech-language pathology services, and
outpatient occupational therapy (see Chapter 10, §§60) are billable services for SNF
inpatients not in a Part A stay. However, they must be billed by the SNF even when
another entity renders the services under an arrangement with the SNF.
The determination of whether to use TOB 22x or 23x is a function of the type of facility
in which the beneficiary resides. If the facility is not Medicare-certified, it is not a SNF,
although it may have a Medicare-certified distinct part unit (DPU). If the beneficiary is
in a SNF or SNF DPU, Part B services must be billed on TOB 22x.
All services rendered to SNF patients residing in the non-Medicare-certified portion of an
institution that is not primarily engaged in the provision of skilled services must be billed
on TOB 23x. Beneficiaries residing in such portions of the facility are considered
outpatients of the SNF for Medicare purposes.
If the entire facility qualifies as a Medic are-certified SNF, all Part B services rendered to
residents are billed on TOB 22x.
10.1.1 - Editing of Skilled Nursing Facilities Part B Inpatient Services
(Rev. 3481, Issued: 03-18-16. Effective: 06-20-16, Implementation: 06-20-16)
Medicare pays under Part B for physicians’ services and for non-physician medical and
other health services listed below when furnished by a participating hospital to an
inpatient of the SNF when patients are not eligible or entitled to Part A benefits or the
patient has exhausted their Part A benefits.

The SSM shall edit to prevent payment on Type of Bill 22x for claims containing the
revenue codes listed in the table below.
010x 	011x 	012x 	013x 	014x 	015x 	016x 	017x
018x 	019x 	020x 	021x 	022x 	023x 	024x 	0250
0251 	0252 	0253 	0256 	0257 	0258 	0259 	0261
0269 	0270 	0273 	0277 	0279 	029x 	0339 	036x
0370 	0374 	041x 	045x 	0472 	0479 	049x 	050x
051x 	052x 	053x 	0541 	0542 	0543 	0544 	0546
0547 	0548 	0549 	055x 	057x 	058x 	059x 	060x
0630 	0631 	0632 	0633 	0637 	064x 	065x 	066x
067x 	068x 	072x 	0762 	078x 	079x 	093x 	0940
0941 	0943 	0944 	0945 	0946 	0947 	0949 	095x
0960 	0961 	0962 	0969 	097x 	098x 	099x 	100x
210x 	310x
The contractor shall use the following remittance advice messages and associated codes
when rejecting/denying claims under this policy. This CARC/RARC combination is
compliant with CAQH CORE Business Scenario Three.
Group Code: CO
CARC: 96
RARC: M28
MSN: 21.21
10.2 – Billing for Outpatient SNF Services
(Rev. 229, Issued 07-20-04 Effective/Implementation 08-19-04)
SNF-529
Coverage is available for all of the services described in §10.1. However, beneficiaries
not in the Medicare-certified Distinct Part Unit (DPU) are not required to have therapy
services (physical therapy, occupational therapy, and speech language pathology) billed
by the SNF. Therapy services need only be bundled to the SNF for those SNF residents
in a Medicare-certified DPU. For additional information see Chapter 6, SNF Inpatient
Part A Billing, §20.5 Therapy Services.
10.3 - Determining How Much to Charge Before Billing Is Submitted
(Rev. 1, 10-01-03)
SNF-529.1
The SNF may be able to determine from the SNF's records, from a transferring hospital,
or from the patient the extent to which the Part B cash deductible is met. The SNF may
charge the patient for the unmet deductible and coinsurance. The SNF should submit a
bill even if no payment can be made because the unmet Part B cash deductible exceeds

the covered charges. In addition, a bill is required when the SNF becomes aware that no
bill has been submitted for covered services even though the time limitation for filing has
expired.
10.4 - Charges for Services Provided in Different Accounting Years
(Rev. 1, 10-01-03)
SNF-529.2
The SNF must not put charges for services provided in different accounting years on the
same bill. At the end of the SNF's accounting year, the SNF should submit a bill that
contains the charges for all services furnished to the patient since the last bill through the
end of the year. The SNF should include bills in which the deductible covers all charges.
All services furnished in the succeeding accounting year should be placed on a separate
bill. Complete all items on the subsequent bill.
10.5 - General Payment Rules and Application of Part B Deductible and
Coinsurance
(Rev. 685, Issued: 09-23-05, Effective: 12-27-05, Implementation: 12-27-05)
SNF-529.3
Section 1888(e)(9) of the Social Security Act (the Act) requires that the payment amount
for Part B SNF services shall be the amount prescribed in the otherwise applicable fee
schedule. Thus, where a fee schedule exists for the type of service, the fee amount will
be paid. Where a fee does not exist on the Medicare Physician Fee Schedule (MPFS) the
particular service is priced based on cost. This is also true for all “carrier-priced” codes
on the MPFS, but not for services paid on the Clinical Diagnostic Laboratory Fee
Schedule. All lab services missing fees are to be gap-filled. Some specific services
continue to be paid on a cost basis and are specifically stated in the sections below where
cost applies.
Where payment is made under a fee schedule, the beneficiary's deductible and
coinsurance are based on the approved amount. Where payment is made on a cost basis,
deductible and coinsurance are based on charges for the service.
20 - Use of Healthcare Common Procedure Coding System (HCPCS)
(Rev. 1, 10-01-03)
SNF-530, SNF-530.3
HCPCS is required for reporting all SNF services paid under Part B, whether paid by
Medicare fee schedules or by some other mechanism. A description of HCPCS codes is
found in the Medicare Claims Processing Manual, Chapter 23.
The SNF should use the CPT-4 portion of HCPCS and/or Level II as directed by the
manual sections applicable to the Part B service that is being billed. Currently, HCPCS
codes are not applicable on SNF Part A inpatient claims.

For Part B claims, there are separate codes for the technical component, professional
component, and/or complete procedure. Generally, SNFs bill for the technical
component only, using the code that describes the procedure provided.
There may be specific rules for use of HCPCS codes for specific types of services (e.g.,
SNF's must bill global services for therapies). These will be described in the manual
sections for the applicable service.
Revenue codes, HCPCS codes, line item dates of service, and units are required. Charges
must be reported by HCPCS code. If the same revenue code applies to two or more
HCPCS codes, the SNF should repeat the revenue code and show the line item date of
service, units and charge for each HCPCS code on a separate line.
30 - Billing Formats
(Rev. 3053, Issued: 08-28-14, Effective: ICD-10: Upon Implementation of ICD-10
ASC-X12: 01-01-12, Implementation ICD-10: Upon Implementation of ICD-10;
ASC X12: 09-30-14)
The SNF must use the current ASC X12 837 institutional claim format or if permissible
Form CMS-1450 to bill for covered Part B services. Instructions for those formats are
located in the Medicare Claims Processing Manual, Chapter 25, "Completing and
Processing the CMS-1450 Data Set."
30.1 - Frequency of Billing for Skilled Nursing Facilities (SNFs)
(Rev. 1, 10-01-03)
SNF-561
SNFs must bill repetitive Part B services on a single individual monthly bill (or at the
conclusion of treatment). This avoids Medicare processing costs in holding such bills for
monthly review and reduces bill processing costs for relatively small claims. See the
Medicare Claims Processing Manual, Chapter 1, "General Billing Requirements,"
§50.2.2, for additional instructions when billing repetitive services and billing repetitive
services during an inpatient stay.
Other one-time Part B services must be billed upon completion of the services.
30.2 - Guidelines for Submitting Corrected Bills
(Rev. 1, 10-01-03)
SNF-562, SNF-562.A
When a SNF or intermediary discovers an error on an original bill, there are three
methods for correcting the bill depending on the type of error. The SNF or intermediary
may submit a late charge bill, an adjustment request, or maintain a log of charges. Each
of the methods and appropriate use are explained in the Medicare Claims Processing
Manual, Chapter 1, "General Billing Requirements," §130.

40 - Billing Part B Rehabilitation Services
(Rev. 1, 10-01-03)
SNF-515.6
Part B rehabilitation services other than audiology services must be billed by the SNF for
Part A inpatients, for Part B residents (those not in a covered Part A stay) and for
outpatients. Effective January 1, 1999, the MPFS is the payment basis for these services.
The Medicare Claims Processing Manual, Chapter 5, "Part B Outpatient Rehabilitation
and CORF Services," contains instructions for billing, payment, and applicable HCPCS
codes.
40.1 - Audiologic Tests
(Rev. 980, Issued: 06-14-06, Effective: 10-01-06, Implementation: 10-02-06)
Audiologic tests will generally be billed to the carrier by the provider of service. For
tests that include both a professional component and technical component, the SNF may
elect to bill the technical component to the intermediary, but is not required to bill the
service. See Pub 100-02 chapter 15, section 80.3 for further information on audiology.
Payment to SNFs for audiologic tests are bundled into the PPS payment amount for
beneficiaries in a covered SNF Part A stay, whether provided directly by the SNF or
under arrangements by an independent provider based on a contract with the SNF.
Independent audiologists may bill the carrier directly for services rendered to
beneficiaries not in a SNF Part A covered stay. For beneficiaries not in a covered Part A
SNF stay, who are sometimes referred to as beneficiaries in a Part B SNF stay, audiologic
tests are payable under Part B when billed by the SNF as type of bill 22X, or when billed
directly to the carrier by the provider of the service. Payment is based on the Medicare
Physician Fee Schedule (MPFS), whether by the carrier or the intermediary.
Since audiologic tests are not bundled with speech -language pathology services,
payment is made to the provider of service or to the SNF where the services are provided
under arrangements with the SNF for SNF outpatients.
50 - Billing Part B Radiology Services and Other Diagnostic Procedures
(Rev. 1, 10-01-03)
Acceptable HCPCS codes for radiology and other diagnostic services are taken primarily
from the CPT-4 portion of HCPCS. Payment is the lower of billed charges or the fee
schedule amount. In either case, any applicable deductible and coinsurance amounts are
subtracted from the payment amount prior to payment. Coinsurance is calculated on the
Medicare payment amount after the subtraction of any applicable deductible amount.
Additional instructions for coverage, billing, payment, and specific instructions for the
services listed below are found in the Medicare Claims Processing Manual, Chapter 13,
"Radiology Services":

• 	Contrast material other than low osmolar contrast material (LOCM) for radiology;
• 	LOCM;
• 	Radiopharmaceuticals;
• 	IV Persantine;
• 	Transportation of equipment;
• 	Position Emission Tomography (PET); and
• 	Adenosine.
50.1 - Bone Mass Measurements
(Rev. 1, 10-01-03)
SNF-535.5
Sections 1861(s)(15) and §1861(rr)(1) of the Act (as added by §4106 of the Balanced
Budget Act (BBA) of 1997) standardized Medicare coverage of medically necessary
bone mass measurements by providing for uniform coverage under Medicare Part B.
This standardized coverage is effective for claims with dates of service furnished on or
after July 1, 1998. The Medicare Claims Processing Manual, Chapter 13, "Radiology
Services," contains coverage, billing, and payment requirements for bone mass
measurements.
60 - Billing for Durable Medial Equipment (DME), Orthotic/Prosthetic
Devices, and Supplies (including Surgical Dressings)
(Rev. 3053, Issued: 08-28-14, Effective: ICD-10: Upon Implementation of ICD-10
ASC-X12: 01-01-12, Implementation ICD-10: Upon Implementation of ICD-10;
ASC X12: 09-30-14)
A SNF may not bill for DME furnished to its Part A inpatients as necessary DME must
be supplied to the beneficiary as part of SNF services. A SNF may not bill for DME
furnished to its Part B inpatients or outpatients. However, a SNF may qualify as a
supplier and enroll with the National Supplier Clearinghouse. In such cases, the SNF is
given a separate supplier number to bill outpatient DME to the DME MAC. The DME
MAC will furnish billing guidelines and payment will be made directly to the SNF as a
supplier.
The SNF or other entity that furnishes prosthetic and/or orthotic devices to SNF residents
for whom Part A benefits are not payable (no Part A entitlement or benefits exhausted)
and for SNF outpatients may bill for such items. The SNF bills the A/B MAC (A).
Suppliers bill the A/C MAC (B) or DME MAC. See Chapter 20 for DMEPOS billing
requirements, including definition of "supplier."
Prosthetic and orthotic devices are:

• 	Prosthetic devices (other than dental) that replace all or part of an internal body
organ (including connective tissue) or replace all or part of the function of a
permanently inoperative or malfunctioning internal body organ, including
replacement or repair of such devices (see the Medicare Benefit Policy Manual,
Chapter 15, "Covered Medical and Other Health Service," §120); and
• 	Leg, arm, and neck braces, trusses, and artificial legs, arms, and eyes, including
adjustments, repairs, and replacement required because of breakage, wear, loss, or
a change in the patient's physical condition (see the Medicare Benefit Policy
Manual, Chapter 15, "Covered Medical and Other Health Service," §130).
SNFs bill supplies to its A/B MAC (A) for outpatients.
60.1 - Billing
(Rev. 3053, Issued: 08-28-14, Effective: ICD-10: Upon Implementation of ICD-10
ASC-X12: 01-01-12, Implementation ICD-10: Upon Implementation of ICD-10;
ASC X12: 09-30-14)
The SNF must bill the A/B MAC (A) for prosthetic/orthotic devices, supplies and
surgical dressings using the ASC X12 837 institutional claim format or if permissible
Form CMS-1450. Requirements for billing can be found in the Medicare Claims
Processing Manual, Chapter 25, "Completing and Processing the CMS 1450 Data Set."
The SNF must bill prosthetic and orthotic devices under revenue code 274, along with the
appropriate HCPCS code. When billing for maintenance and servicing of these items,
revenue code 274 along with the appropriate HCPCS code must be used.
The SNF should report "Units of Service" on Form CMS-1450 the number of items billed
to the SNF's A/B MAC (A) for orthotics and prosthetics.
Supplies may be billed for SNF outpatients under revenue code 270. Payment is made
based on a fee schedule.
The SNF should bill the A/B MAC (A) for surgical dressings under revenue code 623.
HCPCS codes for reporting surgical dressing are normally found in the Level II HCPCS
codes in the A6000 series. The A/B MAC (A) makes payment based on the surgical
dressing fee schedule.
SNFs use 22X type of bill for orthotic and prosthetic devices and surgical dressings when
billing for its Part B inpatients. Orthotic and prosthetic devices, surgical dressings, and
supplies for outpatients are billed with 23X type of bill.
(See the Medicare Benefit Policy Manual, Chapter 15, "Covered Medical and Other
Health Service," §100 for coverage data.)
60.2 - Determining Payment and Patient Liability

(Rev. 1, 10-01-03)
SNF-534.D, SNF-534.E
There may be prosthetic and orthotic devices, for which the SNF would bill that are not
included in the fee schedule. When fee schedule amounts are not available for a
particular item, the intermediary will pay based on cost.
To determine the SNF's Part B payment, the SNF subtracts any unmet Part B deductible
from the lower of the actual charge or the fee schedule amount for the item or service and
multiply the remainder by 80 percent. This is the final payment. The patient's liability is
the remaining 20 percent plus any deductible remaining to be met.
60.3 - Billing for Enteral and Parenteral Nutritional Therapy as a
Prosthetic Device
(Rev. 1, 10-01-03)
(Rev. 3053, Issued: 08-28-14, Effective: ICD-10: Upon Implementation of ICD-10
ASC-X12: 01-01-12, Implementation ICD-10: Upon Implementation of ICD-10;
ASC X12: 09-30-14)
Parenteral nutritional (PEN) therapies including the necessary equipment, medical
supplies and nutrients provided to an inpatient (where Part A payment cannot be made),
or to individuals who are not inpatients are covered as a prosthesis under the Part B
prosthetic device benefit as long as the requirements in the Coverage Manual are met,
and the required documentation is submitted.
The SNF or the supplier must bill the DME MAC. The SNF or supplier should refer to
the most recent HCPCS directory or billing instructions distributed by the DME MAC for
current HCPCS coding information. If the SNF bills the DME MAC., it must obtain a
supplier number from the National Supplier Clearinghouse and must use the ASC X12
837 professional claim format, or if permissible Form CMS-1500.
Billing Instructions are in the Medicare Claims Processing Manual, Chapter 26,
"Completing and Processing the Form CMS-1500 Data Set."
DME MAC jurisdictions are based on the residence of the beneficiary. The DME MAC
for each State is shown on the CMS Web site at
http://www.cms.hhs.gov/medicare/medicare-contracting/medicare-administrative-
contractors/medicareadministrativecontractors.html .
70 - Drugs
(Rev. 1, 10-01-03)
SNF-536, SNF 536.1
Drugs and biologicals furnished to outpatients for therapeutic purposes that are self-
administered are not covered by Medicare unless those drugs and biologicals must be put

directly into an item of durable medical equipment or a prosthetic device. Exceptions to
this rule are:
• 	Self administered drugs administered in an emergency situation;
• 	Self-administered oral versions of covered injectable cancer drugs prescribed as
an anti-cancer chemotherapeutic;
• 	Self-administered anti-emetic drugs;
• 	Oral anti-emetic drugs as full therapeutic replacements for intravenous dosage
forms as part of a chemotherapeutic regimen provided that the drug(s) be
administered or prescribed by a physician for use immediately before, at, or
within 48 hours after the time of administration of the chemotherapeutic agent;
and
• 	Immunosuppressive drugs furnished to transplant patients.
See the Medicare Benefit Policy Manual, Chapter 15, "Covered Medical and Other
Health Services," §§50 for coverage of drugs.
See the Medicare Claim Processing Manual, Chapter 17, "Drugs," §§80 for billing and
payment instructions.
Where covered under Part B, self administered drugs for SNF inpatients not entitled to
Part A benefits should be billed using type of bill 22X, and for SNF outpatients, using
type of bill 23X.
70.1 - Immunosuppressive Drugs Furnished to Transplant Patients
(Rev. 1, 10-01-03)
Part B of Medicare covers FDA-approved immunosuppressive drugs. Payment is made
for those immunosuppressive drugs that have been specifically labeled as such and
approved for marketing by the FDA, as well as those prescription drugs, such as
prednisone, that are used in conjunction with immunosuppressive drugs as part of a
therapeutic regimen reflected in FDA-approved labeling for immunosuppressive drugs.
Therefore, antibiotics, hypertensives, and other drugs that are not directly related to
rejection are not covered.
Deductible and coinsurance apply. SNFs bill using TOB 22X for Part B residents and
TOB 23x for outpatients.
See the Medicare Benefit Policy Manual, Chapter 15, "Covered Medical and Other
Health Services," §§50 for coverage of drugs.

See the Medicare Claim Processing Manual, Chapter 17, "Drugs," §§80 for billing and
payment instructions.
80 - Screening and Preventive Services
(Rev. 1, 10-01-03)
Screening and preventive services are only covered as a Medicare Part B benefit. When
furnished to a beneficiary in a SNF Part A covered stay, the SNF must bill its
intermediary using 22X type of bill. These services are billed on TOB 23x for SNF
outpatients and beneficiaries outside the Medicare-certified SNF or DPU.
See §10.C for billing preventive services for covered SNF Part A inpatients.
A SNF may bill screening and preventive services for its Part B residents using 22X type
of bill or the supplier may bill its carrier. Screening and preventive services rendered to
SNF outpatients may be billed with 23X type of bill or the supplier may bill its carrier.
HCPCS codes are required. See the Medicare Claims Processing Manual, Chapter 18,
"Preventive and Screening Services" for coverage, billing, appropriate HCPCS codes,
and payment requirements.
Payment is made under the Medicare Physician's Fee Schedule (MPFS) or clinical
diagnostic lab fee schedule depending on the service.
80.1 - Pneumococcal Pneumonia, Influenza Virus, and Hepatitis B
Vaccines
(Rev. 1, 10-01-03)
SNF-536.2
Part B of Medicare pays 100 percent for pneumococcal pneumonia vaccines (PPV) and
influenza virus vaccines and their administration. Payment is made on a cost basis.
Deductible and coinsurance do not apply. Part B of Medicare also covers the hepatitis B
vaccine and its administration. Deductible and coinsurance apply.
Medicare Claims Processing Manual, Chapter 18, "Preventive and Screening Services,"
contains instructions for simplified billing of Influenza virus vaccine and Pneumococcal
Pneumonia vaccine by mass immunizers.
80.2 - Mammography Screening
(Rev. 3053, Issued: 08-28-14, Effective: ICD-10: Upon Implementation of ICD-10
ASC-X12: 01-01-12, Implementation ICD-10: Upon Implementation of ICD-10;
ASC X12: 09-30-14)
Section 4163 of the Omnibus Budget Reconciliation Act of 1990 added §1834(c) of the
Act to provide for Part B coverage of mammography screening for certain women
entitled to Medicare for screenings performed on or after January 1, 1991. The term

"screening mammography" means a radiologic procedure provided to an asymptomatic
woman for the purpose of early detection of breast cancer and includes a physician's
interpretation of the results of the procedure. Unlike diagnostic mammographies, there
do not need to be signs, symptoms, or history of breast disease in order for the exam to be
covered.
The technical component portion of the screening mammography should be billed on the
ASC X12 837 institutional claim format or if permissible Form CMS-1450 under bill
type 22X for SNF Part A and Part B inpatients or 23X for SNF outpatients. Claims for
mammography screening should include only the charges for the screening
mammography.
80.2.1 - Diagnostic and Screening Mammograms Performed With New
Technologies
(Rev. 1, 10-01-03)
Section 104 of the Benefits Improvement and Protection Act 2000, (BIPA) entitled
"Modernization of Screening Mammography Benefit," provides for new payment
methodologies for both diagnostic and screening mammograms that utilize advanced new
technologies for the period April 1, 2001, through December 31, 2001. See the Medicare
Claims Processing Manual, Chapter 18, "Preventive and Screening Services," for the
payment method for this period, applicable HCPCS codes, and other billing and
processing instructions.
Effective January 1, 2002, payment is based on the mammography benefit pricing file
furnished by CMS.
80.3 - Screening Pap Smears
(Rev. 1, 10-01-03)
SNF-541.2
Sections 1861(s)(14) and 1861(nn) of the Act, (as enacted by §6115 of the Omnibus
Budget Reconciliation Act of 1989) provides for coverage of screening pap smears for
services provided on or after July 1, 1990. Screening pap smears are laboratory tests
consisting of a routine exfoliative cytology test (Papanicolaou test) provided for the
purpose of early detection of cervical cancer. It includes a collection of the sample of
cells and a physician's interpretation of the test.
Payment is made under the clinical diagnostic laboratory fee schedule.
80.4 - Screening Pelvic Examinations
(Rev. 1, 10-01-03)
Section 4102 of the BBA of 1997 (P.L. 105-33) amended §1861(nn) of the Act (42 USC
1395X(nn)) to include coverage of screening pelvic examinations for all female
beneficiaries for services provided January 1, 1998, and later. Effective July 1, 2001, the

Consolidated Appropriations Act of 2001 (P.L. 106-554) modifies §1861(nn) to provide
Medicare coverage for biennial screening pelvic examinations.
Payment is made under the Medicare Physician's Fee Schedule (MPFS).
80.5 - Prostate Cancer Screening
(Rev. 1, 10-01-03)
Sections 1861(s)(2)(P) and 1861(oo) of the Act (as added by §4103 of the Balanced
Budget Act of 1997), provide for coverage of certain prostate cancer screening tests
subject to certain coverage, frequency, and payment limitations. Effective for services
furnished on or after January 1, 2000, Medicare covers prostate cancer screening
tests/procedures for the early detection of prostate cancer. Coverage of prostate cancer
screening tests includes the following procedures furnished to an individual for the early
detection of prostate cancer:
• 	Screening digital rectal examination; and
• 	Screening prostate specific antigen (PSA) blood test
Each test may be paid at a frequency of once every 12 months for men who have attained
age 50 (i.e., starting at least one day after they have attained age 50), if at least 11 months
have passed following the month in which the last Medicare-covered screening digital
rectal examination was performed (for digital rectal exams) or PSA test was performed
(for PSA tests).
Payment is made under the clinical diagnostic laboratory fee schedule.
80.6 - Colorectal Cancer Screening
(Rev. 1, 10-01-03)
See the Medicare Benefit Policy Manual, Chapter 15, "Covered Medical and Other
Health Services," §80.5, for coverage of colorectal rectal screening services.
Effective for services furnished on or after January 1, 1998, payment may be made for
colorectal cancer screening for the early detection of cancer. For screening colonoscopy
services (one of the types of services included in this benefit) prior to July 2001, coverage
was limited to high-risk individuals. For services July 1, 2001, and later, screening
colonoscopies are covered for individuals not at high risk. Screening colonoscopies are
not payable to the SNF. Screening colonoscopies are only covered when rendered in a
hospital or CAH.
For all other colorectal screening services payment is made under the MPFS or the
clinical diagnostic laboratory fee schedule based on the service rendered.
80.7 - Glaucoma Screening
(Rev. 1, 10-01-03)

The Benefits Improvement and Protection Act of 2000, §102, provides annual coverage
for glaucoma screening for Medicare beneficiaries with diabetes mellitus, or a family
history of glaucoma, or African-Americans age 50 and over. Conditions of coverage for
glaucoma screening are located in the Medicare Benefit Policy Manual, Chapter 15,
"Covered Medical and Other Health Services."
Payment is made under the Medicare Physician's Fee Schedule (MPFS).
90 - Billing for Laboratory Tests Under Part B - General
(Rev. 1, 10-01-03)
Section 1833(h)(5) of the Act (as enacted by The Deficit Reduction Act of 1984, Public
Law 98-369) requires the establishment of a fee schedule for clinical diagnostic
laboratory tests paid under Part B.
Section 1833g(5)(A)iii of Title XVIII provides that "in the case of a clinical diagnostic
laboratory test provided under an arrangement (as defined in §1861(w)(1)) made by a
hospital, critical access hospital or skilled nursing facility, payment shall be made to the
hospital or skilled nursing facility."
SNFs must make arrangements under Part A and may make arrangements under Part B
under which the SNF bills the intermediary and receives payment. Under this process,
the SNF pays the lab for services whatever amount the SNF and the lab agree on, and the
beneficiary may not be charged by the lab.
Where the SNF and a lab have entered into such an arrangement, the arrangement may
include Part A only or may include Part A and Part B. Such an arrangement is voluntary
on the part of both the lab and the SNF for Part B services.
In the absence of such an arrangement under Part B, the lab may bill the program for lab
services furnished to residents for whom Part A cannot be paid, and for SNF outpatients,
and the SNF may not bill the program for these services. Hospital labs and labs in other
SNFs would bill the intermediary. Independent labs would bill the carrier.
Laboratory tests performed for the SNF's Medicare inpatients covered under Part A are
included in the PPS SNF payment.
If the FI receives fee amounts for HCPCS included on both the clinical diagnostic
laboratory fee schedule and the SNF extract of the MPFS, the SNF receives the amount
on the laboratory fee schedule.
Payment is made for specimen collection fees and travel allowance as discussed in
Medicare Claims Processing Manual, Chapter 16, "Laboratory Services from
Independent Labs, Physicians, and Providers."

Bill type 22X for lab services to Part B residents and 23X for nonresidents should be
used.
Neither deductible nor coinsurance applies to lab fee schedule payments.
See the Medicare Claims Processing Manual, Chapter 16, "Laboratory Services from
Independent Labs, Physicians, and Providers," for additional coverage, billing, and
payment requirements.
90.1 - Glucose Monitoring
(Rev. 1, 10-01-03)
Medicare Part B may pay for a glucose monitoring device and related disposable supplies
under its durable medical equipment benefit if the equipment is used in the home or in an
institution that is used as a home. A hospital or SNF is not considered a home under this
benefit (§1861(h) of the Act, 42 CFR 410.38).
Routine glucose monitoring of diabetics is never covered in a SNF, whether the
beneficiary is in a covered Part A stay or not. Glucose monitoring may only be covered
when it meets all the conditions of a covered laboratory service, including use by the
physician in modifying the patient's treatment.
100 - Epoetin (EPO)
(Rev. 1, 10-01-03)
SNF-543
EPO is a biologically engineered protein which stimulates the bone marrow to make new
red blood cells. Patients with anemia associated with chronic renal failure include all
ESRD patients regardless of whether they are on dialysis.
EPO is covered for the treatment of anemia for patients with chronic renal failure who are
receiving dialysis when it is administered in a renal dialysis facility (RDF).
EPO is not included in SNF PPS and may be billed separately when given in conjunction
with dialysis by the Renal Dialysis Facility. It must be billed by the RDF.
EPO is not a SNF outpatient benefit.
110 - Carrier Claims Processing for Consolidated Billing for Physician
and Non-Physician Practitioner Services Rendered to Beneficiaries in a
Non-Covered SNF Stay
(Rev. 846, Issued: 02-10-06; Effective: 12-15-05; Implementation: 03-13-06)
For Medicare beneficiaries in a non-covered stay, only therapy services are subject to
consolidated billing. All other covered SNF services must be separately billed to the
carrier for payment consideration. Refer to section 110 in Chapter 6, SNF Inpatient Part

A Billing for additional information on carrier claims processing. A list of therapy codes
that are subject to consolidated billing for beneficiaries in a non-covered SNF stay can be
found on the CMS Web site at http://www.cms.hhs.gov/SNFConsolidatedBilling/.

Transmittals Issued for this Chapter
Rev # 	Issue Date 	Subject 	Impl Date 	CR#
R10880CP 	08/06/2021 	Internet Only Manual Updates to Pub.
100-01, 100-02, and 100-04 to
Implement Consolidated
Appropriations Act Changes and
Correct Errors and Omissions (SNF)
11/08/2021 	12009
R3481CP 	03/18/2016 	Updates to Pub. 100-04, Chapters 3, 6,
7 and 15 to Correct Remittance Advice
Messages
06/20/2016 	9562
R3053CP 	08/28/2014 	Update to Pub. 100-04, Chapters 7 and
8 to Provide Language-Only Changes
for Updating ICD-10 and ASC X12
09/30/2014 	8579
R2905CP 	03/14/2014 	Update to Pub. 100-04, Chapters 7 and
8 to Provide Language-Only Changes
for Updating ICD-10 and ASC X12 –
Rescinded and replaced by Transmittal
3053
10/01/2014 	8579
R1472CP 	03/06/2008 	Update of Institutional Claims
References
04/07/2008 	5893
R1421CP 	01/25/2008 	Update of Institutional Claims
References - Rescinded and Replaced
by Transmittal 1472
04/07/2008 	5893
R980CP 	06/14/2006 	Changes Conforming to CR 3648
Instructions for Therapy Services -
Replaces Rev. 941
10/02/2006 	4014
R941CP 	05/05/2006 	Changes Conforming to CR 3648
Instructions for Therapy Services
10/02/2006 	4014
R846CP 	02/10/2006 	New Skilled Nursing Facility
Consolidated Billing Web site Address
03/13/2006 	4297
R685CP 	09/23/2005 	Discontinuation of the Skilled Nursing
Facility (SNF) HCPCS Help File and
Notification to Fiscal Intermediaries
(FIs) and Providers of the Redesigned
SNF Consolidated Billing (CB)
12/27/2005 	4044

Annual Update File Posted on CMS
Web Site
R351CP 	10/29/2004 	Editing of Hospitals and Skilled
Nursing Facilities Part B Inpatient
Services (Full Replacement of Change
Request 3366)
01/03/2005 	3531
R301CP 	09/17/2004 	Editing Of Hospital And Skilled
Nursing Facility Part B Inpatient
Services
01/03/2005 	3366
R251CP 	07/23/2004 	Editing Of Hospital And Skilled
Nursing Facility Part B Inpatient
Services
01/03/2005 	3366
R229CP 	07/20/2004 	Additional Clarification of Bill Types
22x and 23x Submitted by Skilled
Nursing Facilities (SNFs) With
Instructions for Involuntarily Moving a
Beneficiary Out of the SNF and
Ending a Benefit Period
08/19/2004 	3323
R076CP 	02/06/2004 	SNF Inpatient Part A Billing 	N/A 	3133
R020CP 	10/31/2003 	Add a paragraph regarding the SNF
NO PAY FILE
11/05/2003 	2968
R001CP 	10/01/2003 	Initial Publication of Manual 	NA 	NA
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