100-04 Medicare Claims Processing Manual: Chapter 35 - Independent Diagnostic Testing Facility (IDTF)

Medicare Claims Processing Manual
Chapter 35 – Independent Diagnostic Testing
Facility (IDTF)
Table of Contents
(Rev. 4473, 12-06-19)
Transmittals for Chapter 35
10 - General Coverage and Payment Policies
10.1 - The Term “Independent Diagnostic Testing Facility (IDTF)”
10.2 - Claims Processing
10.2.1 – Global billing
10.2.2 – Separate Technical and Professional Component Billing
20 - Ordering of Test
30 - Diagnostic Tests Subject to the Anti-Markup Payment Limitation
30.1 - National Provider Identification (NPI) Reported on Claims
40 - Interpretations Performed Off the Premises of the IDTF
50 - Therapeutic Procedures

10 - General Coverage and Payment Policies
(Rev. 1506; Issued: 05-16-08; Effective/Implementation Date: 06-16-08)
Effective for diagnostic procedures performed on or after March 15, 1999, A/B MACs
(B) will pay for diagnostic procedures under the physician fee schedule only when
performed by a physician, a group practice of physicians, an approved supplier of
portable x-ray services, a nurse practitioner, or a clinical nurse specialist when he or she
performs a test he or she is authorized by the State to perform, or an independent
diagnostic testing facility (IDTF). An IDTF may be a fixed location or a mobile entity. It
is independent of a physician's office or hospital.
Refer to the Medicare Program Integrity Manual, Pub. 100-08, chapter 10, for
information concerning provider enrollment and instructions regarding entities that must
enroll as and bill for diagnostic procedures as an independent diagnostic testing facility
(IDTF).
10.1 - The Term “Independent Diagnostic Testing Facility (IDTF)”
(Rev. 1506; Issued: 05-16-08; Effective/Implementation Date: 06-16-08)
Consistent with 42 CFR 410. 33(a)(1), an IDTF is one that is independent both of an
attending or consulting physician’s office and of a hospital. However, IDTF general
coverage and payment policy rules apply when an IDTF furnishes diagnostic procedures
in a physician’s office.
10.2 - Claims Processing
(Rev. 4473, Issued: 12-6-19; Effective: 3-9-20; Implementation: 3-9-20)
A. 	Billing Issues
Nothing in this document or in the Medicare Enrollment Application, (CMS-855B) or the
Internet-based Provider Enrollment, Chain and Ownership System shall be construed or
interpreted to authorize billing by an IDTF, physician, physician group practice, or any
other entity that would otherwise violate the physician self-referral prohibition set forth in
§1877 of the Social Security Act and related regulations. A/B MACs (Part B) must deny
claims submitted in violation of §1877 and demand refunds of any payments that have
been made in violation of §1877.
Consistent with 42 CFR 410.32(a), the supervisory physician for the IDTF, whether or
not for a mobile unit, may not order tests to be performed by the IDTF, unless the
supervisory physician is the patient’s treating physician and is not otherwise prohibited
from referring to the IDTF. The supervisory physician is the patient’s treating physician
if he or she furnishes a consultation or treats the patient for a specific medical problem
and uses the test results in the management of the patient’s medical problem.
If an IDTF wants to bill for an interpretation performed by a physician who does not
share a practice with the IDTF, the IDTF must meet certain conditions concerning the

anti-markup payment limitation. If a physician working for an IDTF (or a party related to
the IDTF through common ownership or control as described in 42 CFR §413.17) does
not order the technical component or professional component of a diagnostic test
(excluding clinical diagnostic laboratory tests), it would not be subject to the anti-markup
payment limitation. (See Pub. 100-04, chapter 1, §30.2.9)
B. 	Transtelephonic and Electronic Monitoring Services
Transtelephonic and electronic monitoring services (e.g., 24 hour ambulatory EKG
monitoring, pacemaker monitoring and cardiac event detection) may perform some of
their services without actually seeing the patient. Most but not all of these billing codes
are 93012 ,93014, 93040, 93224, 93225, 93226, 93232, 93230, 93231, 93233, 93236,
93270, 93271, 93731, 93733, 93736, 95953, 95956, These monitoring service entities
should be classified as IDTFs and must meet all IDTF requirements. We currently do not
have specific certification standards for their technicians; technician credentialing
requirements for them are at A/B MAC (Part B) discretion. They do require a
supervisory physician who performs General Supervision. Final enrollment of a
transtelephonic or electronic monitoring service as an IDTF requires a site visit.
For any entity that lists and will bill codes 93012, 93014, 93268, 93270, 93271, 93272,
the A/B MAC (Part B) must make a written determination that the entity actually has a
person available on a 24 hour basis to answer telephone inquiries. Use of an answering
service in lieu of the actual person is not acceptable. The person performing the attended
monitoring should be listed in Section 3 of Attachment 2 of Form CMS-855B. The
qualifications of the person are at the A/B MAC (Part B)’s discretion. The A/B MAC
(Part B) shall check that the person is available by attempting to contact the applicant
during non-standard business hours. In Particular, at least one of the contact calls should
be made between midnight and 6:00 AM. If the applicant does not meet the availability
standard they should receive a denial.
C. 	Slide Preparation Facilities and Radiation Therapy Centers
Slide Preparation Facilities and Radiation Therapy Centers are not IDTFs. Slide
preparation facilities are entities that provide slide preparation services and other kinds of
services that are payable through the technical component of the surgical pathology
service. These entities do not provide the professional component of surgical pathology
services or other kinds of laboratory tests. The services that they provide are recognized
by A/B MACs (Part B) for payment, as codes in the surgical pathology code range
(88300) to (88399) with a technical component value under the physician fee schedule.
The services provided by these entities are usually ordered by and reviewed by a
dermatologist. Slide preparation facilities generally only have one or two people
performing this service.
All enrolled Slide Preparation Facilities must enroll separately with their Medicare
contractor. Radiation therapy centers provide therapeutic services and therefore are not
IDTFs. Radiation therapy centers must enroll separately with their Medicare contractor.

10.2.1 – Global Billing
(Rev. 4473, Issued: 12-6-19; Effective: 3-9-20; Implementation: 3-9-20)
Global billing is acceptable when both the TC and 26 modifier are performed by the
same entity and both the TC and the 26 modifier are furnished within the same Medicare
Physician Fee Schedule (MPFS) payment locality. The TC and 26 may be furnished in
different locations as long as they are furnished within the same MPFS payment locality.
If the global diagnostic test code is billed, report the name, address and NPI of the
location where the technical component was furnished in Items 32 and 32a (or the 837P
electronic claim equivalent). See Pub. 100-04, chapter 1, §80.3.2.1.2 and 80.3.2.1.3 for
more information regarding what is required in Items 32 and 32a.
10.2.2 –Separate Technical and Professional Component Billing
(Rev. 4473, Issued: 12-6-19; Effective: 3-9-20; Implementation: 3-9-20)
When the TC and 26 modifier are billed separately (not billed globally), report the name,
address and NPI of the location where each component was performed. If the billing
provider has an enrolled practice location at the address where the service was
performed, the billing provider/supplier may report their own name, address and NPI in
Items 32 and 32a (or the 837P electronic claim equivalent).
If the professional component service was performed at an unusual or infrequently used
location, the location of the provider’s/supplier’s closest Medicare-enrolled practice
location may be used in Item 32.
The NPI in Item 32a must correspond to the entity identified in Item 32 (no matter if it is
the group, hospital, the IDTF, or the individual physician). The only exception for
Medicare claims is when a service is performed out of jurisdiction and is subject to the
anti-markup or a reference lab service. See Pub. 100-04, chapter 1, § 30.2.9 and chapter
16, §40.1 for instructions specific to anti-markup and reference lab, respectively.
See, Pub. 100-04, chapter 1, §80.3.2.1.2 and 80.3.2.1.3 for more information regarding
what is required in Items 32 and 32a.
20 - Ordering of Test
(Rev. 1506; Issued: 05-16-08; Effective/Implementation Date: 06-16-08)
All procedures performed by the IDTF must be specifically ordered in writing by the
physician or practitioner who is treating the beneficiary, that is, the physician who is
furnishing a consultation or treating a beneficiary for a specific medical problem and who
uses the results in the management of the beneficiary's specific medical problem.
(Nonphysician practitioners may order tests as set forth in CFR 410.32(a)(3).)
The order must specify the diagnosis or other basis for the testing. The supervising
physician for the IDTF may not order tests to be performed by the IDTF, unless the

IDTF's supervising physician is in fact the beneficiary's treating physician. That is, the
physician in question had a relationship with the beneficiary prior to the performance of
the testing and is treating the beneficiary for a specific medical problem. The IDTF may
not add any procedures based on internal protocols without a written order from the
treating physician.
30 - Diagnostic Tests Subject to the Anti-Markup Payment Limitation
(Rev. 4473, Issued: 12-6-19; Effective: 3-9-20; Implementation: 3-9-20)
In most instances, physicians working for an IDTF do not order diagnostic tests because
such tests are generally ordered by the patient’s treating physician. If a physician
working for an IDTF does not order a diagnostic test, the test is not subject to the anti-
markup payment limitation. However, if a physician working for an IDTF (or a
physician financially related to the IDTF through common ownership or control) orders a
diagnostic test payable under the Medicare Physician Fee Schedule (MPFS), the anti-
markup payment limitation may apply (depending on whether the performing physician
or other supplier meets the “sharing a practice” requirements). For additional
information, see Pub. 100-04, chapter 1, §30.2.9.
If a physician working for an IDTF (or a physician financially related to the IDTF
through common ownership or control) orders and the IDTF bills for a diagnostic test that
is performed by another physician or supplier, the performing physician or other supplier
must be enrolled in the Medicare program. No formal reassignment is necessary;
however, reassigned diagnostic testing services may also be subject to the anti-markup
payment limitation.
The billing entity must report using the ASC X12 837 professional claim format or on the
Form CMS-1500 the name, NPI, and address of the performing physician or other
supplier. The acquisition price of the either the technical component or professional
component of the diagnostic test must also be reported on the claim.
Effective for claims with dates of service on or after January 25, 2005, A/B MACs (Part
B) must accept and process claims for diagnostic tests subject to the anti-markup payment
limitation billed by suppliers (including laboratories, physicians, and independent
diagnostic testing facilities [IDTFs]) enrolled in the A/B MAC’s (Part B) jurisdiction, for
services furnished anywhere in the United States. For services furnished outside the A/B
MAC (Part B) jurisdiction in which the billing entity is enrolled, the billing entity must
submit its own NPI with the name, address, and ZIP code of the performing physician or
other supplier in the appropriate data field. (The billing physician or other supplier
should maintain a record of the performing physician or other supplier’s NPI in the
clinical record for auditing purposes.) Effective April 1, 2005, A/B MACs (Part B) must
price claims for diagnostic tests that are subject to the anti-markup payment limitation
based on the ZIP Code of the location where the service was rendered, using a CMS-
supplied abstract file containing the HCPCS codes that are payable under the MPFS as an
anti-markup test for the calendar year. From April 1, 2005, through December 31, 2013,
this was done using a CMS-supplied abstract file containing the HCPCS codes that are

payable under the MPFS as an anti-markup test for the calendar year. Beginning
January 1, 2014, A/B MACs (Part B) began using the Purchased Diagnostic Test
Indicator for the HCPCS codes that are payable under the MPFS as an anti-markup test
for the calendar year. A/B MACs (Part B) must pay the lesser of: (a) the net acquisition
price, (b) the billing entity’s actual charge, or (c) the fee schedule amount as if the test
was billed by the performing supplier.
Effective for claims submitted with a receipt date on and after October 1, 2015, the
billing physician or supplier must report the name, address, and NPI of the performing
physician or supplier in Item 32a on anti-markup and reference laboratory claims, even if
the performing physician or supplier is enrolled in a different A/B MAC (Part B)
jurisdiction. See Pub. 100-04, Chapter 1, §10.1.1 for more information regarding claims
filing jurisdiction.
NOTE: As with all services payable under the MPFS, the ZIP Code is used to determine
the appropriate payment locality and corresponding fee that is used to price the service
that is subject to the anti-markup payment limitation. When a ZIP Code crosses county
lines, CMS uses the dominant locality to determine the corresponding fee.
30.1 - National Provider Identification (NPI) Reported on Claims
(Rev. 2994; Issued: 07-25-14; Effective: 01-01-12; Implementation: 08-25-14)
Effective for dates of service May 23, 2008 and later, IDTF’s must submit the NPI
assigned to the ordering physician using the ASC X12 837 professional claim format or,
for paper claims, on the Form CMS-1500.
40 - Interpretations Performed Off the Premises of the IDTF
(Rev. 1987, Issued: 06-11-10, Effective: 08-12-10, Implementation: 08-12-10)
If an IDTF wants to bill for an interpretation performed by an independent practitioner
off the premises of the IDTF, the IDTF must meet the conditions shown in IOM Pub.
100-04, Chapter 1, §30.2.9.
50 - Therapeutic Procedures
(Rev. 1506; Issued: 05-16-08; Effective/Implementation Date: 06-16-08)
An IDTF shall not be allowed to bill for any CPT or HCPCS codes that are solely
therapeutic.

Transmittals Issued for this Chapter
Rev # 	Issue Date Subject 	Impl Date CR#
12/06/2019 Update to Medicare Claims Processing
Manual, Chapters 1, 23 and 35
03/09/2020 10882
R3255CP 05/08/2015 Correction to the Multi-Carrier System
(MCS) Editing on the Service Location
National Provider Identifier (NPI) Reported
for Anti-Markup and Reference Laboratory
Claims
10/05/2015 9150
R3103CP 11/03/2014 Reporting the Service Location National
Provider Identifier (NPI) on Anti-Markup and
Reference Laboratory Claims
04/06/2015 8806
R3098CP 10/21/2014 Reporting the Service Location National
Provider Identifier (NPI) on Anti-Markup and
Reference Laboratory Claims – Rescinded
and replaced by Transmittal 3103
04/05/2014 8806
R3047CP 08/22/2014 Reporting the Service Location National
Provider Identifier (NPI) on Anti-Markup and
Reference Laboratory Claims – Rescinded
and replaced by Transmittal 3098
01/05/2014 8806
R2994CP 07/25/2014 Update to Pub. 100-04, Chapter 35 to Provide
Language-Only Changes for Updating ASC
X12
08/25/2014 8769
R1987CP 06/11/2010 Correction to the Claims Processing Internet
Only Manual (IOM) to Reinstate Previous
Instructions Regarding Payment Jurisdiction
for Reassigned Services
08/12/2010 6923
R1931CP 03/12/2010 Revision of the Internet Only Manual (IOM)
to Remove References to “Purchased
Diagnostic Test” and Replace With Language
Consistent With the Anti-Markup Rule
06/14/2010 6627
R1504CP 05/15/2008 New Chapter for Independent Diagnostic
Testing Facilities (IDTF)
06/16/2008 5815
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