Here are the details for those interested
Medicare Provides Clarification on Coding
of Prostate Biopsies
There has been some ambiguity regarding the Medicare policy for billing and reimbursement of prostate biopsy specimens since the January 1, 2012 version of the National Correct Coding Initiative (NCCI) manual was released. The NCCI manual included ambiguous language which many understood to be another attempt by Medicare to distinguish between the appropriate use of the HCPCS G0416-G0419 codes introduced in 2009 for prostate biopsy specimens collected via the transperineal or "saturation" biopsy technique (PSB) and the use of CPT 88305 for reporting prostate needle biopsies collected via the traditional transrectal ultrasound (TRUS) technique. However, a policy update published by Palmetto GBA last week has shed new light on the curious NCCI language, making it clear that it is Medicare's intent to require the use of these new G-codes for all prostate procedures anytime 5 or more separate specimen are billed. This new policy effectively caps reimbursement for all prostate biopsy specimens, irrespective of the manner in which they were collected.
Impact:
Unfortunately, this change does have a significant financial impact as well. The Medicare Physician Fee Schedule National Payment Amount (unadjusted for locality) for G0416 is $670.88, which represents the equivalent of 6.34 units of 88305 (which has a National Payment Amount of $105.86 per unit). Unfortunately, for those who perform PC-only services, the news is worse still.The National Payment Amount for G0416-26 is $182.10, which represents the equivalent of only 5.0 units of 88305-26, which has a National Payment Amount of $36.08 per unit. Therefore, laboratories and physician practices that typically bill for more than 6 specimens for a prostate biopsy case will see their reimbursement for these cases capped at the equivalent of 6.34 units for a global service and 5.0 units for a PC-only service. For a laboratory or pathology practice that has typically billed for 12 specimens for the average prostate case, the Medicare reimbursement will effectively be reduced by 47% on global cases and by 58% for PC-only cases.
History:
As alluded to above, a new set of HCPCS codes (Healthcare Common Procedure Coding System) were introduced by CMS in 2009. HCPCS codes are procedure codes assigned by Medicare and they are used to identify services not listed in the CPT code book. The codes are primarily utilized by the Medicare program, but private payors may also recognize the codes. Instruction from Medicare indicated these codes should be reported when prostate biopsy specimens were collected via prostate saturation biopsy (PSB) technique. PSB procedures are usually performed from a transperineal approach under general anesthesia, using ultrasound technology. This allows the urologist to label each core as to site and creates a map of the precise location of each biopsy. Since this technique results in large numbers of biopsies (typically 30-40"), Medicare wanted to update the established payment policy of reimbursing one unit of 88305 for each separately identifiable core. Therefore, the following HCPCS codes were established for reporting prostate saturation biopsies:
G0416- Surgical pathology, gross and microscopic examination for prostate needle saturation biopsy sampling, 1-20 specimens
G0417- Surgical pathology, gross and microscopic examination for prostate needle saturation biopsy sampling, 21-40 specimens
G0418- Surgical pathology, gross and microscopic examination for prostate needle saturation biopsy sampling, 41-60 specimens
G0419- Surgical pathology, gross and microscopic examination for prostate needle saturation biopsy sampling, greater than 60 specimens