HCPCS Advanced Topics
DME Billing Deep Dive
DME COVERAGE CRITERIA (Medicare):
1. Durable (able to withstand repeated use)
2. Medical in nature
3. Used in the home
4. Useful life of 3+ years
5. Medically necessary per physician order
RENTAL vs PURCHASE:
Inexpensive/routinely purchased: purchase only
Frequently serviced items: rental up to 15 months then convert
Capped rental items: rental months 1-13, then monthly maintenance
After month 13: patient owns, supplier provides maintenance
OXYGEN THERAPY BILLING:
E1390: concentrator (monthly rental)
E0424/E0425: compressed gas system (portable)
E0432: portable liquid oxygen system
Documentation: certificate of medical necessity (CMN) required
Face-to-face encounter required before initial order
WHEELCHAIR BILLING:
K0001: Standard manual wheelchair
K0004: High-strength, lightweight wheelchair
K0005: Ultralightweight wheelchair
K0800-K0899: Power operated vehicles
Complex rehab: manual K0001-K0009, power K0835-K0886
ATP (Assistive Technology Professional) evaluation needed for complexDrug Billing (J Codes)
CALCULATING J CODE BILLING:
Find drug name and route of administration
Determine dose given in the clinical documentation
Find corresponding J code for that drug
Calculate units: dose given ÷ dose per code unit
EXAMPLE: J0702 = Betamethasone 3mg injection
Patient received 6mg
Bill J0702 x 2 units
WASTE: if drug drawn from multi-dose vial and remainder wasted
Bill for drug used AND drug wasted (document waste in chart)
Append modifier JW to wasted drug amount (separate line)
NOT SELF-ADMINISTERED DRUGS:
Must be administered by or under direct supervision of physician
If patient could self-administer = not covered (not incident-to)
Oral chemotherapy: exception, may be covered under Part D
CHEMOTHERAPY DRUGS (J9xxx):
Always verify NDC (National Drug Code) for exact drug match
Biosimilars: use Q codes or J code with modifier (JA, JB, JC)
Infusion administration: bill separately with CPT 96365-96379Study Resources
•CMS DME MAC websites — supplier billing guides by jurisdiction
•PDAC (Pricing, Data Analysis and Coding) — DME coding verification
•AAPC HCPCS Level II Expert Codebook — annual updates
•NHIC, Noridian, CGS, Palmetto — your DME MAC based on state

