Medicare Claims Processing Manual (Pub. 100-04), Ch. 23 § 20.8
Payment, Utilization Review (UR), and Coverage Information on CMS Quarterly
20.8 - Payment, Utilization Review (UR), and Coverage Information on CMS Quarterly
HCPCS Codes Update File
(Rev. 10320, Issued: 08-28-2020, Effective: 12-01-2020, Implementation: 12-01-2020)
The file CMS provides for the quarterly update of HCPCS codes contains fields for payment, UR, and
coverage information to assist in developing front-end edit screens. Coverage information is not all
inclusive, but should be used mainly as a guide in establishing specific review limits. A/B MACs (B) must
establish reasonable developmental guidelines, review screens, and relative value units, as appropriate. A/B
MACs (B) must assure that their system processes claims in accordance with CMS policies and procedures,
including changes that may occur between HCPCS codes updates.
Where CMS determines that nationally uniform temporary codes/modifiers are needed to implement
policy/legislation between HCPCS codes updates, the codes/modifiers, definitions and policy are issued as
Level II codes/modifiers prefixed with “Q” or “K” or “G.” Questions may arise in updating that require A/B
MAC (B) staff to refer to a physician’s or supplier’s pricing history. Therefore, keep an electronic backup
of HCPCS codes for the two prior years with linkages to pricing profiles. Perform required computer
analysis as necessary.
The HCPCS terminology seldom includes a place of service designation. Where place of service affects
pricing, pricing is obtained from the place of service field on the claim record.
A/B MACs (A) and (HHH) also develop editing screens using HCPCS based on payment and coverage
policies from CMS. A/B MAC