Medicare Claims Processing Manual (Pub. 100-04), Ch. 36 § 50.5
Claims for DMEPOS Items Furnished to a Beneficiary by a Skilled
50.5 - Claims for DMEPOS Items Furnished to a Beneficiary by a Skilled
Nursing Facility (SNF) or Nursing Facility (NF)
(Rev. 1544, Issued: 06-26-08, Effective: 07-01-08, Implementation: 07-07-08)
For purposes of claims adjudication under DMEPOS Competitive Bidding, beneficiaries who
maintain a permanent residence in a CBA and, while a resident of a SNF or NF outside of a
CBA, obtain a competitively bid item from that SNF or NF are treated as traveling beneficiaries
when their permanent address is within a CBA. As a result, the SNF or NF shall submit a “KT”
modifier on any claims for competitively bid items furnished to beneficiaries, under these
circumstances.
A claim must include a place of service “31” to indicate that the beneficiary resides in a SNF or
“32” to indicate that the beneficiary resides in a NF, as applicable. See §20.5.2 for the policies
applicable to SNFs and NFs that furnish competitively bid items under DMEPOS Competitive
Bidding Program.