Medicare Claims Processing Manual (Pub. 100-04), Ch. 36 § 50.6
Billing for Mail Order Items
50.6 - Billing for Mail Order Items
(Rev. 1544, Issued: 06-26-08, Effective: 07-01-08, Implementation: 07-07-08)
The “KL” modifier has been established for use in submitting claims for mail order DMEPOS
items (e.g., diabetic supplies). Beneficiaries who maintain a permanent residence in CBAs for
which there is a competitive bidding program for mail order diabetic supplies may choose to
obtain their diabetic supplies through mail order or at a storefront.
A beneficiary who resides in a CBA and chooses to obtain their diabetic supplies through mail
order must obtain these supplies from a contract supplier for mail order diabetic supplies for the
CBA where they maintain a permanent residence. Claims for mail order diabetic supplies
furnished to beneficiaries who maintain a permanent residence in a CBA must be billed with the
modifier “KL”. If the beneficiary chooses to obtain their diabetic supplies at a storefront,
DMEPOS competitive bidding rules do not apply and these claims will be processed under the
normal guidelines for supply claims. See §20.5.3 for additional information on mail-order
contract suppliers of diabetic supplies.