CMS Pub. 100-04, ch. 4, § 20.6.9

FB: Item provided without cost to provider, supplier, or practitioner, or full credit

received for replaced device (examples, but not limited to, covered under warranty,

replaced due to defect, free samples)

From 2007 through 2013, HOPDs were required to report modifier FB when appropriate.

As discussed in the CY 2007 OPPS final rule (71 FR 68076 through 68077), effective for

services furnished on or after January 1, 2007, Medicare reduced the amount of payment

for certain APCs when the hospital reported that it received a listed device without cost

or where the hospital received a full credit for the cost of a replaced listed device. The

reduction applied only when specific devices were replaced. To indicate that the hospital

received the device without cost, modifier FB must have been reported.

In addition, OPPS hospitals were required to report modifier FB on the same line as the

surgical or procedure code (not the HCPCS Level II device code) for a service that

required a device for which neither the hospital, nor the beneficiary, was liable to the

manufacturer. Similarly, hospitals were required to report modifier FB on the same line

as the surgical or procedure code (not the device code) for a service that required a device

when the manufacturer gave credit for a device that was replaced with a more costly

device. Refer to section 61.3 of this manual for instructions regarding charges for items

billed with the FB modifier.

As of January 1, 2014, modifier FB is no longer required on OPPS claims, and has been

replaced with value code FD (credit received from the manufacturer for a replaced

medical device) as discussed in the CY 2014 OPPS/ASC final rule (78 FR 75006 through

75007), as well as in section 61.3.6 of this manual. Specifically, effective January 1,

2014, HOPDs are no longer required to report modifier FB, and instead, must report

value code FD to indicate the amount of the credit in the amount portion for value code

FD when the hospital receives a credit for a replaced device that is 50 percent or greater

than the cost of the device. For more information on value code FD, refer to MLN

Factsheet MLN909368 dated May 2022, which is available on the cms.gov website,

specifically, at https://www.cms.gov/Outreach-and-Education/Medicare-Learning-

Network-MLN/MLNProducts/Downloads/cardiacdevicecredits-ICN909368.pdf

Although no longer required for OPPS claims, modifier FB is still required on ASC

claims.