CMS Pub. 100-04, ch. 23, § 30.2.2

A = Active code. These codes are separately paid under the physician fee schedule if

covered. There will be RVUs and payment amounts for codes with this status.

The presence of an “A” indicator does not mean that Medicare has made a national

coverage determination regarding the service; A/B MACs (B) remain responsible

for coverage decisions in the absence of a national Medicare policy.

B = Payment for covered services are always bundled into payment for other services

not specified. There will be no RVUs or payment amounts for these codes and no

separate payment is ever made. When these services are covered, payment for

them is subsumed by the payment for the services to which they are incident (an

example is a telephone call from a hospital nurse regarding care of a patient).

C = A/B MACs (B) price the code. A/B MACs (B) will establish RVUs and payment

amounts for these services, generally on an individual case basis following review

of documentation such as an operative report.

D =* Deleted/discontinued codes.

E = Excluded from physician fee schedule by regulation. These codes are for items

and/or services that CMS chose to exclude from the fee schedule payment by

regulation. No RVUs or payment amounts are shown and no payment may be

made under the fee schedule for these codes. Payment for them, when covered,

continues under reasonable charge procedures.

F = Deleted/discontinued codes. (Code not subject to a 90 day grace period.) These

codes are deleted effective with the beginning of the year and are never subject to

a grace period. This indicator is no longer effective beginning with the 2005 fee

schedule as of January 1, 2005.

G = Not valid for Medicare purposes. Medicare uses another code for reporting of,

and payment for, these services. (Code subject to a 90 day grace period.) This

indicator is no longer effective beginning with the 2005 fee schedule as of January

1, 2005.

H =* Deleted modifier. For 2000 and later years, either the TC or PC component shown

for the code has been deleted and the deleted component is shown in the data base

with the H status.

I = Not valid for Medicare purposes. Medicare uses another code for reporting of,

and payment for, these services. (Code NOT subject to a 90 day grace period.)

J= Anesthesia services (no relative value units or payment amounts for anesthesia

codes on the database, only used to facilitate the identification of anesthesia

services.)

L = Local codes. A/B MACs (B) will apply this status to all local codes in effect on

January 1, 1998 or subsequently approved by central office for use. A/B MACs

(B) will complete the RVUs and payment amounts for these codes.

M= Measurement codes, used for reporting purposes only.

N = Non-covered service. These codes are carried on the HCPCS tape as noncovered

services.

P = Bundled/excluded codes. There are no RVUs and no payment amounts for these

services. No separate payment is made for them under the fee schedule.

If the item or service is covered as incident to a physician service and is provided

on the same day as a physician service, payment for it is bundled into the payment

for the physician service to which it is incident (an example is an elastic bandage

furnished by a physician incident to a physician service).

If the item or service is covered as other than incident to a physician service, it is

excluded from the fee schedule (for example, colostomy supplies) and is paid

under the other payment provision of the Act.

Q = Therapy functional information code (used for required reporting purposes only).

This indicator is no longer effective beginning with the 2020 fee schedule as of

January 1, 2020.

R = Restricted coverage. Special coverage instructions apply.

T = There are RVUs and payment amounts for these services, but they are only paid if

there are no other services payable under the physician fee schedule billed on the

same date by the same provider. If any other services payable under the physician

fee schedule are billed on the same date by the same provider, these services are

bundled into the physician services for which payment is made.

X = Statutory exclusion. These codes represent an item or service that is not in the

statutory definition of “physician services” for fee schedule payment purposes.

No RVUs or payment amounts are shown for these codes and no payment may be

made under the physician fee schedule. (Examples are ambulances services and

clinical diagnostic laboratory services.)

*Codes with these indicators had a 90 day grace period before January 1, 2005