Definition:
• Professional Component refers to certain procedures that are a combination of a physician component and a technical component. Using modifier 26 identifies the physician’s component.
Instructions
Indicates physician’s interpretation or professional component reported separately (from technical component) for diagnostic, lab or pathology procedures
Check Medicare Physician Fee Schedule (MPFS) Indicator and Descriptor Lists
Certain codes are divided from global with TC/26 modifiers
Technical and professional component fees equal total global allowance
Report in first field as a payment modifier
Correct Use
Involves global, professional and technical
E.g. 71010, 71010 26 and 71010 TC
Place of Service (POS) 21, 22 and 23 only
Services appended with modifier 26
Facility pays technical portion with modifier TC
If 26 and TC are provided in different service locations (enrolled practice locations), the professional and technical must be billed separately
• To bill for only the professional component portion of a test
• To report the physician’s interpretation of a test
• Procedures that have a “1” in the PC/TC field on the MPFSDB
Inappropriate Usage:
• When the same provider performs both the technical and professional components, unless the same provider reports both components and the technical portion is purchased
• Reporting it for re-read results of an interpretation provided by another physician
• Appending it to:
• Technical only procedure codes
• Global test only codes
• Professional component only codes
Not appropriate with evaluation and management (E/M) or Anesthesia codes
On or after July 1, 2012, an independent laboratory may not bill TC of a physician pathology service furnished to a hospital inpatient or outpatient
Cannot use separately if provider performed the global service (In this case, no modifier would be necessary)
Additional Information:
• Identify technical component only codes on the MPFSDB by a “3” in PC/TC.
• Identify global test only codes on the MPFSDB by a “4” in PC/TC.
• Identify professional component only codes on the MPFSDB by a “2” in PC/TC.
• Modifier 26 is a payment modifier reportable in the first modifier field
• Code global services performed without modifiers. Do not report modifiers 26 and TC on the same procedure code on one line of service.
Modifiers 26 and TC
Tufts Health Plan does not add or remove modifiers 26 (professional component) or TC (technical component) to procedure codes requiring the presence or absence of those modifiers in order to apply existing professional and technical component edits. Tufts Health Plan will not compensate for procedure codes requiring modifiers 26 and/or TC if they are not billed in accordance with the current payment policy.
Tufts Health Plan will not compensate for diagnostic tests and radiology services having a professional component performed in a home, assisted living facility, nursing facility or skilled nursing facility if those services are billed without modifier 26 to indicate the professional component and transportation of portable x-ray equipment (R0070-R0075) is not also submitted.
Tufts Health Plan will not compensate for a procedure code requiring modifier TC if a facility bills without modifier TC.
Tufts Health Plan will not compensate for modifier 26 (Professional component) and modifier TC (Technical component) when submitted on the same claim line. Refer to global billing information on page 2 of this policy for additional details.
Note: Tufts Health Plan does not compensate for procedure codes with a PC/TC Indicator of 9 since the concept of PC/TC does not apply.
Payment Conditions for Imaging Services
Generally, imaging services are split into technical and professional components Modifiers (the TC and PC), each separately billable to the local Medicare contractor.
Medicare pays under the MPFS for the TC of imaging services furnished to Medicare beneficiaries who are not patients of any hospital, and who receive services in a physician’s office, a freestanding imaging or radiation oncology center, ambulatory surgical center (ASC), or other setting that is not part of a hospital.
When imaging services are furnished in a leased hospital radiology department to a beneficiary who is neither an inpatient nor an outpatient of any hospital, both the PC and the TC of the services are payable under the MPFS by the carrier or A/B MAC.
Definitions of Professional and Technical Components and Billing Codes
• The PC of a service is for physician work interpreting a diagnostic test or performing a procedure, and includes indirect practice and malpractice expenses related to that work.
Modifier 26 is used with the billing code to indicate that the PC is being billed.
Modifier 26 Usage Guidelines and usage example
Generally, Modifier 26 is appended to a procedure code to indicate that the service provided was the reading and interpreting of the results of a diagnostic and/or laboratory service.
To help ensure the accurate adjudication of claims, we ask that you adhere to the following Modifier 26 guidelines.
Modifier 26 is only appropriate in one of the following places of service:
* Hospital inpatient (place of service 21).
* Hospital outpatient (place of service 22).
* Emergency Room (place of service 23).
* Use of Modifier 26 is not appropriate in conjunction with any other place of service code.
Modifier 26 is not appropriate when:
* The same provider performs both the technical and professional components (unless the same provider reports both components and the technical portion is purchased).
* Reporting re-read results of an interpretation provided by another physician.
* Appended to claims that include:
o Technical-only procedure codes.
o Global-test only codes.
* Claims submitted with Modifier 26 that are billed in conjunction with the global component will not be reimbursed.
Here’s an example:
A patient seeks treatment at the Emergency Room (ER) of a hospital for a head injury.
The facility performs a CT of the head without contrast (CPT Code 70450). The film is sent by courier to a noted local radiologist’s office for review. The radiologist reads/interprets the CT film and seeing no sign of injury or damage calls the hospital’s ER and advises them to release the patient.
The facility will submit a claim for providing the technical component of the service with the following claim elements:
CPT Code 70450
Modifier TC (to indicate the technical component)
POS 23
The radiologist will submit a claim for the reading and interpreting of the results (the professional component PC) of that diagnostic service with the following claim elements:
CPT Code 70450
Modifier 26
POS 23
Billing as Global Service Code
If the global diagnostic service code is billed, the biller (either the entity that took the test, physician who interpreted the test, or separate billing agent) must report the address and ZIP code of where the test was furnished on the bill for the global diagnostic service code. In other words, when the global diagnostic service code is billed, for example, chest x-ray as described by HCPCS code 71010 (no modifier TC and no modifier -26), the locality is determined by the ZIP code applicable to the testing facility, i.e. where the TC of the chest x-ray was furnished. The testing facility (or its billing agent) enters the address and ZIP code of the setting/location where the test took place. This practice location is entered using the ASC X12 837 professional claim format or in Item 32 on the paper claim Form CMS 1500. As explained in D above, in order to bill for a global diagnostic service code, the same physician or supplier entity must furnish both the TC and the PC of the diagnostic service and the TC and PC must be furnished within the same MPFS payment locality.
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