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May 16, 2019

Correct Billing – Continued Coverage for Positive Airway Pressure (PAP) Devices for the Treatment of Obstructive Sleep Apnea

Joint DME MAC Article

Recently the DME MACs were asked about the proper use of the KX modifier when a beneficiary fails the initial 12-week trial for positive airway pressure (PAP) therapy. The CMS National Coverage Determination manual (Internet-only Manual 100-03External Website), Chapter 1, Part 4, §240.4 limits coverage of CPAP therapy to beneficiaries who demonstrate benefit during a 12-week trial period. The NCD §240.4 states:

The use of CPAP is covered under Medicare when used in adult patients with OSA. Coverage of CPAP is initially limited to a 12-week period to identify beneficiaries diagnosed with OSA as subsequently described who benefit from CPAP. CPAP is subsequently covered only for those beneficiaries diagnosed with OSA who benefit from CPAP during this 12-week period. [Emphasis Added]

The DME MAC Positive Airway Pressure (PAP) Devices for the Treatment of Obstructive Sleep Apnea Local Coverage Determination (LCD L33718External Website) has an option for repeating the 12-week trial following a face-to-face (F2F) clinical re-evaluation and a Type I polysomnogram (PSG). Because of the restrictions placed by the NCD, there is no mechanism for suppliers to bill for this additional trial until the trial is complete and benefit is demonstrated. Consequently, billing the KX modifier stops after month 3 if the initial trial fails. Suppliers may only resume billing with the KX modifier when the second 12-week trial is complete, adherence is demonstrated, and a face-to-face clinical re-evaluation has been documented. A timeline example is provided below:

First 12-week trial

Second 12-week trial

Suppliers are encouraged to read the entire Positive Airway Pressure (PAP) Devices for the Treatment of Obstructive Sleep Apnea LCD and LCD-related Policy Articles for additional coverage, coding and coverage requirements.

Publication History

May 16, 2019 Originally Published
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