AOPA Logo - LinkAOPA Logo - Link

Navigate the New HCPCS Codes:
2008 HCPCS Code Changes

By Kathy Dodson, AOPA Government Affairs Department

Want your claims process to run smoothly? Keep up to date on changes to the HCPCS coding system for O&P services. The Centers for Medicare and Medicaid Services (CMS) recently announced the new codes, code deletions and code wording changes for 2008, which became effective on January 1. Unlike times past, there is no longer any grace period to allow an easy transition between old and new codes. Begin to use these new codes immediately.

As of press time, the new fee schedule allowances to accompany these code changes had not been announced. As soon as they are released, AOPA will publish them in its biweekly newsletter, AOPA In Advance.

In general, HCPCS codes are updated once a year, based upon applications submitted by January 1 of the previous year. So this year’s changes were the result of applications submitted by January 1 of 2007. There are 11 new codes, 42 deletions and 10 code descriptor changes for 2008. Here are the specifics.

New codes
The majority of the new codes this year were added in order to provide a pediatric version of terminal devices. Last year, the range of codes for terminal devices was greatly reduced and all pediatric codes were eliminated. Manufacturers worked with SADMERC to convince it that pediatric codes were still needed for non-Medicare claims. As a result, these new codes were added. CMS also added several new codes for wrist/hand/finger devices, to take the place of numerous old codes that it deleted (see deletions chart below.) 

One A code was also added, to allow for coding of devices that are only used for pressure relief. While this code will not be covered by Medicare, it may allow for easier payment by other payers.

A9283 Foot pressure off-loading/supportive device, any type, each.
L3925 Finger orthosis, proximal interphalangeal (PIP)/distal interphalangeal (DIP), non-torsion joint/spring, extension/flexion, may include soft interface material, prefabricated, includes fitting and adjustment.
L3927 Finger orthosis, proximal interphalangeal (PIP)/distal interphalangeal (DIP), without joint/spring, extension/flexion (e.g., static or ring type), may include soft interface material, prefabricated, includes fitting and adjustment.
L3929 Hand finger orthosis, includes one or more non-torsion joint(s), turnbuckles, elastic bands/springs, may include soft interface material, straps, prefabricated, includes fitting and adjustment.
L3931 Wrist hand finger orthosis, includes one or more non-torsion joint(s), turnbuckles, elastic bands/springs, may include soft interface material, straps, prefabricated, includes fitting and adjustment.
L7611 Terminal device, hook, mechanical, voluntary opening, any material, any size, lined or unlined, pediatric.
L7612 Terminal device, hook, mechanical, voluntary closing, any material, any size, lined or unlined, pediatric.
L7613 Terminal device, hand, mechanical, voluntary opening, any material, any size, pediatric.
L7614 Terminal device, hand, mechanical, voluntary closing, any material, any size, pediatric.
L7621 Terminal device, hook or hand, heavy duty, mechanical, voluntary opening, any material, any size, lined or unlined.
L7622 Terminal device, hook or hand, heavy duty, mechanical, voluntary closing, any material, any size, lined or unlined.


Deleted codes
Most of the deleted codes are for wrist/hand/finger orthoses, which are being replaced by new codes. However, one torso support code has been removed, along with four knee orthosis codes.  See the section on “The Financial Impact of Crosswalking” for crosswalk information and some statistics on what specialties are currently providing most of the care for these deleted codes.

L0960 Torso support, post-surgical support, pads for post-surgical support.
L1855 Knee orthosis, molded plastic, thigh and calf sections, with double upright, knee joints, custom-fabricated.
L1858 Knee orthosis, molded plastic, polycentric knee joints, pneumatic knee pads (CTI), custom-fabricated.
L1870 Knee orthosis, double upright, thigh and calf lacers with knee joints, custom-fabricated.
L1880 Knee orthosis, double upright, non-molded thigh and calf cuffs/lacers with knee joints, custom-fabricated.
L3800 Wrist hand finger orthosis, short opponens, no attachments, custom-fabricated.
L3805 Wrist hand finger orthosis, long opponens, no attachments, custom-fabricated. 
L3810 WHFO, addition to short and long opponens, thumb abduction (“C”) bar.
L3815
WHFO, addition to short and long opponens, second M.P. abduction assist.
L3820 WHFO, addition to short and long opponens, I.P. extension assist, with M.P. extension stop.
L3825 WHFO, addition to short and long opponens, M.P. extension stop.
L3830 WHFO, addition to short and long opponens, M.P. extension assist.
L3835 WHFO, addition to short and long opponens, M.P. spring extension assist.
L3840 WHFO, addition to short and long opponens, spring swivel thumb.
L3845 WHFO, addition to short and long opponens, thumb I.P. extension assist, with M.P. stop.
L3850 WHO, addition to short and long opponens, action wrist, with dorsiflexion assist.
L3855 WHFO, addition to short and long opponens, adjustable M.P. flexion control.
L3860 WHFO, addition to short and long opponens, adjustable M.P. flexion control and I.P.
L3907 Wrist hand finger orthosis, wrist gauntlet with thumb spica, custom-fabricated.
L3910 Wrist hand finger orthosis, Swanson design, prefabricated, includes fitting and adjustment.
L3916 Wrist hand finger orthosis, wrist extension cock-up with outrigger, prefabricated, includes fitting and adjustment.
L3918 Hand finger orthosis, knuckle bender, prefabricated, includes fitting and adjustment.
L3920 Hand finger orthosis, knuckle bender with outrigger, prefabricated, includes fitting and adjustment.
L3922 Hand finger orthosis, knuckle bender, two segment to flex joints, prefabricated, includes fitting and adjustment.
L3924 Wrist hand finger orthosis, Oppenheimer, prefabricated, includes fitting and adjustment.
L3926 Wrist hand finger orthosis, Thomas suspension, prefabricated, includes fitting and adjustment.
L3928 Hand finger orthosis, finger extension, with clock spring, prefabricated, includes fitting and adjustment.
L3930 Wrist hand finger orthosis, finger extension, with wrist support, prefabricated, includes fitting and adjustment.
L3932 Finger orthosis, safety pin, spring wire, prefabricated, includes fitting and adjustment.
L3934 Finger orthosis, safety pin, modified, prefabricated, includes fitting and adjustment.
L3936 Wrist hand finger orthosis, Palmer, prefabricated, includes fitting and adjustment.
L3938 Wrist hand finger orthosis, dorsal wrist, prefabricated, includes fitting and adjustment.
L3940 Wrist hand finger orthosis, dorsal wrist, with outrigger attachment, prefabricated, includes fitting and adjustment
L3942 Hand finger orthosis, reverse knuckle bender, prefabricated, includes fitting and adjustment.
L3944 Hand finger orthosis, reverse knuckle bender, with outrigger, prefabricated, includes fitting and adjustment
L3946 Hand finger orthosis, composite elastic, prefabricated, includes fitting and adjustment.
L3948 Finger orthosis, finger knuckle bender, prefabricated, includes fitting and adjustment.
L3950 Wrist hand finger orthosis, combination Oppenheimer, with knuckle bender and two attachments, prefabricated, includes fitting and adjustment.
L3952 Wrist hand finger orthosis, combination Oppenheimer, with reverse knuckle and two attachments, prefabricated, includes fitting and adjustment.
L3954 Hand finger orthosis, spreading hand, prefabricated, includes fitting and adjustment.
L3985 Upper extremity fracture orthosis, forearm, hand with wrist hinge, custom-fabricated.
L3986 Upper extremity fracture orthosis, combination of humeral, radius/ulnar, wrist (example: Colles’ fracture), custom-fabricated.



How Does Medicare Determine Allowables?
When new codes are added to the Medicare fee schedule, allowable amounts are arrived at by using one of two methods: “crosswalking” or “gap-filling.”  

Crosswalking.
If there is an existing code which is clinically, technologically, and functionally similar to the new code, CMS will often assign the new code the same allowable amount as the already existing, related code. This is otherwise known as crosswalking.

Gap-filling.
Technology is constantly changing, especially in O&P. Consequently, many new codes do not have an existing comparable code. Medicare determines an allowable for a new code in this situation through a process called gap-filling. This method requires each Medicare carrier to determine the appropriate allowable for the new code.  

This is accomplished by first gathering data from various sources, including manufacturers, private insurers who may already pay for the device, provider-submitted charges, and data from various other resources. With this information, a temporary figure is established. But further steps are required in order to determine a final allowable amount.

After the DME MAC determines a temporary figure for the new code, it then lowers the amount by a deflation factor until it reaches an estimate of what the allowable amount would have been in 1986/1987. This deflated amount is then recalculated based on each year’s annual update to arrive at an allowable for the current year.  

Why does this occur? The original Medicare fee schedule for O&P, which went into effect on January 1, 1989, was based on data gathered in those years. By law, Medicare is required to use 1986/1987 as its basis when determining new O&P allowables.  In an effort to establish a fair reimbursement, CMS has implemented this deflation/inflation process to calculate the current allowable amount for new codes that are not sufficiently similar to already existing codes.

With such a complicated process, it is understandable why many new codes do not immediately appear on the Medicare fee schedule with a set allowable amount. However, this does not mean that the new code is any less valid. If a code does not yet have an allowable amount assigned to it, you can still bill using the new code and will be reimbursed based on individual consideration. In this case, you would set the allowable amount based on your charges and prepare to provide documentation if necessary.

As of press time, fees for the new codes had not yet been released. As soon as they are released, AOPA will notify you via “In the News” and AOPA In Advance.


Changes in code descriptors

The majority of code changes affect the E codes used for progressive stretch devices, which are rental items. CMS also continued its process of removing manufacturer brand names from several battery codes. (New wording has been bolded in the following chart.)

Code Old Descriptor  New Descriptor
E1801 Bi-directional static progressive stretch elbow device with range-of-motion adjustment, includes cuffs. Static progressive stretch elbow device, extension and/or flexion, with or without range-of-motion adjustment, includes all components and accessories.
E1806 Bi-directional static progressive stretch wrist device with range-of-motion adjustment, includes cuffs. Static progressive stretch wrist device, flexion and/or extension, with or without range-of-motion adjustment, includes all components and accessories.
E1811 Bi-directional static progressive stretch knee device with range-of-motion adjustment, includes cuffs. Static progressive stretch knee device, flexion and/or extension, with or without range-of-motion adjustment, includes all components and accessories.
E1816 Bi-directional static progressive stretch ankle device with range-of-motion adjustment, includes cuffs. Static progressive stretch ankle device, flexion and/or extension, with or without range-of-motion adjustment, includes all components and accessories.
E1841 Multidirectional static progressive stretch shoulder device, with range-of-motion adjustability, includes cuffs. Static progressive stretch shoulder device, with or without range-of-motion adjustment, includes all components and accessories.
L3806  Wrist hand finger orthosis, includes one or more non-torsion joint(s), elastic bands, turnbuckles, may include soft interface material, straps, custom-fabricated, includes fitting and adjustment.  Wrist hand finger orthosis, includes one or more non-torsion joint(s), turnbuckles, elastic bands/springs, may include soft interface material, straps, custom-fabricated, includes fitting and adjustment.
L7360  Six-volt battery, Otto Bock or equal, each.  Six-volt battery, each.
L7362 Battery charger, six-volt, Otto Bock or equal. Battery charger, six-volt, each.
L7364 Twelve-volt battery, Utah or equal, each.  Twelve-volt battery, each.
L7366 Battery charger, twelve-volt, Utah or equal. Battery charger, twelve-volt, each.



The Financial Impact of Crosswalking
Medicare is continuing to delete specific codes and replace them with a smaller number of global codes. Though these replacement, or “crosswalk” codes, do provide reimbursement, the change can still have a financial impact on O&P.

Below is a chart of the codes deleted by CMS for 2008, along with what code has replaced the deleted code. In some instances, CMS has not provided a replacement code. When appropriate, the chart also shows the 2007 floor and ceiling fee schedule amounts for the deleted code and the “crosswalked” code. For 2008 fee schedule information on these codes, go to www.AOPAnet.org and click on "Coding and Billing Reimbursement." The final column shows the top three specialties paid for the code in 2005 (the most recent data available at press time). This chart should help you determine the financial impact of this year’s code deletions on your business, based upon the volume of each specific code you use.

Deleted Code Fee Schedule Range CMS Crosswalk Code  Fee Schedule Range  Number Paid & Top Three
Specialties Paid in 2005
L0960   $54.23 to $72.31   None   None  No services paid in 2005
L1855  $862.76 to $1,150.34   L1846 $833.56 to $1,111.42 1,622 paid
30% paid to medical supply company with O&P
27% paid to medical supply company
13% paid to certified prosthetist
L1858 $940.78 to $1,254.38  L1846  $833.56 to $1,111.42 3,155 paid
41% paid to medical supply company
17% paid to certified orthotist
12% paid to certified prosthetist
L1870 $821.64 to $1,095.52  L1846 $833.56 to $1,111.42 173 paid
70% paid to certified orthotist
11% paid to medical supply company with O&P
 6% paid to certified prosthetist
L1880  $555.71 to $740.95 L1846 $833.56 to $1,111.42 628 paid
44% paid to medical supply company
21% paid to certified orthotist
12% paid to orthopedic surgeon
L3800 $153.63 to $204.84 L3808 $192.66 to $256.89 20,517 paid
34% paid to orthopedic surgeon
15% paid to OT
10% paid to medical supply company
L3805 $245.81 to $327.74 L3808  $192.66 to $256.89 12,395 paid
21% paid to orthopedic surgeon
15% paid to OT
11% paid to medical supply company with orthotist
L3810 $49.79 to $66.39 None None 5,186 paid
25% paid to medical supply company
16% paid to orthopedic surgeon
15% paid to certified orthotist
L3815 $46.22 to $61.63 None None 616 paid
80% paid to medical supply company
5% paid to orthopedic surgeon
3% paid to hand surgeon
L3820 $79.39 to $105.86   None None 1,313 paid
56% paid to medical supply company with orthotist
12% paid to certified orthotist
7% paid to orthopedic surgeon
L3825 $49.82 to $66.43 None None 441 paid
31% paid to medical supply company with O&P
18% paid to orthopedic surgeon
10% paid to OT
L3830 $65.04 to $86.72  None None  757 paid
25% paid to medical supply company with orthotist
20% paid to OT
17% paid to PT
L3835 $70.51 to $94.02 None None 179 paid
65% paid to orthopedic surgeon
8% paid to OT
7% paid to PT
L3840 $48.29 to $64.39 None   None   1,163 paid
63% paid to medical supply company with orthotist
10% paid to certified orthotist
8% paid to orthopedic surgeon
L3845 $62.37 to $83.15 None None 1,811 paid
40% paid to medical supply company with orthotist
16% paid to orthopedic surgeon
11% paid to certified orthotist
L3850 $89.09 to $118.79   None  None  247 paid
21% paid to certified orthotist
19% paid to medical supply company
12% paid to unspecified physician specialty
L3855 $89.81 to $119.74 None None 506 paid
48% paid to medical supply company
17% paid to certified orthotist
8% paid to OT
L3860 $122.92 to $163.90 None None 675 paid
34% paid to OT
20% paid to medical supply company
12% paid to PT
L3907 $390.27 to $520.36  L3808 $192.66 to $256.89 6,478 paid
34% paid to orthopedic surgeon
15% paid to OT
5% paid to pharmacy
L3910 $288.18 to $384.24  L3931 Allowable not yet set 1,374 paid
75% paid to medical supply company
8% paid to orthopedic surgeon
4% paid to certified orthotist
L3916 $97.58 to $130.10 L3931 Allowable not yet set 3,490 paid
32% paid to medical supply company
17% paid to orthopedic surgeon
6% paid to medical supply company with orthotist
L3918 $60.21 to $80.28 L3929 Allowable not yet set 511 paid
25% paid to orthopedic surgeon
23% paid to OT
7% paid to PT
L3920 $75.24 to $100.32 L3929 Allowable not yet set  72 paid
38% paid to orthopedic surgeon
26% paid to OT
8% paid to certified orthotist
L3922 $75.13 to $100.17 L3929 Allowable not yet set 146 paid
41% paid to OT
14% paid to orthopedic surgeon
10% paid to pharmacy
L3924 $81.92 to $109.23  L3931 Allowable not yet set  1,061 paid
28% paid to medical supply company
25% paid to orthopedic surgeon
12% paid to medical supply company with orthotist
L3926 $71.33 to $95.10 L3931 Allowable not yet set 85 paid
29% paid to medical supply company
19% paid to pharmacy
18% paid to medical supply company with O&P
L3928 $44.72 to $59.62  L3929 Allowable not yet set  1,934 paid
39% paid to orthopedic surgeon
15% paid to OT
10% paid to certified orthotist
L3930 $47.27 to $63.02   L3929 Allowable not yet set 8,668 paid
48% paid to medical supply company
28% paid to orthopedic surgeon
5% paid to pharmacy
L3932 $36.11 to $48.14 L3925 Allowable not yet set 1,154 paid
32% paid to orthopedic surgeon
23% paid to OT
10% paid to medical supply company
L3934 $37.02 to $49.36 L3929 Allowable not yet set 6,868 paid
53% paid to medical supply company with orthotist
13% paid to orthopedic surgeon
11% paid to OT
L3936 $68.44 to $91.25  L3931 Allowable not yet set  2,429 paid
35% paid to orthopedic surgeon
13% paid to medical supply company
11% paid to OT
L3938 $71.66 to $95.55 L3931 Allowable not yet set 3,371 paid
28% paid to orthopedic surgeon
23% paid to medical supply company
14% paid to pharmacy
L3940 $82.59 to $110.12 L3931 Allowable not yet set  376 paid
36% paid to orthopedic surgeon
25% paid to medical supply company
9% paid to medical supply company with pharmacy
L3942 $57.12 to $76.16 L3929 Allowable not yet set 1,285 paid
23% paid to OT
21% paid to orthopedic surgeon
8% paid to certified orthotist
L3944 $75.46 to $100.61  L3929 Allowable not yet set 86 paid
47% paid to OT
12% paid to orthopedic surgeon
10% paid to certified orthotist
L3946 $68.09 to $90.78  L3929 Allowable not yet set 2,935 paid
34% paid to orthopedic surgeon
28% paid to OT
7% paid to clinic
L3948 $43.24 to $56.45  L3925 Allowable not yet set  1,695 paid
58% paid to orthopedic surgeon
16% paid to OT
4% paid to PT
L3950 $115.21 to $153.62   L3931 Allowable not yet set 385 paid
85% paid to medical supply company
3% paid to medical supply company with O&P
3% paid to orthopedic surgeon
L3952 $127.87 to $170.49 L3931 Allowable not yet set 82 paid
57% paid to medical supply company
9% paid to OT
9% paid to medical supply company with orthotist
L3954 $84.85 to $113.13 L3923 $26.56 to $35.42 5,235 paid
65% paid to medical supply company
11% paid to medical supply company with O&P
6% paid to certified prosthetist/orthotist
L3985 $449.04 to $598.72  L3764 $926.92 to $1,235.89 342 paid
23% paid to OT
19% paid to group practice
19% paid to certified orthotist
L3986 $430.63 to $574.17 L3763 $875.34 to $1,167.12 1,455 paid
39% paid to orthopedic surgeon
15% paid to OT
8% paid to PT

      
 Kathy Dodson is the senior director of government affairs for the American Orthotic & Prosthetic Association (AOPA). Questions? Call (571) 431-0810 or visit www.AOPAnet.org.

THE POLLING PLACE

Poll

What is the best part of the AOPA National Assembly?
The clinical sessions
The business sessions
The manufacturer's workshops
The exhibit hall
The networking opportunities

Results
Votes : 12

Compliance Made Easy

Get the latest Medicare rules and regulations!

Details

Ready to Use!

Why reinvent the wheel?  Choose from and customize over 300 industry forms.

Forms CD

Learn How

SHOP NOW >>