How to use ABN Modifiers? Modifiers GA and GX were created to differentiate between mandatory and voluntary ABNs Modifier GA has been redefined as “
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How to use ABN Modifiers? Modifiers GA and GX were created to differentiate between mandatory and voluntary ABNs Modifier GA has been redefined as “
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Reproduced from HighͲRisk Areas in Medicare Billing Current Developments Newsletter © 2010 by Strategic
Management Systems, Inc. and Atlantic Information Services, Inc.*, 1100 17th Street, NW, Suite 300, Washington,
D.C. 20036, 202Ͳ775Ͳ9008 or 800Ͳ521Ͳ4323. www.AISHealth.com.Used with Permission.*Atlantic Information Services is a publishing and information company that has been serving the health care
industry for more than 20 years. It develops highly targeted news, data and strategic information for managers in
hospitals, health plans, medical group practices, pharmaceutical companies and other health care organizations.
AIS products include print and electronic newsletters, Web sites, looseleafs, books, strategic reports, databases, audioconferences and live conferences.CMS Announces New ABN Modifiers
In 2009, the Centers for Medicare & Medicaid Services (CMS) implemented the use of the revisedAdvance Beneficiary Notice of NonͲcoverage (ABN) form, CMSͲRͲ131. This form replaced the general
ABN (CMSͲRͲ131ͲG), laboratory ABN (CMSͲRͲ131ͲL), and Notice of Excluded Medicare Benefits (CMSͲ
20007) forms and combined them into one document. Prior to the issuance of the revised ABN form,
the Notice of Excluded Medicare Benefits form was voluntary. Now, the CMSͲRͲ131 form is used for
both voluntary and mandatory ABNs. Providers are pe rmitted to v o luntarily iss u e liabili ty notices topatients for items or services excluded from Medicare by statute or where no Medicare benefit category
exists such as personal comfort items, cosmetic care, and custodial care.1In contrast, a mandatory ABN
must be issued if an item or service that is usually covered by Medicare is likely to be denied due to the
lack of medically necessity for the beneficiary's specific condition. In order to distinguish between the two types of ABNs, CMS announced two Healthcare CommonProcedure Coding System (HCPCS) Level II modifiers related to ABN. Effective April, 1, 2010, providers
are instructed to report Modifier GA for mandatory and Modifier GX for voluntary ABNs. CMSencourages providers to notify their billing staff of the recent changes in ABN modifiers to ensure proper
coding, billing, and reimbursement. How to use ABN Modifiers? Modifiers GA and GX were created to differentiate between mandatory and voluntary ABNs. ModifierGA has been redefined as "waiver of liability statement issued as required by payer policy" and should
be used when a mandatory ABN was issued to a beneficiary. Billing staff should not report Modifier GA
with any other liabilityͲrelated modifier such as GZ (item or service expected to be denied as not
reasonable and necessary); EY (no doctor's order on file); GL (medically unnecessary upgrade provided
instead of nonͲupgraded item, no charge, no ABN); GX (notice of liability issued, voluntary under payer
1Although, it is voluntary to provide an ABN for items or services that are statutorily excluded or lack a
Medicare benefit category, a facility's conditions of participation may require the provider to inform the
beneficiary of nonͲcoverage.Ͳ2Ͳ
Reproduced from HighͲRisk Areas in Medicare Billing Current Developments Newsletter © 2010 by Strategic
Management Systems, Inc. and Atlantic Information Services, Inc., 1100 17th Street, NW, Suite 300, Washington,
D.C. 20036, 202Ͳ775Ͳ9008 or 800Ͳ521Ͳ4323. www.AISHealth.com .Used with Permission.policy); KB (beneficiary requested upgrade for ABN, more than four modifiers identified on claim); QL
(patient pronounced dead after ambulance is called); TQ (basic life support transport by a volunteer ambulance provider); or TS (followͲup service).Modifier GX is defined as a "notice of liability issued, voluntary under payer policy" and should be used
when a voluntary ABN is issued to a beneficiary. This modifier may be reported on the same line as
liabilityͲrelated modifiers GY and TS. However, Modifier GX may not be reported in combination with
liabilityͲrelated modifiers EY, GA, GL, GX, KB, QL, or TQ. When CMS receives a claim with Modifier GA or GX, the Medicare system automatically denies the claimlines reporting the modifiers. CMS claims processing system will issue claim adjustment reason code 50
"these are nonͲcovered services because this is not deemed a 'medical necessity' by the payer" which
will shift the financial liability of the nonͲcovered items or services to the beneficiary who has the option
to appeal.How to Submit Claims with Non-covered Charges?
CMS has specific billing rules when filing claims for nonͲcovered charges. The billing rules differ for
inpatient and outpatient claims. Billing staff should comply with the following in order to submit accurate claims.Inpatient Claims
In the event covered and nonͲcovered items or services are furnished during an inpatient stay, CMS'
claims processing system is not able to differentiate between procedure codes that are covered versus
those that are not covered. This claims processing limitation can affect the assignment of the Medicare
Severity Diagnosis Related Group (MSͲDRG) on an inpatient claim and can result in improper payment.
Therefore, CMS recently revised its billing policy for nonͲcovered services on an inpatient claim.
Effective April 1, 2010 "hospitals must only seek payment for covered services by removing nonͲ covered procedure codes and related charges from the payable Type of Bill (TOB) 11X" 2 (where X doesnot equal zero). If a hospital would like to bill nonͲcovered procedures and its associated nonͲcovered
charges, the provider may report the codes and charges on a noͲpay claim, TOB 110. 3Further, if an ABN
was provided to a beneficiary for nonͲcovered items or services, the provider must maintain documentation. 2CMS, Medicare Claims Processing Manual, CMS 100Ͳ04, Ch. 1 sec. 60.2.1ͲBilling for NonͲcovered
Procedures in an Inpatient Stay.
3 It should be noted that TOB X and TOB 110 must have the same State Cover Period (from and through date) for the same beneficiary.Ͳ3Ͳ
Reproduced from HighͲRisk Areas in Medicare Billing Current Developments Newsletter © 2010 by Strategic
Management Systems, Inc. and Atlantic Information Services, Inc., 1100 17th Street, NW, Suite 300, Washington,
D.C. 20036, 202Ͳ775Ͳ9008 or 800Ͳ521Ͳ4323. www.AISHealth.com .Used with Permission.Outpatient Claims
If a beneficiary chooses to receive nonͲcovered items or services and a valid ABN has been obtained
prior to delivery of the nonͲcovered item or service, the billing personnel must conduct the following
when submitting an outpatient claim: Append modifier GA or GX to the nonͲcovered items or services; Maintain documentation indicating that an ABN was issued; State the date the ABN was signed by the beneficiary in association with the occurrence code; and Report occurrence code 32 and the accompanying date multiple times if more than one ABN is associated to a single claim for services that must be bundled or billed on the same claim. It is important to note that CMS requires providers to maintain proper documentation despite thedifferent billing rules for inpatient and outpatient claims. Furthermore, although CMS does not require
providers to submit the ABN notice when filing a claim, this information must be immediately available
upon request.Take Home Message
Overall, understanding the nuances of ABN coding and billing is challenging. However, billing staff should reference the diagram below to ensure proper billing with ABN modifiers.Ͳ4Ͳ
Reproduced from HighͲRisk Areas in Medicare Billing Current Developments Newsletter © 2010 by Strategic
Management Systems, Inc. and Atlantic Information Services, Inc., 1100 17th Street, NW, Suite 300, Washington,
D.C. 20036, 202Ͳ775Ͳ9008 or 800Ͳ521Ͳ4323. www.AISHealth.com .Used with Permission.Diagram 1: ABN Flowchart.
1. Modifier GA cannot be used with any
other liability related modifier.2. Modifier GA should be submitted with
covered charges.You must issue an ABN when an item or
service is expected to be denied by Medicare because it is medically unnecessary.Mandatory ABN
Modifier GA
1. Modifier GX can be used with liabilityͲ
related modifiers GY and TX.2. Modifier GX cannot be used with
liabilityͲrelated modifiers: EY, GA, GL,GX, KB, QL, or, TL.
You may provide an ABN when items or
services are excluded from Medicare coverage by statute.Voluntary ABN
Modifier GX
When to issue an ABN?
What modifier should be used?
What are the rules?
Ͳ5Ͳ
Reproduced from HighͲRisk Areas in Medicare Billing Current Developments Newsletter © 2010 by Strategic
Management Systems, Inc. and Atlantic Information Services, Inc., 1100 17th Street, NW, Suite 300, Washington,
D.C. 20036, 202Ͳ775Ͳ9008 or 800Ͳ521Ͳ4323. www.AISHealth.com .Used with Permission.Official Resources
Billing for Services Related to Voluntary Uses of Advanced Beneficiary Notices of Noncoverage (ABNs)."
Transmittal: 1921. 19 Feb. 2010.
"Revised Form CMSͲRͲ131 Advance Beneficiary Notice of Noncoverage." Medicare Learning Network Provider Inquiry Assistance: JA6136. 19 Sept. 2008.CMS, Medicare Claims Processing Manual, CMS 100Ͳ04, Ch. 1 sec. 60. Provider Billing for NonͲcovered