🩺 DMEPOS Requiring Claim Narratives Chart

Overview

Certain DMEPOS (Durable Medical Equipment, Prosthetics, Orthotics, and Supplies) items or billing situations require a claim narrative when submitting claims to the DME MACs (CGS, Noridian, etc.). Narratives go in the NTE segment of electronic claims or Item 19 of the CMS-1500 form.


Continuous Passive Motion (CPM) Devices

Narrative must include:

  • Type of knee surgery performed
  • Date of surgery
  • Date of application of CPM
  • Date of discharge from the hospital

Beneficiary-Owned Equipment

When billing for accessories, supplies, repairs, or miscellaneous items for beneficiary-owned equipment, include:

  • HCPCS code of the base equipment
  • Date the beneficiary obtained the equipment
  • Statement indicating “beneficiary-owned”

K0462 – Temporary Replacement Equipment for Patient-Owned Equipment Being Repaired, Any Type

Include all of the following:

  • HCPCS code or manufacturer/brand name and model number of equipment being repaired
  • Purchase date of the original equipment
  • Manufacturer/brand name/model number of the replacement equipment
  • Description of what was repaired
  • Reason if repair took longer than one day to complete

K0739 – Repair or Non-Routine Service (Other Than Oxygen Equipment)

Itemize each repair with:

  • HCPCS code(s) that were repaired
  • Labor time per HCPCS code (listed in units or 15-minute increments; 1 unit = 15 min)
  • Total units or minutes must match the number billed

Example:

Claim narrative for 4 units of service:
E2359 – 30 minutes, E2381 – 30 minutes


Break-In-Billing (BIB)

Used when extending a rental period beyond the original 13 months.
Narrative must include:

  • “BIB”
  • Length of break
  • “Please extend rental period to [enter date needed]”

Break-In-Need

Used when there’s a break in medical necessity for an item.
Narrative must include:

  • Description of the beneficiary’s prior medical condition that required the previous item
  • Explanation of when and why that prior medical necessity ended
  • Explanation of the new or changed medical condition and when it began

Source: CGS Administrators, LLC (CMS)
Original February 10, 2021 – Revised November 27, 2023


đź“„ Additional DMEPOS Claim Narrative Requirements

Replacement Equipment (With RA Modifier)

Include all of the following in the claim narrative:

  • Enter RA modifier on the first month’s claim only
  • If within Reasonable Useful Lifetime (RUL), include narrative for reason(s) the equipment was replaced: stolen, lost, irreparably damaged
  • RUL Met – Replacement Equipment (include narrative):
    • RUL met
    • Beneficiary requested replacement
    • Date beneficiary received the equipment being replaced
  • Supplier Exiting Medicare Oxygen Business
    • If a new supplier is taking over, include:

      “Beneficiary acquired through supplier voluntarily exiting Medicare program” (or similar statement)


Not Otherwise Classified (NOC) Drugs

  • Enter drug name and dosage in the claim narrative.

Unlisted Procedure Code or NOC Code

When billing an HCPCS code that is miscellaneous, NOC, unlisted, or non-specified, include:

  • Description of the item or service
  • Manufacturer name
  • Product name and number
  • Supplier Price List (PL) amount
  • HCPCS code of related item (if applicable)
  • If it’s a customized option/accessory, clearly state what was customized.

Greater Than Four Modifiers

If a claim line requires more than four modifiers, include “99” in the fourth modifier position and describe the overflow modifiers in the NTE Note segment or Item 19.


🗓️ Greater Than a One-Month Supply

When providing more than a one-month supply (up to 90 days) of:

  • External Infusion Pump Supplies
  • Nebulizer Inhalation Medication
  • Nebulizer Administration Supplies
  • Ostomy Supplies (with some exceptions)
  • PAP or RAD Accessories
  • Urological Supplies

Claim narrative must include:

  • Statement indicating “3-month supply (90 days)” or the exact number of days billed.

Source: CGS Administrators, LLC (CMS)
Original February 10, 2021 – Revised November 27, 2023