Health Information Management

Q&A: Requirements for reporting value code FD

APCs Insider, November 20, 2015

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Q: Are we still required to report value code FD (credit received from the manufacturer for a replaced medical device) in 2016? We are having an incredibly difficult time getting the information flow to work correctly all the time.
A: Get ready to continue with your process improvement. Value code FD is still a requirement for claims when the device is provided at no cost or partial (50%) credit by the manufacturer. This value code became effective in 2014, so this is the first year that CMS has actual claims data available.
CMS’ policy of reducing the APC payment amount by the full or partial cost reported continues into 2016 with one change. The offset will apply to all devices reported as part of a device-intensive APC. Providers no longer have a specific list of devices to apply the cost offset. 
Providers should take a close look at the communication and processes in place to accomplish this reporting. The Office of Inspector General included modifiers –FB (item provided without cost to provider, supplier or practitioner, or credit received for replacement device) and –FC (partial credit received for replaced device) on its audit list, and there is no reason to think that value code FD will be passed over. 
Editor’s note: Denise Williams, RN, CPC-H, seniorvice president of revenue integrity services at Revant Solutions,in Fort Lauderdale, Florida, answered this question.

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