Medical Billing - Rental Modifiers

One of the most confusing things to medical billingbeginning with the letter K. When month number 12 hits,
personnel is rental modifiers. Most billers don't eventhe item is then transferred to a different status called
know what a modifier is unless they have at least hadmaintenance. While this is happening, the modifier that
some experience with rental billing. Hopefully, afteris stored with the item is changed from a K modifier to
reading this installment, you'll have a decent idea ofsomething else, again, depending on the item. When the
what modifiers are, how they work and what youinsurance company sees this modifier come over on
have to be aware of when doing your medical billingmonth 13, they know the item is on maintenance and
duties.now pay a different allowable for it. Usually, when this
Rental items are a strange breed in the world ofhappens, the item also stops billing monthly. Depending
medical billing. Unlike a purchase item that is sold andon what it is, it may bill every six months or even
then that's the end of it, a rental item is kind of like theevery year.
gift that keeps on giving. It is a medical billing agenciesThe thing that most medical billing personnel don't
main source of income, especially if they do a lot ofunderstand is how this process happens. How does
oxygen billing which requires patients to have anthe software know when to change the modifier from
oxygen concentrator for many months if not years.a K to a maintenance modifier? It does this by looking
Because of this, insurance carriers need to know,at the number of rebill pages that are in the system.
every step along the way, just how long a piece ofEach time the system bills a rental item, because it is
equipment has been rented. Why? Well, this has to donot a one shot deal, it creates another billing page,
with certain regulations. See, once an item has beencalled a rebill page. So if the system has billed 11
rented so many months, usually 12, it then goes onmonths and that's the key, it knows when it is billing
what is called maintenance billing. Maintenance billing ismonth 12 and at that time it changes the modifier
usually cheaper than regular billing because by the timeAFTER it sends the month 12 bill. That is the key, to do
the 12 months have passed, the supplier of theit after and NOT before. Otherwise, the item goes on
equipment has already gotten their due profit from themaintenance too soon.
item and because of this, the insurance companyIt's a tricky process but it all happens behind the
begins to pay less starting with month 13. What doesscenes. So if your DME software is functioning
all this have to do with modifiers?properly, you shouldn't run into any problems with your
From months one through 12, the modifier for therental modifiers.
particular rental item will be one set of letters, usually