The new modifier-FB: Item provided without cost to provider, supplier or practitioner (examples, but not limited to: covered under warranty, replaced due to defect, free samples)

Effective for services furnished on or after January 1, 2006, hospitals must report HCPCS modifier FB with the HCPCS code for a device that was furnished to the hospital without cost to the provider. For example, when a manufacturer furnishes (at no cost to the provider) a replacement device that has been recalled, or has failed, the hospital must report the modifier with the device code to indicate that the hospital did not incur a cost for the item. This requirement applies to all HCPCS C-codes or L-codes that describe devices. Hospitals cannot report modifier FB when they get...

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Note:  The following article synopsis was NOT provided by the AHA. It was created by Find-A-Code/innoviHealth.

Article Overview

This premium article focuses on a Medicare-era HCPCS modifier update affecting hospital reporting for device items furnished without cost. It is aimed at hospital coders, billing staff, compliance teams, and other healthcare revenue cycle professionals who need to understand the modifier’s reporting context, the applicable device code categories, and the referenced CMS guidance.

Why This Topic Matters

Correct modifier reporting affects claim accuracy and compliance for device-related hospital services. The article helps readers recognize when the guidance applies and where CMS documentation supports the reporting requirement.

What You Will Learn

  • The reporting context for a HCPCS modifier related to items furnished without cost
  • Which broad device code categories the guidance applies to
  • The role of CMS transmittal guidance in supporting the modifier update
  • How the article frames hospital reporting considerations for device-related claims

Who Should Read This

  • Hospital coders
  • Inpatient and outpatient billing staff
  • Revenue cycle professionals
  • Compliance staff
  • Health information management professionals

Codes Discussed

Modifiers Discussed


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