MedicaidBilling CodesHigh impact
Medicaid Alert MA-2022-04
New Jersey Medicaid·NJ · Psychiatry·Coding
Effective date
Jan 15, 2023
We identified it
Jun 20, 2026
Summary
New Jersey Medicaid is replacing Level III HCPCS codes with Level II HCPCS codes for Children's System of Care (CSOC) providers to comply with national standards. Twenty-four Y-codes and one Z-code are being replaced with H-codes and T-codes, with two codes being terminated entirely.
Action Required
By January 15, 2023: Billing team must update Direct Data Entry (DDE) and paper claim systems to use new Level II HCPCS codes instead of Level III codes for all CSOC services. Replace all Y-codes and Z5008 with corresponding H-codes and T-codes per the conversion table. Terminate use of Y9931 and Y9946 codes entirely. HIPAA 837 electronic claims are not affected by this change. Level III codes must be completely phased out by June 15, 2023 or claims will be rejected.