MedicaidBilling CodesHigh impact
Newsletter Vol. 14, No. 42
New Jersey Medicaid·NJ · Psychiatry·Provider Notice
Effective date
Jul 1, 2004
We identified it
Jun 20, 2026
Summary
New Jersey Medicaid is discontinuing the Z0180 (Partial Care, Full Day) code effective July 1, 2004, and replacing it with hourly billing using Z0170 (Partial Care, Per Hour) at $15.40/hour. Partial care services must now be billed in 2-5 hour increments per day with fractional hours rounded down, and each claim line must represent a single date of service—span dates are no longer permitted.
Action Required
By June 30, 2004: Billing team must update all billing software and claims processing systems to discontinue use of Z0170 (full-day code) and implement Z0170 (hourly code) billing. Establish system validation rules to: (1) reject claims with service units less than 2 or greater than 5 hours (Error Code 374), (2) automatically round down fractional hours to whole numbers, and (3) prevent span dates on claim lines—each line must show a single service date only. Update provider training materials and encounter templates to reflect 2-5 hour daily service unit requirements. Notify all independent clinics, mental health providers, and partial care billing staff of the new requirements. Claims submitted on or after July 1, 2004 that violate these rules will be denied.