MedicaidBilling CodesHigh impact
Billing Instruction Changes for Observation Services
Illinois Medicaid - HFS·IL · Emergency Medicine, Internal Medicine, Family Medicine +1 more·Provider Notice
Effective date
Jan 1, 2017
We identified it
Jun 20, 2026
Summary
Observation services billing is changing to comply with National Correct Coding Initiative edits. Starting January 1, 2017, providers must bill G0379 with G0378 instead of Evaluation and Management codes (99218-99220, 99234-99236) for observation services.
Action Required
By January 1, 2017: Billing team must update billing software to require G0379 with G0378 for all observation services instead of Evaluation and Management codes. Update encounter forms and staff training. Continue using two revenue lines with Revenue Code 0762 for each code. Claims using old coding combinations after January 1, 2017 will be rejected.