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Illinois Medicaid - HFSMedicaid · Billing Codes · Provider Notice · ILHigh impact

Ambulatory Procedures Listing (APL) Conversion to Health Care Procedure Coding System (HCPCS) Procedure Codes Policy and Billing Changes for HIPAA Compliance

Act
immediately
Effective date
Not stated in the notice
Identified
Jun 21, 2026

Summary

Illinois Medicaid is implementing HIPAA-compliant changes requiring hospitals and ambulatory surgical treatment centers to submit both HCPCS/CPT codes and APL ICD-9 CM procedure codes on claims, while eliminating several state-specific billing practices. Multiple billing form requirements are changing including spenddown reporting, Medicare crossover claims, and physician identification fields.

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What to do

immediately · 6 steps
01Update billing systems to require both HCPCS/CPT codes in FL 44 of UB-92 forms (Loop ID 2400 for electronic claims) AND APL ICD-9 CM procedure codes for all hospital outpatient and ASTC services.
02Stop billing state procedure code 0098 for DCFS screening exams - use Source of Admission 8 instead.
03Replace FL 54P spenddown reporting with value code 66 in FLs 39-41 A-D.
04Update Medicare crossover claims to use value code 24 for units reporting.
05Remove AMA Medical Education Numbers from physician ID fields.
06Claims missing required HCPCS/CPT codes will be rejected.

Original notice

Ambulatory Procedures Listing (APL) Conversion to Health Care Procedure Coding System (HCPCS) Procedure Codes Policy and Billing Changes for HIPAA Compliance
hfs.illinois.gov · Always check the source before changing claims.
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