MedicaidDocumentationHigh impact
Language Clarification: Proper Use of Modifier 25 When Billing for Allergy Testing and E/M Services on the Same Day
Texas Medicaid·TX · Allergy & Immunology, Family Medicine, Internal Medicine +1 more·Coding
Effective date
Sep 1, 2026
We identified it
Jul 18, 2026
Summary
Texas Medicaid clarifies that modifier 25 must be appended to both allergy testing and E/M service codes when billed on the same day by the same provider. Additionally, supporting documentation proving a significant, separately identifiable E/M service must accompany the claim and be maintained in the medical record. Without proper documentation, the E/M service will be denied while allergy testing is reimbursed.
Action Required
By September 1, 2026: Billing team must implement the following changes for Texas Medicaid allergy testing claims: (1) Update billing software to require modifier 25 on both the allergy testing procedure code AND the E/M service code (CPT 99201-99215) when billed on the same date of service; (2) Create a mandatory documentation checklist in the EMR to ensure providers document a significant, separately identifiable E/M service distinct from the allergy testing procedure; (3) Establish a claim submission process that attaches supporting clinical documentation with all same-day allergy testing + E/M claims; (4) Brief all providers and clinical staff that E/M services without proper documentation will be denied even if modifier 25 is present. Update encounter templates and billing forms to remind providers of these requirements. Failure to comply will result in E/M claim denials and payment recapture.