Traditional MedicareBilling CodesHigh impact
2026-08-20 - DMEPOS Competitive Bidding Program: Get Ready for Round 2028
Medicare/CMS·Oncology, General Surgery·Payment
Effective date
Oct 1, 2025
We identified it
Aug 20, 2026
Summary
This MLN Connects Newsletter (August 20, 2026) contains multiple policy updates including: (1) new DMEPOS Competitive Bidding Program Round 2028 fact sheets and updated bid surety bond amounts for remote item delivery areas; (2) billing guidance for Encelto™ cell gene therapy (HCPCS J3403) requiring fractionated unit billing with LU and 76 modifiers; (3) updated 2026 HCPCS application summaries; and (4) ICD-10 coding revisions effective January 1, 2027. The most immediately actionable item is the Encelto billing guidance for claims with dates of service on or after October 1, 2025.
Action Required
REQUIREMENTS:
1. IMMEDIATE (Before processing Encelto claims):
- Billing team: Update billing software to recognize HCPCS code J3403 (revakinagene taroretcel-lwey, per implant) for ASC and hospital outpatient claims.
- Billing team: Implement fractionated unit billing logic in claims system for J3403. When splitting payment amounts, ensure claims are submitted with LU modifier (fractionated billing) and 76 modifier (repeat service) appended.
- Billing team: Configure system to enforce the following rules for J3403:
* Maximum 1 total unit per date of service per eye treatment
* Support decimal unit increments (0.1 or 0.2 preferred)
* Calculate fractionated charges correctly (e.g., for $261,579.65 payment: 9 claims at 0.1 unit/$26,157.96 + 1 claim at 0.1 unit/$26,158.01 if using 0.1 increments)
- Providers: Review Medicare Claims Processing Manual Chapter 32, section 400.2.5 for CAR-T therapy billing parallels.
- Consequence: Claims for Encelto submitted without proper fractionated billing and modifiers will be denied or processed incorrectly.
2. By January 1, 2027:
- Billing/Coding team: Review and implement ICD-10 and other coding revisions to National Coverage Determinations (January 2027 Update) in billing system and encoder software.
- Update encounter forms and templates to reflect new coding requirements.
- Consequence: Claims submitted with outdated codes may be denied or incorrectly processed.
3. Before Bidding Period Opens (DMEPOS Round 2028):
- DMEPOS bidders: Review all four new fact sheets on the CBIC website (Antitrust Guidance, Common Ownership & Common Control, Determining Number of Contract Awards & Single Payment Amount, Round 2028 Terms & Definitions).
- Update bid preparation materials and bid surety bond amounts based on FY 2027 Inpatient Rehabilitation Facility Prospective Payment System final rule for remote item delivery competitive bidding areas.
- Consequence: Non-competitive or non-compliant bids may be rejected.