Medicare AdvantageReimbursementHigh impact
Special Alert June 2026 - UPDATE Part 2 - Alert for 6.1 and 7.1 Coding and Reimbursement Policy Changes
Providence Health Plan·OR · Emergency Medicine, Anesthesiology, General Surgery +1 more·Coding
We identified it
Sep 2, 2026
Summary
Providence Health Plan implemented four coding and reimbursement policy changes effective June 1 and July 1, 2026: (1) rescinded the inpatient sepsis DRG length-of-stay edit; (2) will deny critical care services (99291, 99292) billed in the ED when patients are discharged to home; (3) will deny surgical procedures missing required anatomical modifiers (RT, LT, E1-E4, F1-F9, T1-T9, LC, RC); and (4) will no longer reimburse additional units for anesthesia physical status modifiers P3, P4, P5 on commercial plans.
Action Required
REQUIREMENTS:
**By June 1, 2026 (Anesthesia Physical Status Modifiers):**
- Billing team must update claims processing system to exclude additional unit reimbursement for anesthesia modifiers P3, P4, and P5 on commercial plans only.
- Notify anesthesia providers that these modifiers may continue to be documented but will not generate additional payment on commercial lines of business.
- Configure billing rules to prevent claim rejections when P3, P4, P5 modifiers are submitted.
- Consequence: Claims submitted with these modifiers will be reimbursed at base rate only; any appeals based on historical payment patterns will be denied.
**By July 1, 2026 (Critical Care ED Denials and Anatomical Modifiers):**
- Billing team must implement system edit to deny CPT 99291/99292 claims from facility emergency department settings when discharge disposition is "01" (home).
- Educate ED providers and coders that critical care codes are inappropriate for ED-to-home discharges; instruct them to bill appropriate ED E/M codes (99281-99285) instead.
- Billing team must update claim validation rules to flag and deny surgical procedure claims (CPT 10000-69999 bilateral-eligible procedures) when anatomical modifiers (RT, LT, E1-E4, F1-F9, T1-T9, LC, RC) are missing, incorrect, or replaced with non-specific modifiers (59, XS).
- Create internal audit to identify historical claims billed with CPT 99291/99292 from ED with home discharge to address potential overpayments.
- Communicate to providers: Modifier 59 and XS are not acceptable substitutes when specific anatomical modifiers are available; verify all surgical claims include proper laterality/site identification.
- Consequence: Claims failing to meet these requirements will be denied at the line level; resubmission will require corrected coding and proper modifiers.