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The rules say that plans must pay for a medical service or item if regular Medicare would pay for it in this case. 
You can find this rule at 42 Code of Federal Regulations (CFR) Section 422.101. 
 
Medicare Guidance says A/B MACs (B) may not pay for the technical component (TC) of radiology services 
furnished to hospital patients. Payment for physicians radiological services to the hospital, e.g., administrative 
or supervisory services, and for provider services needed to produce the radiology service, is made by the AB 
MAC (A) to the hospital as a provider service. Hospital bundling rules exclude payment to suppliers of the TC 
of a radiology service for beneficiaries in a hospital inpatient stay. CWF performs reject edits to incoming 
claims from suppliers of radiology services. Upon receipt of a hospital inpatient claim at the CWF, CWF 
searches paid claim history and compares the period between the hospital inpatient admission and discharge 
dates to the line item service date on a line item TC of a radiology service billed by a supplier. The CWF will 
generate an unsolicited response when the line item service date falls within the admission and discharge dates 
of the hospital inpatient claim. 
 
Radiology Services and Other Diagnostic Procedures, Section 150 Place of Service (POS) Instructions for the 
Professional Component (PC or Interpretation) and the Technical Component (TC) of Diagnostic Tests: Many 
of the diagnostic services, including radiology services, provided by physicians/practitioners contain both a 
technical component (TC) and a professional component (PC). Often, the PC and TC of diagnostic services are 
furnished in different settings. As a general policy, the Place of Service (POS) code assigned by the 
physician/practitioner for the PC of a diagnostic service shall be the setting in which the beneficiary received 
the TC service. Determination of Payment Locality Under the Medicare physician fee schedule (MPFS), 
payment amounts are based on the relative resources required to provide services and vary among payment 
localities as resource costs vary geographically as measured by the geographic practice cost indices (GPCIs). 
The payment locality is determined based on the location where a specific service code was furnished. For 
purposes of determining the appropriate payment locality, CMS requires that the address, including the ZIP 
code for each service code be included on the claim form in order to determine the appropriate payment 
locality. The location in which the service code was furnished is entered on the ASC X12 837 professional 
claim format or in Item 32 on the paper claim Form CMS 1500. Separate Billing of Professional Interpretation 
If the same physician or other supplier entity does not furnish both the TC and PC of the diagnostic service, or 
if the same physician or other supplier entity furnishes both the TC and PC but the professional interpretation was furnished in a different payment locality from where the TC was furnished, the professional interpretation 
of a diagnostic test must be separately billed with modifier -26 by the interpreting physician. You can find this 
information in the Medicare Claims Processing Manual, Chapter 13. 
 
The rules say that Procedure codes 88305 PC/TC - 1. You can find this information in the 2022 Physician fee 
schedule release. 
 
The rules say that 1 = Diagnostic tests or radiology services: This indicator identifies codes that describe 
diagnostic tests, e.g., pulmonary function tests, or therapeutic radiology procedures, e.g., radiation therapy. 
These codes generally have both a professional and technical component. Modifiers 26 and TC can be used 
with these codes. The total RVUs for codes reported with a 26 modifier include values for physician work, 
practice expense, and malpractice expense. The total RVUs for codes reported with a TC modifier include 
values for practice expense and malpractice expense only. The total RVUs for codes reported without a 
modifier equals the sum of RVUs for both the professional and technical component. You can find Medicare 
guidance in the Medicare Claims Processing Manual, Chapter 23 Fee Schedule Administration and Coding 
Requirements, Section 50.6 Physician Fee Schedule Payment Policy Indicator File Record Layout. 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com.