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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. 
 
The rules say that providers/suppliers must report services correctly. Procedures should be reported with the 
Current Procedural Terminology (CPT) code that describes the services performed. You can find this rule in 
the Centers for Medicare and Medicaid Services, Medicare National Correct Coding Initiative Policy Manual 
for Medicare Services, Chapter I(A). 
 
The rules say that 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 A/B 
MAC (A) to the hospital as a provider service. A/B MACs (A) include the TC of radiology services for hospital 
inpatients, except Critical Access Hospitals (CAHs), in the prospective payment system (PPS) payment to 
hospitals. Hospital bundling rules exclude payment to suppliers of the TC of a radiology service for 
beneficiaries in a hospital inpatient stay. The TC of radiology and other diagnostic services furnished to 
hospital outpatients are paid under the Outpatient Prospective Payment System (OPPS) to the hospital. You can 
find this information in the Centers for Medicare and Medicaid Services (CMS), Internet-Only Manual 
Publication 100-04, Medicare Claims Processing Manual Chapter 13, Section 20.2.1. 
 
The rules say a Professional Component (PC)/Technical Component (TC) Indicator of 5 = Incident to Codes: 
This indicator identifies codes that describe services covered incident to a physicians service when they are 
provided by auxiliary personnel employed by the physician and working under his or her direct supervision. 
Payment may not be made by carriers for these services when they are provided to hospital inpatients or 
patients in a hospital outpatient department. Modifiers 26 and TC cannot be used with these codes. You can 
find this information in the Centers for Medicare and Medicaid Services (CMS), Internet-Only Manual Publication 100-04, Medicare Claims Processing Manual Chapter 23, Section 50.6. 
 
The rules say Technical Component Only Codes identify stand- alone codes that describe the technical 
component (i.e., staff and equipment costs) of selected diagnostic tests for which there is an associated code 
that describes the professional component of the diagnostic test only. An example of a technical component 
only code is CPT code 99153-MOD SED SAME PHYS/QHP EA. It also identifies codes that are covered only 
as diagnostic tests and therefore do not have a related professional code. Modifiers 26 and TC cannot be used 
with these codes. The total RVUs for technical component only codes include values for practice expense and 
malpractice expense only. You can find this rule in the Centers for Medicare and Medicaid Services, Internet 
Only Manual, Publication 100-04, Medicare Claims Processing Manual Chapter 23. 
 
The rules say Medicare Physician's Fee Schedule Database (MPFSDB) Status Code of P is defined as 
Bundled/excluded codes. There are no RVUs and no payment amounts for these services. No separate payment 
is made for them under the fee schedule. If the item or service is covered as incident to a physician service and 
is provided on the same day as a physician service, payment for it is bundled into the payment for the physician 
service to which it is incident. You can find this rule in the Centers for Medicare and Medicaid Services, 
Internet Only Manual, Publication 100-04, Medicare Claims Processing Manual Chapter 23, Section 30.2.2. 
 
The rules say that the Physician Fee Schedule Status Indicator X means that the billed code represents an item 
or service that is not in the statutory definition of physician services for fee schedule payment purposes. No 
payment may be made under the physician fee schedule. You can find this information in the Centers for 
Medicare and Medicaid Services, Internet Only Manual, Publication 100-04, Medicare Claims Processing 
Manual, Chapter 23, 30.2.2. 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com. 
 
The Plan contract says that the Plan covers items and services in accordance with Medicare rules.