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, Critical Care, Anesthesiology +1 more·Coding
Effective date
Jun 1, 2026
We identified it
Jun 1, 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Providence Health Plan implemented four coding and reimbursement policy changes effective June 1 and July 1, 2026: (1) rescinded the inpatient sepsis DRG length-of-stay edit; (2) will deny critical care services (99291/99292) billed in the ED when patients are discharged home; (3) will deny surgical procedures (CPT 10000-69999) missing required anatomical modifiers (RT, LT, E1-E4, etc.); and (4) will no longer reimburse additional units for anesthesia physical status modifiers P3, P4, P5 on commercial plans. These changes require immediate updates to billing logic, provider documentation requirements, and claim submission processes.
Action Required
IMMEDIATE ACTIONS REQUIRED:
By May 31, 2026: (1) Billing team must update claim submission software to deny facility-billed critical care services (99291, 99292) when rendered in the ED with discharge disposition 'to home' (status code 01). Communicate to ED providers that appropriate ED E/M levels should be reported instead. (2) Implement system edit to require anatomical modifiers (RT, LT, E1-E4, F1-F9, T1-T9, LC, RC) on all bilateral-eligible surgical procedure codes (CPT 10000-69999) and deny claims with missing, incorrect, or non-specific modifiers (59, XS). Notify surgical staff and providers to verify anatomical site/laterality on all operative reports before billing. (3) For commercial plans only: Update anesthesia reimbursement calculation to exclude additional unit payments for physical status modifiers P3, P4, P5 effective June 1, 2026. Anesthesia providers may continue documenting these modifiers for clinical purposes, but inform them no additional reimbursement will be made. (4) Immediately cease applying the rescinded inpatient sepsis DRG length-of-stay edit; remove this edit from all billing logic. Update provider communications to reflect this change. CONSEQUENCES: Claims submitted without these corrections will be denied at the line level, resulting in lost revenue and claim resubmission delays.