Neighborhood Diabetes passes test

Tuesday, February 5, 2013

WOBURN, Mass. – For calendar year 2010, Neighborhood Diabetes submitted claims for testing supplies without the KL modifier in accordance with Medicare billing requirements, according to a review conducted by the Office of Inspector General (OIG). Of 100 sampled line items, 99 were properly submitted without the KL modifier because Neighborhood used company-owned vehicles for delivery. Medicare billing guidelines require suppliers to submit claims with the KL modifier for mail-order diabetes testing supplies, which are reimbursed at a lower amount than supplies provided at local storefronts. The remaining sampled line item should have been submitted with the KL modifier because Neighborhood had delivered the supplies by mail. Neighborhood discovered this error during the OIG’s audit and resubmitted the claim with the KL modifier. Consequently, the OIG’s report has no recommendations.