DME HCPCS Codes: PA Flags, Rental Rules & Denial Notes

The codes DME suppliers bill every day — with the prior-auth flags, rental/purchase logic, and documentation traps that drive DME's 15–20% denial rates.

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CodeItem (Plain English)Medicare PABilling Notes & Denial Traps
Respiratory / Sleep (E04xx–E06xx)
E0601CPAP device for obstructive sleep apneaVariesCapped rental (RR + KH/KI/KJ). Requires face-to-face eval, sleep study meeting AHI thresholds, and 90-day adherence proof (KX after compliance). Non-adherence at 90 days stops payment.
E0470BiPAP without backup rateVariesRequires documented CPAP failure/intolerance for OSA, or restrictive/COPD criteria. Same adherence machinery as CPAP.
E0471BiPAP with backup rateVariesHigher clinical bar (central apnea, hypoventilation). Expect documentation requests on every claim.
E1390Oxygen concentrator, stationaryVaries36-month rental, 5-year RUL. Qualifying blood gas/oximetry within 30 days of initial claim; CMN/standard written order required. Retesting rules trip renewals.
E0431Portable gaseous oxygen systemVariesAdd-on to stationary; requires documented mobility need within the home.
A7030–A7039CPAP masks, cushions, tubing, filtersNoStrict replacement frequency schedules (e.g., mask 1/3 months, cushions 2/month). Billing ahead of schedule = CO-151/N362.
E0570Nebulizer with compressorNoDx must support (asthma/COPD). Pair with A7003/A7005 supplies on schedule.
Mobility (E11xx, K00xx)
K0001Standard manual wheelchairNoCapped rental. Home assessment: must be usable within the home (Medicare's in-the-home rule).
K0003Lightweight manual wheelchairNoJustify why standard weight doesn't meet the need — comparative documentation.
K0823Power wheelchair, group 2 standard, captain's chairRequiredOn Medicare's PA list. Face-to-face mobility exam, home assessment, specialty evaluation. The densest documentation package in DME.
K0856Power wheelchair, group 3, single power optionRequiredGroup 3 = neurological/myopathy-level justification; ATP involvement required.
E0143Folding walker, wheeledNoInexpensive/routinely purchased — bill NU. Simple, but dx must support ambulation deficit.
E0630Patient lift, hydraulicNoRequires documentation that transfers need assistance and caregiver is available/trained.
Hospital Beds & Support Surfaces (E02xx–E03xx)
E0260Semi-electric hospital bed with railsVariesMedical need for positioning documented (not convenience). Capped rental. Full-electric (E0265/E0266) beds: the electric height feature is considered convenience by Medicare — expect patient upgrade paperwork (ABN).
E0277Powered pressure-reducing air mattressRequiredOn Medicare's PA list. Group 2 support surface criteria: existing ulcers with staging documented, or recent flap/graft.
E0193Powered air flotation bed (low air loss)RequiredGroup 3 criteria are stringent — most denials here are truly non-qualifying patients.
Diabetic Supplies (A42xx, E0784, K0553/K0554)
A4253Blood glucose test strips (per 50)NoFrequency limits by insulin status (insulin: 3/day baseline; non-insulin: 1/day). Above-limit needs KX + documented testing logs.
E0784External insulin infusion pumpVariesC-peptide/antibody criteria, specialist follow-up. High-dollar — expect full medical review.
K0553CGM supply allowance (therapeutic CGM), monthlyVariesOne unit per month — unit errors are the classic denial. Patient must meet CGM coverage criteria (insulin or hypoglycemia history per current policy).
K0554Therapeutic CGM receiverVariesPairs with K0553 supply stream; device replacement timing rules apply.
Orthotics & Prosthetics (L codes)
L0650Lumbar-sacral orthosis (LSO), off-the-shelfRequiredOn Medicare's PA list after widespread abuse. OTS vs custom-fit coding (L0650 vs L0637) depends on documented fitting work — upcoding here is an OIG focus area.
L1832Knee orthosis, adjustable, off-the-shelfRequiredPA list item. Dx and functional need documentation; telehealth-ordered braces draw extra scrutiny.
L3806Wrist-hand-finger orthosis, custom fabricatedNoCustom fabrication documentation (molding/impressions) must exist — OTS billed as custom is a false claim pattern.
L8000Mastectomy braNoFrequency limits; pair with prosthesis codes (L8020/L8030) appropriately.
Wound Care & Miscellaneous
E2402Negative pressure wound therapy (wound vac) pumpVariesMonthly documentation of wound measurements and healing progress — stalled healing ends coverage. Supplies (A6550) tie to pump months.
A6531Compression stocking, 30–40 mmHg, below kneeNoCovered only with open venous stasis ulcer for Medicare (dx-driven) — cosmetic/preventive use is GY territory.
B4034–B4162Enteral feeding supply kits & formulaVariesTube-feeding dependence documented; calorie calculations must match units billed. Unit math errors are the top denial.

No codes match your filter.

The DME Modifier Cheat Row

DME claims carry modifier stacks. The core set:

RR / NU / UE

Rental / New purchase / Used purchase — the payment-category modifier every DME line needs.

KH / KI / KJ

Capped rental month markers: first month (KH), months 2–3 (KI), months 4–13 (KJ). Wrong month marker = wrong payment.

KX

Documentation-on-file attestation (e.g., CPAP adherence met). Only when the file actually supports it.

GA / GZ

ABN on file / no ABN when needed — controls whether the patient can be billed after denial.

Full modifier reference →

About This Reference

HCPCS Level II codes are maintained by CMS and are public domain. Item descriptions are plain-English paraphrases; coverage criteria summarized here follow Medicare DME MAC policy at time of writing and change with LCD updates — verify against current policy articles before billing. Commercial and Medicaid PA rules are broader than Medicare's list. Updated July 2026. See our methodology and the full DME billing guide.

DME Denials Above 15%?