Oxygen Quarterly Results of Targeted Probe and Educate Review

The Jurisdiction A, DME MAC, Medical Review Department is conducting a Targeted Probe and Educate (TPE) review of HCPCS code(s) E0431, E1390, E1392, and K0738 as well as any additional codes on the claim for the related policy. The quarterly edit effectiveness results from October 2025 - December 2025 are as follows:

Based on dollars, the overall claim potential improper payment rate is 12%.

Top Medical Necessity Denial Reasons

  • The medical record documentation does not support the treating practitioner has ordered and evaluated the results of a qualifying blood gas study performed. Refer to National Coverage Determination 240.2, Local Coverage Determination L33797, & Policy Article A52514.
  • The medical record documentation does not support the blood gas study was obtained within two days of discharge from an inpatient hospital stay. Refer to National Coverage Determination 240.2 & Local Coverage Determination L33797.
  • The medical record documentation does not contain a qualifying blood gas study performed at rest (awake) or during exercise to support a portable oxygen system. Refer to National Coverage Determination 240.2 & Local Coverage Determination L33797.

Top Technical Denial Reasons

  • Claims history indicates same or similar durable medical equipment within the last five years.
  • The documentation does not include a Standard Written Order (SWO).

Educational Resources

Suppliers billing Medicare should be familiar with the documentation requirements and utilization parameters. Visit the Oxygen webpage to access coverage documents (Local Coverage Determination (LCD), Policy Article, National Coverage Determination (NCD)); documentation letters, forms, and checklists; reviews; tips; tools; resources; related articles; and educational events and tutorials, if applicable.

See the CMS Internet Only Manual (IOM), Publication 100-08, Medicare Program Integrity Manual, Chapter 3 information about probe/error validation reviews.

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