PayorTransparency

Glossary

HCPCS codes, payer terms and coverage concepts, defined clearly for suppliers, manufacturers and analysts.

The vocabulary the Code Hub and the product use. Almost all of it is Medicare program language rather than anything coined here, and the entries exist so that a code page or a category page can use a term without stopping to define it in the middle of a coverage rule.

Where a term carries a rule that is commonly misread, the entry states the rule and links the document it comes from. The Standard Written Order is the clearest case of that, and it is the reason the entry runs longer than the others.

Terms are grouped by first letter and listed alphabetically inside each group. Each term has its own anchor, so a page elsewhere can link straight to the entry it means, and a term that names another term links to it under Related.

A

4 terms
Accreditation

The quality standards review a DMEPOS supplier must pass to bill Medicare and to bid. Site visits are moving to an annual cycle.

RelatedPTANSmall supplier

Adjunctive CGM

A continuous glucose monitor whose readings must be confirmed with a fingerstick before an insulin or treatment decision. Billed under its own supply and device codes.

RelatedNon-adjunctive CGMCGM

Adjusted fee schedule

A fee schedule amount that has been updated with competitive bidding pricing information, as applied outside the bidding areas themselves.

RelatedFee schedule

AU modifier

The item is furnished with a urological, ostomy or tracheostomy supply — ties the accessory to its covered base benefit.

RelatedKX modifier

B

2 terms
Bid surety bond

A bond a bidder must obtain from an authorized surety for each bidding area it bids in, so that only capitalized suppliers bid.

RelatedCompetitive bidding area (CBA)

By Report (BR)

Manual pricing for codes with no promulgated fee-schedule amount: the supplier attaches cost documentation (an invoice or catalog page) to the claim.

RelatedFee schedule

C

9 terms
Capacity evaluation

CMS projects beneficiary demand for each category, then selects enough of the lowest bidders whose declared capacity together meets that demand.

Related75th percentile rule

CBACompetitive bidding area

Short for competitive bidding area.

RelatedCompetitive bidding area (CBA)

CBPCompetitive Bidding Program

Short for the DMEPOS Competitive Bidding Program.

RelatedCompetitive Bidding Program (CBP)

CGMContinuous glucose monitor

A wearable sensor that reports glucose readings continuously. Round 2028 bids the non-adjunctive supply allowance as a lead item.

RelatedAdjunctive CGMNon-adjunctive CGM

Competitive bidding area (CBA)

A geographic area in which competitive bidding contracts and single payment amounts apply. Remote item delivery categories are bid nationally instead.

RelatedCBARemote item delivery (RID)

Competitive Bidding Program (CBP)

The CMS program that sets Medicare DMEPOS payment by supplier bids and contracts rather than the fee schedule. Round 2028 is its next round.

RelatedCBPCompetitive bidding area (CBA)Remote item delivery (RID)

Convexity

A built in outward curve in a skin barrier that presses the skin around a flush or retracted stoma so the stoma protrudes into the pouch and leaks are prevented.

RelatedSkin barrier

Coudé tip

A curved catheter tip used when a straight tip cannot pass, as with strictures or an enlarged prostate. Both catheter lead items are coudé tip codes.

RelatedHydrophilic coating

Custom-fitted orthotic

A prefabricated brace that a trained professional must substantially modify, for example by heat bending, to fit one patient. Custom fitted braces stay outside competitive bidding.

RelatedOff-the-shelf (OTS) orthotic

D

2 terms
DME MACDurable Medical Equipment Medicare Administrative Contractor

The regional contractors that process Medicare claims for durable medical equipment and supplies, and that publish the coverage rules those claims are judged against. Two companies hold the four jurisdictions: Noridian in JA and JD, CGS in JB and JC.

DMEPOS

Durable Medical Equipment, Prosthetics, Orthotics, and Supplies — the CMS benefit category urological supplies are billed under; catheters ride the Prosthetics benefit.

RelatedHCPCS Level IICompetitive Bidding Program (CBP)Medicare DMEPOS fee schedule

E

4 terms
Episode of Insertion

The billing unit for placing an indwelling catheter — CMS covers one insertion tray per episode, regardless of clinical complications.

RelatedInsertion kit

Extended wear

A skin barrier formulation designed to stay sealed longer than a standard wear barrier, resisting breakdown from output.

RelatedSkin barrier

External catheter

A urine collection device worn outside the body rather than inserted, such as a condom style male catheter or a female pouch or meatal cup.

RelatedMeatal cup

EY modifier

No physician order on file for the item — an automatic denial flag.

RelatedSWO

F

2 terms
Faceplate

The reusable rigid plate of an older ostomy system to which a pouch attaches. Faceplate pouch codes sit apart from barrier based systems.

RelatedSkin barrierTwo-piece system

Fee schedule

A payer's list of maximum allowable reimbursement per HCPCS code, often geographically adjusted — the baseline every margin calculation starts from.

RelatedMedicare DMEPOS fee schedule

G

4 terms
GA modifier

An Advance Beneficiary Notice is on file: the item is expected to be denied as not reasonable and necessary, and liability shifts to the beneficiary.

RelatedGZ modifierGY modifier

Ghost rates

Rows in a machine-readable file that price a code for a provider who does not bill it. A file can carry a rate for a provider who has never supplied the item, so a row existing is not evidence that the code is billed or paid there. Also called zombie rates.

GY modifier

The item is statutorily excluded from the benefit — billed to obtain the denial a secondary payer needs.

RelatedGA modifier

GZ modifier

The item is expected to be denied and NO Advance Beneficiary Notice is on file — the supplier absorbs the denial.

RelatedGA modifier

H

2 terms
HCPCS Level II

The alphanumeric coding system for medical products and supplies. Continence care uses A-codes for medical/surgical supplies and T-codes for state Medicaid programs.

RelatedPDACUPN

Hydrophilic coating

A catheter coating that becomes slippery when wet, usually from a sterile water sachet, reducing friction and urethral trauma on insertion. It defines the hydrophilic catheter category.

RelatedCoudé tipInsertion kit

I

2 terms
Insertion kit

A sterile package of insertion supplies, typically gloves, an underpad and a collection bag, bundled with or sold beside a catheter.

RelatedSterile intermittent catheterizationHydrophilic coating

Intracavitary pressure

The compression a rigid spinal brace applies to the abdomen, which offloads the intervertebral discs. Many back brace code descriptors name it.

RelatedSagittal-coronal controlTLSOLSO

K

1 term
KX modifier

The supplier's attestation that the LCD's medical-necessity requirements are met and documented — required on most urological supply claims.

RelatedPolicy ArticleGA modifier

L

3 terms
LCD

Local Coverage Determination — a Medicare Administrative Contractor's binding coverage decision for its jurisdiction. LCD L33803 (Urological Supplies) governs continence-care coverage.

RelatedMACPolicy Article

Lead item

The one code in a Round 2028 product category that suppliers actually bid on. Its single payment amount anchors the price of every other code in the category.

RelatedNon-lead itemRelative ratioSingle payment amount (SPA)

LSOLumbar-sacral orthosis

A back brace supporting the lower back and sacrum. The back brace category's lead item is a rigid LSO.

RelatedTLSOSagittal-coronal control

M

4 terms
MAC

Medicare Administrative Contractor — the regional contractor that processes Medicare claims and issues the LCDs governing coverage in its jurisdiction.

RelatedLCD

Meatal cup

A female external collection device that seals over the urethral opening. A niche item in the urological category.

RelatedExternal catheter

Medicare DMEPOS fee schedule

CMS's published allowable per code — the dashed reference line on the charts. Negotiated commercial rates are benchmarked against it.

RelatedFee scheduleDMEPOSp50 (median)

MRFMachine-Readable File

A rate file a payer publishes under the Transparency in Coverage rule. The in-network-rates file is the one that carries prices; an allowed-amounts file and a provider-reference file sit beside it. They are compressed JSON, and one payer month is commonly large enough that no ordinary desktop tool will open it.

N

4 terms
Negotiated type

How the filed rate is expressed: 'negotiated' is a dollar amount; 'percentage' is a percent of a reference schedule. A chart never mixes the two.

RelatedFee scheduleMedicare DMEPOS fee schedule

Non-adjunctive CGM

A continuous glucose monitor cleared for treatment decisions without a confirming fingerstick. It replaces the standard blood glucose monitor and its test strips in billing.

RelatedAdjunctive CGMCGM

Non-discrimination clause

A contract supplier must offer Medicare beneficiaries the same brands and models it offers other customers, and must furnish a specific prescribed item or help find a supplier that can.

RelatedCompetitive Bidding Program (CBP)

Non-lead item

Any code in a category other than the lead item. Suppliers do not bid on it; its payment is the lead item's single payment amount scaled by a fixed relative ratio.

RelatedLead itemRelative ratio

O

4 terms
Occurrences (n)

How many rate rows back this figure — more occurrences mean the percentile rests on more filed provider-payer rates.

Relatedp50 (median)Negotiated type

Off-the-shelf (OTS) orthotic

A prefabricated brace that needs only minimal self adjustment by the patient or caregiver to fit. Only OTS braces are inside competitive bidding.

RelatedOTSCustom-fitted orthotic

One-piece system

An ostomy pouch with the skin barrier attached, changed as a unit.

RelatedTwo-piece systemSkin barrier

OTSOff-the-shelf

Short for off-the-shelf: a prefabricated brace fitted with minimal self adjustment.

RelatedOff-the-shelf (OTS) orthotic

P

11 terms
p25

The 25th percentile: a quarter of the negotiated rates on file sit at or below this value. The low end of the typical range.

Relatedp50 (median)p75Occurrences (n)

p50 (median)

The median negotiated rate: half the rates on file are below, half above. The single most representative number for a payer's pricing.

Relatedp25p75Rate spread

p75

The 75th percentile: three quarters of the negotiated rates on file sit at or below this value. The high end of the typical range.

Relatedp25p50 (median)

PDAC

The CMS Pricing, Data Analysis and Coding contractor that assigns products to HCPCS codes — it maintains the hydrophilic catheter crosswalk.

RelatedPDAC coding verificationUPNHCPCS Level II

PDAC coding verification

The formal review in which the PDAC contractor confirms a product meets a HCPCS code's criteria. Without it the supplier carries the coding and audit risk itself.

RelatedPDACHCPCS Level II

Permanent urinary incontinence / retention

The qualifying condition for the Prosthetics benefit: a bladder/sphincter impairment of long and indefinite duration (in practice, three months or more).

RelatedSterile intermittent catheterization

Policy Article

The LCD's companion document carrying the coding guidelines, modifier requirements and utilization parameters that make the coverage decision operational.

RelatedLCDKX modifier

Prior Authorization

Payer approval required before dispensing. Rare for routine catheter supplies under Medicare; routine for above-quantity absorbent products under Medicaid.

RelatedPrior authorization exemptionUsual Maximum Quantity

Prior authorization exemption

A proposed benefit for suppliers with a high historical claim approval rate: they skip pre payment prior authorization and are reviewed after payment instead.

RelatedPrior Authorization

Prosthetic benefit

The Medicare benefit category these codes fall under. It is not capped rental, so coverage continues once it has been established, and audits concentrate on the documentation held and on the monthly quantity ceilings rather than on a rental clock.

PTANProvider Transaction Access Number

The Medicare billing number a supplier must hold and keep active to participate in competitive bidding.

RelatedAccreditation

R

6 terms
Rate spread

The gap between the highest and lowest payer medians shown — a quick read on how far apart payers price the same code.

Relatedp50 (median)

Recurrent UTIs

Documented urinary tract infections meeting the LCD's frequency criteria — a key gateway to sterile-kit (A4353) coverage.

RelatedSterile intermittent catheterization

Relative ratio

The fixed multiplier that ties a non-lead item's payment to the lead item's single payment amount. Derived from historical fee schedules, it does not change with the bid.

RelatedLead itemNon-lead item

Remote item delivery (RID)

The national competitive bidding track for supplies shipped to a beneficiary's home or picked up locally, such as CGM supplies, ostomy and urological items. No local bidding areas apply.

RelatedRIDCompetitive bidding area (CBA)

RFBRequest for Bids

The CMS notice that opens a bidding round, with the bid window, instructions and category list.

RelatedCompetitive Bidding Program (CBP)

RIDRemote item delivery

Short for remote item delivery, the national bidding track for shipped supplies.

RelatedRemote item delivery (RID)

S

10 terms
Sacroiliac orthosis

A flexible or paneled belt supporting the pelvis and sacrum. The simplest entries in the back brace category.

RelatedLSO

Sagittal-coronal control

A brace that limits both forward and backward (sagittal) and side to side (coronal) trunk motion. Sagittal control alone limits only the forward and backward plane.

RelatedIntracavitary pressureLSO

Single payment amount (SPA)

The most Medicare pays a contract supplier for a competitively bid item. Round 2028 sets it at the 75th percentile of winning bids for the lead item.

RelatedSPA75th percentile ruleLead item

Skin barrier

The adhesive wafer or flange that seals an ostomy pouch system to the skin around the stoma and protects it from output. The ostomy category's lead item is a skin barrier.

RelatedConvexityExtended wearFaceplateStoma

Small supplier

A supplier under the program's annual revenue threshold. CMS aims for a share of contracts to go to small suppliers and may offer extra contracts to reach it.

RelatedAccreditation

SPASingle payment amount

Short for single payment amount: the contract price Medicare pays for a competitively bid item.

RelatedSingle payment amount (SPA)

Standard written order (SWO)

The order document required before most DMEPOS items are billed. It replaced the detailed written order and the certificate of medical necessity.

RelatedSWO

Sterile intermittent catheterization

One sterile single-use catheter per catheterization event — the coverage standard that replaced clean reuse in 2008 and drives per-month quantities.

RelatedPermanent urinary incontinence / retentionRecurrent UTIsInsertion kit

Stoma

The surgically created opening on the abdomen through which bowel or urinary output passes in a colostomy, ileostomy or urostomy.

RelatedSkin barrier

SWOStandard Written Order

The order a supplier must hold on file before it bills Medicare for an item. The January 1, 2026 code split required a new order only where the existing order named a HCPCS code, which meant A4351, A4352 or A4353. An order written with a general description such as hydrophilic catheter, or with a brand and model, needed no replacement, and the supplier simply bills the new code for dates of service on or after January 1, 2026.

Stated by Noridian Healthcare Solutions, jurisdictions JA and JD, July 17, 2025

T

5 terms
TAI

Transanal irrigation — bowel-management therapy delivered via rectal catheter (A4453) with a manual (A4459) or electronic (A4479) system.

RelatedDMEPOS

TiCTransparency in Coverage

The federal rule requiring health plans and insurers to publish machine-readable files of their negotiated in-network rates, refreshed every month. It is the rule the provenance line at the foot of every page on this site refers to.

TLSOThoracolumbosacral orthosis

A back brace that spans the thoracic, lumbar and sacral spine. The back brace category's flexible entries are TLSOs.

RelatedLSOIntracavitary pressure

TOCTable of Contents

The index file listing where a payer has put its machine-readable files for a given month. It is far smaller than the files it points at, and reading a payer month starts here, because nothing else states which files exist.

Two-piece system

An ostomy system in which the skin barrier with a flange stays on the skin and the pouch snaps on and off separately.

RelatedOne-piece systemSkin barrier

U

2 terms
UPN

Universal Product Number — the product-level identifier PDAC crosswalks to HCPCS codes when coding structures change.

RelatedPDACHCPCS Level II

Usual Maximum Quantity

The payer's hard per-period unit limit (e.g. 200 intermittent catheters per month). Exceeding it triggers automated denials without added medical-necessity documentation.

RelatedPrior AuthorizationKX modifier

#

1 term
75th percentile rule

How Round 2028 prices a lead item: the single payment amount is the bid at the 75th percentile of the winning bids, not the highest winning bid as in earlier rounds.

RelatedSingle payment amount (SPA)Capacity evaluation