What is Modifier 25?

Do you think you understand everything about modifier 25? Think again! It is one of the few modifiers that are often under scrutiny due to frequent misuse. As we all know, incorrect use of billing modifiers can result in billing audits and hefty fines. But did you know that Medicare audit penalties can reach as high as $100,000?

Our advice? Only use modifier 25 with the appropriate level of distinct evaluation and management (E/M) service. Today, we’ll answer all your queries about this two-character code so you can receive proper reimbursements. Let us start with the definition before moving on to the real-world examples.

Table Of Contents

What is Modifier 25?
Modifier 25 – Examples
Accurate Usage Guidelines for Modifier 25
Summary

Modifier 25 in medical billing refers to a separate and significant evaluation and management (E/M) service. But what exactly qualifies as a significant and separately identifiable E/M service? It means the service addresses a new or existing problem during the same visit as another procedure or service.

In simple terms, modifier 25 indicates that, although the E/M service was performed by the same physician, it is unrelated to the other procedures performed on the same day. It is a critical part of medical billing. Since all billable surgical interventions already include an E/M service, you won’t receive separate reimbursement for extra work without this modifier.

To avoid confusion and hefty penalties, apply modifier 25 only when:

A significant and distinct E/M service was performed,
By the same healthcare provider,
On the same patient,
On the same day.

Modifier 25 – Examples

The following scenarios can help you use modifier 25 more effectively.

Skin Lesion Biopsy & E/M for Leg Swelling

A woman visits the doctor with a suspicious lesion on her arm. During the visit, she also complains about swelling in her left leg and deep pain in her thigh. Before performing a biopsy on her arm, the doctor inspects her legs and takes a detailed history.

He then conducts a physical examination, which includes lower abdomen palpitation and lower extremities assessment for varicosities (twisted, entangled, or enlarged veins) and phlebitis (vein inflammation).

In this encounter, the evaluation and management of the patient’s leg swelling and pain are significant and separately identifiable from the suspicious lesion biopsy. Hence, the coding would be as follows:

E/M code: 99202-15
Procedure Code: 11102

Anoscopy & E/M Service with One Diagnosis

Let’s consider another example. A patient arrives at a gastroenterologist’s office with a single complaint: bleeding during bowel movements. The healthcare provider takes a detailed medical history and performs a physical examination, checking the abdomen, rectum, and genitourinary system.

After the evaluation, the gastroenterologist performs a diagnostic anoscopy—a procedure in which a healthcare provider inserts a tube with a light and camera into the patient’s anus to examine the anal canal and lower rectum.

The medical decisions are then made based on the results of the anoscopy. Since the patient came with a general complaint, the doctor performed a thorough examination to assess the cause of the problem. Therefore, the E/M service was a separate and significant part of the visit and was coded as follows:

Procedure Code: 46600
E/M Code: 99202-15

Evaluation of a Newly Developed Mole During a Follow-Up Dermatologist Visit

A woman sees a dermatologist for a routine follow-up on eczema. During the encounter, the patient mentions a newly developed mole with a weird shape. The provider evaluates the new mole and performs a biopsy. Since the E/M service for the mole is distinct, you can code it as:

Procedure Code: 11102
E/M Code: 99202-15

Accurate Usage Guidelines for Modifier 25

Healthcare practices and providers should remain compliant with Medicare’s regulations. This includes the correct use of modifier 25. Want to avoid billing and reimbursement issues? Simply make sure that your modifier 25 stands up to scrutiny.

Distinct E/M Services by the Same Physician/Provider

Evaluation and management services are the key. You should only use modifier 25 when the E/M service is completely unrelated to the procedure performed by the same provider.

Simply put, it should have no relation to the procedure’s routine pre- or post-operative care. Remember that physicians sharing the same specialty and working within the same practice group are considered the same provider for billing purposes.

In simple words, the group practice may present the work done by any of its members collectively when submitting medical claims.

Document Everything to Justify Modifier 25

Your documentation should support the use of modifier 25. Hence, record both the E/M service and the procedure performed on the same day. Include details, like medical history, physical examination, and decision-making, to show why the evaluation was significant and separately identifiable.

Verify Medical Necessity

Medical necessity is another important component in the proper use of modifier 25. The E/M service must evaluate and address a critical issue, such as a new symptom or a condition requiring a separate evaluation. Otherwise, you will not receive a separate reimbursement for it.

Follow Payer-Specific Guidelines

Insurance companies have different policies for modifier 25. While some insurers require additional documentation, others impose certain limitations. So, pay attention to their specific requirements to address these variations.

If you are still confused, ask yourself these key questions before applying this modifier to an E/M service:

Did you document the key parts of an E/M service, including the decision-making level, for the complaint or problem?
Can you bill the issue as a separate service?
Did the visit result in a different diagnosis?
If the diagnosis is the same, did you do any extra work beyond the routine services?

Remember that a different diagnosis code is not always necessary when applying modifier 25 to a distinct E/M service. In fact, the diagnosis code for both the E/M service and the procedure may be the same in some cases. This is especially true when the evaluation is linked to the procedure but involves additional work. Hence, it qualifies as a separate service.

There are certain circumstances where you should avoid using modifier 25:

Routine pre-and post-operative care
E/M services directly related to the procedure
E/M services where the decision for surgery is made
Unrelated E/M services provided during the global period

Summary

Modifiers are a tricky part of the billing process. On one hand, they facilitate quick payments, but on the other, their misuse can result in substantial penalties. Modifier 25 is only applied to distinct and important E/M services performed on the same day, on the same patient, and by the same healthcare provider.

We have discussed everything about this two-character code, from its definition and examples to usage guidelines, so you can use it correctly and avoid billing audits.

Frequently Asked Questions

Is modifier 25 still valid?

Yes, modifier 25 is still valid and frequently used in medical billing.

How much does a modifier 25 reduce a payment?

Modifier 25 does not reduce a payment. However, an insurance company may reduce reimbursement for the E/M service if bundled with a procedure. Therefore, always verify payer-specific policies before submitting any claims.

Does an EKG require a 25 modifier?

No, an EKG generally does not require modifier 25 as it is not an E/M service. However, if the E/M service is provided on the same day as EKG and it is significant and separately identifiable, then you can apply this modifier to the appropriate E/M code.

What is the CMS rule for modifier 25?

The Centers for Medicare & Medicaid Services (CMS) specifies that modifier 25 should only be used for E/M claims, especially when the service is significant and separately identifiable. Moreover, it must be provided by the same physician on the same day.

When not to use modifier 25?

You should never use modifier 25 for routine care services or for E/M services that are directly related to the procedure.

What is the difference between modifiers 25 and 50?

Modifier 25 refers to distinct and important E/M services performed on the same day as any other procedure by the same physician. Meanwhile, modifier 50 indicates a bilateral procedure—a process performed on both sides of the body. In short, modifier 25 is applied to an unrelated E/M service, while modifier 50 is used for a bilateral surgical procedure.

Can we code the 24 and 25 modifiers together?

Yes, you can code both modifiers 24 (an unrelated E/M service performed during post-operative care) and 25 on the same claim, but only in certain circumstances. The possibility occurs when a physician evaluates the patient for an unrelated issue during post-operative care of a previous surgical procedure.
If he performs a procedure on the same day to address the diagnosed unrelated problem, he can use both modifiers 24 and 25 on the same claim.

What is the difference between modifier 25 and modifier 59?

Modifier 25 identifies a significant and separate E/M service performed on the same day as other services. Meanwhile, modifier 59 refers to a distinct service or procedure unrelated to other non-evaluation and management procedures performed on the same day.
In short, this modifier is applied to a distinct E/M service, while modifier 59 is used for any unrelated non-E/M service.

Modifier 25 Description, Examples, and Usage Guidelines