CMS introduces new modifier to trigger reduced payments for computed radiography services

Effective January 1, 2018, Medicare payments for X-rays taken using computed radiography will be reduced by 7%, according to a policy CMS finalized in the 2018 OPPS final rule. This reduction will remain effective until 2022, and increase to 10% beginning in 2023, as required by paragraph 1848 (b)(9) of the Social Security Act.  

To implement this statutory provision, CMS created a new modifier, -FY (X-ray taken using computed radiography technology/cassette-based imaging), to be appended to HCPCS codes for services that include  X-rays taken using computed radiology. A list of applicable HCPCS codes is included in Addendum B of the final rule.

Modifier -FY can be reported with codes that include other X-ray reduction modifiers, such as –FX (X ray taken using film), but must be applied after the other reductions. The reductions have been introduced to spur providers to transition from traditional X-ray imaging to digital radiography.