Medicare travel fee charges for lab specimen collection - what to bill and when

Medicare travel fee charges for lab specimen collection - what to bill and when

Below is a concise summary of current CMS policy (CY 2025) for laboratory travel allowances and related specimen collection fees, with links to official guidance.

What’s payable

  • Specimen collection fee (per encounter, when criteria met)

    • General fee: $9.09 (CY 2025)
    • SNF/HHA add-on: $11.09 (includes $2 PAMA add-on for specimens collected from patients in a SNF or by a lab on behalf of an HHA)
    • Applies when a trained technician personally performs venipuncture or urine catheterization for a homebound patient or a non-hospital inpatient and qualified facility staff aren’t available.
    • Deductible and coinsurance don’t apply to the specimen collection amount for CDLTs.
    • Reference codes CMS cites for collection scenarios: CPT 36415, HCPCS G0471, P9612, P9615.
    • Source: CMS MLN Matters MM13947 (Jan 2025)
  • Travel allowance (only when the specimen collection fee is payable)

    • Purpose: Covers transportation and personnel expenses for the technician to travel to the patient location and collect the specimen.
    • Bill one of:
      • P9603: Per-mile travel allowance
      • P9604: Flat-rate travel allowance
    • You may bill a travel allowance per Medicare patient, per location, when collection is needed to perform a CDLT.
    • Do not pay travel for simple pickup/“messenger” services or when collection didn’t require a trained technician.

Choosing per‑mile vs. flat‑rate (P9603 vs. P9604)

  • Use P9604 (flat rate) when the round trip to one location is 20 eligible miles or less.
  • Use P9603 (per mile) when:
    • The round trip to one location is more than 20 eligible miles, or
    • You travel to more than one location (mileage method applies regardless of distance).
  • “Eligible miles” begin at the lab (or technician’s travel start point for collection) and end at the lab (or travel end point).

CY 2025 travel allowance rate and calculations

  • Mileage rate: $1.20 per mile (IRS standard mileage $0.70 + personnel component $0.50 based on BLS median phlebotomist wage ÷ 40 mph).
  • Proration: Travel allowance amounts must be prorated across the Medicare patients for whom a specimen collection fee applies at that stop/route.
    • CMS specifies not to include non‑Medicare patients in travel allowance calculations.
  • How to calculate:
    • P9603 (per-mile): Eligible miles × $1.20 ÷ number of Medicare patients collected on that trip.
    • P9604 (flat rate): ($1.20 × 10) ÷ number of Medicare patients collected at that location (i.e., a fixed 10-mile basis divided among eligible patients).
  • Source: CMS MLN Matters MM13947 (Jan 2025)

Place of service (POS) and other billing notes

  • Typical POS for travel/collection: home and facility non‑hospital settings (e.g., POS 12 home, 31 nursing facility, etc.). Independent lab POS 81 is not used for the travel allowance line.
  • Some MACs publish POS specifics and examples (see Noridian JF Part B).
  • Documentation:
    • Maintain electronic documentation of eligible miles (CMS permits electronic records).
    • Homebound indicator requirements apply for independent labs (check MAC instructions).
    • Bill the appropriate collection code with the travel allowance; no travel allowance without a payable specimen collection fee.

Common pitfalls to avoid

  • Billing a travel allowance when a specimen was only picked up (no technician-performed collection) — not payable.
  • Including non‑Medicare patients in the travel allowance calculation — CMS says do not include them.
  • Using flat rate (P9604) when round trip exceeds 20 miles or when multiple locations were visited (use P9603).
  • Billing multiple collection fees for multiple tubes or tests in one encounter — only one collection fee per specimen type per encounter.

Primary references

Notes
Note: Commercial payers may differ. Always verify local MAC instructions and payer policies for coding, POS, and documentation requirements.

Abbreviations Used

  • Bureau of Labor Statistics (BLS)
  • Clinical Diagnostic Laboratory Test (CDLT)
  • Code of Federal Regulations (CFR)
  • Centers for Medicare & Medicaid Services (CMS)
  • Consumer Price Index for All Urban Consumers (CPI-U)
  • Current Procedural Terminology (CPT)
  • Healthcare Common Procedure Coding System (HCPCS)
  • Home Health Agency (HHA)
  • Internal Revenue Service (IRS)
  • Medicare Administrative Contractor (MAC)
  • Medicare Learning Network (MLN)
  • miles per hour (mph)
  • Protecting Access to Medicare Act (PAMA)
  • Place of Service (POS)
  • Skilled Nursing Facility (SNF)
  • Calendar Year (CY)

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