Modifier TC- Technical Component

Identifies the technical portion of certain diagnostic tests and procedures when the technical and professional components are billed separately.

What Is Modifier TC?

Modifier TC is a HCPCS Level II modifier used to identify the technical component of certain diagnostic tests and procedures.

Many diagnostic services contain two components:

Technical Component: Equipment, supplies, technicians, and other resources required to perform the test.

Professional Component: Physician or qualified practitioner interpretation, report, and associated professional work.

When a provider furnishes only the technical portion of an eligible service, Modifier TC may be appended to the procedure code to report that component separately.

CMS's Medicare Physician Fee Schedule assigns a PC/TC indicator to applicable codes. An indicator of 1 identifies diagnostic tests or radiology services that generally contain both professional and technical components and may be reported with Modifier 26 or TC.

When to Use Modifier TC

Technical Component Only: The billing provider furnished only the technical portion of an eligible diagnostic service.

PC/TC Indicator Allows TC: The Medicare Physician Fee Schedule identifies the procedure as eligible for separate professional and technical component billing.

Equipment and Supplies Provided: The billing entity furnished the equipment, supplies, and other technical resources necessary to perform the test.

Technical Personnel Provided: The billing entity is responsible for the technicians or other personnel involved in performing the technical portion.

Professional Interpretation Billed Separately: Another eligible provider may separately report the professional component with Modifier 26 when applicable.

Portable X-Ray Services: CMS specifically identifies portable X-ray suppliers as billing the technical component using TC.

When NOT to Use Modifier TC

Global Service Performed: Do not append TC when the same provider appropriately bills both the technical and professional components as the global service.

Professional Component Only: Use Modifier 26 when reporting only the eligible professional interpretation component.

PC/TC Indicator 0: Medicare identifies these as physician service codes for which the PC/TC concept does not apply.

PC-Only Code: A PC/TC indicator of 2 identifies a code that already represents the professional component. TC and 26 should not be appended.

TC-Only Code: A PC/TC indicator of 3 identifies a stand-alone technical-component code. Adding TC is unnecessary and not permitted under Medicare's indicator rules.

Global-Test-Only Code: A PC/TC indicator of 4 identifies a global-test-only code for which TC and 26 cannot be appended.

Code Does Not Support Component Billing: Never append TC simply because the service involved equipment or technical personnel. The underlying procedure must support separate technical-component reporting.

Billing Example

An imaging center performs an eligible diagnostic imaging study and supplies the imaging equipment, technologist, and other technical resources.

A radiologist who does not furnish the technical component separately interprets the images and prepares the report.

When the procedure's PC/TC indicator permits component billing, the imaging center reports the applicable procedure code with Modifier TC.

The radiologist may report the same eligible procedure with Modifier 26 for the professional component.

Together, the technical and professional components represent the complete diagnostic service.

Documentation Requirements

Procedure Performed: Document the diagnostic test or procedure that was actually performed.

Technical Resources: Records should support that the billing provider furnished the applicable technical portion of the service.

Date and Location: Document when and where the diagnostic service was performed.

Order or Medical Necessity: Maintain the applicable order and documentation supporting the reason for the diagnostic service.

Test Results: Retain the technical results, images, tracings, or other applicable test data.

Professional Interpretation: When separately performed, the interpreting provider should maintain the applicable interpretation and report.

Supervision Requirements: When Medicare physician-supervision requirements apply to the technical component of a diagnostic test, the service must satisfy the applicable supervision rules.

Billing and Claim Considerations

Modifier TC affects how Medicare calculates payment for eligible services.

For codes with a PC/TC indicator of 1, CMS states that the RVUs for the TC service include practice expense and malpractice expense, but not the physician work associated with the professional interpretation.

The RVUs for the corresponding Modifier 26 service include physician work, practice expense, and malpractice expense.

When an eligible code is reported globally without either modifier, its total RVUs generally equal the combined professional and technical component RVUs.

This means TC is not merely informational. It tells Medicare that payment is being requested for the technical portion rather than the complete global service.

CMS also currently subjects improper TC and 26 billing for codes with PC/TC indicator 1 to Medicare recovery-audit review because incorrect component payment can create overpayments.

Understanding Medicare PC/TC Indicators

The Medicare Physician Fee Schedule uses PC/TC indicators to show whether a procedure can be divided into professional and technical components.

Indicator 0: PC/TC concept does not apply. Do not use TC or 26.

Indicator 1: Diagnostic test or radiology service generally containing professional and technical components. TC and 26 may be used.

Indicator 2: Professional-component-only code. Do not append TC or 26.

Indicator 3: Technical-component-only code. Do not append TC because the code already represents the technical component.

Indicator 4: Global-test-only code. TC and 26 cannot be used.

Additional PC/TC indicators apply to specialized categories of services, so the current Medicare Physician Fee Schedule should be checked for the specific procedure being billed.

Modifier TC vs. Modifier 26

Modifier TC: Reports the technical component of an eligible diagnostic service.

Modifier 26: Reports the professional component of an eligible diagnostic service.

TC generally represents the resources required to perform the test, while Modifier 26 represents the professional interpretation and report.

For a code with a PC/TC indicator of 1, Medicare permits these components to be separately reported when different eligible providers furnish them.

If one provider appropriately furnishes and bills both components, the procedure may instead be reported globally without TC or 26.

Technical Component vs. Global Billing

Global billing represents both the professional and technical components of an eligible diagnostic procedure.

For a procedure with a PC/TC indicator of 1:

Procedure + TC: Technical component only.

Procedure + 26: Professional component only.

Procedure without TC or 26: Generally represents the complete global service when the billing provider furnished both components.

CMS's Physician Fee Schedule search specifically allows users to compare payment information for Modifier 26, Modifier TC, and the global service.

A provider should not bill globally when another entity furnished a component that the billing provider did not provide or properly acquire under applicable Medicare rules.

Modifier TC and Diagnostic Imaging

Modifier TC is commonly encountered with diagnostic imaging because many radiology procedures contain both technical and professional components.

The technical component may include the imaging equipment, technologist, supplies, and production of the diagnostic images.

The professional component generally involves physician interpretation and preparation of the diagnostic report.

CMS coverage guidance provides examples in which one provider performs the technical component while another performs the professional component, with TC and 26 used respectively when appropriate.

However, TC is not limited exclusively to radiology. Other diagnostic services may also have a PC/TC indicator allowing component billing.

Technical Component Supervision Requirements

Reporting TC does not eliminate Medicare's applicable supervision requirements for diagnostic tests.

Certain diagnostic technical components have physician-supervision indicators establishing the level of supervision required for Medicare payment.

These requirements vary by procedure.

CMS's 2026 guidance for diagnostic services furnished by physical therapists, for example, continues to identify physician-supervision indicators specifically assigned to technical-component codes.

Providers should therefore verify both the PC/TC indicator and any applicable diagnostic-test supervision requirement before billing the technical component.

Common Billing Mistakes

Using TC on an Ineligible Code: Modifier TC should not be appended when the Medicare PC/TC indicator does not permit component billing.

Adding TC to a TC-Only Code: A code with PC/TC indicator 3 already represents the technical component.

Billing TC and the Global Service: Reporting both can result in duplicate or excessive payment for the technical portion.

Confusing TC With Modifier 26: TC reports the technical component; Modifier 26 reports the professional component.

Ignoring Supervision Requirements: A technically correct TC modifier does not cure failure to satisfy applicable diagnostic-test supervision rules.

Assuming Every Diagnostic Test Can Be Split: The Medicare Physician Fee Schedule indicator for the specific code determines whether separate component billing applies.

Common Denial Reasons

Invalid PC/TC Indicator: The procedure does not permit separate TC reporting.

Technical Component Already Included: Medicare determines that the technical portion is already represented by another billed service or code.

Duplicate Billing: Both a global service and separate technical component are billed for the same service.

Incorrect Modifier: TC is submitted when Modifier 26 or global reporting is appropriate.

Supervision Requirements Not Met: The technical diagnostic service fails applicable Medicare supervision requirements.

Medical Necessity Not Supported: Documentation does not establish coverage or medical necessity for the underlying diagnostic service.

Frequently Asked Questions

What is the difference between Modifier TC and Modifier 26?
Modifier TC identifies the technical portion of an eligible diagnostic service, such as equipment, supplies, and technical personnel. Modifier 26 identifies the professional component, generally involving interpretation and reporting.

How can I tell whether a procedure accepts Modifier TC?
Check the procedure's PC/TC indicator in the Medicare Physician Fee Schedule. An indicator of 1 generally means the diagnostic or radiology service can be divided into professional and technical components and may be reported with TC or 26.