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Modifier UE

Used Equipment

Modifier UE identifies previously used durable medical equipment (DME) when reported with an applicable HCPCS Level II code, helping distinguish used equipment from new equipment purchases and rentals.

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Related Modifiers

Modifier RR

Rental Equipment

Modifier NU

New Equipment

Modifier KH

Initial DMEPOS Claim

What Is Modifier UE?

Modifier UE is a HCPCS Level II modifier used to identify durable medical equipment (DME) supplied as used equipment rather than new.

The modifier helps Medicare and other insurers distinguish previously used equipment from new equipment when determining the applicable billing and reimbursement rules.

Modifier UE may apply to eligible DME purchases when the payer recognizes a used-equipment payment arrangement.

Key Billing Considerations:

Equipment Condition: The item must qualify as used equipment.
HCPCS Compatibility: The equipment code must permit or require UE under the applicable payer policy.
Medical Necessity: The equipment must satisfy applicable coverage requirements.
Purchase Arrangement: UE identifies used equipment but does not independently establish coverage or reimbursement.

Important: Modifier UE is not required for every previously used DME item. Its use depends on the equipment category, HCPCS code, and payer requirements.

Quick Reference

Modifier: UE

Type: Equipment Condition

Category: DMEPOS

Meaning: Used Equipment

Billing: Purchase

Medical Necessity: Required

When to Use Modifier UE

Report Modifier UE when previously used durable medical equipment is furnished and the applicable payer requires or recognizes UE to identify the equipment's condition.

Used Equipment Purchase: The patient receives eligible previously used equipment under a covered purchase arrangement.

Eligible HCPCS Code: The equipment is reported using a HCPCS code that permits or requires UE under the applicable payer policy.

Medical Necessity Established: The patient's medical condition supports the need for the equipment under applicable coverage criteria.

Equipment Condition Verified: Supplier records establish that the equipment was previously used and is suitable for the intended patient.

Payer Requirements Met: The claim satisfies applicable Medicare, Medicaid, or commercial insurance requirements for used equipment.

Important: Modifier UE identifies the equipment as used. It does not replace required documentation or establish medical necessity by itself.

When NOT to Use Modifier UE

New Equipment Purchases: Do not report UE when equipment is furnished as new. Modifier NU may apply when required by the payer.

Equipment Rentals: Do not use UE merely to indicate that equipment is rented. Modifier RR identifies rental arrangements when applicable.

Ineligible HCPCS Codes: Avoid reporting UE when the equipment code or payer policy does not recognize the used-equipment designation.

Repairs or Replacement Parts: Do not automatically append UE to claims for equipment repairs, replacement components, or accessories simply because the original equipment was used.

Unsupported Equipment Condition: Do not report UE when the supplier cannot establish that the item qualifies as used equipment.

Important: Previously used equipment is not automatically eligible for reimbursement. Coverage depends on the equipment, billing arrangement, and applicable payer requirements.

Modifier UE vs. RR and NU

Modifiers UE, NU, and RR help distinguish used equipment, new equipment, and rental arrangements in DMEPOS billing.

Modifier UE – Used Equipment: Identifies previously used durable medical equipment supplied under an applicable billing arrangement.

Modifier NU – New Equipment: Identifies new durable medical equipment when the payer requires or recognizes the modifier.

Modifier RR – Rental: Identifies durable medical equipment furnished on a rental basis rather than purchased.

Key Differences:

UE: Previously used equipment.
NU: New equipment.
RR: Equipment furnished as a rental.

Important Billing Rule: UE and NU identify equipment condition, while RR identifies a rental arrangement. The correct modifier depends on the HCPCS code, equipment payment category, and payer guidelines.

Billing Example

A patient requires durable medical equipment for home use. The supplier provides previously used equipment that meets the patient's medical needs and is eligible for purchase under the applicable payer policy.

The supplier reports the appropriate HCPCS code with Modifier UE to identify the equipment as used.

Example – Used Walker Purchase:

E0143-UE

HCPCS Code: E0143 – Folding, wheeled walker, adjustable or fixed height
Modifier: UE – Used Equipment
Billing Arrangement: Purchase
Supporting Records: Medical necessity documentation, equipment condition records, and proof of delivery

Why Modifier UE Applies: The equipment was previously used and is being supplied under a purchase arrangement that recognizes the used-equipment modifier.

Important: This is an illustrative example. Verify that the payer permits UE for the specific HCPCS code before submitting the claim.

Documentation Requirements

Claims involving Modifier UE must be supported by documentation establishing medical necessity, equipment condition, and delivery.

Standard Written Order: Maintain a valid order identifying the prescribed equipment and treating practitioner.

Medical Necessity: The patient's medical records must support the equipment under applicable coverage criteria.

Equipment Condition: Maintain records confirming that the equipment was previously used and is suitable for patient use.

Proof of Delivery: Document that the correct equipment was furnished to the beneficiary.

Additional Coverage Requirements: Obtain prior authorization or other required documentation when applicable.

Documentation Checklist:

Valid equipment order
Medical necessity supported
Correct HCPCS code selected
Used equipment status verified
Proof of delivery retained
Payer-specific requirements satisfied

Important: Documentation must support both the equipment furnished and the modifier reported.

Billing and Claim Considerations

Modifier UE should be reported on the same claim line as the HCPCS code identifying the used durable medical equipment.

HCPCS Code Selection: Report the code that accurately describes the equipment supplied.

Equipment Payment Category: Confirm that the equipment is eligible for the reported purchase arrangement.

Modifier Compatibility: Verify that UE is recognized for the specific HCPCS code and payer.

Reimbursement: Used-equipment payment rules may differ from those for new equipment. The UE modifier does not independently guarantee reimbursement.

Additional Modifiers: Include other required modifiers when applicable under the equipment's coverage and billing requirements.

Important Billing Rule: Confirm the equipment's condition, purchase eligibility, and applicable payer requirements before submitting the claim.

Guidelines and Common Billing Mistakes

Incorrect use of Modifier UE can result in claim denials, payment delays, or inaccurate reimbursement.

Reporting UE for New Equipment: Using UE when the equipment was furnished as new rather than previously used.

Confusing Purchases and Rentals: Reporting UE as a substitute for RR when the claim represents an equipment rental.

Incorrect HCPCS Code: Selecting an equipment code that does not accurately describe the item supplied.

Unsupported Equipment Condition: Failing to maintain records confirming that the equipment qualifies as used.

Missing Documentation: Submitting claims without the required order, medical necessity records, or proof of delivery.

Incorrect Modifier Combination: Reporting UE with incompatible or unsupported modifiers.

Important: Verify that the HCPCS code, equipment condition, billing arrangement, and supporting documentation are consistent.

Common Denial Reasons

Claims involving Modifier UE may be denied when equipment eligibility, medical necessity, or documentation does not meet payer requirements.

Invalid Modifier Combination: UE is reported with a HCPCS code or modifier combination that the payer does not recognize.

Medical Necessity Not Established: The medical record does not support the prescribed equipment.

Used Equipment Not Covered: The payer does not permit reimbursement for used equipment under the reported billing arrangement.

Incomplete Documentation: Required orders, equipment records, or delivery documentation are missing.

Incorrect Purchase Classification: The equipment is billed as a purchase when the applicable payment category requires a different arrangement.

Duplicate or Replacement Claim: The payer identifies a previously reimbursed item or an unsupported replacement request.

Important: Review the payer's denial codes and coverage requirements before submitting a corrected claim or appeal.

Frequently Asked Questions

Does Medicare reimburse used durable medical equipment?

Medicare may reimburse eligible used DME under applicable payment rules. Coverage depends on the equipment's HCPCS code, payment category, medical necessity, and relevant Medicare requirements. Modifier UE alone does not establish eligibility.

Can refurbished equipment be billed with Modifier UE?

Refurbished equipment may qualify as used equipment when it meets the applicable payer's definition and billing requirements. Suppliers should verify whether the equipment is classified as used and whether UE is appropriate for the HCPCS code.