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Language Clarification: Proper Use of Modifier 25 When Billing for Allergy Testing and E/M Services on the Same Day

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This update clarifies correct coding standards for the use of modifier 25 when billing for both allergy testing and an evaluation and management (E/M) visit on the same day by the same provider. Modifier 25 must be present for both to be reimbursed. Modifier 25 indicates that a significant, separately identifiable E/M service by the same provider was performed on the same date of service as the allergy testing.

Additionally, documentation that supports the provision of a significant, separately identifiable E/M service must be submitted with the claim. This documentation must also be maintained in the client’s medical record to be made available to Texas Medicaid upon request.

If modifier 25 is present with the claim but the appropriate documentation is not, then the allergy testing procedure will be reimbursed and the E/M procedure will not. The denial will note that the E/M procedure is part of another procedure billed on the same day.

The language update to clarify the use of modifier 25 when billing allergy testing and E/M services will be added to section 9.2.5.2, “Allergy Testing,” in the Texas Medicaid Provider Procedures Manual (TMPPM), Medical and Nursing Specialists, Physicians, and Physician Assistants Handbook on September 1, 2026.

For more information, call the TMHP Contact Center at 800-925-9126.

Note: Texas Medicaid managed care organizations (MCOs) must provide all medically necessary, Medicaid-covered services to Medicaid members who are enrolled in their MCO. Administrative procedures, such as prior authorization, precertification, referrals, and claims and encounter data filing, may differ from traditional Medicaid (fee-for-service) and from MCO to MCO. Providers should contact the member’s specific MCO for details.