Tuesday, June 16, 2026

87798: OIG Going After Use of "Panels" Larger than 5 Assays

The MolDx program, and perhaps others, have LCDs making it difficult (not impossible) to bill for covered pathogen panels of >5 pathogens.   That is, the code(s) for 3-5 pathogens are easily payable, a code for 6-11 pathogens is much more tightly controlled.

However, implementation of a 5-analyte cap was weak when faced with high multiples (10, 20, even 60) x 87798, a code which stands for "other pathogen, amplified probe."  This code paid some $450M in CY2004.    In some cases via doubtful labs, such as locating multiple 87798-intensive labs at the same addresses as doubtful home health or hospice services.  

On Thursday, June 11, 2026, the HHS OIG announced a major program to audit providers of tests with "six or more pathogens."  Read about it online.  The audit program runs 2026-2028.  Some labs have reported rising denials as early as March 2026 (here).

 https://oig.hhs.gov/reports/work-plan/browse-work-plan-projects/medicare-payments-to-providers-for-selected-expanded-laboratory-panels/