Modifier UE
Used Durable Medical Equipment
Learn what Modifier UE means, when it is used, how it differs from new DME and rental equipment, and how AR callers can troubleshoot used-equipment billing issues.
Modifier UE at a Glance
The essential points for DME billers, AR callers and medical billing professionals.
Used Equipment
CMS identifies UE as the modifier used when the DME item identified by the HCPCS code is used equipment.
DME Claims
UE provides additional information about the condition or status of the equipment represented by the HCPCS code.
Not New
NU identifies new equipment, while UE identifies used equipment.
Not Rental
RR identifies rental. UE is specifically associated with used equipment.
What Is Modifier UE?
A simple explanation for beginners and experienced billing professionals.
Official Meaning
CMS explains that modifiers can provide additional information about the item or service represented by a HCPCS code.
CMS specifically gives UE as the example of a modifier used when the DME item identified by a HCPCS code is used equipment.
The modifier therefore communicates an important characteristic of the DME item being reported.
Plain-English Explanation
Think of UE as:
“This DME equipment is used equipment.”
The HCPCS code identifies the equipment. UE adds information that the equipment is used rather than new.
Key Point
UE identifies used equipment. It does not, by itself, establish Medicare coverage, medical necessity, authorization or payment.
How Modifier UE Works
Follow the complete used-DME billing logic.
Identify the DME
Determine exactly what equipment is being furnished and select the correct HCPCS code.
Determine Equipment Status
Establish whether the equipment being furnished is new or used.
Verify Applicable Rules
Check Medicare and payer requirements for the specific HCPCS code and transaction.
Verify Documentation
Confirm the required order, medical necessity and equipment documentation.
Verify Coverage
Confirm that the beneficiary’s plan covers the DME item under the applicable circumstances.
Submit Correct Claim
Submit the applicable HCPCS code with UE when the equipment is used and the modifier is required.
UE vs NU vs RR
The easiest way to distinguish used, new and rental DME.
| Modifier | Meaning | Main Concept | Equipment Status |
|---|---|---|---|
| UE | Used equipment | Used DME | Equipment is used |
| NU | New equipment | New DME | Equipment is new |
| RR | Rental | DME rental | Equipment is furnished as a rental |
| NR | New when rented | Subsequently purchased | New at the time of rental |
Important
Do not select UE simply because equipment has been used by someone at some point. The actual equipment status, HCPCS-specific rules and payer instructions must support the modifier.
Easy Way to Remember DME Status
Use this visual shortcut when reviewing claims.
UE — Used Equipment
Think: “The DME is used.”
NU — New Equipment
Think: “The DME is new.”
RR — Rental
Think: “The DME is being rented.”
Used DME Billing Workflow
Step-by-step workflow for billing teams.
Medicare and Used DME
Used-equipment billing requires more than simply adding UE.
Used Equipment Rules
CMS’s DMEPOS claims-processing guidance includes a specific section addressing used equipment.
Payment Methodology
Payment depends on the applicable DME category and Medicare payment rules, not the UE modifier alone.
Coverage Requirements
Medicare coverage still depends on the applicable DME benefit, reasonable-and-necessary requirements and specific coverage policy.
Correct HCPCS
UE cannot correct an incorrect HCPCS code or incorrect description of the equipment.
Documentation
Required records must support the beneficiary’s need for the equipment and the supplier’s claim.
DME MAC Policy
Always verify the applicable DME MAC jurisdiction and current policy for the specific HCPCS.
Medicare Coverage Reminder
CMS’s DME reference materials explain that covered DME must satisfy applicable coverage requirements, including reasonable-and-necessary criteria. Coverage can vary by item and policy.
Used DME Documentation Checklist
Documentation should support both the equipment and the beneficiary’s need.
- Beneficiary identification.
- Active insurance eligibility.
- Appropriate treating practitioner order when required.
- Correct DME HCPCS code.
- Documentation supporting medical necessity.
- Required face-to-face or qualifying encounter documentation when applicable.
- Prior authorization when required.
- Equipment description.
- Documentation supporting used-equipment status when required.
- Proof of delivery.
- Supplier records.
- Applicable payer-specific documentation.
- Replacement documentation when the item is replacing previous equipment, if applicable.
- Records supporting continued medical need when applicable.
Modifier UE Real-World Examples
Practical scenarios for medical billing and AR teams.
A supplier furnishes an applicable DME item that is used equipment to a beneficiary.
Where the applicable billing instructions call for the modifier, UE identifies the item as used equipment.
A supplier furnishes new equipment under a purchase transaction.
UE would not describe the equipment in this example because the equipment is new.
A DME supplier furnishes equipment under a rental arrangement.
RR identifies rental status. UE should not be selected merely because the rental equipment may have been previously used.
An AR caller sees UE on a denied claim and needs to determine whether the modifier itself caused the denial.
The caller should review the CARC/RARC, HCPCS code, payer policy, coverage status and documentation before changing the modifier.
Common Modifier UE Errors
Mistakes that can lead to DME claim problems.
Using UE for New Equipment
UE should not identify equipment that is actually new.
Confusing UE With RR
UE identifies used equipment. RR identifies rental.
Wrong HCPCS Code
A modifier cannot correct an incorrectly selected DME HCPCS code.
Missing Medical Necessity
UE does not replace medical necessity documentation.
Missing Order
Required practitioner orders and documentation must be maintained according to applicable requirements.
Ignoring Coverage
Used-equipment status does not automatically establish that Medicare or another payer will cover the item.
Ignoring Authorization
Some DME items and payers may require prior authorization.
Assuming UE Guarantees Payment
UE provides coding information; it does not guarantee reimbursement.
Changing UE Without Reviewing the Denial
Always identify the actual denial reason before correcting or appealing the claim.
AR Caller Workflow for UE Denials
A practical root-cause process for denied used-DME claims.
Review ERA/EOB
Identify the exact denial and adjustment information.
Capture CARC/RARC
Document all adjustment and remark codes.
Verify HCPCS
Confirm that the DME code accurately describes the equipment.
Verify UE
Confirm that the equipment was actually used and that UE is applicable under the payer’s rules.
Check Coverage
Confirm that the DME item is covered for the beneficiary and the circumstances.
Check Documentation
Verify order, medical necessity and equipment records.
Check Authorization
Determine whether authorization was required.
Call Payer
Ask for the precise denial reason and correction instructions.
Correct or Appeal
Choose corrected claim, reconsideration or appeal based on the root cause.
AR Call Script for Modifier UE
Professional payer-call language.
“I’m calling regarding a DME claim that was submitted with the UE modifier.”
“Could you please provide the exact reason this claim line was denied?”
“Can you provide the CARC and RARC codes associated with the denial?”
“Can you confirm whether the denial is related to the UE modifier, the HCPCS code, coverage or documentation?”
“Can you confirm whether UE is the appropriate modifier for this HCPCS code and equipment status?”
“Can you confirm whether the payer requires any additional documentation to support used equipment?”
“Is prior authorization required for this item?”
“Would you recommend a corrected claim or a formal appeal based on this denial?”
“May I have the call reference number and representative ID for our records?”
UE Denial Root-Cause Analysis
Never assume the modifier is the only problem.
Modifier Error
The payer may determine that UE is not appropriate for the claim circumstances.
HCPCS Error
The equipment may have been reported with the wrong HCPCS code.
Coverage Error
The payer may not cover the item under the beneficiary’s benefit.
Medical Necessity
Documentation may not establish that the equipment is reasonable and necessary.
Authorization
Required authorization may be missing, invalid or not matched to the claim.
Documentation
The payer may require additional records supporting the equipment and medical necessity.
Should You Use Modifier UE?
A simple used-equipment decision workflow.
Used Equipment vs Rental
One of the most common DME modifier misunderstandings.
UE — Used Equipment
UE communicates that the DME item represented by the HCPCS code is used equipment.
“What is the condition/status of the equipment?”
RR — Rental
RR communicates that the DME is being furnished as a rental.
“Is the beneficiary receiving the DME under a rental arrangement?”
Used Equipment vs New Equipment
UE — Used Equipment
CMS uses UE as an example of a modifier identifying used DME.
NU — New Equipment
CMS uses NU to identify new equipment.
Common AR Scenarios
What an experienced AR caller should investigate.
UE Denied as Invalid
Verify the HCPCS code, equipment status and payer modifier requirements before submitting a correction.
Used DME Not Covered
Verify the beneficiary’s DME benefit and the specific coverage policy for the equipment.
Medical Necessity Denial
Review the physician order and clinical documentation supporting the need for the equipment.
Authorization Denial
Verify whether authorization was required and whether the approved HCPCS and dates match the claim.
Duplicate Claim
Review previous claims and payment history before rebilling the same equipment.
Documentation Request
Submit the payer-requested records within the applicable response deadline.
Modifier UE Quick Cheat Sheet
- UE = Used Equipment.
- CMS specifically identifies UE as the modifier for used DME.
- UE provides additional information about the equipment represented by the HCPCS code.
- NU = New Equipment.
- RR = Rental.
- UE should not be used simply because a rental item has been previously used.
- Verify the specific HCPCS code before billing.
- Verify the payer’s DME coverage policy.
- Verify medical necessity.
- Verify the required order.
- Verify prior authorization when required.
- Maintain proof of delivery and supplier documentation.
- Review CARC/RARC before changing UE on a denied claim.
- UE does not guarantee reimbursement.
Official CMS Resources
Primary sources for verifying used-DME billing.
Billing Disclaimer
Modifier UE identifies used equipment. It does not independently establish coverage, medical necessity, authorization, correct coding or payment. Always verify the specific HCPCS code, Medicare policy, DME MAC requirements and payer-specific rules before billing or appealing.
Modifier UE FAQs
What does Modifier UE mean?
UE means Used Equipment. CMS specifically uses UE to identify used durable medical equipment.
What is Modifier UE used for?
UE provides additional information indicating that the DME item identified by the HCPCS code is used equipment.
Is UE the same as NU?
No. UE identifies used equipment, while NU identifies new equipment.
Is UE the same as RR?
No. UE identifies used equipment. RR identifies rental.
Does UE mean the equipment is purchased?
UE describes the equipment as used. The complete billing transaction and applicable payer rules must be reviewed separately to determine the applicable purchase or rental/payment requirements.
Does UE guarantee Medicare payment?
No. UE does not establish coverage, medical necessity, authorization or payment by itself.
Can UE be used on every DME claim?
No. UE should be used when the equipment is used and the applicable Medicare or payer billing instructions support reporting the modifier.
What should an AR caller check when UE is denied?
Review the ERA/EOB, CARC/RARC, HCPCS code, equipment status, payer policy, coverage, authorization and supporting documentation.
What does CMS say about UE?
CMS’s coding overview specifically gives UE as an example of a modifier used when the DME item identified by the HCPCS code is used equipment.
Where can Modifier UE be verified?
CMS’s official coding guidance and Medicare Claims Processing Manual Chapter 20 are primary sources for DME modifier and claims-processing information.
What is the easiest way to remember UE?
Remember: UE = Used Equipment.
What is the difference between UE and RR in one sentence?
UE describes the equipment as used; RR describes the DME transaction as rental.
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