Speech & Audiology Billing · Case Study

SLP threshold and AAC evaluations, coded so the device claim actually pays.

A regional outpatient speech clinic kept losing speech-generating-device money to "bundled" denials and a therapy cap it did not know it shared. Here is the coverage-and-coding fix, layer by layer.

THE ANSWER FIRST

Two moves stop the bleed. First, treat the annual therapy threshold correctly: under the CY2026 Medicare Physician Fee Schedule, speech-language pathology does not get its own cap; it shares one combined KX-modifier threshold with physical therapy, while occupational therapy sits on a separate one. Second, code the AAC device evaluation on its own track: 92607 / 92608 for the speech-generating-device evaluation and 92609 for programming, tied to the SGD supply claim under National Coverage Determination 50.1, so it is never read as bundled into a same-day treatment visit.

Layer 01 · The threshold nobody reads right

Speech does not have its own cap. It is stacked on top of PT.

The single most common speech-billing surprise: clinics track an "SLP cap" that does not exist. Medicare counts PT and SLP against one shared annual amount, applies the KX modifier when medically necessary services exceed it, and holds a separate targeted-review gate above that. Miss the stack and you either drop the KX modifier or trip the review threshold blind.

GATE

Targeted Medical Review

$3,000
Fixed through CY2028 by the Bipartisan Budget Act of 2018. Not a hard cap; a review flag.
KX REQUIRED

PT + SLP combined threshold

One shared line
Above the CY2026 KX amount, every medically necessary PT and SLP claim needs the KX modifier.
SEPARATE

Occupational Therapy

Its own threshold
OT runs on a second, independent KX threshold. Never nets against speech.

Bottom layer, OT: separate KX-modifier threshold. If your front desk nets speech and OT together, you will apply KX at the wrong dollar and invite takebacks.

Middle layer, PT + SLP: one combined annual threshold. Every speech claim above it carries the KX modifier attesting medical necessity, per the CY2026 Medicare Physician Fee Schedule Final Rule.

Top gate, $3,000: the targeted medical review threshold, held flat through CY2028 by statute. Crossing it does not stop payment, but it does invite documentation review, so the note has to hold.

The numbers that govern the claim

Four regulatory facts every speech clinic bills against.

1
Shared KX threshold for PT and SLP combined, set annually
CY2026 MPFS Final Rule
$3,000
Targeted medical review threshold, held flat through CY2028
BBA of 2018
92607–09
CPT family for AAC / speech-generating-device evaluation and programming
AMA CPT 2026
1×/12mo
Audiology direct-access limit per beneficiary using modifier AB
CMS modifier AB
Layer 02 · Code the evaluation, not the visit

Keep the treatment codes and the device-evaluation codes on separate rails.

Denials that read "bundled" usually mean a same-day speech treatment code and an AAC evaluation code collided without the documentation to justify both. Know which code carries which intent.

92507

Speech / language / voice treatment

Individual treatment of speech, language, voice, communication, or auditory processing. The everyday therapy visit, not an evaluation.

Treatment rail
92523

Speech-sound + language evaluation

Evaluation of speech sound production with evaluation of language comprehension and expression. Use 92522 when sound production is assessed alone.

Evaluation rail
92607 · 92608

AAC / SGD evaluation

Evaluation for prescription of a speech-generating augmentative and alternative communication device. 92607 is the first hour; 92608 is each additional 30 minutes as an add-on.

Drives the device claim
92609

SGD therapeutic services

Therapeutic services for the use of the speech-generating device, including programming and modification. Bills separately from the 92607/92608 evaluation.

Programming rail
Layer 03 · The clean AAC device claim

One evaluation feeds two claims: the professional service and the DME device.

Under National Coverage Determination 50.1, a speech-generating device is covered durable medical equipment, but only when a qualifying SLP evaluation supports it. Sequence it so the evaluation and the E-code device claim reference each other.

1

SLP formal evaluation

Document why lower-tech AAC fails and a dedicated SGD is medically necessary.

CPT 92607 / 92608
2

Device recommendation

Name the specific SGD tier and features the evaluation supports.

HCPCS E2500–E2599
3

DME device claim

Submit the SGD as covered DME under the SGD national coverage policy.

NCD 50.1
4

Programming

Bill therapeutic setup and modification separately from the evaluation.

CPT 92609
5

Cross-reference

Link evaluation note to the device claim so nothing reads as bundled.

Chart + claim tie
Bundled denial vs. supported claim

Same visit, two outcomes. The difference is documentation and sequencing.

What the payer seesDenied as bundledPaid and supported
Threshold handling KX dropped; PT and SLP netted wrong KX applied on the shared PT+SLP threshold
AAC evaluation 92607 buried on a 92507 treatment day, no rationale 92607 / 92608 documented as a distinct evaluation
Device (SGD) claim E-code submitted with no SLP evaluation on file E2500–E2599 tied to the evaluation under NCD 50.1
Programming 92609 folded into the eval and written off 92609 billed separately for setup and modification
Audiology add-ons Diagnostic test denied for missing physician order Modifier AB used within the once-per-12-month direct-access rule
Layer 04 · How the fix ran

Four weeks from bundled write-offs to clean AAC pay.

The archetype: a six-therapist outpatient speech clinic serving a mix of Medicare and commercial pediatric and adult AAC patients. Names and volumes are illustrative; the workflow is the deliverable.

Week 1 · Diagnose

Map every denial to a rule

Pull the AAC and threshold denials, separate the "bundled" reasons from true medical-necessity gaps, and confirm which claims lost the KX modifier because SLP was treated as its own cap.

Week 2 · Rebuild the rails

Split treatment, evaluation, and device

Standardize 92507 for treatment, 92523 / 92522 for evaluations, and 92607 / 92608 / 92609 for the AAC device track, each with its own documentation template.

Week 3 · Wire the device claim

Tie the SGD E-code to the evaluation

Sequence the DME claim under NCD 50.1 so the E2500–E2599 device references the SLP evaluation on file, and add modifier AB logic for direct-access audiology tests.

Week 4 · Lock the threshold logic

KX on the shared PT+SLP line

Configure the shared PT+SLP threshold and the $3,000 review gate so the KX modifier fires on the right dollar and high-utilization notes are ready for review before they are requested.

The audiology side of the same clinic

Direct access is real money if you use the modifier correctly.

Beneficiaries can reach the audiologist without a physician order.

CMS direct-access provisions let Medicare beneficiaries receive certain non-acute diagnostic audiology tests without a physician order, reported with modifier AB. It is powerful and narrow: the wrong scope or a second visit inside the window turns a payable test into a denial.

AB
  • Non-acute diagnostic tests only
  • No physician order required
  • Once per 12 months per beneficiary
  • Wrong scope reads as unordered and denies
Cited by name

The 2026 guidance this fix is built on.

MPFS

CY2026 Medicare Physician Fee Schedule Final RuleSets the annual KX-modifier therapy threshold and the combined PT + SLP structure with OT held separately.

BBA'18

Bipartisan Budget Act of 2018Establishes the $3,000 targeted medical review threshold, held flat through CY2028.

CPT

AMA CPT 2026, speech codes92507, 92522, 92523, 92524 for evaluation and treatment; 92607 / 92608 / 92609 for AAC device evaluation and programming.

NCD 50.1

National Coverage Determination 50.1, Speech Generating DevicesCovers SGDs as durable medical equipment (HCPCS E2500–E2599) when a qualifying SLP evaluation supports the device.

MOD AB

CMS audiology direct-access provisions (modifier AB)Permits certain non-acute diagnostic audiology tests without a physician order, once per 12 months per beneficiary.

NCCI

Medicare NCCI edits, therapy chapterGoverns which same-day speech treatment and evaluation pairs bundle and where documentation supports separate reporting.

Your speech clinic should keep the AAC money it earns.

ASP-RCM Solutions runs speech and audiology billing that treats the SLP threshold, the AAC device track, and audiology direct access as what they are: three separate rails that each have to be coded right. We turn "bundled" denials back into supported claims, and we build the threshold and KX logic into the workflow so it holds every month, not just this one.

ASP-RCM Solutions · Senior Partner · Frisco