AO HCPCS Level II modifier: Alternate payment method declined by provider of service

AO is a HCPCS Level II modifier: “Alternate payment method declined by provider of service.” It adds this detail to the code it is reported with.

Official description

AO

Alternate payment method declined by provider of service

Short description: Prov declined alt pmt method

HCPCS · United States

Medicare details

The indicators CMS publishes with AO in its October 2026 file. They describe Medicare’s handling, not another payer’s.

Medicare coverage
Carrier judgment
Added
Oct 1, 2013

Where AO sits

  1. 1GroupHCPCS modifiers
  2. 2Modifier AOAlternate payment method declined by provider of service

Source and release

Data release
HCPCS Level II · October 2026
Effective date
Oct 1, 2026
Publisher
CMS

This page is built from the HCPCS Level II catalog that Vero Codes reads when it suggests codes: Centers for Medicare & Medicaid Services’s October 2026 release, imported from the publisher’s file and checked against it. The description, notes and structured data come from the same record.

Frequently asked questions

What does HCPCS code AO mean?

AO is the HCPCS code for “Alternate payment method declined by provider of service” in CMS’s HCPCS Level II October 2026 release.

Where is AO in the HCPCS Level II list?

AO is listed under Modifiers.

Does Medicare cover AO?

CMS lists AO’s Medicare coverage as “Carrier judgment”. Coverage and payment still depend on the patient, the setting, the documentation and the payer.

Which HCPCS Level II release does this page use?

It uses CMS’s October 2026 release, in effect from Oct 1, 2026 to Dec 31, 2026. It is a reference: confirm the code against the current list and the payer’s rules before you submit it.