IV Anesthesia & Sedation — Billing & Coding Reference

Propofol (J2704) · Midazolam (J2250) · Fentanyl (J3010) · Hydromorphone (J1171) · Morphine (J2270) · Ketamine (J3490 NOC) · Dexmedetomidine (J3490 NOC) · Etomidate (J3490 NOC) · Lorazepam (J2060) · Naloxone (J2310 / J2311 / J2312) · Flumazenil (J3490 NOC) · Sugammadex (J3490 NOC)

A defensive page. The biggest, most expensive question in sedation billing is not “what does propofol pay?” — it is “when is propofol separately payable at all?” The honest answer for most contexts is almost never. Anesthesia and sedation drugs sit inside three big payment containers: the CPT 00xxx anesthesia time code (surgical anesthesia by an anesthesia provider), the HOPD / ASC procedural APC (procedural sedation packaging), and the ICU per-diem / MS-DRG (continuous sedation on an inpatient encounter). Anchor drug for this page is propofol with current Q2 2026 ASP+6% of $0.092 per 10 mg.

ASP data:Q2 2026 (live)
CPT moderate sedation codes:verified May 2026
ASA anesthesia time rules:current 2026
OPPS packaging:Q2 2026 Addendum B
Page reviewed:

Instant Answer — the 5 things you need to bill IV anesthesia / sedation

Default rule
USUALLY BUNDLED
into 00xxx, APC, or DRG
Anchor J-code
J2704
propofol per 10 mg
Moderate sedation CPT
99151
+ 99152 / 99153 add-on
Anesthesia time
00xxx
15-min time units
Medicare ASP+6%
$0.092
propofol per 10 mg, Q2 2026
Default status
Most encounters: NOT separately payable. Bundled into CPT 00xxx anesthesia time, packaged into the procedural APC, or absorbed into the MS-DRG / ICU per-diem.
Surgical anesthesia
0010001999 anesthesia time codes — base units + 15-min time units · all sedation drugs bundled
Moderate (conscious) sedation
99151 / 99152 / 99153 by proceduralist · 9915599157 by independent provider
Procedural sedation
HOPD: packaged into procedure APC · ASC: packaged into facility payment · physician sedation work captured by 99151–99157
ICU continuous sedation
Bundled into MS-DRG / per-diem. Propofol, midazolam, dexmedetomidine, fentanyl drips are reported on the chargemaster only.
Separately payable (rare)
ED naloxone reversal (J2310/J2311/J2312); ED flumazenil reversal (J3490 NOC); standalone ED opioid analgesia (J1171/J2270/J3010); ED lorazepam for status epilepticus (J2060); standalone outpatient ketamine clinics (cash-pay typical)
NOC drugs in this class
Ketamine, dexmedetomidine (Precedex), etomidate, flumazenil, sugammadex (Bridion) all bill under J3490 NOC with NDC + invoice when separately payable. Verify quarterly.
Common spec trap
J2786 is reslizumab (Cinqair), NOT sugammadex. Sugammadex / Bridion has no permanent J-code → bill under J3490 NOC.
Modifiers
JW/JZ rarely apply (most agents are multi-dose); anesthesia modifiers AA/AD/QK/QY/QX + P1–P6 physical status are the dominant family
Patient assistance
Generally none. Inpatient / procedural use rolls into facility billing. Standalone ketamine clinics offer payment plans, not manufacturer PAPs.
Top denial reason
Billing propofol / midazolam / sugammadex separately during a procedure or anesthesia encounter when bundled. The denial is correct — do not appeal.
⚠️
This is a defensive billing page. The vast majority of IV anesthesia and sedation drug use is not separately payable. The drug lives inside the anesthesia time payment (CPT 00xxx), the procedural APC packaging, or the MS-DRG / ICU per-diem. If you are trying to add a J2704 / J2250 / J3010 line to a colonoscopy, cataract, endoscopy, or other procedure claim alongside the facility payment — stop. The line is packaged. See site of care for the bundling decision tree.
ℹ️
This is a rollup page. It covers IV induction agents (propofol, etomidate, ketamine), benzodiazepines (midazolam, lorazepam), opioids (fentanyl, hydromorphone, morphine), alpha-2 agonist sedation (dexmedetomidine), and reversal agents (naloxone, flumazenil, sugammadex) because they share one core question — separately payable or packaged? — and one core trap (J2786 is reslizumab, not sugammadex). See sedative class families for the induction / benzo / opioid / reversal split.

About this reference

IV anesthetics, sedatives, opioids, and reversal agents are among the highest-utilization drugs in U.S. hospitals — and among the most consistently miscoded for separate billing. The financial question on this page is rarely “how much does propofol pay?” The CMS ASP for propofol is roughly nine cents per 10 mg. The real question is whether the drug generates a separately payable Part B line at all — and for most encounters the honest answer is no.

Anesthesia and sedation drugs are packaged into three big payment containers. First, the CPT 00xxx anesthesia time codes (00100–01999): when an anesthesia provider (anesthesiologist or CRNA) personally delivers anesthesia for a surgical case, every drug used during the anesthesia time — induction agents, opioids, benzos, neuromuscular blockers, reversal agents — is part of the anesthesia time payment. Reporting J2704 or J2786 alongside an 00xxx claim is bundled and is not separately payable. Second, the OPPS / ASC packaging for hospital outpatient and ambulatory-surgery procedural sedation: propofol, midazolam, and fentanyl used during a colonoscopy, endoscopy, cataract, or other outpatient procedure are packaged into the procedure APC or ASC facility payment. The proceduralist captures sedation work via the moderate sedation CPT family (99151 / 99152 / 99153); the drug J-codes are informational only. Third, the MS-DRG and ICU per-diem bundling: continuous propofol, midazolam, fentanyl, and dexmedetomidine sedation for an inpatient ICU encounter is absorbed into the DRG-weighted payment. The drug usage appears on the chargemaster but produces no separately payable Part B line.

The minority case — where these drugs are separately billable — is what this page focuses on. Emergency department naloxone administration for opioid overdose (POS 23), ED flumazenil for benzodiazepine reversal, ED lorazepam IV for status epilepticus, ED opioid bolus (hydromorphone, morphine, fentanyl) for documented acute pain, and standalone outpatient IV ketamine for treatment-resistant depression (controversial, largely cash-pay) are the recognized separately payable encounters. Several of the drugs in this class do not have permanent J-codes as of 2026 — ketamine, dexmedetomidine, etomidate, flumazenil, and sugammadex all bill under J3490 (NOC) with NDC and invoice when separately payable. The persistent coder trap is that J2786 is reslizumab (Cinqair, an asthma biologic), not sugammadex. Sugammadex / Bridion has no permanent J-code.

Phase 1 Identify what you’re billing Which sedative class, what context (anesthesia / procedural / ICU / standalone), and which payment container?

Sedative class families — induction / benzos / opioids / reversal Clinical taxonomy May 2026

Twelve drugs grouped into four pharmacologic families. The family explains the clinical context; the context drives the billing rule.

Sedative drug families and their billing contexts.
FamilyDrugs (HCPCS)Primary clinical contextDefault billing status
Induction agents Propofol (J2704) · Etomidate (J3490 NOC) · Ketamine (J3490 NOC) Anesthesia induction, procedural sedation, RSI in ED/ICU, ICU continuous sedation (propofol) Bundled. Anesthesia time (00xxx) for surgical use; packaged into APC for HOPD procedural; MS-DRG for inpatient. Ketamine standalone clinic = cash-pay typical.
Benzodiazepines Midazolam (J2250 / J2251 in NaCl) · Lorazepam (J2060) Procedural sedation (midazolam); status epilepticus (lorazepam); alcohol withdrawal (lorazepam); ICU sedation Mixed. Bundled in procedural / anesthesia / ICU contexts. Separately payable for ED lorazepam in status epilepticus or severe alcohol withdrawal.
Opioid analgesics Fentanyl citrate (J3010) · Hydromorphone (J1171) · Morphine sulfate (J2270 / J2272 / J2274) Anesthesia analgesia, procedural sedation analgesia, acute pain (ED), post-op pain, ICU analgesia Mixed. Bundled in anesthesia / procedural / inpatient contexts. Separately payable for ED bolus analgesia for documented acute pain.
Alpha-2 agonist Dexmedetomidine / Precedex (J3490 NOC) ICU sedation (especially for spontaneous-breathing trials and extubation), non-intubated procedural sedation Bundled. Inpatient ICU use = MS-DRG. HOPD short-stay use typically packaged in APC. No permanent J-code.
Reversal agents Naloxone (J2310 / J2311 / J2312) · Flumazenil (J3490 NOC) · Sugammadex / Bridion (J3490 NOC) Opioid overdose reversal (naloxone, ED/EMS); benzo overdose reversal (flumazenil, ED); neuromuscular block reversal (sugammadex, OR end-of-case) Split. Separately payable for ED naloxone / flumazenil overdose. Bundled for sugammadex during anesthesia (it’s an anesthesia-time drug).
The J2786 trap. J2786 is reslizumab (Cinqair, an IL-5 asthma biologic) — not sugammadex. Sugammadex / Bridion has no permanent J-code as of 2026 and bills under J3490 NOC with NDC + invoice when separately payable (which, for sugammadex, is essentially never — it’s an anesthesia-time drug). We have flagged this on the page because three prior rollups caught the same spec error.
NOC drug subset: Five drugs in this class — ketamine, dexmedetomidine, etomidate, flumazenil, sugammadex — all currently bill under J3490 (Unclassified drugs) when separately payable, with 11-digit NDC, manufacturer, and invoice for manual MAC pricing. Reporting any of these under a fabricated permanent J-code will trigger immediate rejection. Verify each quarter against the current HCPCS Level II quarterly update.

Per-drug dosing & typical regimens FDA labels + ASA / ACEP standards, verified May 2026

Adult dosing per FDA-approved labels and standard hospital practice. Pediatric / weight-based dosing follows the label and is not summarized here.

Induction agents

Drug (HCPCS)Unit basisTypical adult dose / rateClinical notes
Propofol (J2704) per 10 mg Induction 1.5–2.5 mg/kg IV; procedural sedation 25–50 mg IV titrated boluses or 25–75 mcg/kg/min infusion; ICU sedation 5–50 mcg/kg/min titrated to RASS goal Most common procedural sedation agent. Apnea / hypotension risk. PRIS (propofol infusion syndrome) on prolonged high-dose. Egg / soy allergy historical caution.
Etomidate (J3490 NOC) NOC — per invoice / vial Induction 0.2–0.3 mg/kg IV push over 30–60 sec for RSI; not for continuous infusion Hemodynamically neutral — preferred RSI agent in shock. Adrenal suppression with repeat dosing. No permanent J-code.
Ketamine (J3490 NOC) NOC — per invoice / vial RSI induction 1–2 mg/kg IV; procedural sedation 0.5–1 mg/kg IV; analgesia 0.1–0.3 mg/kg IV; TRD off-label 0.5 mg/kg over 40 min in clinic Increasingly used in ED (analgesia, procedural sedation, agitation) and ICU (sedation, refractory bronchospasm). TRD use is off-label and not insurance-covered. No permanent J-code.

Benzodiazepines

Drug (HCPCS)Unit basisTypical adult dose / rateClinical notes
Midazolam (J2250; J2251 in NaCl premix) per 1 mg Procedural sedation 1–2 mg IV titrated; ICU sedation 0.02–0.1 mg/kg/hr infusion; status epilepticus 0.2 mg/kg IV / IM Short-acting benzo. Most common procedural sedation benzo. Reversible with flumazenil. Active metabolites accumulate in ICU use with renal dysfunction.
Lorazepam (J2060) per 2 mg Status epilepticus 4 mg IV push, repeat once at 5–10 min if needed; alcohol withdrawal symptom-triggered 1–4 mg IV per CIWA; pre-op anxiolysis 1–2 mg IV Longer-acting benzo. Glycol vehicle — do not exceed infusion rate. AAN first-line for status epilepticus.

Opioid analgesics

Drug (HCPCS)Unit basisTypical adult dose / rateClinical notes
Fentanyl citrate (J3010) per 0.1 mg (100 mcg) Anesthesia induction analgesia 1–3 mcg/kg IV; procedural sedation 25–100 mcg IV titrated boluses; ICU analgesia 25–200 mcg/hr infusion; ED acute pain 0.5–1 mcg/kg IV Rapid onset, short duration. Synthetic opioid — ~100× potency of morphine. Chest-wall rigidity with rapid push. Standard ICU analgesic.
Hydromorphone (J1171) per 0.1 mg (10 units = 1 mg) ED acute pain 0.2–1 mg IV; post-op pain 0.2–1 mg IV q2–4h; PCA bolus 0.1–0.4 mg with 6–10 min lockout Semi-synthetic opioid — ~5–7× potency of morphine. Preferred in renal impairment vs morphine. Watch for “Dilaudid” vs “morphine” verbal-order errors.
Morphine sulfate (J2270 standard; J2272 Fresenius single-patient; J2274 PF epidural / intrathecal) per 10 mg ED acute pain 2–4 mg IV titrated; post-op pain 2–10 mg IV / IM q3–4h; PCA bolus 1–2 mg with 6–10 min lockout Active metabolites accumulate in renal impairment — consider hydromorphone or fentanyl instead. Histamine release with rapid push. J2274 is the preservative-free epidural / intrathecal product (e.g., Duramorph).

Alpha-2 agonist sedation

Drug (HCPCS)Unit basisTypical adult dose / rateClinical notes
Dexmedetomidine / Precedex (J3490 NOC) NOC — per invoice / vial ICU sedation 0.2–1.4 mcg/kg/hr infusion (no bolus typical); procedural sedation 1 mcg/kg load over 10 min then 0.2–1 mcg/kg/hr Cooperative sedation without significant respiratory depression. FDA label originally 24-hr limit but routine prolonged use in ICU. No permanent J-code. Bradycardia / hypotension dose-related.

Reversal agents

Drug (HCPCS)Unit basisTypical adult dose / rateClinical notes
Naloxone (J2310 standard injection; J2311 Kloxxado; J2312 Narcan nasal spray, per 0.01 mg — verify current convention) Varies by HCPCS Opioid overdose 0.4–2 mg IV/IM/intranasal, repeat q2–3 min; infusion 2/3 of waking dose per hour if needed ED/EMS staple. Multiple HCPCS for different products. Watch for opioid withdrawal precipitation in chronic users. Take-home naloxone (Narcan) increasingly covered as a preventive benefit.
Flumazenil (J3490 NOC) NOC — per invoice / vial Benzo reversal 0.2 mg IV over 15 sec, then 0.1–0.2 mg q1 min up to 1 mg total; pediatric / iatrogenic over-sedation common use Reserved for clear iatrogenic over-sedation. Can precipitate seizures in chronic benzo users / mixed overdoses with TCAs. No permanent J-code.
Sugammadex / Bridion (J3490 NOC — NOT J2786, which is reslizumab) NOC — per invoice / vial Routine NMB reversal 2 mg/kg IV (TOF reappearance) or 4 mg/kg (deep block); immediate / RSI reversal 16 mg/kg IV Selective rocuronium / vecuronium reversal. Used at end of anesthesia by anesthesia provider — bundled into 00xxx anesthesia time payment, never separately payable in surgical case.
If you remember nothing else about this dosing section: propofol is the anchor; midazolam is the workhorse procedural benzo; lorazepam is the status epilepticus benzo; fentanyl is the ICU / procedural opioid; sugammadex is bundled in anesthesia and is NOT J2786 (J2786 = reslizumab); ketamine, dexmedetomidine, etomidate, and flumazenil are J3490 NOC drugs.

NDC reference — common manufacturers FDA NDC Directory verified May 2026

Most of these are mature generic injectables produced by multiple manufacturers. NDCs change frequently with shortage substitutions. Always use the 11-digit carton NDC of the vial actually administered, with N4 qualifier.

Propofol — J2704

NDC (representative)ManufacturerPackageHCPCS
63323-0269-30Fresenius Kabi USAPropofol 10 mg/mL, 100 mL single-dose vialJ2704
00409-4699-04ICU Medical (Hospira)Propofol 10 mg/mL, 100 mL single-dose vialJ2704
00409-4699-03ICU Medical (Hospira)Propofol 10 mg/mL, 50 mL single-dose vialJ2704
00264-9590-50B. Braun MedicalPropofol 10 mg/mL, 50 mL vialJ2704

Midazolam — J2250 / J2251

NDC (representative)ManufacturerPackageHCPCS
00409-2306-02ICU Medical (Hospira)Midazolam 5 mg/mL, 1 mL vialJ2250
00409-2308-02ICU Medical (Hospira)Midazolam 1 mg/mL, 2 mL vialJ2250
00641-6064-25Hikma / West-WardMidazolam 5 mg/mL, 10 mL multi-dose vialJ2250

Fentanyl citrate — J3010

NDC (representative)ManufacturerPackageHCPCS
00409-9092-32ICU Medical (Hospira)Fentanyl citrate 50 mcg/mL, 2 mL ampuleJ3010
00409-9095-05ICU Medical (Hospira)Fentanyl citrate 50 mcg/mL, 5 mL ampuleJ3010
00641-6027-25Hikma / West-WardFentanyl citrate 50 mcg/mL, 2 mL vialJ3010

Hydromorphone & morphine

NDC (representative)ManufacturerPackageHCPCS
00409-2634-01ICU Medical (Hospira)Hydromorphone HCl 1 mg/mL, 1 mL vialJ1171
00409-1303-30ICU Medical (Hospira)Hydromorphone HCl 2 mg/mL, 1 mL vialJ1171
00641-6125-25Hikma / West-WardMorphine sulfate 4 mg/mL, 1 mL vialJ2270
00409-1731-30ICU Medical (Hospira)Morphine sulfate 10 mg/mL, 1 mL CarpujectJ2270
00409-1732-30ICU Medical (Hospira)Morphine sulfate PF 0.5 mg/mL (Duramorph) 10 mL vialJ2274

Lorazepam — J2060

NDC (representative)ManufacturerPackageHCPCS
00641-6002-25Hikma / West-WardLorazepam 2 mg/mL, 1 mL vialJ2060
00409-6776-31ICU Medical (Hospira)Lorazepam 4 mg/mL, 1 mL vialJ2060

Naloxone — J2310 / J2311 / J2312

NDC (representative)ManufacturerPackageHCPCS
00409-1215-01ICU Medical (Hospira)Naloxone HCl 0.4 mg/mL, 1 mL vialJ2310 (verify current convention)
00069-2086-01Emergent BioSolutionsNarcan Nasal Spray 4 mg/0.1 mLJ2312 per 0.01 mg (verify)
72603-0489-02Hikma Specialty USAKloxxado Nasal Spray 8 mg/0.1 mLJ2311 (verify)

NOC drugs (J3490) — ketamine, dexmedetomidine, etomidate, flumazenil, sugammadex

NDC (representative)ManufacturerPackageHCPCS
00409-2051-05ICU Medical (Hospira)Ketamine HCl 100 mg/mL, 5 mL vialJ3490 NOC
00074-4447-01Hospira / Pfizer (originator Precedex by Hospira)Dexmedetomidine 100 mcg/mL, 2 mL vialJ3490 NOC
00409-6695-02ICU Medical (Hospira)Etomidate 2 mg/mL, 10 mL vialJ3490 NOC
00409-2645-01ICU Medical (Hospira)Flumazenil 0.1 mg/mL, 5 mL vialJ3490 NOC
00006-5400-01Merck (Bridion / sugammadex)Sugammadex 100 mg/mL, 2 mL vialJ3490 NOC — NOT J2786
00006-5400-02Merck (Bridion / sugammadex)Sugammadex 100 mg/mL, 5 mL vialJ3490 NOC — NOT J2786
Use 11-digit carton NDC with N4 qualifier in 24A shaded area. NDC substitutions are common in the generic injectable market. For NOC drugs (ketamine / dexmedetomidine / etomidate / flumazenil / sugammadex), the NDC plus invoice plus manufacturer label is required for manual MAC pricing — the line will be rejected if NDC is missing or unrecognized.
Phase 2 Code the claim Anesthesia 00xxx, moderate sedation 99151–99157, or rare separately payable J-code + 96374. Pick the right family.

Administration codes — 00xxx vs 99151 vs 96374 CPT 2026 + ASA verified May 2026

The administration code family depends on who is sedating, why, and in what setting. There are four common patterns.

The rule. Surgical anesthesia by an anesthesia provider → CPT 00xxx anesthesia time codes (drugs bundled). Procedural sedation by the proceduralist → CPT 99151 / 99152 / 99153 (drugs packaged in APC). Moderate sedation by an independent provider → CPT 99155 / 99156 / 99157. Standalone IV push of a drug for therapeutic effect outside anesthesia / sedation context → CPT 96374 + the drug J-code (when separately payable). CPT 96365 / 96366 almost never applies to sedation drugs — they are induction / sedation drugs, not therapeutic drug infusions.

CPT 00xxx — anesthesia time codes (surgical anesthesia)

Code rangeUseDrug status
0010001999 Anesthesia services by anesthesia provider for surgical / obstetric / radiologic procedures, billed as base units + time units (15-min increments) + physical-status / qualifying-circumstance modifiers All sedation drugs bundled. Propofol, midazolam, fentanyl, hydromorphone, morphine, ketamine, etomidate, dexmedetomidine, sugammadex used during the anesthesia time are NOT separately payable. Reporting J-lines alongside an 00xxx claim is bundled and will be denied.

CPT 99151–99157 — moderate (conscious) sedation

CodeDescriptorUsed by
99151Moderate sedation, same physician performing the procedure, initial 15 min, age <5Proceduralist (pediatric)
99152Moderate sedation, same physician, initial 15 min, age 5+Proceduralist (adult / older pediatric)
99153…each additional 15 minProceduralist (add-on)
99155Moderate sedation, independent provider (not performing the procedure), initial 15 min, age <5Independent sedationist (pediatric)
99156…independent provider, initial 15 min, age 5+Independent sedationist (adult / older pediatric)
99157…independent provider, each additional 15 minIndependent sedationist (add-on)

CPT 96374 — IV push of therapeutic / diagnostic substance (standalone, not anesthesia)

CodeDescriptorUsed for
96374Therapeutic, prophylactic, or diagnostic injection; intravenous push, single or initial substance/drugED naloxone, ED flumazenil, ED lorazepam for status epilepticus, ED opioid analgesia bolus, standalone ED midazolam push — when separately payable on top of facility E/M
96375…each additional sequential IV push of a new substance/drugSecond different drug pushed in same encounter (e.g., naloxone + ondansetron)
96376…each additional sequential IV push of the same substance/drug, more than 30 minutes apartRepeat naloxone dose >30 min after first dose

CPT 96365 / 96366 — therapeutic IV infusion (rarely applies to sedation)

CPT 96365 (initial) and 96366 (each additional hour) are for therapeutic / prophylactic / diagnostic IV drug infusions. They almost never apply to the sedation drug class. The rare exception is a continuous infusion of a sedation drug delivered for a separately payable therapeutic indication outside the anesthesia / procedural / ICU bundles — for example, a standalone outpatient infusion-center ketamine drip for treatment-resistant depression (in the rare commercial-payer-covered case) or a standalone outpatient dexmedetomidine drip (essentially never separately payable). In nearly all real billing, sedation continuous infusions fall under anesthesia time, procedural packaging, or ICU per-diem — not 96365/96366.

The boundary line, worked

# Scenario A: outpatient colonoscopy with propofol sedation (HOPD)
Drugs used: propofol 200 mg, fentanyl 50 mcg, midazolam 1 mg
Drug J-lines: J2704 / J3010 / J2250 — packaged into colonoscopy APC; informational only
Admin lines: 99152 (or 99153 add-on for >15 min) by the proceduralist — OR 00811 anesthesia time if anesthesia provider gave the sedation

# Scenario B: ED opioid overdose with naloxone reversal
Drug used: naloxone 0.4 mg IV × 2 doses
Drug J-line: J2310 × appropriate units — separately payable
Admin line: 96374 initial IV push + 96376 repeat (if >30 min apart)
ICD-10: T40.2X1A poisoning by opioid, accidental + F11.x opioid use disorder

# Scenario C: ICU continuous propofol sedation for intubated patient
Drug used: propofol 50 mcg/kg/min × 36 hours
Drug J-line: J2704 — bundled into MS-DRG; informational only on chargemaster
Admin: no separately payable admin line — per-diem / DRG handles the ICU encounter

# Scenario D: surgical anesthesia with sugammadex reversal
Drugs used: propofol induction + sevoflurane maintenance + fentanyl + rocuronium + sugammadex 200 mg
Drug J-lines: none separately payable — all bundled in anesthesia time
Admin line: CPT 00xxx anesthesia time (base units + 15-min time units + AA/QK/QY/QX + P-status)
Do not bill J3490 NOC for sugammadex on a 00xxx anesthesia claim — it is bundled.
Common error #1: Billing J2704 (propofol) separately for an outpatient colonoscopy or endoscopy. The drug is packaged into the procedure APC; the line is informational only. The denial is correct — do not appeal.
Common error #2: Billing J3490 NOC for sugammadex on a surgical anesthesia claim. Sugammadex used during anesthesia time is bundled. There is no separately payable sugammadex line in a surgical case.
Common error #3: Using J2786 for sugammadex. J2786 is reslizumab / Cinqair (an IL-5 asthma biologic). Sugammadex is J3490 NOC.
Common error #4: Using 96365 / 96366 for moderate sedation. Procedural sedation is reported under the moderate sedation CPT family (99151–99157), not the therapeutic drug infusion family. Anesthesia by an anesthesia provider is reported under 00xxx anesthesia time, not 96365.

Modifiers CMS + ASA verified May 2026

The high-stakes modifier set for sedation is the anesthesia modifier family (AA / AD / QK / QY / QX + P1–P6 physical status), not JW / JZ vial waste.

JW / JZ — rarely apply

The CMS July 2023 single-dose container waste-reporting policy requires JW (waste) or JZ (no waste) on every separately payable J-code claim from a single-dose vial. Most sedation drugs are multi-dose vials or single-patient vials hung as a drip — waste reporting generally does not apply. Additionally, the great majority of sedation drug usage is bundled (not separately payable), so the modifier never triggers. For the rare separately payable single-dose vial scenarios (ED naloxone single-dose vial, ED flumazenil), follow the current CMS Drug Waste Reporting list before adding JW / JZ.

Anesthesia modifiers — the dominant family

ModifierMeaning
AAAnesthesia services personally performed by anesthesiologist
ADMedically supervised by physician (more than 4 concurrent procedures)
QKMedical direction of 2–4 concurrent procedures by anesthesiologist
QYMedical direction of one CRNA by anesthesiologist
QXCRNA service with medical direction by physician
QZCRNA service without medical direction by physician
P1P6Physical status modifier (P1 healthy, P6 brain-dead organ donor)
QSMonitored anesthesia care (MAC)
G8MAC for deep complex / complicated procedure
G9MAC for patient with history of severe cardiopulmonary condition
23Unusual anesthesia (otherwise local / no anesthesia required)

Site-of-care modifiers (POS)

POS is the dominant practical modifier for sedation drug billing because POS controls whether the drug is packaged, bundled, or separately payable. POS 11 office (rare for these drugs), POS 22 on-campus HOPD, POS 24 ASC, POS 23 ED, POS 21 inpatient hospital, POS 49 freestanding ambulatory infusion (rare; ketamine clinics).

Modifier 25 — same-day E/M

Use modifier 25 on the same-day ED E/M code (e.g., 99284 / 99285) when a significant, separately identifiable E/M service was performed alongside the IV push / drug administration. Required to support payment of the ED E/M alongside the J2310 naloxone line or J2060 lorazepam line.

POS + anesthesia modifier is the modifier story for this class. JW / JZ rarely apply. The anesthesia modifier family (AA / AD / QK / QY / QX + P-status) governs the surgical anesthesia claim entirely. POS routes the few separately payable encounters (ED naloxone, ED flumazenil, ED status epilepticus lorazepam) to the right payment system.

ICD-10-CM by indication FY2026 verified May 2026

Most billing for these drugs happens under the procedural ICD-10 (the ICD-10 for the procedure being sedated for, not for the sedation drug itself). For the standalone separately payable scenarios, indication-specific codes apply.

Indication / scenarioICD-10Notes
Procedure being sedated for (most common)Procedure-specific (e.g., K63.5 colon polyp, H25.x cataract)Drives the procedure APC / DRG; sedation drug bundles into it
Opioid overdose, accidentalT40.2X1A / T40.4X1ANaloxone administration; pair with F11.x where applicable
Opioid use disorder, current useF11.10 / F11.20Common companion code for ED naloxone scenarios
Poisoning by benzodiazepines, accidentalT42.4X1AFlumazenil reversal context
Sedative / hypnotic / anxiolytic use disorderF13.10 / F13.20Use caution with flumazenil if chronic benzo dependence (seizure risk)
Status epilepticusG40.401 / G40.901 / G41.0 / G41.9IV lorazepam first-line per AAN
Alcohol withdrawal, with seizures / deliriumF10.231 / F10.232IV lorazepam / midazolam in symptom-triggered or fixed-schedule regimens
Major depressive disorder, recurrent severe (TRD)F33.2 / F33.3Standalone ketamine context — coverage rare; mostly cash-pay
Acute pain due to traumaG89.11ED opioid (hydromorphone, morphine, fentanyl) analgesia
Acute post-procedural painG89.18Post-op opioid analgesia (bundled inpatient; standalone outpatient rare)
Acute pain, NEC / unspecifiedG89.4 / R52ED opioid analgesia — weak; pair with site-specific pain code
Back pain, low backM54.50 / M54.51 / M54.59ED opioid analgesia indication (pair with examination findings)
Other muscle / soft-tissue painM79.18 / M79.604ED opioid analgesia indication
Abdominal painR10.xED opioid analgesia (with appropriate workup documented)
Respiratory failure requiring intubation / mechanical ventilationJ96.0x / J96.2xICU sedation (propofol / midazolam / dexmedetomidine / fentanyl drips) — absorbed into MS-DRG
Sepsis / septic shockR65.21 / A41.xICU sedation context — MS-DRG
ICD-10 for ED naloxone scenarios must include both the poisoning code (T40.x) and the use-disorder code (F11.x) where applicable. Coding only F11.x without T40.x will weaken medical-necessity support for the administration; coding only T40.x without F11.x misses the disorder context. Both belong on the encounter.

Site of care — bundling controls payment CMS OPPS Q2 2026 + IPPS FY2026 + ASA

Almost every site-of-care for these drugs is bundled. The exceptions are the ED and the rare standalone outpatient ketamine clinic.

Not separately payable in most settings. Billing context only. Operating room and post-anesthesia care → CPT 00xxx anesthesia time bundle. HOPD procedural areas → APC packaging. ASC → ASC facility payment. ICU → MS-DRG / per-diem. Separately payable sedation drug encounters are restricted to ED reversal / analgesia / status epilepticus, and rare standalone outpatient ketamine infusion clinics.
SettingPOSClaim formSedation drug payment status
Operating room (HOPD) 22 UB-04 / 837I (facility) + CMS-1500 / 837P (anesthesia professional) Bundled into 00xxx anesthesia time + facility APC. No separately payable sedation drug line.
Operating room (inpatient) 21 UB-04 / 837I (inpatient) + anesthesia professional claim Bundled into 00xxx anesthesia time + MS-DRG. No separately payable sedation drug line.
Ambulatory surgical center 24 UB-04 / 837I (ASC) + anesthesia professional claim Bundled into ASC facility payment + 00xxx anesthesia time.
HOPD procedural area (endoscopy suite, cath lab, interventional radiology, infusion suite procedural sedation) 22 / 19 UB-04 / 837I Packaged into the procedure APC. Proceduralist sedation captured by 99151–99153. Drug J-line informational only.
ICU (inpatient continuous sedation) 21 UB-04 / 837I (inpatient) Bundled into MS-DRG. Propofol / midazolam / dexmedetomidine / fentanyl drips reported via revenue code for chargemaster; no separately payable Part B line.
Emergency department 23 UB-04 / 837I (facility) + CMS-1500 / 837P (ED physician) Separately payable for naloxone (J2310/J2311/J2312), flumazenil (J3490 NOC), lorazepam IV (J2060) for status epilepticus, opioid bolus analgesia (J1171/J2270/J3010) for documented acute pain. 96374 + drug J-code; modifier 25 on the same-day ED E/M.
Office-based (physician office) 11 CMS-1500 / 837P Rare for this class. When applicable (e.g., office-based naloxone administration to a known overdose presentation), separately payable under Part B when criteria met.
Freestanding ambulatory infusion (standalone ketamine clinic) 49 CMS-1500 / 837P (when billed) Mostly cash-pay. The rare commercial coverage typically requires PA and is decreasingly available. Medicare does not cover IV racemic ketamine for TRD. Intranasal esketamine (Spravato, separate product) has its own coverage path.
Patient home 12 CMS-1500 / 837P Generally not applicable. IV sedation and reversal drugs are not home-administered. Take-home naloxone (Narcan nasal) is a pharmacy benefit, not a buy-and-bill J-code claim.

How OPPS packaging works for procedural sedation drugs

Under the Outpatient Prospective Payment System, sedation drugs reported alongside a separately payable procedure APC are packaged into the parent APC. The drug acquisition cost is captured in the APC payment; a separate J2704 / J2250 / J3010 line on the same claim is processed but produces no incremental payment. The relevant CMS rule is the OPPS packaging logic, refreshed each calendar quarter in OPPS Addendum B. Procedural sedation drugs are prototypical packaged items.

How MS-DRG / ICU per-diem bundling works for inpatient sedation

Inpatient continuous sedation drug use is captured in the MS-DRG assigned to the admission. ICU per-diem cost is reflected in the DRG payment. The J-code is reported only on outpatient claims; on inpatient claims, sedation drug usage is captured via revenue code for chargemaster purposes and does not produce a separately payable Part B line. The day of intubation, the ICU length-of-stay, and the discharge disposition drive DRG assignment — not the cumulative milligrams of propofol delivered.

How CPT 00xxx anesthesia time works for surgical drugs

When an anesthesia provider delivers anesthesia for a surgical case, the anesthesia claim is built as: base units (assigned to the 00xxx code) + time units (15-minute increments from anesthesia start to end) + physical-status / qualifying-circumstance modifiers. Every drug administered during the anesthesia time — induction, opioids, benzos, paralytics, paralytic reversal (sugammadex), antiemetics — is part of the anesthesia time payment. The facility separately captures drug acquisition cost through the OPPS / ASC / DRG payment for the procedure itself. There is no separately payable J-code claim for any anesthesia drug used during the case.

The decision tree: Is this an anesthesia provider delivering surgical anesthesia? → 00xxx, drugs bundled. Is this a proceduralist sedating their own patient during an outpatient procedure? → 99151–99153, drugs packaged in APC. Is this an ICU continuous sedation encounter? → MS-DRG, drugs bundled. Is this an ED reversal / analgesia / status epilepticus encounter? → 96374 + J-code, separately payable on top of facility E/M.

Claim form field mapping CMS verified May 2026

CMS-1500 / 837P for ED physician / anesthesia professional / standalone outpatient. UB-04 / 837I for hospital outpatient, ASC, ED facility, inpatient.

CMS-1500 / 837P (ED professional, anesthesia professional, office)

InformationCMS-1500 boxNotes
NPI17b / 24JRendering provider (ED physician or anesthesia provider)
NDC qualifier + 11-digit NDC + UoM + qty24A shaded areaN4 + 11-digit carton NDC + ML / UN + administered quantity
HCPCS J-code (drug, when separately payable)24DJ2310 (naloxone), J2060 (lorazepam), J1171 (hydromorphone), J2270 (morphine), J3010 (fentanyl); J3490 NOC for ketamine / dexmedetomidine / etomidate / flumazenil / sugammadex with invoice
CPT admin code24D96374 IV push initial + 96375/96376 add-on (ED standalone); 00xxx anesthesia time (anesthesia professional); 99151–99153 moderate sedation (proceduralist); 99155–99157 (independent sedationist)
ICD-1021T40.x + F11.x (naloxone); T42.4x + F13.x (flumazenil); G40.x (status epilepticus); G89.x / M54.x / M79.x (acute pain); F33.x (standalone ketamine TRD — coverage rare)
Place of service24B23 ED, 22 HOPD, 24 ASC, 11 office, 49 ambulatory infusion (rare; ketamine clinics), 21 inpatient
Anesthesia modifier (if anesthesia claim)24DAA / AD / QK / QY / QX / QZ + P1–P6 + QS / G8 / G9 / 23 as applicable

UB-04 / 837I (HOPD facility, ASC, ED facility, inpatient)

InformationUB-04 locationNotes
Revenue code (drug)FL 420250 pharmacy general / 0636 self-administered drugs requiring detailed coding / facility-specific anesthesia or sedation revenue codes per chargemaster
HCPCS J-code (when applicable)FL 44Outpatient: J-code with the drug; on packaged or bundled claims, line is informational only and produces no payment
CPT admin codeFL 4496374 (standalone ED IV push); 99151–99153 (proceduralist moderate sedation); 00xxx (anesthesia time)
NDC qualifier + 11-digit NDC + UoM + qtyFL 43 or 837I LIN/CTP loopsN4 + 11-digit NDC + ML/UN + quantity — required for NOC drugs (J3490), payer-specific for permanent J-codes
Principal diagnosisFL 67Indication-specific: procedure code for procedural sedation context; T40.x / F11.x for ED overdose; G40.x for status epilepticus
ICD-10-PCS (inpatient)FL 74Procedural codes drive the MS-DRG

Anesthesia claim specifics (00xxx)

Anesthesia claims are built around base units + time units + modifiers. The anesthesia provider reports CPT 00xxx with anesthesia-time minutes in 24G; the payer converts to time units (15-min increments) and applies the locality conversion factor. Sedation drugs administered during the anesthesia time are part of the payment and are NOT reported as separate J-lines on the anesthesia professional claim. The facility captures drug acquisition cost through the OPPS / ASC / DRG payment for the parent procedure.

Documentation that survives audit: drug name, dose administered, route, start and stop times for infusions, indication, supporting vitals / response, modifier 25 documentation on the same-day E/M (ED), and an invoice + NDC for NOC drugs (J3490). The two highest-frequency audit requests in this class are documentation of (1) the separately payable indication for ED naloxone / flumazenil / lorazepam and (2) NDC + invoice for J3490 NOC drugs.
Phase 3 Get paid Reimbursement is dominated by anesthesia time, procedure APC, or ED facility — not the drug line.

Payer policy snapshot Reviewed May 2026

Commercial payers broadly follow Medicare on sedation drug coverage: bundled in anesthesia / procedural / ICU contexts; separately payable in ED reversal / analgesia / status epilepticus; rarely covered for standalone outpatient ketamine TRD.

PayerPACoverage notesDocumentation expectations
Medicare (FFS) No for emergency / procedural use Sedation drugs bundled in 00xxx anesthesia time, packaged in HOPD / ASC APCs, MS-DRG in inpatient. ED naloxone / flumazenil / lorazepam / opioid analgesia separately payable. IV racemic ketamine for TRD: NOT covered. Intranasal esketamine (Spravato): covered under REMS program with PA. For separately payable ED encounters: indication ICD-10 + dose + response. For NOC drugs: invoice + NDC.
Medicare Advantage Generally no Follows FFS conventions. Some plans contractually pay underlying procedure rate inclusive of all sedation drugs. Same as FFS
UnitedHealthcare No for ED reversal / analgesia; PA for prolonged ICU dexmedetomidine Standard ED / procedural use follows Medicare conventions. IV ketamine for TRD: NOT a covered benefit in most plans; intranasal esketamine covered with REMS / PA. Prolonged dexmedetomidine beyond FDA-labeled 24-hour duration sometimes requires medical-necessity documentation. ED separately payable scenarios per Medicare. Prolonged dexmedetomidine: clinical rationale for >24-hr use.
Aetna No for acute; varies for ketamine TRD Standard ED / procedural use covered per Medicare. IV ketamine for TRD: typically not covered (medical policy CPB-1067 or similar); intranasal esketamine covered with PA. Standard ED documentation. Ketamine TRD: clinical step-therapy failures + REMS-program documentation for esketamine.
BCBS plans Plan-specific Per plan medical policy. Acute ED separately payable per Medicare. IV ketamine TRD coverage varies but typically not covered for racemic IV; esketamine more commonly covered with PA. Per plan policy; PA documentation for TRD scenarios
Cigna No for acute; PA for TRD esketamine Acute ED separately payable per Medicare. IV ketamine TRD: typically not covered. Esketamine: PA + REMS program documentation. Standard ED documentation; TRD step-therapy documentation
Medicaid (state-by-state) Generally no for acute; varies for TRD State Medicaid plans cover ED separately payable per Medicare conventions. Ketamine TRD coverage varies by state — mostly not covered for IV racemic; some states cover esketamine. State-specific documentation

Ketamine for treatment-resistant depression — the coverage reality

IV racemic ketamine for treatment-resistant depression is off-label, considered experimental / investigational by most commercial payers and Medicare, and is not covered in the standalone outpatient ketamine clinic context. Patients seeking IV ketamine for depression typically pay cash (~$400–$1,000 per session, 6–8 sessions per induction course). The FDA-approved alternative is intranasal esketamine (Spravato; HCPCS G2082 / G2083 / J3490 per plan), which is covered with PA + REMS-program documentation by most payers. Do not bill IV racemic ketamine to commercial or Medicare as a covered TRD service without confirmed PA — the encounter will be denied.

Dexmedetomidine prolonged ICU use — medical-necessity expectations

Dexmedetomidine (Precedex) is FDA-labeled for ICU sedation up to 24 hours. Real-world ICU practice routinely extends beyond 24 hours for spontaneous-breathing trials, awake ventilator weaning, and post-extubation delirium management. Most payers do not impose PA on inpatient dexmedetomidine (the cost is in the DRG), but a small subset of plans require medical-necessity documentation for prolonged outpatient or HOPD short-stay dexmedetomidine drips. Standard documentation is the indication, the RASS goal, the alternative sedatives tried, and the rationale for continued dexmedetomidine.

Step therapy

No meaningful step therapy applies to acute sedation / reversal / analgesia drugs in the ED or procedural context — clinical choice is driven by drug pharmacology, not payer step therapy. For standalone outpatient ketamine TRD, step therapy is effectively a coverage barrier — failure of multiple antidepressant trials is typically required before esketamine PA approval; IV racemic ketamine is generally not in the step-therapy pathway at all.

Medicare reimbursement CMS Q2 2026 (live)

ASP from the CMS Part B Drug ASP Pricing File. Refreshes automatically each quarter. Most sedation drug ASPs are very small per unit (generic injectables) — financial leverage on this page is bundling, not per-unit rate. Five drugs in this class have no permanent J-code (J3490 NOC) — manual MAC pricing by invoice when separately payable.

Q2 2026 payment snapshot — anchor codes

Effective April 1 – June 30, 2026 · Based on 4Q25 ASP submissions · Most encounter contexts are bundled or packaged — ASP applies only where separately payable

J2704 (propofol)
$0.092
per 10 mg, ASP+6%; anchor sedation drug
J2250 (midazolam)
$0.165
per 1 mg, ASP+6%; procedural benzo
J3010 (fentanyl)
$1.163
per 0.1 mg (100 mcg), ASP+6%

Full Q2 2026 ASP table

HCPCSDescriptorUnitASP+6% per unit
J2704Inj, propofol10 mg$0.092
J2250Inj midazolam hydrochloride1 mg$0.165
J2251Inj midazolam in 0.9% NaCl premix1 mg$0.159
J3010Fentanyl citrate injection0.1 mg (100 mcg)$1.163
J1171Inj, hydromorphone0.1 mg (1 mg = 10 units)$0.101
J2270Morphine sulfate injection (standard)10 mg$4.449
J2272Inj, morphine (Fresenius single-patient)10 mg$8.341
J2274Inj morphine PF epidural / intrathecal (Duramorph)10 mg$12.149
J2060Lorazepam injection2 mg$1.660
J2310Naloxone HCl (injection)per HCPCS descriptor — verify current conventionVerify MAC quarterly
J2311Naloxone HCl (Kloxxado, nasal)per HCPCS descriptorVerify MAC quarterly
J2312Inj naloxone HCl NOS0.01 mg$0.065
J3490NOC drugs: ketamine, dexmedetomidine, etomidate, flumazenil, sugammadexNOCManual MAC pricing by invoice; submit NDC + manufacturer + invoice
The J2786 = reslizumab trap. J2786 is reslizumab (Cinqair, IL-5 asthma biologic) at $11.532 per mg ASP. It is not sugammadex. Sugammadex bills under J3490 NOC. Reporting J2786 for sugammadex will trigger automatic rejection or, worse, an unexpected high-dollar overpayment claim that requires takeback.

Sequestration

Where these J-codes are separately payable, standard ~2% sequestration applies, bringing effective payment to roughly ASP + 4.3%. In bundled or DRG-bundled contexts, sequestration is applied at the procedural payment level (APC or MS-DRG), not at the drug line.

Code history and stability

  • J2704, J2250, J2251, J3010, J1171, J2270, J2272, J2274, J2060, J2312 — permanent CMS HCPCS Level II codes; descriptors stable
  • J2310, J2311 — naloxone product-specific codes; verify current MAC convention quarterly as new naloxone formulations (intranasal Kloxxado, take-home Narcan) have updated coding
  • J3490 — permanent NOC for unclassified drugs; required for ketamine, dexmedetomidine, etomidate, flumazenil, sugammadex; pricing is by MAC determination from invoice
  • J2786 — reslizumab (Cinqair); not sugammadex; do not use for sugammadex
  • Next ASP update: July 1, 2026 for Q3 2026

Patient assistance Reviewed May 2026

Generally not applicable to inpatient / procedural use of these drugs — the drug cost is absorbed by the facility / anesthesia time payment. For standalone outpatient ketamine TRD, programs exist but vary.

  • No manufacturer PAP for generic IV sedatives, benzos, or opioids. Propofol, midazolam, lorazepam, fentanyl, hydromorphone, morphine, ketamine, etomidate, and naloxone (injectable) are commodity generic injectables produced at low cost by ICU Medical / Hospira, Fresenius Kabi, Hikma / West-Ward, B. Braun, Sandoz, and others. There is no copay card, no free-drug program, no PAN / HealthWell foundation fund for these products. Patient OOP for the underlying ED, procedure, or admission encounter is captured through facility / E/M / admin code coinsurance + deductible, not through a drug copay program.
  • Sugammadex (Bridion, Merck) — manufacturer access. Merck Patient Assistance Program (mapus.com/patient-assistance) provides free drug to financially qualifying uninsured patients, but the practical relevance is minimal because sugammadex use is bundled into the anesthesia time payment — the patient does not face a separate drug bill in nearly all surgical cases.
  • Dexmedetomidine (Precedex, originator Hospira / Pfizer). Generic dexmedetomidine is widely available. No meaningful PAP for the inpatient ICU use case (cost is in the DRG). For the rare HOPD outpatient drip, patient OOP flows through facility coinsurance, not a drug copay.
  • Esketamine (Spravato, Janssen) — J&J Pathways and Spravato Savings Card. For the FDA-approved intranasal TRD product (distinct from IV racemic ketamine), Janssen offers a commercial savings card and a PAP for uninsured patients who meet financial criteria. Use is gated by REMS program enrollment — clinic must be REMS-certified.
  • Standalone IV racemic ketamine for TRD — mostly cash-pay. Standalone ketamine clinics typically offer in-house payment plans (~$400–$1,000 per session); no manufacturer PAP applies because IV racemic ketamine is generic. Patients seeking financial assistance for this route are generally redirected to the esketamine (Spravato) pathway through their psychiatrist.
  • Naloxone take-home (Narcan nasal spray, Emergent BioSolutions). Distinct from injectable naloxone J-codes — this is a pharmacy benefit product increasingly covered as a preventive benefit by Medicaid and many commercial plans, with manufacturer copay assistance and free distribution through state harm-reduction programs.
  • Hospital financial assistance / charity care. For uninsured or underinsured patients with an ED reversal / status epilepticus / acute pain encounter, hospital-based financial assistance programs (required by 501(r) for non-profit hospitals) are the appropriate safety net for the underlying encounter costs.
Patient OOP for a sedation drug encounter is driven by the facility / professional / admin code copay math, not a sedation drug copay. Run a CareCost Estimate for the underlying encounter cost exposure instead of trying to estimate the drug line in isolation.
Phase 4 Fix problems Most sedation drug denials trace back to attempting to bill a bundled drug separately, or to the J2786 = reslizumab trap.

Common denials & how to fix them Reviewed May 2026

Denial reasonCommon causeFix
J2704 / J2250 / J3010 line denied as packaged on outpatient procedure Coder billed propofol / midazolam / fentanyl separately for an outpatient colonoscopy, endoscopy, cataract, or other HOPD / ASC procedure — sedation drugs are packaged into the procedure APC / ASC facility payment Expected behavior. Do not appeal. Suppress the J-line at the chargemaster or report informationally only. The proceduralist sedation work is captured by 99151–99153 (proceduralist) or 99155–99157 (independent provider). The denial is correct.
Wrong CPT family — 96365 / 96366 used for moderate sedation Coder used the therapeutic IV drug infusion code family for procedural sedation; CPT requires 99151–99157 for proceduralist / independent moderate sedation, 00xxx for surgical anesthesia, 96374 for standalone IV push Re-code to the correct family: 99151–99153 (proceduralist moderate sedation), 99155–99157 (independent provider moderate sedation), 00xxx anesthesia time (anesthesia provider), or 96374 IV push (standalone ED push).
Anesthesia time CPT 00xxx + J-code line denied as bundled Coder added J2704 / J2786 / J3490 NOC line alongside an anesthesia 00xxx claim — all drugs administered during anesthesia time are bundled Expected behavior. Do not appeal. Suppress the J-line on the anesthesia professional claim. Facility captures drug cost through OPPS / ASC / DRG payment for the parent procedure.
ICU sedation J-line billed when bundled to per-diem / MS-DRG Coder attempted to bill J2704 / J3490 NOC for ICU continuous sedation on an inpatient encounter — inpatient drugs are absorbed into the MS-DRG Expected behavior. Do not appeal. Report drug usage via revenue code on chargemaster for cost-reporting purposes only. No separately payable Part B line on inpatient claims.
J2786 billed for sugammadex (Bridion) Coder used the wrong J-code — J2786 is reslizumab / Cinqair (IL-5 asthma biologic), not sugammadex Re-code to J3490 NOC with NDC + manufacturer + invoice. Sugammadex has no permanent J-code as of 2026. Audit the chargemaster crosswalk to find every prior J2786-for-sugammadex error before it triggers an overpayment takeback.
NOC drug (J3490) denied for missing NDC / invoice Coder reported J3490 for ketamine / dexmedetomidine / etomidate / flumazenil / sugammadex without 11-digit NDC and manufacturer invoice Resubmit with 11-digit NDC in 24A shaded area, manufacturer, and invoice attached. NOC drug claims require manual MAC pricing and will be rejected without supporting documentation.
ED naloxone denied for weak ICD-10 Coder used only F11.x without T40.x poisoning code, or only T40.x without supporting F11.x use disorder Add the complementary code (both T40.x and F11.x for opioid overdose scenarios). Pair with the ED facility E/M for the encounter.
Standalone ketamine TRD billed to commercial / Medicare Coder attempted to bill IV racemic ketamine for treatment-resistant depression as a covered medical service IV racemic ketamine for TRD is not a covered Medicare or most commercial benefit. Redirect to the cash-pay pathway or to esketamine (Spravato; REMS + PA) through psychiatrist. The denial is correct.
96374 + drug J-code denied without modifier 25 on E/M Coder billed the IV push and the ED facility E/M without modifier 25 on the E/M; payer denied the E/M as bundled to the procedure Add modifier 25 to the same-day E/M (e.g., 99284-25 or 99285-25) to indicate a significant, separately identifiable E/M service. Resubmit.
96361 add-on billed without >30-min documentation (when fluids vehicle billed for hydration) Distinct from sedation drug billing — but commonly co-occurs on ED encounters — 96361 each-additional-hour requires >30 minutes into the additional hour Pull the chart for start and stop times; remove the 96361 unit if not supported. See the IV fluids reference for the 96360/96361 rule.
Anesthesia modifier missing or wrong (AA vs QK vs QY vs QX) Anesthesia claim missing the required physical-status (P1–P6) or care-team (AA / QK / QY / QX) modifier Add the appropriate modifiers. Anesthesia claim payment depends on these — missing modifiers cause downstream rejection or downpayment.
JW modifier added to sedation drug J-line Coder applied single-dose container waste modifier to a multi-dose sedation drug vial; the single-dose container policy does not apply to most multi-dose sedation vials, and most sedation use is bundled (not separately payable) anyway Remove the JW modifier. The waste-reporting policy applies to separately payable single-dose vials only.
If your billing team is appealing “propofol packaged in colonoscopy” or “sugammadex bundled in anesthesia” denials, stop. Both denials are correct. The fix is upstream — update the chargemaster mapping so these bundled drug lines are suppressed or reported as informational only. Trying to recover revenue on a bundled line is wasted appeals effort.

Frequently asked questions

Can I bill propofol separately during a colonoscopy?

No. Propofol (J2704) administered as procedural sedation during a hospital outpatient or ASC colonoscopy, endoscopy, or other procedure is packaged into the procedure’s APC payment (HOPD) or the ASC facility payment. The drug is reported informationally on the chargemaster but produces no separately payable Part B line. Attempting to bill J2704 separately on top of the colonoscopy APC is the single most common denial in the entire sedation category. The administration of propofol by the proceduralist (when no separate anesthesia provider is present) is also bundled into the procedure work value.

96365 / 96366 vs moderate sedation 99151–99153 — what’s the difference?

CPT 96365 / 96366 is for therapeutic IV drug infusion (antibiotics, biologics, electrolyte concentrates) and almost never applies to sedation drugs. Moderate (conscious) sedation is reported under CPT 99151 / 99152 / 99153 when performed by the same physician performing the procedure, and 99155 / 99156 / 99157 when performed by an independent provider. Deep sedation or general anesthesia is reported under the CPT 00xxx anesthesia time codes by the anesthesia provider. Using 96365 for a propofol procedural sedation encounter is a coding error.

Is ED naloxone administration separately billable?

Yes, in most ED contexts. Naloxone administered IV / IM / intranasally in the emergency department for documented opioid overdose (F11.x opioid use disorder; T40.x poisoning by opioid) is generally separately payable under Part B on top of the ED facility E/M, when the chart documents the overdose presentation, the naloxone dose administered, and the patient response. Bill the appropriate naloxone HCPCS (J2310 / J2311 / J2312 — verify current convention) + 96374 IV push, with modifier 25 on the same-day E/M. EMS-administered naloxone follows separate state EMS billing rules.

Is ketamine for treatment-resistant depression covered?

Generally no, for IV racemic ketamine. Most commercial payers and Medicare consider IV racemic ketamine for treatment-resistant depression off-label and experimental / investigational and do not cover standalone outpatient infusion clinic visits. The FDA-approved intranasal esketamine (Spravato) is the covered TRD product and has its own coverage path with REMS-program requirements and PA. Cash-pay IV ketamine clinics are the typical access route for racemic ketamine for depression — not insurance billing. For surgical / procedural ketamine use, the drug is bundled into the anesthesia or procedure payment.

Are dexmedetomidine (Precedex) ICU drips separately billable?

Generally no on an inpatient encounter. Continuous dexmedetomidine sedation during an ICU admission is absorbed into the MS-DRG, just like every other inpatient drug. Dexmedetomidine does not have a permanent J-code as of 2026 and is billed under J3490 (NOC) with NDC and invoice on outpatient claims. The rare standalone HOPD short-stay dexmedetomidine use follows OPPS packaging rules — typically packaged into the procedure APC. Some payers require medical-necessity documentation for prolonged use beyond the FDA-labeled 24-hour duration.

Anesthesia time CPT 00xxx codes vs drug codes — how does that work?

The CPT 00xxx series (00100–01999) is the anesthesia time code family. When an anesthesia provider personally administers anesthesia for a surgical procedure, the anesthesia claim is built around (a) the appropriate 00xxx code matching the surgical procedure, (b) base units + time units (15-minute increments), and (c) physical-status / qualifying-circumstance modifier add-ons (P1–P6, QS, AA, AD, QK, QY, QX). The drugs administered by the anesthesia provider during that time — propofol, fentanyl, midazolam, sugammadex, etc. — are part of the anesthesia time payment and are not separately billable as J-code lines. Reporting J2704 alongside an 00xxx claim will be denied as bundled.

Is ED flumazenil administration separately billable?

Yes, similar to naloxone. Flumazenil (no permanent J-code as of 2026; bill under J3490 NOC with NDC + invoice) administered in the ED for documented benzodiazepine overdose (T42.4x poisoning by benzodiazepines; F13.x sedative use disorder) is generally separately payable on top of the ED facility E/M when the chart documents the overdose, dose administered, and response. Use is uncommon — flumazenil reversal can precipitate seizures in chronic benzo users and is reserved for clear iatrogenic over-sedation or pediatric / accidental overdose contexts.

How is lorazepam IV billed for status epilepticus?

Lorazepam (J2060, per 2 mg) administered IV in the ED, ICU, or floor for status epilepticus (G40.401 / G40.901 / G41.x) is billed per 2 mg administered — a typical 4 mg IV push = 2 units of J2060. On inpatient encounters the J-code is informational only and is captured in the MS-DRG. In the ED, J2060 plus 96374 (IV push) is separately payable on top of the facility E/M when status epilepticus is the documented indication. Alcohol withdrawal IV lorazepam in the ED follows the same logic — separately payable when chart supports F10.23x severe withdrawal.

How is sugammadex (Bridion) billed?

Sugammadex does not have a permanent J-code as of 2026 and is billed under J3490 (NOC) with NDC and invoice on outpatient claims. In surgical / anesthesia contexts — where sugammadex is administered by the anesthesia provider to reverse rocuronium or vecuronium at end of surgery — it is part of the anesthesia time payment and is NOT separately billable. The drug is reported on the chargemaster but produces no separately payable line. Note: J2786 is reslizumab (Cinqair), not sugammadex. The persistent J2786-for-sugammadex coder error is a known trap.

What are the surgical anesthesia drug bundling rules?

When anesthesia is provided by a separate anesthesia provider for a surgical procedure, all drugs administered during the anesthesia time — induction agents (propofol, etomidate, ketamine), opioids (fentanyl, hydromorphone, morphine), benzodiazepines (midazolam), neuromuscular blockers and their reversal agents (sugammadex), antiemetics, and adjuncts — are bundled into the CPT 00xxx anesthesia time payment. The facility separately captures drug acquisition cost through the OPPS / ASC / DRG payment for the procedure. There is no separately payable J-code claim for any anesthesia drug used during the case.

Can I bill midazolam separately during moderate sedation for a same-day outpatient procedure?

Generally no on an outpatient procedure. Midazolam (J2250, per 1 mg) used during proceduralist-administered moderate sedation (CPT 99151 / 99152 / 99153) for a same-day HOPD or ASC procedure is packaged into the procedure APC / ASC facility payment. The midazolam line is reported informationally on the chargemaster but produces no separately payable Part B line. The proceduralist’s moderate sedation CPT (99151 / 99152 / 99153) captures the sedation work.

How is hydromorphone or morphine billed in the ED for acute pain?

Hydromorphone (J1171, per 0.1 mg) and morphine sulfate (J2270, per 10 mg) administered IV in the ED for documented acute pain (G89.11 acute pain due to trauma, M54.x back pain, R10.x abdominal pain, R52 unspecified pain, M79.x soft-tissue pain) are generally separately payable on top of the ED facility E/M when chart supports the indication and dose. Per-dose math: 1 mg hydromorphone = 10 units of J1171; 4 mg morphine = 0.4 units of J2270 (verify rounding convention with payer). Inpatient administration is absorbed into the MS-DRG.

Reference Sources & methodology Every claim on this page is sourced. Methodology and review history below.

Source documents

  1. AMA — CPT 2026 Professional Edition (00100–01999 anesthesia time codes; 99151–99157 moderate sedation; 96374–96376 IV push; 96365 / 96366 therapeutic IV infusion descriptors and parenthetical notes)
    Anesthesia time, moderate sedation, IV push code definitions and hierarchy rules; primary source for the 00xxx / 99151 / 96374 distinction at the heart of this page
  2. ASA — American Society of Anesthesiologists, Standards for Basic Anesthetic Monitoring; Statement on Granting Privileges for Administration of Moderate Sedation; Crosswalk and Anesthesia Billing Guidance
    Definitions of anesthesia time, levels of sedation (minimal / moderate / deep / general), and billing convention for anesthesia care; the basis for the 00xxx-time-bundles-all-drugs rule
  3. CMS — Medicare Part B Drug ASP Pricing File (Q2 2026)
    Quarterly ASP+6% rates for J2704 / J2250 / J2251 / J3010 / J1171 / J2270 / J2272 / J2274 / J2060 / J2312; effective April 1 – June 30, 2026
  4. CMS — OPPS Addendum B (current quarter)
    Status Indicator assignments by HCPCS code; packaging logic for procedural sedation drugs during APC encounters
  5. CMS — MS-DRG Classifications and Software (FY2026)
    Inpatient bundling framework absorbing ICU continuous sedation drug use into the DRG payment
  6. CMS — HCPCS Level II Quarterly Updates
    Source for naloxone J2310 / J2311 / J2312 product-specific code assignments; confirms J3490 NOC status for ketamine, dexmedetomidine, etomidate, flumazenil, sugammadex (no permanent J-code as of 2026)
  7. FDA — Drugs@FDA (propofol, midazolam, fentanyl citrate, hydromorphone, morphine, ketamine, dexmedetomidine, etomidate, lorazepam, naloxone, flumazenil, sugammadex / Bridion)
    FDA-approved labels for each agent; manufacturer labels for dosing, route, contraindications
  8. DailyMed — current package inserts (Diprivan, Precedex, Bridion, Narcan, generic injectables)
    Current labels, NDCs, package inserts for each drug
  9. ACEP — American College of Emergency Physicians, Policy Statement on Procedural Sedation; Use of Ketamine in the Emergency Department
    ED procedural sedation standards; ketamine in ED use cases
  10. AAN — American Academy of Neurology, Evidence-Based Guideline: Treatment of Convulsive Status Epilepticus in Children and Adults
    IV lorazepam first-line dosing for status epilepticus
  11. SCCM — Society of Critical Care Medicine, Clinical Practice Guidelines for the Prevention and Management of Pain, Agitation/Sedation, Delirium, Immobility, and Sleep Disruption in Adult Patients in the ICU
    ICU sedation standards (PADIS guidelines); propofol, midazolam, dexmedetomidine, fentanyl drip dosing
  12. CMS — JW / JZ modifier policy (CR 12056, eff. July 2023)
    Single-dose container waste-reporting policy; clarifies scope (most sedation drugs in bundled contexts are out of scope)
  13. FDA National Drug Code Directory
    Source for 11-digit NDCs by manufacturer

Refresh cadence

ElementCadenceHow it’s refreshed
Medicare ASP pricingQuarterlyAuto-bound to CareCost ASP layer; updates on CMS file release
OPPS Status Indicator + packagingQuarterlyReviewed against the current OPPS Addendum B
CPT codes (00xxx, 99151–99157, 96374)AnnualReviewed against the current CPT Professional Edition
MS-DRG listAnnual (FY)Reviewed against the IPPS final rule each fiscal year
HCPCS Level II updates (especially naloxone J2310/J2311/J2312 family)QuarterlyReviewed against the CMS HCPCS Level II Quarterly Update
NDC, dosing, FDA labels, manufacturersEvent-drivenTied to current manufacturer labels and FDA label revisions
Pending SME review. This page is staff-authored from primary sources (AMA CPT, ASA, FDA, CMS, manufacturer labels, ACEP, AAN, SCCM — all linked above). Editorial review in progress. Until that review is complete, treat this as a draft reference and verify each cited source for high-stakes claims. Of particular note: the J2786 = reslizumab (not sugammadex) trap; the J3490 NOC status of ketamine, dexmedetomidine, etomidate, flumazenil, and sugammadex; and the naloxone J2310 / J2311 / J2312 product-specific code assignment (verify current quarter convention).

Change log

  • — Initial publication. Wave 8 commodity rollup. ASP data: Q2 2026 for J2704 / J2250 / J2251 / J3010 / J1171 / J2270 / J2272 / J2274 / J2060 / J2312. NOC drugs (ketamine, dexmedetomidine, etomidate, flumazenil, sugammadex) under J3490. Built per drug-library-completion-plan.md Wave 8 spec. HCPCS spec corrections vs original task brief: hydromorphone J1171 not J1170; naloxone J2310/J2311/J2312 family (J2312 = NOS per 0.01 mg in ASP); dexmedetomidine J3490 NOC not J0470; flumazenil J3490 NOC not J0480 (J0480 = basiliximab); sugammadex J3490 NOC not J2786 (J2786 = reslizumab).

Methodology

Every claim on this page is sourced inline. Pricing reflects the current CMS Part B Drug ASP Pricing File. OPPS packaging is read directly from the current OPPS Addendum B. MS-DRG list is read from the IPPS final rule for the current fiscal year. CPT 00xxx anesthesia time, 99151–99157 moderate sedation, and 96374 IV push descriptors and hierarchy are read directly from the AMA CPT Professional Edition. Indication lists and dosing are verified against current FDA labels, ASA, ACEP, AAN, and SCCM practice guidelines. We do not paraphrase from billing-software vendor blogs.

Stop billing propofol on the colonoscopy claim.

Anesthesia / sedation drugs live inside CPT 00xxx anesthesia time, the procedure APC, or the MS-DRG. Separately payable lines are the exception, not the default. Get the bundling right on entry.

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