Minnesota Minnesota

Provider Manual

Provider Manual


Substance Use Disorder (SUD) Services

Revised: July 17, 2025

  • · Overview
  • · Eligible Providers
  • · Eligible Members
  • · Covered Services
  • · Noncovered Services
  • · Billing
  • · Legal References
  • Overview

    Substance use disorder (SUD) services include assessment of needs, treatment planning and interventions to address client needs as a result of substance use.

    Eligible Providers

    A provider must be enrolled as a Minnesota Health Care Programs (MHCP) provider for Substance Use Disorder (SUD) Services to provide, bill and receive payment for SUD services

    Providers must enroll and participate in the Drug and Alcohol Abuse Normative Evaluation System (DAANES) as required by Minnesota Statutes, 254B.05, subdivision 1b, clause 3. All SUD clients, regardless of funding, need to be entered into DAANES for each admission episode. Contact DAANES office by email dhs.daanes@state.mn.us to obtain the documents and training to participate in DAANES.

    Eligible providers may include the following:

  • · Licensed residential SUD treatment programs (ASAM levels of care 3.1, 3.3, and 3.5)
  • · Licensed nonresidential (outpatient) SUD treatment programs (ASAM levels of care 1.0, 2.1, and 2.5)
  • · Counties
  • · Tribes
  • · Recovery community organizations
  • · Hospitals
  • · Federally qualified health clinics and rural health clinics (as long as they also have a SUD program license)
  • · Licensed professionals in private practice
  • · Licensed withdrawal management programs (ASAM levels of care 3.2 and 3.7)
  • ASAM Certification

    The following MHCP providers of SUD services must certify the ASAM level(s) of care provided:

  • · Licensed residential SUD treatment programs
  • · Licensed nonresidential (outpatient) SUD treatment programs
  • · Licensed withdrawal management programs
  • · Approved out-of-state nonresidential (outpatient) SUD providers
  • · Approved out-of-state residential SUD providers
  • The following programs do not need to certify ASAM level of care:

  • · Tribally licensed programs
  • · ASAM 3.7 medically monitored inpatient programs
  • · Adolescent residential programs
  • To certify for an ASAM level of care, providers must submit an ASAM Certification Checklist (DHS-7325) (PDF) and accompanying documents listed under the ASAM Certification heading on the ASAM resources for Minnesota SUD treatment providers webpage. Providers must meet the requirements listed on these forms and submit the forms to the Minnesota Department of Human Services (DHS) to be eligible to provide, bill and be paid by MHCP for SUD services.

    After approval, the effective date of the provider’s participation will be determined by DHS based on when the Approval to Enroll letter was issued. The provider’s MHCP effective date is the date of their Approval to Enroll letter from the Behavioral Health Administration, which the provider is issued upon satisfactory review of the ASAM Certification Checklist (DHS-7325) (PDF).

    All DHS licensed residential and nonresidential, including withdrawal management, and all out-of-state programs must enroll with MHCP to provide ASAM levels of care. Enrolled providers must submit the forms found in the SUD Services Enrollment Criteria and Forms section of the MHCP Provider Manual.

    Eligible Members

    SUD services are available to fee-for-service members with major program code MA, OO (Behavioral Health Fund) and MinnesotaCare. Providers are encouraged to verify member eligibility in MN–ITS on a monthly basis.

    If an individual is not already enrolled with Medicaid and has SUD treatment needs, they may be eligible for services through Behavioral Health Fund (BHF) if they meet clinical and financial eligibility requirements:

  • · BHF financial eligibility determinations are made by the member’s tribe or county of residence. For a person to be eligible for BHF, they must meet the financial eligibility guidelines in Behavioral Health Funds (BHF) Eligibility Determination (DHS-6770) (PDF).
  • · Clinical eligibility is determined via a comprehensive assessment. Review the exceptions in the SUD Withdrawal Management Services section of the MHCP Provider Manual.
  • · Incarcerated individuals who meet financial eligibility guidelines are eligible for payment through the Behavioral Health Fund (major program code OO).
  • Refer members enrolled through a managed care organization (MCO) to their MCO health plans for details on coverage and accessing SUD services. Review the exceptions in the SUD Withdrawal Management Services section of the MHCP Provider Manual.

    Covered Services

    Covered services must be delivered as outlined in the Minnesota Statutes listed under Legal References. Providers must be enrolled with MHCP as an eligible provider of specific services, certified ASAM level(s) of care, specialties or complexity add-ons to receive reimbursement from MHCP. Providers are responsible for knowing and understanding the rules and regulations pertaining to any service they submit for reimbursement. Review the Substance Use Disorder Service Rate Grid with Dollar (DHS-7612) (PDF) for covered services and complexity add-on rates.

    Covered SUD services include the following:

  • · Nonresidential (outpatient) individual and group treatment services
  • · Residential treatment services
  • · Hospital-based inpatient treatment
  • · Room and board (when associated with SUD residential treatment)
  • · Freestanding room and board (when associated with SUD nonresidential (outpatient) treatment)
  • · Comprehensive assessment (An SUD licensed facility can begin providing services before completion of a comprehensive assessment when the comprehensive assessment is completed within the time frame set forth in Minnesota Statutes, 245G.)
  • · Treatment coordination
  • · Recovery peer support
  • · Residential withdrawal management (245F license)
  • · Tobacco Use Disorder cessation*
  • · Substance Use Disorder treatment with Medications for Opioid Use Disorder (SUD-MOUD) services are reimbursed on a per diem basis and may also be included as an add-on to the residential treatment service per diem. SUD-MOUD services may be provided through consultation off site by a qualified practitioner and reimbursed through the member’s medical benefits. SUD-MOUD may include:
  • · SUD-MOUD – Methadone
  • · SUD-MOUD – Methadone-Plus
  • · SUD-MOUD – Other
  • · SUD-MOUD – Other-Plus
  • When providers are paid the Indian Health Service (IHS) encounter rate, encounter payments are not available for self-administered medication.

    * Tobacco Use Disorder cessation provided as counseling by an alcohol and drug counselor and indicated as needed on a treatment plan can be provided in an individual or group counseling session (H2035 or H2035 HQ). Providing coordination to Tobacco Use Disorder cessation resources can fall under the role of a treatment coordination (T1016 HN U8) by assisting in coordination with and follow up for medical services as identified in the treatment plan or facilitating referrals to SUD services as indicated by a client's medical provider, comprehensive assessment, or treatment plan.

    Providers may deliver some SUD services via telehealth. Review the Telehealth Delivery of Substance Use Disorder Services section of the MHCP Provider Manual for more information.

    Substance Use Disorder treatment with Medications for Opioid Use Disorder (SUD-MOUD) services
    Programs providing SUD-MOUD and licensed according to Minnesota Statutes 245G.01 to 245G.17 and 245G.22, must certify their program’s ASAM level(s) of care by submitting a completed ASAM Certification Checklist (DHS-7325-ENG) and accompanying documents listed under the ASAM Certification heading on the ASAM resources for Minnesota SUD treatment providers webpage. Programs with applicable tribal licensure, may certify their program’s ASAM level(s) of care.

    Substance Use Disorder treatment services with Medications for Opioid Use Disorder services are reimbursed on a per diem basis and may also be included as an add-on to the residential treatment service per diem. Providers licensed as residential SUD programs must offer SUD-MOUD services on site or facilitate access to SUD-MOUD services off site. SUD-MOUD services may be provided through consultation off-site by a qualified practitioner and reimbursed through the member’s medical benefits. SUD-MOUD may include:

  • · SUD-MOUD - Methadone
  • · SUD-MOUD - Methadone-Plus
  • · SUD-MOUD - Other
  • · SUD-MOUD - Other-Plus
  • When providers are paid the Indian Health Service (IHS) encounter rate, encounter payments are not available for self-administered medication.

    Noncovered Services

    The following are not covered:

  • · Room-and-board services not clinically or medically necessary
  • · Detoxification services
  • · Comprehensive assessment, treatment coordination, peer support and nonresidential (outpatient) treatment services when provided by the same residential provider receiving a per diem payment for the same date of service and for the same client.
  • · Substance use disorder services provided by counties, recovery community organizations, and licensed professionals in private practice before the comprehensive assessment is completed.
  • · Substance Use Disorder treatment with Medications for Opioid Use Disorder services (SUD-MOUD) guest dosing.
  • Billing

    Providers are encouraged to verify member eligibility in MN–ITS on a monthly basis.

    Direct Access billing

    Residential program and room and board

  • · Residential treatment services from the Residential Value Codes for Billing Direct Access list corresponding to the listed service combinations.
  • · Room and board services from the Room and Board 5-digit Value 24 Codes (DHS-7308) (PDF) list corresponding to the listed service combinations.
  • Outpatient Nonresidential program
    Outpatient services with the corresponding procedure code and rate enhancement modifiers from Substance Use Disorder Service Rate Grid with Dollar (DHS-7612) (PDF).

    Review the MN–ITS User Guides for instructions on how to submit electronic claims.

    Revenue and Procedure Codes

    Refer to the Substance Use Disorder Service Rate Grid with Dollar (DHS-7612) (PDF) for all modifier combinations.

    Service Description

    Unit

    Revenue Code

    HCPCS Procedure Code

    Claim Format

    Type of Bill

    Service Limitations

    Inpatient hospital – bundled room and board and treatment

    Day

    0101

    None

    837I

    11X

    Per diem

    Inpatient hospital – room-and-board component only

    Day

    0118
    0128
    0138
    0148
    0158

    None

    837I

    11X

    Per diem

    Inpatient hospital – treatment component only

    Day

    0944
    0945

    None

    837I

    11X

    Per diem

    Residential program – room-and-board component only

    Day

    1002

    None

    837I

    86X

    Per diem

    Residential program – treatment component only

    Day

    0944
    0945
    0953

    None

    837I

    86X

    Per diem

    Freestanding room and board

    Day

    1003

    None

    837I

    86X

    Per diem

    Nonresidential (outpatient) individual treatment

    Hour

    0944
    0945
    0953

    H2035

    837I

    89X or 13X

    Refer to Authorization

    Nonresidential (outpatient) individual treatment

    Hour

     

    H2035

    837P

     

    Refer to Authorization

    Nonresidential (outpatient) group treatment

    Hour

    0944
    0945
    0953

    H2035 with modifier HQ

    837I

    89X or 13X

    Refer to Authorization

    Nonresidential (outpatient) group treatment

    Hour

     

    H2035 HQ

    837P

     

    Refer to Authorization

    Nonresidential (outpatient) treatment – SUD-MOUD (Methadone)

    Day

     

    H0020

    837P

     

    Per diem

    Nonresidential (outpatient) treatment – SUD-MOUD (Methadone-Plus)

    Day

     

    H0020 with modifier UA

    837P

     

    Per diem

    Nonresidential (outpatient) treatment – SUD-MOUD (Other)

    Day

     

    H0047

    837P

     

    Per diem

    Nonresidential (outpatient) treatment – SUD-MOUD (Other-Plus)

    Day

     

    H0047 with modifier UB

    837P

     

    Per diem

    Treatment Coordination

    15 minutes

     

    T1016 with modifier U8 HN

    837P

     

    8 units per day

    Peer Recovery Support

    15 minutes

     

    H0038 with modifier U8

    837P

     

    Max of 16 units (4 hours) per day per individual

    Max of 56 units (14 hours) per week per individual

    Comprehensive Assessment

    1 session

     

    H0001

    837P

      

    Billable Units and Time Requirements

    Follow HCPCS and CPT guidelines to determine the appropriate units of time to report in the case of time as part of the code definition. Per the guidelines, providers must spend more than half the time of a time-based code performing the service to report the code. If the time spent results in more than half the defined value of the code, and no additional time increment code exists, round up to the next whole number. Refer to the following Unit and measurement table.

    Unit and measurement

    Units

    15-minute Unit Time Range

    60-minute Unit Time Range

    1

    ≥ 8 min. through 22 min.

    ≥ 31 min. through 90 min.

    2

    ≥ 23 min. through 37 min.

    ≥ 91 min through 150 min.

    3

    ≥ 38 min. through 52 min.

    ≥ 151 min. through 210 min.

    4

    ≥ 53 min. through 67 min.

    ≥ 211 min. through 270 min.

    5

    ≥ 68 min. through 82 min.

    ≥ 271 min. through 330 min.

    6

    ≥ 83 min. through 97 min.

    ≥ 331 min. through 390 min.

    7

    ≥ 98 min. through 112 min.

    ≥ 391 min. through 450 min.

    8

    ≥ 113 min. through 127 min.

    ≥ 451 min. through 510 min.

    If a provider performs two or more of the same service code for the same member in the same day, the provider must bill based on the total combined number of minutes. Combined time must only account for direct service with members and does not include time for breaks.

    Examples:

  • · If a provider performs two different 15-minute services for the same member (one for 20 minutes and one for 25 minutes), they should bill based on the total combined number of minutes (20 min. + 25 min. = 45 min., 3 units total), with documentation of the total time spent providing each service.
  • · If a provider performs two different 60-minute services for the same member (one for 50 minutes and one for 55 minutes), they should bill based on the total combined number of minutes (50 min. + 55 min. = 105 min., 2 units total), with documentation of the total time spent providing each service.
  • A provider cannot submit a claim for an individual service and group service for the same encounter. Time should be documented, counted, and billed to reflect the correct service distinct from one another (for example, individual counseling, treatment coordination, etc.).

    A claim submission for service provided during the remaining balance of a unit of time is duplicative and ineligible for reimbursement. For example, billing one unit of individual counseling for a session that did not last the entire hour and then starting another different service within the remaining balance of time of that one-hour unit of individual counseling would be considered duplicative and ineligible for payment.

    Residential programs
    ASAM level 3.1 must provide at least 5 or at least 15 hours of skilled treatment services a week. The hours must be provided based on actual count of continuous minutes of treatment service provided. Breaks may not be included in these continuous minutes.

    ASAM levels 3.3 and 3.5 must provide a skilled treatment service seven days a week.

    How to determine missed services in residential levels of care
    Programs can continue to bill services based on a member’s intensity level when a treatment service is missed when certain conditions are met. The reason for missing a service must be client centered and the program must document both the reason for the member’s absence and the interventions taken.

    Holiday scheduling flexibility
    Treatment week services hours in outpatient treatment and ASAM level 3.1 residential treatment may be reduced to accommodate federally recognized holidays. ASAM levels 3.3 and 3.5 must continue to provide a skilled treatment service daily.

    Authorization

    SUD authorization request for Nonresidential (outpatient) group and individual treatment for more than six hours a day or 30 hours a week.
    Outpatient or nonresidential substance use disorder services are provided based on the identified individual need and client preference. Authorizations are required when an individual receives more than six hours/units a day or 30 hours/units a week of any combination of individual (H2035) or group (H2035 HQ) treatment services. This authorization process is only applicable for SUD nonresidential licensed programs.

    The 30 hours/units a week is calculated based on a rolling seven-day time span. Authorization is required if at any point during a rolling seven-day time span more than 30 hours/units of H2035 and/or H2035 HQ of service is provided. A rolling seven-day time span includes the hours of service on the date of service and the six calendar days counting forward OR the six calendar days counting backwards from the date of service. For example, if the date of service is on July 1, the rolling seven-day time span would be from June 25 to July 1 or from July 1 to July 7.

    Providers must submit an authorization request and required documentation when it is determined that the client needs more than six hours/units per day or 30 hours/units per week. Refer to the “Substance Use Disorder Authorization Criteria” document in the Substance Use Authorization section of the medical review agent’s Training webpage for a description of documentation required to be submitted in order to determine medical necessity for the additional services.

    Authorizations to exceed six hours/units a day or 30 hours/units a week cover up to 28 calendar days. After the 28-day authorization period, if it is determined the member continues to meet medical necessity for more than six hours/units a day or 30 hours/units a week, the provider needs to request another authorization.

    Refer to information under Substance Use Disorder Request for Nonresidential (outpatient) Group and Individual Treatment in the Authorization section of the MHCP Provider Manual for information on how to submit an authorization request for SUD nonresidential (outpatient) group and individual treatment to the medical review agent.

    Billing Authorization for H2035 and H2035 HQ
    Providers must submit additional hours/units of service which require authorization separately from services which do not require authorization. The separate claim for additional services may be submitted once authorized by the medical review agent.

    Review the Outpatient Substance Use Disorder (SUD) Services section of the MN–ITS user guide for instructions on how to submit the authorization number received from the medical review agent for services that have been authorized by the medical review agent.

    Managed Care Organization (MCO) Enrollees

    Bill treatment and room and board services for MinnesotaCare members enrolled in an MCO to the appropriate plan.

    MA members enrolled in MCOs
    Bill room-and-board services that are authorized by the MCO directly to MHCP. Report the following information in the “Value Code” field:

  • · Value Code 80 and the number of inpatient covered days
  • · Enter Value Code 24 with the correct five-digit rate code from the Value Code 24 MCO Room and Board Billing (PDF) list that corresponds to the listed service combinations
  • Billing for Member Services in Institution for Mental Disease (IMD) facilities

    Notify the county by submitting the County Notice of IMD Status (DHS-4145) (PDF) when a member is receiving services from an IMD facility.

    Interim Billing

    Bill residential and inpatient hospital claims that span multiple months using interim billing method. Include the date of discharge on the final treatment claim along with appropriate patient status code.

    Nonresidential (Outpatient) Substance Use Disorder with Medications for Opioid Use Disorder (SUD-MOUD) billing

    Bill all nonresidential (outpatient) SUD-MOUD using the professional (837P) claim format. Report the appropriate place of service to distinguish on-site dosages from take-home dosages. Itemize dosages by listing each date of service on a separate service line.

    Medicare

    Certified Medicare facilities serving Medicare-eligible clients must follow the MHCP Medicare policy found in the MHCP Provider Manual; review Medicare and Other Insurance under Billing Policy.

    Third-Party Liability (TPL)

    Individuals with private insurance may qualify for behavioral health fund if their insurance does not cover 100 percent of their treatment. MHCP TPL policy applies to all SUD treatment providers. When a member has private commercial insurance, you must first bill the private commercial insurance before billing MHCP. Bill doing the following:

  • · Verify member eligibility in MN–ITS before submitting bills to MHCP. If MN–ITS indicates that TPL exists for the dates that you would like to bill for, then you must first bill the third party displayed in MN–ITS for the dates. If you bill MHCP for dates of service when TPL exists, MHCP will deny the claim.
  • · Submit appropriate documentation to MHCP after billing the TPL. You must follow the MHCP TPL policy found in the Medicare and Other Insurance section of the MHCP Provider Manual under Billing Policy.
  • Utilization Management

    Providers are subject to participation in utilization reviews as defined in Minnesota Statutes sections 256B.04, subdivision 15, and 254A.03, subdivision 3, paragraph b. Procedures are embedded in the medical review agent's webpage.

    Legal References

    Minnesota Statutes, 245F (Withdrawal Management Programs)
    Minnesota Statutes, 245G (Substance Use Disorder Licensed Treatment Facilities)
    Minnesota Statutes, 254A.03 (Alcohol and Drug Abuse)
    Minnesota Statutes, 254B (Substance Use Disorder Treatment)
    Minnesota Statutes, 254B.05, subdivision 1b (3)
    Minnesota Statutes, 254B.05, subdivision 5(h)
    Minnesota Statutes, 254B.06, subdivision 5 (Prohibition of duplicative claim submission)
    Minnesota Statutes, 256B.031 (Prepaid Health Plans)
    Minnesota Statutes, 256B.0759 (Substance Use Disorder Demonstration)
    Minnesota Statutes, 256L (MinnesotaCare)
    Minnesota Rules, 9530.6800 to 9530.7030 (Rule 24)
    Minnesota Rules, 9530.6510 to 9530.6590 (Rule 32)
    Code of Federal Regulations title 42, section 440.130(d)

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