CPT Code 98977: Remote Therapeutic Monitoring Device Supply and Data Transmission

What is CPT Code 98977?

CPT code 98977 represents the ongoing supply of Remote Therapeutic Monitoring technology and data transmission services for musculoskeletal conditions. This code covers the monthly provision of RTM devices, data collection, storage, and transmission to healthcare providers for clinical review.

Code Description: Remote therapeutic monitoring (RTM) treatment management services, physician or other qualified health care professional time in a calendar month requiring interactive communication with the patient/caregiver during the month; initial 20 minutes
Billing Frequency: Once every 30 days
Average National Reimbursement: $47.27 (rates vary by region and payer)

Core Purpose and Function

Unlike the one-time setup covered by 98975, CPT 98977 represents the recurring technological infrastructure that enables continuous remote monitoring. This code compensates practices for providing patients with ongoing access to medical-grade monitoring technology and ensuring reliable data transmission for clinical decision-making.

The code specifically covers:

  • Monthly device availability and functionality

  • Secure data collection and storage

  • Encrypted transmission to healthcare providers

  • Technical support and troubleshooting

  • Device maintenance and updates

Critical Billing Requirements

16-Day Usage Threshold
Similar to 98975, billing 98977 requires documented patient engagement with the RTM device for at least 16 days within each 30-day billing period. This ensures patients are actively participating in their monitoring program rather than simply possessing unused equipment.

30-Day Billing Cycles
98977 follows calendar-based billing cycles, typically aligned with monthly periods. Claims should be submitted only after the completion of each 30-day period and verification of the usage requirements.

Medical Device Compliance
The technology supporting 98977 claims must maintain medical device classification throughout the billing period. This includes:

  • FDA compliance for therapeutic monitoring

  • HIPAA-compliant data handling

  • Clinical-grade accuracy and reliability

  • Audit-ready data logging capabilities

Musculoskeletal Focus
98977 is specifically designed for musculoskeletal and movement-related conditions. Unlike Remote Patient Monitoring (RPM) codes that track vital signs, 98977 focuses on therapeutic adherence, exercise performance, and recovery metrics.

Data Transmission Requirements

Clinical-Grade Data Collection
The data transmitted under 98977 must provide clinically relevant information for treatment decisions. This typically includes:

  • Exercise adherence and performance metrics

  • Range of motion measurements

  • Pain and functional status reporting

  • Activity level and progression tracking

Secure Transmission Standards
All data transmission must meet healthcare security requirements:

  • End-to-end encryption

  • HIPAA-compliant storage and transmission

  • Audit trails for data access

  • Secure provider dashboard access

Real-Time Availability
Data collected under 98977 should be available to providers in near real-time, enabling timely clinical interventions and care plan adjustments throughout the monitoring period.

Relationship to Other RTM Codes

Foundation Requirement: 98975
98977 cannot be billed without first establishing proper 98975 documentation. The initial setup and patient education must be completed and the 16-day threshold met before any 98977 billing begins.

Integration with Clinical Management: 98980/98981
While 98977 covers the technology infrastructure, codes 98980 and 98981 address the clinical time spent reviewing and acting on the data transmitted. These codes work together to create comprehensive RTM coverage:

  • 98977 ensures data availability

  • 98980/98981 compensate for clinical interpretation and patient communication

Continuous Care Cycle
98977 creates the foundation for ongoing remote care by maintaining the technological connection between patients and providers throughout the episode of care.

Documentation Requirements

Usage Tracking
Accurate documentation must demonstrate:

  • Daily device usage patterns

  • Specific days of engagement within each billing period

  • Technical performance and data quality

  • Any interruptions or technical issues

Device Management Records
Maintain detailed records of:

  • Device assignments and configurations

  • Technical support provided to patients

  • Software updates or modifications

  • Hardware maintenance or replacements

Clinical Integration
Document how 98977 data integrates with overall patient care:

  • Provider review of transmitted data

  • Clinical decisions based on monitoring information

  • Care plan adjustments informed by RTM data

Common Billing Challenges and Solutions

Premature Claims Submission
Challenge: Submitting 98977 claims before completing the full 30-day period or confirming 16-day usage.
Solution: Implement systematic billing schedules that verify usage thresholds before claim submission.

Overlapping Provider Claims
Challenge: Multiple providers attempting to bill RTM codes for the same patient simultaneously.
Solution: Establish clear protocols for verifying exclusive RTM provider status during patient intake.

Technical Interruptions
Challenge: Device malfunctions or connectivity issues affecting the 16-day usage requirement.
Solution: Maintain backup systems and rapid technical support to minimize disruptions.

Data Quality Issues
Challenge: Incomplete or clinically irrelevant data transmission affecting claim validity.
Solution: Regular data quality audits and patient education on proper device use.

Payer-Specific Considerations

Medicare Coverage
Medicare consistently reimburses 98977 when properly documented, with no therapy caps or prior authorization requirements. The code is classified as “sometimes therapy,” often eliminating patient copays.

Commercial Insurance Variability
Commercial payer coverage varies significantly:

  • Some follow Medicare guidelines exactly

  • Others require prior authorization or additional documentation

  • Reimbursement rates may differ substantially from Medicare amounts

  • Verify benefits before program enrollment

Medicare Advantage Plans
Most Medicare Advantage plans cover 98977 but may require:

  • Enhanced documentation

  • Prior notification of RTM programs

  • Specific technical specifications for devices

  • Regular usage reporting

Revenue Optimization Strategies

Consistent Billing Cycles
Establish regular monthly billing schedules to maximize revenue capture and reduce administrative burden. Many practices find success billing on the first Saturday of each month.

Patient Engagement Monitoring
Proactively monitor patient usage to ensure 16-day thresholds are met. Early intervention for low-engagement patients protects revenue and improves outcomes.

Technology Investment
Choose RTM platforms that automatically track usage and generate billing-ready documentation to reduce administrative costs and improve accuracy.

Staff Training
Ensure billing staff understand the unique requirements of 98977 compared to traditional therapy codes, including timing, documentation, and usage thresholds.

Compliance and Audit Preparedness

Essential Documentation
Maintain comprehensive records including:

  • Daily usage logs for each patient

  • Data transmission records and quality metrics

  • Device assignment and maintenance logs

  • Patient communication regarding technical issues

Audit Response Strategy
Organize documentation to clearly demonstrate:

  • Legitimate medical device use

  • Consistent data transmission

  • Clinical relevance of collected information

  • Compliance with usage requirements

Quality Assurance
Regular internal audits of 98977 billing help identify potential issues before external review:

  • Verify usage calculations

  • Confirm data transmission quality

  • Review patient engagement patterns

  • Validate device compliance status

Future Considerations

2026 Policy Updates
Proposed changes may reduce the 16-day requirement and introduce more flexible billing options. However, the core concept of 98977 as technology supply compensation is expected to remain stable.

Technology Evolution
As RTM technology advances, practices should ensure their chosen platforms continue meeting medical device requirements and providing audit-ready documentation.

Market Expansion
Growing commercial payer adoption of RTM coverage creates opportunities for revenue growth, making proper 98977 implementation increasingly valuable.

CPT code 98977 represents the technological backbone of successful RTM programs. When properly implemented and billed, it provides sustainable monthly revenue while supporting improved patient outcomes through continuous remote monitoring capabilities.