Last Updated: February 2026 | Verified for 2026 AMA CPT & CMS Physician Fee Schedule Guidelines
CPT 27130 is one of the most frequently performed and highest-value surgical codes in orthopedic practice. It covers primary total hip arthroplasty (THA) -- the complete surgical replacement of the hip joint with prosthetic components -- and is used by orthopedic surgeons, billing specialists, and revenue cycle teams across every care setting from hospital inpatient rooms to ambulatory surgery centers (ASCs). Because this code carries significant reimbursement, a 90-day global period, and intense payer scrutiny, accurate documentation and billing are critical to avoid denials, audits, and underpayment.
CPT 27130 describes the primary, total replacement of the hip joint. The code applies when the surgeon removes both the damaged femoral head and neck (proximal femur) and the diseased acetabulum (hip socket) and replaces them with prosthetic components. The phrase "with or without autograft or allograft" means the code can be reported whether or not bone graft material is used during the same operative session -- bone grafting does not require a separate CPT code when performed as part of the primary THA.
The surgery typically involves four key steps:
What CPT 27130 does NOT include: It does not cover revision surgery (use 27134-27138), conversion of a previous hip procedure to THA (use 27132), or partial hip replacement/hemiarthroplasty of the femoral head only (use 27125). Using 27130 for these scenarios is one of the most commonly audited coding errors in orthopedics.
Medicare and virtually all commercial payers require that a primary THA (CPT 27130) be medically necessary. The standard criteria, derived from CMS and major payer policies (Aetna, UHC, BCBS), include:
Most payers require documented failure of conservative therapy before approving THA. Documentation must show that the patient has tried and failed at least two of the following over an adequate trial period (typically 3-6 months):
Payer Alert (2025-2026): UnitedHealthcare updated its medical record documentation requirements for CPT 27130 (effective September 4, 2025) to require submission of complete diagnostic imaging interpretation reports -- including the specialty of the interpreting provider -- as part of prior authorization requests. Claims submitted without this documentation face denial.
Documentation must establish that the hip condition significantly limits activities of daily living (ADLs) -- such as walking, climbing stairs, bathing, or dressing -- and that pain is not adequately controlled with conservative measures. Vague phrases like "hip pain" without functional context are insufficient for medical necessity and will trigger denials.
CPT 27130 is a high-dollar code that draws regular scrutiny from Medicare Recovery Audit Contractors (RACs) and commercial payer post-payment auditors. A complete, defensible medical record must contain all of the following elements:
| Documentation Element | What Auditors Expect |
|---|---|
| History of Present Illness | Duration of symptoms, specific activities limited, pain level, quality of pain (groin, lateral, anterior thigh), and progression over time. |
| Conservative Treatment Record | Specific therapies tried, duration, name of prescribing provider, outcome (e.g., "PT for 12 weeks with minimal improvement in ambulation"). |
| Physical Examination | Range of motion measurements (flexion, extension, internal/external rotation), antalgic gait, leg length discrepancy, trendelenburg sign, and provocative tests. |
| Imaging Interpretation | Full radiology report for X-rays (AP pelvis, lateral hip) and any advanced imaging (MRI, CT). Note: UHC now requires specialty of the interpreting radiologist. |
| Informed Consent | Risks, benefits, and alternatives discussed with the patient. Signed and dated before surgery. |
| Laterality | Explicit documentation of which hip (right or left) is being operated on. Must match the ICD-10 code and operative report. |
The operative note -- not just the surgeon's dictated summary -- must include:
Common Audit Failure: Coders who bill from the surgeon's brief dictated summary -- rather than the full operative report -- miss critical details that auditors use to confirm the procedure matches the billed code. Always review the complete operative note before submitting CPT 27130.
CPT 27130 must be paired with a specific, lateralized ICD-10 diagnosis code that establishes medical necessity. General codes like "M25.551 -- Pain in right hip" are not sufficient and will trigger denials. Use the most specific code that reflects the pathology confirmed by imaging and clinical findings.
| ICD-10 Code | Description | Notes |
|---|---|---|
| M16.11 | Primary osteoarthritis, right hip | Most common indication for THA. Requires radiographic confirmation. |
| M16.12 | Primary osteoarthritis, left hip | Use with modifier LT for left-sided procedure. |
| M16.0 | Bilateral primary osteoarthritis of hip | Use for bilateral THA (CPT 27130-50). |
| M16.21 | Bilateral osteoarthritis resulting from old trauma, right hip | Posttraumatic arthritis; requires history of prior hip trauma. |
| M87.051 | Idiopathic aseptic necrosis of bone, right femur | AVN -- confirm Ficat stage and articular collapse on imaging or MRI. |
| M87.052 | Idiopathic aseptic necrosis of bone, left femur | Use with modifier LT. |
| S72.001A | Fracture of unspecified part of neck of right femur, initial encounter | For femoral neck fracture requiring THA (rather than hemiarthroplasty). |
| M05.761 | Rheumatoid arthritis with RA factor, right hip, without organ/systems involvement | Confirm RA diagnosis with labs (RF, anti-CCP). Document functional class. |
| M05.762 | Rheumatoid arthritis with RA factor, left hip | Use with modifier LT. |
| M16.51 | Unilateral osteoarthritis, right hip, resulting from hip dysplasia | Developmental dysplasia with secondary OA. Note age of onset and dysplasia history. |
| M13.161 | Monoarthritis, NEC, right hip | Inflammatory arthropathy not elsewhere classified. |
ICD-10 requires side-specific codes for hip pathology. The billed diagnosis code must match the operative side documented in the record and flagged by the modifier (RT or LT). A mismatch -- for example, billing M16.11 (right hip OA) with a left-side procedure -- is a major compliance error that can trigger post-payment audits and recoupment demands.
Under the 2026 Medicare Physician Fee Schedule (MPFS), CPT 27130 carries a work RVU of 20.72 -- reflecting the significant physician effort, skill, and time required for total hip replacement. The 2026 conversion factors are:
2026 CMS Efficiency Adjustment: CMS finalized a -2.5% efficiency adjustment to the work RVUs of non-time-based services for 2026. This adjustment applies to surgical procedures including CPT 27130, slightly reducing the physician payment compared to what pure RVU multiplication would suggest. Practices should recalculate expected reimbursement using the adjusted wRVU figures from CMS Addendum B of the 2026 MPFS Final Rule.
When performed in the inpatient hospital setting, CPT 27130 maps to the following MS-DRGs under the Medicare Severity Diagnosis-Related Group system:
| MS-DRG | Title | Key Driver |
|---|---|---|
| 469 | Major Hip and Knee Joint Replacement or Reattachment of Lower Extremity with Major Complication or Comorbidity (MCC) | MCC present (e.g., sepsis, respiratory failure, major comorbidities). Higher reimbursement. |
| 470 | Major Hip and Knee Joint Replacement or Reattachment of Lower Extremity without MCC | No MCC. Most common DRG for elective primary THA in healthy patients. |
Accurate coding of comorbidities and complications (MCC/CC) by the hospital coding team is critical to DRG assignment and can significantly affect facility reimbursement. For FY 2026, CMS set the IPPS operating payment update at 2.6% (3.3% market basket minus 0.7% productivity adjustment), with the national standardized operating amount rising approximately 1.94% year-over-year.
Because geographic practice cost indices (GPCIs) vary by region, total reimbursement differs by locality. National average physician payment for CPT 27130 under Medicare approximates $1,500-$1,800 for the complete surgical package (intra-operative care plus the 90-day global period of post-operative visits). Always verify with your MAC's jurisdiction-specific fee schedule at cms.gov.
CPT 27130 was added to the Medicare ASC-covered procedures list, making it eligible for reimbursement in the outpatient and ASC setting for appropriately selected patients. ASC facility payments for THA average $8,000-$12,000, compared to $12,000-$20,000+ for inpatient hospital settings. Physician billing remains under the MPFS regardless of site of service.
CPT 27130 carries a 90-day global surgical period. This is a major procedural designation under CMS global surgery policy. The global period bundles pre-operative visits (the day before surgery) and all routine post-operative care into a single global payment. Understanding what is and is not included in the global period is essential to compliant billing.
| Scenario | Modifier Required | Example |
|---|---|---|
| E/M visit for a condition completely unrelated to the hip replacement | Modifier 24 | Patient returns 3 weeks post-op for evaluation of a new respiratory infection unrelated to the THA. |
| Return to the OR for a complication of the THA (e.g., wound dehiscence repair, dislocation reduction under anesthesia) | Modifier 78 | Patient requires closed reduction of THA dislocation 6 weeks post-op under sedation. |
| Unrelated surgical procedure during the global period | Modifier 79 | Patient requires appendectomy 4 weeks after THA for acute appendicitis. |
| Staged or related procedure anticipated at the time of the original surgery | Modifier 58 | Surgeon plans a second-stage procedure (e.g., opposite hip) as part of a staged bilateral approach. |
2026 Global Period Reporting Update: CMS continues expanding its global period data collection requirements. In 2026, practitioners should be aware of HCPCS code G0559, introduced to capture non-surgical postoperative care data. Practices that cannot track and report post-operative services may face compliance scrutiny. Maintain a log of all post-operative visits within the 90-day window and their relationship to the original procedure.
| Modifier | When to Use | Billing Impact |
|---|---|---|
| RT | Right hip total arthroplasty | Always required for laterality on physician claims. Pairs with M16.11 or right-side ICD-10 codes. |
| LT | Left hip total arthroplasty | Always required for laterality on physician claims. Pairs with M16.12 or left-side ICD-10 codes. |
| 50 | Bilateral THA performed during the same operative session | Billed as a single line: 27130-50. Some payers prefer two separate lines (27130-RT and 27130-LT). Verify payer policy before submission. |
| 22 | Increased procedural services -- unusual complexity beyond typical THA | Use when documentation supports significantly increased intraoperative difficulty (e.g., severe DDH with acetabular deficiency, prior failed fixation hardware requiring extensive removal). Attach operative report and a cover letter explaining complexity. May increase reimbursement 20-30% if supported. |
| 51 | Multiple procedures performed on the same day as 27130 | Append to the lower-value secondary procedure. Do not append to 27130 itself. |
| 59 | Distinct procedural service from another same-day procedure | Use when 27130 is performed alongside another code that would otherwise be bundled under NCCI edits (e.g., bone grafting from a separate anatomical site). |
| 54 | Surgical care only (operative portion) | Use when one surgeon performs the surgery but does not provide post-operative care (e.g., surgeon performs THA but patient transfers home to a different surgeon for follow-up). |
| 55 | Post-operative management only | The surgeon who assumes post-op care (when the operating surgeon used modifier 54) bills with 55. Both must document the transfer of care. |
| 62 | Two surgeons (co-surgeons) | When two surgeons work together and each performs a distinct portion (e.g., complex revision requiring both a hip specialist and a reconstructive surgeon). Each bills 27130-62 separately. Documentation must clearly define each surgeon's distinct role. |
| 80 | Assistant surgeon | Used by the physician assistant at surgery (not the primary surgeon). Typically reimbursed at 16% of the primary surgeon's fee. |
| AS | Physician assistant, NP, or CNS as assistant at surgery | HCPCS modifier for non-physician assistants at surgery. Medicare reimburses at 85% of the physician assistant rate. |
| GC | Teaching physician involvement of a resident | Required in teaching hospitals when a resident participates. Certifies that the teaching physician was present for the key portions of the procedure. |
| 24 | Unrelated E/M during the 90-day post-operative period | Appended to the E/M code (not to 27130) to identify that the visit is for an unrelated condition during the global period. |
| 78 | Unplanned return to OR for related procedure | Appended to the code for the procedure performed during the return OR visit (e.g., wound I&D for post-THA infection). Reimbursed at the intraoperative portion only. |
Prior authorization (PA) is now required by most major commercial payers for CPT 27130 and must be obtained before surgery. Performing THA without an active, valid PA from payers that require it will result in claim denial regardless of medical necessity.
| Payer | PA Required? | Key Documentation Required |
|---|---|---|
| UnitedHealthcare (Commercial) | Yes (updated Sept. 2025) | Complete imaging reports with radiologist specialty, conservative treatment failure documentation, functional limitation notes, physical exam findings. |
| Aetna | Yes (precertification required) | Clinical notes establishing OA/AVN severity, failed conservative therapy for 3+ months, imaging confirmation, functional assessment. |
| Medicare (Traditional/FFS) | No (general THA not on PA list) | No PA needed, but medical necessity must be established in the record for RAC audit purposes. |
| Medicare Advantage | Varies by plan | Each plan sets its own requirements. Check plan-specific PA lists. Most MA plans do require PA for elective THA. |
| Medicaid | Varies by state | Most state Medicaid programs require PA. Review state-specific Medicaid policy. Some states use managed care organizations (MCOs) with independent PA requirements. |
| BCBS Plans | Yes (most plans) | Conservative therapy documentation (3-6 months), imaging, functional impact statement. |
| CPT Code | Procedure Description | When to Use | Global Period |
|---|---|---|---|
| 27125 | Hemiarthroplasty, hip, partial (femoral prosthesis only) | Femoral head replacement only -- acetabulum is intact and left in place. Common for femoral neck fractures in lower-demand patients. | 90 days |
| 27130 | Total hip arthroplasty -- both acetabular and femoral components | Primary THA for OA, AVN, fracture, or inflammatory arthropathy where both components are replaced. | 90 days |
| 27132 | Conversion of previous hip surgery to THA | Converting a prior hemiarthroplasty, ORIF, or resurfacing to a full THA. More work than a primary -- use 27132, not 27130. | 90 days |
| 27134 | Revision THA -- both components | Removal and replacement of both the acetabular cup and femoral stem in a previously implanted THA. | 90 days |
| 27137 | Revision THA -- acetabular component only | Only the acetabular cup/liner is revised. Femoral component remains in place and in good condition. | 90 days |
| 27138 | Revision THA -- femoral component only | Only the femoral stem/head is revised. Acetabular component remains stable. | 90 days |
| 27090 | Removal of hip prosthesis | Explantation of a failed prosthesis without concurrent replacement (e.g., for infection requiring a two-stage revision with antibiotic spacer). | 90 days |
Critical Distinction: Using CPT 27130 when the correct code is 27132 (conversion) or 27134 (revision) is one of the most common -- and most audited -- orthopedic coding errors. Always review the prior surgical history documented in the operative report before code selection. The presence of any pre-existing prosthetic hardware should immediately prompt a review of conversion vs. revision codes.
CMS added THA (CPT 27130) to the ASC-covered surgical procedures list, enabling Medicare to pay for appropriately selected THA cases performed in ambulatory surgery centers. This reflects broader outpatient migration of joint replacement under enhanced recovery protocols.
| Setting | Appropriate Patient | Facility Reimbursement (Approx.) | Billing Notes |
|---|---|---|---|
| Hospital Inpatient (DRG) | Patients with MCCs, complex comorbidities, or high surgical risk. Expected LOS >1 night. | $12,000-$20,000+ (DRG 470/469) | Billed on UB-04 (institutional). Physician bills separately on CMS-1500. |
| Hospital Outpatient / HOPPS | Lower-risk patients expected to discharge same day or next day. APC payment system. | Varies by APC assignment | Facility billed under OPPS. Physician still on MPFS. |
| Ambulatory Surgery Center (ASC) | Healthy, low-risk patients (ASA I-II) with social support for same-day discharge. Strong patient selection required. | $8,000-$12,000 (ASC facility fee) | Physician still bills under MPFS -- same wRVU regardless of site. ASC facility bills separately. |
Note on Physician Payment by Site of Service: The surgeon's Medicare physician payment for CPT 27130 is the same base wRVU whether the case is done in a hospital or ASC, though the practice expense component of total RVUs may differ slightly between facility (lower) and non-facility settings. The 2026 CMS final rule also reduced the facility practice expense allocation for physicians, affecting those primarily working in hospital settings.
The following errors are the most frequently cited in THA billing audits and cause the highest denial and recoupment rates:
Billing CPT 27130 for a procedure that is actually a revision (27134-27138) or conversion (27132) is the single most audited error in hip replacement coding. Always verify whether any prior hip prosthesis is present before assigning 27130.
Submitting 27130 without RT or LT modifiers on physician claims, or submitting the wrong side, results in denials and creates compliance risk. The side documented in the operative report must match the modifier and the ICD-10 code.
Codes like "M25.551 -- Pain in right hip" do not establish medical necessity for THA. Use pathology-specific codes such as M16.11 (primary OA right hip) or M87.051 (AVN right femur) that reflect the operative indication documented in the record.
All routine post-operative hip replacement care within 90 days is bundled into the global payment. Billing E/M visits for routine follow-up (e.g., wound checks, routine range-of-motion assessments) during this period without an appropriate modifier (24, 78, or 79) will be denied and may trigger an overpayment demand.
Commercial payer PA requirements for CPT 27130 are strictly enforced. Performing elective THA without an active PA from payers that require it will result in outright claim denial, and retroactive PA requests are rarely honored. Implement a pre-authorization workflow that verifies PA at least 5-7 business days before the scheduled surgery date.
Bone grafting, routine fluoroscopy for component positioning, and standard wound closure are all included in CPT 27130 and cannot be separately billed. NCCI edits will bundle these services and deny them as separate charges.
Patient: 68-year-old male with 2-year history of right hip pain. X-rays show severe joint space narrowing, osteophytes, and subchondral cysts. Has failed 6 months of physical therapy and two cortisone injections. Functional status significantly impaired -- cannot walk more than one block. Surgeon performs right total hip arthroplasty via posterior approach using a cementless press-fit titanium stem and ceramic femoral head with a UHMWPE acetabular liner.
Correct Billing: CPT 27130-RT | ICD-10: M16.11
Rationale: Primary THA with both components replaced. Right-side laterality modifier required. Specific OA code (M16.11) documents medical necessity. Bone grafting was not performed, but if it had been, it would still be included in 27130.
Patient: 79-year-old female who falls and sustains a displaced femoral neck fracture (Garden type III) of the right hip. Surgeon reviews patient's pre-existing hip X-rays and notes advanced osteoarthritis of the acetabulum. Decision is made to perform THA rather than hemiarthroplasty due to pre-existing acetabular arthritis and the patient's relatively high functional demand.
Correct Billing: CPT 27130-RT | ICD-10: S72.001A (initial encounter) and M16.11 (pre-existing OA as additional justification)
Rationale: THA chosen over hemiarthroplasty due to acetabular involvement. If hemiarthroplasty alone had been performed (femoral head replacement only, acetabulum not addressed), CPT 27125 would apply. Documentation must clearly state why both components were replaced.
Patient: 55-year-old male with bilateral severe primary osteoarthritis affecting both hips. After discussion of risks, patient and surgeon elect to perform simultaneous bilateral THA in one session.
Correct Billing: CPT 27130-50 | ICD-10: M16.0 (bilateral primary OA of hip)
Rationale: Modifier 50 indicates bilateral procedure in a single session. Some commercial payers (e.g., Aetna) require submission as two separate lines (27130-RT and 27130-LT) rather than one line with modifier 50. Always verify payer preference before submitting. Medicare generally accepts 27130-50 on a single line. PA for both sides must be obtained before surgery.
Patient: 72-year-old female, 6 weeks post-primary THA, presents to the ED with acute hip dislocation. Orthopedic surgeon called in for closed reduction under sedation.
Correct Billing: CPT 27250-78 (Closed treatment of hip dislocation, without anesthesia, traumatic -- modifier 78 for unplanned return to OR for related procedure during global period)
Rationale: This is a complication of the original THA and falls within the 90-day global period. Modifier 78 must be appended to the treatment code. Only the intraoperative component of the fee is payable -- the global period "restart" does not occur. The original 27130 surgeon or covering partner should bill this if they are the same group/specialty.
Patient: 42-year-old female with severe developmental dysplasia of the hip (DDH) -- Crowe type III. Severely dysplastic acetabulum requires custom cup placement with structural allograft augmentation. Operating time is significantly extended (5+ hours vs. typical 90-minute primary THA).
Correct Billing: CPT 27130-RT-22 | ICD-10: M16.51
Rationale: Modifier 22 reflects the extraordinary complexity beyond what is typical for a standard primary THA. A detailed operative report must accompany the claim with an explicit explanation of the additional complexity, time, and skill required. Without a complete supporting note, payers will deny modifier 22 and pay the base rate only.
flowchart TD
A[Hip Procedure Needed] --> B{Is there a pre-existing<br/>hip prosthesis?}
B -->|No| C{Are BOTH acetabular<br/>and femoral components<br/>being replaced?}
B -->|Yes| D{What is being done<br/>to the prosthesis?}
C -->|Yes| E[CPT 27130<br/>Primary Total Hip Arthroplasty]
C -->|No - Femoral only| F[CPT 27125<br/>Hemiarthroplasty]
D -->|Converting prior procedure to THA| G[CPT 27132<br/>Conversion to THA]
D -->|Revising both components| H[CPT 27134<br/>Revision THA - Both]
D -->|Revising acetabular only| I[CPT 27137<br/>Revision - Acetabular]
D -->|Revising femoral only| J[CPT 27138<br/>Revision - Femoral]
D -->|Removing without replacement| K[CPT 27090<br/>Prosthesis Removal]
E --> L{Laterality?}
L -->|Right| M[27130-RT]
L -->|Left| N[27130-LT]
L -->|Bilateral same session| O[27130-50]
© Copyright 2026 American Medical Association. All rights reserved.
A total hip replacement, also known as total hip arthroplasty, is a surgical procedure aimed at alleviating pain and restoring function in patients with severe hip joint damage. This damage is often due to conditions such as osteoarthritis, rheumatoid arthritis, or traumatic injury, which can lead to the deterioration of cartilage and bone in the hip joint. The procedure involves the removal of the diseased cartilage and bone from both the acetabulum, which is the socket of the hip joint, and the proximal femur, which is the upper part of the thigh bone. During the surgery, an incision is made over the lateral aspect of the hip to access the joint. The surrounding soft tissue is carefully dissected and released to provide adequate exposure of the hip joint, allowing for the dislocation of the femoral head from the acetabulum. Once the joint is accessed, the surgeon utilizes an osteotome, a specialized surgical instrument, to remove the damaged cartilage and bone from the acetabular surface. Following this, a prosthetic cup is securely placed into the acetabulum to form the socket of the new hip joint. The femoral head is then excised, and the femoral shaft is reamed to create space for the insertion of the prosthetic stem, which is the component that will anchor the artificial ball joint. The stem is inserted into the prepared femoral shaft and can be secured using either bone cement or a press-fit technique, depending on the specific prosthetic design and the surgeon's preference. If the ball component is not pre-attached to the stem, it is subsequently attached, and the ball is positioned within the cup component. To ensure the stability and proper function of the new hip joint, the prosthetic hip is taken through a full range of motion during the procedure. After confirming that the joint functions correctly, a drain is placed to prevent fluid accumulation, and the incisions are meticulously closed in layers around the drain. This comprehensive approach aims to restore mobility and reduce pain, significantly improving the patient's quality of life post-surgery.
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