# T2002 Billing Code: Per Diem Transportation, Units, and Where It Is Paid

Canonical URL: https://nemtguide.com/glossary/t2002/ · Updated 2026-09-29

T2002 is the HCPCS code for non-emergency transportation per diem: one charge for a day of transportation, not a charge per mile. Medicare does not pay it. Many programs that use it are Medicaid waivers paying for rides to day programs and jobs. Louisiana pays $20.00 a day on rate sheets issued March 13, 2026, and Tennessee pays $7.13 a day as of July 1, 2026.

- T2002 means "non-emergency transportation; per diem": in the national code set, one charge for a day of transportation.
- Medicare does not pay T2002, and each state decides what one unit is: a day in Louisiana and Tennessee, a trip in Indiana and Missouri, a month in Montana.
- Most T2002 claims pay waiver rides to day programs, jobs, and community activities. Rides to medical care stay with NEMT.
- Indiana's waivers pay $15.05, $26.52, or $47.88 a trip by vehicle level, up to two trips a day and a yearly limit.
- To bill T2002 you need the waiver agency's approval or contract, and the ride must be written into the person's service plan.

## What T2002 means

CMS lists T2002 in the national HCPCS code set as "Non-emergency transportation; per diem." The October 2026 quarterly file shows it was added on April 1, 2002. It carries coverage code I, which means Medicare does not pay it, and the file sets no national rate or modifier.

Per diem means per day. Read literally, one unit of T2002 is a day of transportation, however many rides that day holds. It sits in the same family as the other non-emergency T codes:

| Code | HCPCS description | One unit is |
|---|---|---|
| [T2001](https://nemtguide.com/glossary/t2001/) | Patient attendant/escort | Set by the state |
| T2002 | Per diem | A day, in the national description |
| [T2003](https://nemtguide.com/glossary/t2003/) | Encounter/trip | A trip |
| [T2004](https://nemtguide.com/glossary/t2004/) | Commercial carrier, multi-pass | Set by the state |
| [T2005](https://nemtguide.com/glossary/t2005/) | Stretcher van | A trip, in most programs |
| [T2007](https://nemtguide.com/glossary/t2007/) | Waiting time | A half hour |

A per diem is not the same as [capitation](https://nemtguide.com/glossary/capitation/). Under 42 CFR 438.2, a capitation payment is made periodically to a contractor, such as a health plan, for each enrolled member, whether or not that member uses any services. T2002 is a line on a provider's claim for a day of service that actually happened.

Every program in the table below uses T2002 for disability services outside NEMT, to pay for rides to day programs, jobs, and community activities rather than medical appointments. Several of them also redefine the unit. See [NEMT billing codes](https://nemtguide.com/guides/nemt-billing-codes/) for the codes used on medical trips.

## Which programs pay T2002 and how much

| State and program | What T2002 pays for | Unit | Rate | Effective |
|---|---|---|---|---|
| Louisiana: New Opportunities, Residential Options (ROW), and Supports waivers | Transportation for supported employment, day habilitation, or prevocational services | A day, once per day one of those services is delivered in person | $20.00 | Rate sheets issued March 13, 2026 |
| Tennessee: Department of Disability and Aging waivers | Individual transportation services | A day, 1 unit a day | $7.13 | July 1, 2026 |
| Tennessee: Katie Beckett program | Community transportation | V1: a day. U2 and U4: a one-way trip, up to 2 a day | V1 $7.50, U2 $18.00, U4 (wheelchair) $22.00 | July 1, 2026 |
| Indiana: Family Supports and Community Integration and Habilitation waivers | Nonmedical transportation at three vehicle levels | A one-way trip, up to 2 a day | $15.05, $26.52, $47.88 | Module published September 24, 2026 |
| Missouri: developmental disability waivers | A trip of more than 10 and up to 20 miles (Zone 2) | A one-way trip, up to 2 per-trip units a day across all zones | Not listed in the manual | Manual posted September 2026 |
| Montana: Developmental Disabilities Program | Commute transportation, individual or shared, including wheelchair van | A month | Figured for each person with the state's rate calculator | July 1, 2025, kept in the draft for July 1, 2026 |

Rates change with each state's rate review, so check the current rate sheet before you quote a price to an agency or family.

## Waiver rides are not NEMT

Federal rules require Medicaid to ensure rides to medical care (42 CFR 431.53) and define that transportation at 42 CFR 440.170(a). The programs above pay for something different: rides that let a person with a disability get to work, a day program, or activities in the community.

Three of them spell out the split in their rules as of September 2026:

- **Indiana:** waiver transportation is offered in addition to state plan medical transportation, never in place of it, and may not be used for medical rides the state plan already covers.
- **Missouri:** waiver rides do not replace state plan NEMT, and state plan NEMT does not cover rides to waiver services.
- **Montana:** medically necessary rides are never paid through the waiver when state plan transportation covers them.

So a ride company can carry the same person to dialysis on Monday under NEMT and to a day program on Tuesday under the waiver, with two different payers and two different codes. For how the waivers work, see [what is a 1915(c) waiver](https://nemtguide.com/glossary/1915c-waiver/) and [how to become a waiver transportation provider](https://nemtguide.com/guides/waiver-transportation-provider/).

## Indiana: T2002 by the trip

Indiana's DDARS waiver module (version 12.2, published September 24, 2026) bills nonmedical transportation in the Family Supports and Community Integration and Habilitation waivers with T2002 and the U7 and U5 modifiers. The vehicle sets the level:

| Level | Vehicle | Code and modifiers | Rate per trip | Yearly limit |
|---|---|---|---|---|
| 1 | A private, commercial, or public transit vehicle that is not specially equipped | T2002 U7 U5 | $15.05 | $7,530 |
| 2 | A vehicle built to carry wheelchairs | T2002 U7 U5 U2 | $26.52 | $8,255 |
| 3 | A vehicle for a person who must stay lying down, such as an ambulette | T2002 U7 U5 U3 | $47.88 | $8,980 |

The state fee schedule, updated June 9, 2026, shows the Level 1 and Level 2 rates in effect since July 1, 2023, and the Level 3 rate since July 1, 2021. Indiana's fee schedule change for January 1, 2027 (bulletin BT2026143, August 27, 2026) leaves waiver services out, so it does not change these rates. The module adds these rules:

- **Two trips a day:** reimbursable activity is two one-way trips a day to or from the places named in the person's plan.
- **Bus passes:** Level 1 and Level 2 may use bus passes, bought monthly or per ride, whichever costs less.
- **Who may not bill:** a parent of a minor or a spouse cannot be paid to drive, and the service cannot be combined with Structured Family Caregiving.
- **Records:** each service note shows the person's name and Medicaid ID, the date, the provider, and the pickup point and destination. A contract transportation company must provide logs and invoices.

**Example.** A Level 2 rider in the Community Integration and Habilitation waiver rides your wheelchair van to a day program and home again. You bill T2002 U7 U5 U2 with 2 units: 2 x $26.52 = $53.04 for the day. The $8,255 yearly limit covers about 155 days like that.

## Louisiana and Tennessee: T2002 by the day

Louisiana's rate sheets for the New Opportunities, Residential Options (ROW), and Supports waivers, all issued March 13, 2026, list T2002 at $20.00 daily. It is billed once per day that the person receives supported employment, day habilitation, or prevocational services, and not for days when those services are delivered virtually.

Tennessee's Department of Disability and Aging rate sheet, as of July 1, 2026, lists T2002 for individual transportation services at $7.13 daily, with a maximum of 1 unit a day. The consumer-directed version, T2002 with UC, pays the same. Its Katie Beckett program uses T2002 three ways: V1 is a $7.50 per diem, U2 is an $18.00 one-way trip, and U4 is a $22.00 one-way trip in a wheelchair vehicle, up to 2 trip units a day.

## Missouri and Montana: T2002 by zone or by month

Missouri's developmental disability waiver manual, posted in September 2026, bills each trip by distance zone, with HE added when the vehicle has modifications for a rider who cannot walk:

| Zone | Distance | Code |
|---|---|---|
| 1 | 0 to 10 miles | A0110 (A0110 HE) |
| 2 | More than 10 to 20 miles | T2002 (T2002 HE) |
| 3 | More than 20 miles | T2003 (T2003 HE) |

All per-trip codes together are limited to two units per person per day, and a monthly component is billed separately. Providers need a license under RSMo Chapter 302 and a Department of Mental Health contract, and must keep trip records, mileage or zone records, and cost records.

Montana's Developmental Disabilities Program fee schedule, effective July 1, 2025, bills commute transportation with T2002 per month: individual, shared, and wheelchair van versions. The amount varies by person and is set with the state's rate calculator. Self-directed services add the SC modifier. The draft manual for July 1, 2026 keeps the same T2002 lines.

## How to bill T2002 without denials

1. **Confirm the service is authorized.** The ride must be in the person's plan (the PCISP in Indiana, the PCSP in Missouri, the plan of care in Montana) and approved for your company.
2. **Use your state's unit.** A day in Louisiana and Tennessee, a one-way trip in Indiana and Missouri, a month in Montana.
3. **Add the required modifiers.** U7 and U5 in Indiana, HE for a modified vehicle in Missouri, UC or the Katie Beckett modifiers in Tennessee.
4. **Stay under the limits.** Two trips a day in Indiana and Missouri, one unit a day in Louisiana and Tennessee, and Indiana's yearly dollar limits.
5. **Document every ride.** Log pickup and drop-off points, dates, and who drove. A [trip log template](https://nemtguide.com/templates/nemt-trip-log-template/) covers it.
6. **Keep medical rides separate.** Bill trips to medical appointments to your NEMT payer with the codes it uses, such as [T2003](https://nemtguide.com/glossary/t2003/).

## Frequently asked questions

### Does Medicare pay the T2002 billing code?

No. The October 2026 CMS HCPCS file gives T2002 coverage code I, which means not payable by Medicare. It was added to the code set on April 1, 2002, and it has no national rate. State Medicaid programs, and the waiver programs they run, decide whether they use it and what it pays.

### Is T2002 billed per day or per trip?

It depends on the program, even though the national description says per diem. Louisiana's waivers pay one daily unit at $20.00, and Tennessee's pay one daily unit at $7.13. Indiana and Missouri bill T2002 per one-way trip, up to two a day. Montana bills it per month for a commute, at an amount figured for each person.

### Can I bill T2002 for a ride to a doctor's appointment?

Not in the waiver programs covered here. Indiana's waiver transportation may not be used for medical rides the state plan already covers, and Montana never pays medically necessary rides through its waiver when state plan transportation covers them. Missouri says waiver rides do not replace state plan NEMT. Bill medical trips to your NEMT broker or state program.

### What is the difference between T2002 and T2003?

In the national code set, T2002 is "per diem," one charge for a day, and T2003 is "encounter/trip," one charge for a ride. States do not always follow the labels. Missouri's developmental disability waivers use A0110, T2002, and T2003 as distance zones for single trips, and Tennessee's Katie Beckett program pays T2002 with the U2 modifier at $18.00 a one-way trip.

### How do I become a T2002 provider?

Apply to the agency that runs the waiver. Indiana requires an active Medicaid enrollment, approval from its Family and Social Services Administration, and compliance with 460 IAC 6, which covers criminal history checks, insurance, and staff training. Missouri requires a license under RSMo Chapter 302 and a Department of Mental Health contract. The provider rules sit in each waiver's manual.

## Official resources

- [CMS: HCPCS quarterly update files](https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system/quarterly-update)
- [Indiana Health Coverage Programs: DDARS HCBS Waivers module](https://www.in.gov/medicaid/providers/files/modules/ddars-hcbs-waivers.pdf)
- [Louisiana Medicaid: New Opportunities Waiver rate sheet](https://www.lamedicaid.com/provweb1/fee_schedules/OCDD_NOW.pdf)
- [Tennessee Department of Disability and Aging: Service details and rates](https://www.tn.gov/content/dam/tn/disability-and-aging/documents/provider-information/billing-rates-and-business-services/DDA%20Services%20and%20Rates.pdf)
- [MO HealthNet: Developmental Disabilities Waiver Manual](https://dss.mo.gov/sites/mydss/files/media/file/2026/09/DD-Waiver-Manual.docx)