Billing codes
T2003 Billing Code: Non-Emergency Transportation per Trip, Modifiers, and State Rates
T2003 is the HCPCS code for non-emergency transportation billed per encounter or trip: one flat charge for a ride, not a charge per mile. Medicare does not pay it, so each Medicaid program sets its own modifiers, units, and rate. As of September 2026, Texas pays $33.83 to $79.63 per leg depending on the county, and Indiana pays $12.71 per trip plus mileage.
- T2003 means "non-emergency transportation; encounter/trip": one base charge per ride, with miles billed on a separate line where the state pays them.
- Medicare does not pay T2003, so your state Medicaid program, health plan, or broker decides who may bill it and what it pays.
- The U modifiers used with T2003 are defined by each state, so T2003 U1 in Texas and T2003 U1 in Indiana mean different things.
- Texas pays T2003 per leg for each authorized seat: $33.83 urban, $62.31 suburban, and $79.63 rural as of September 1, 2026.
- Arizona, South Dakota, Illinois, and Oregon bill walk-on rides with other codes, so check your fee schedule before you put T2003 on a claim.
What T2003 means
CMS lists T2003 in the national HCPCS code set as “Non-emergency transportation; encounter/trip.” The October 2026 quarterly HCPCS file shows the code was added on April 1, 2002. It carries coverage code I, which means Medicare does not pay it.
“Encounter/trip” means one flat charge for the ride. T2003 is a base charge, not a mileage charge. States that pay for distance add a second line with a mileage code such as S0215 or A0425. See NEMT base rate for how the two parts fit together.
T2003 is the general per-trip code in the HCPCS set. Texas, Indiana, Minnesota, Louisiana, and Nevada all use it for rides paid by the trip. Because Medicare does not use it, it has no national rate. Each state Medicaid program, and each health plan or broker paying under it, decides four things:
| Part of the claim | How T2003 varies |
|---|---|
| Which rides use it | Demand response rides in Texas, walk-on rides in Indiana, broker trip legs in Louisiana (wheelchair van legs use A0130), assisted door-to-door rides in Minnesota, secure behavioral health transports in Nevada |
| What one unit is | One leg, one trip, or one authorized seat |
| Modifiers | Set by the state. The HCPCS file defines U1 as “Medicaid level of care 1, as defined by each state,” and U2 through UD the same way. |
| Mileage | A separate line where the state pays it, or none when the state pays a flat rate per leg |
Which states pay T2003 and how much
| State and program | Who bills T2003 | Rate | Mileage |
|---|---|---|---|
| Texas Medicaid fee-for-service | Demand response providers, including rideshare companies, enrolled with TMHP | $33.83 urban (U1), $62.31 suburban (U3), $79.63 rural (U2), per leg per authorized seat, effective September 1, 2026 | No mileage line on the fee schedule |
| Indiana Medicaid fee-for-service | Commercial ambulatory service (riders who can walk) | $12.71 per trip, effective January 1, 2026 | A0425 with U3, $1.67 per mile, paid only past the first 10 miles of a one-way trip |
| Minnesota Health Care Programs | Assisted rides (door-to-door and door-through-door), billed by MTM-MNET, SmartLink, or a county or tribal agency | $14.30 per trip on the state’s rate table, page revised July 31, 2026 | S0215, $1.51 per mile from the first loaded mile, as of July 1, 2026 |
| Louisiana Medicaid | Trip legs arranged by the transportation broker (wheelchair van legs bill A0130) | $13.50 per trip leg, on the fee schedule effective October 1, 2025 | $1.10 per mile from mile zero |
| Nevada Medicaid | Secure behavioral health transports, provider type 35, specialty 987 | Listed in the state’s online fee schedule search | S0215 with UA, one unit per mile |
Not every state uses T2003 for rides where the rider can walk. These programs bill them with other codes:
| Program | Codes for walk-on rides | Effective |
|---|---|---|
| Arizona AHCCCS fee-for-service | A0100 (taxi) and A0120 (mini-bus, mountain area, or other transportation systems), with no T2003 line | October 1, 2026 |
| South Dakota Medicaid | A0100 for a taxi and A0120 for a mini-bus or other transportation system, each per one-way trip | July 1, 2026 |
| Illinois Medicaid | A0100 for a taxi and A0120 for a service car base rate, with no T2003 line | January 1, 2026 |
| Oregon Health Plan | A0100 for a sedan or taxi (its guide lists T2004 for train travel) | Guide last updated December 22, 2025 |
If your state’s fee schedule has no T2003 line, bill the code it lists for your level of service. For more state rates, see NEMT reimbursement rates.
Texas: T2003 for demand response rides
Since June 1, 2021, TMHP has processed fee-for-service Medical Transportation Program claims from demand response transportation providers, and those claims use T2003. The program authorizes each one-way leg separately, with its own authorization number. You submit a claim for each completed trip leg.
The September 2026 handbook lists taxis and wheelchair vans among demand response services. T2003 is the only code on the demand response fee schedule, so the modifier, not the vehicle, sets the rate. TMHP’s 2021 notice defines U1 as a metro or urban county, U2 as a rural county, and U3 as a micro or suburban county. Payment is the rate times the number of seats the state authorized for that leg.
| Modifier | County type | Rate per leg per seat, September 1, 2026 | Two seats, one leg |
|---|---|---|---|
| U1 | Metro or urban | $33.83 | $67.66 |
| U3 | Micro or suburban | $62.31 | $124.62 |
| U2 | Rural | $79.63 | $159.26 |
The September 2026 program handbook adds these claim details:
- Authorization: the Medical Transportation Program issues every prior authorization, and its number goes in box 23 of the CMS-1500.
- Diagnosis: Z753 on every claim.
- Place of service: 99 on TexMedConnect claims, 09 on paper.
- Taxonomy: 343800000X for a demand response provider, 347C00000X for a rideshare company.
- Deadline: claims must reach TMHP within 95 days of the date of service for in-state providers, and within 365 days for out-of-state providers.
This handbook covers fee-for-service riders only. Medicaid health plans approve rides for their own members. See the Texas state guide.
Indiana: T2003 for walk-on rides
Indiana’s Transportation Services module (version 6.1, published August 19, 2025) uses T2003 as the base code for commercial ambulatory service, meaning a member who can walk. The level of service decides the code, not the vehicle. If your wheelchair van or an ambulance carries a member who can walk, you bill T2003, not the wheelchair or ambulance code.
The codes around it, at the fee schedule rates effective January 1, 2026:
- Extra riders: each additional member on the same trip bills T2004 at $6.36, with no mileage or wait time.
- Escort: an accompanying adult or attendant bills T2001 at $6.36.
- Wait time: T2007 with U3 pays $7.43 per half hour. Indiana pays it only when the vehicle waits outside, the trip is 50 miles or more one way, and the wait runs past the first 30 minutes, which are never paid. Report the total wait anyway.
- Mileage: A0425 with U3 pays $1.67 per loaded mile. Indiana deducts the first 10 miles of each one-way trip itself, so bill every mile. S0215 is not payable in Indiana.
- Location: add origin and destination modifiers to the base line and the mileage line.
- Round trips: a round trip at the same level on the same day goes on one line with 2 units, and all its miles go on one mileage line.
- Separate same-day trips: since the August 19, 2025 bulletin, each trip after the first for the same member on the same day carries the XE modifier. Do not use modifier 76. If the driver waits while the member is seen, it is one trip, not two.
- Diagnosis: use R69 when the actual diagnosis is not known. Claims without a valid diagnosis code deny.
A one-way ride from home to a freestanding dialysis center, 14 loaded miles:
| Line | Code and modifiers | Units | Fee schedule amount |
|---|---|---|---|
| 1 | T2003, RJ | 1 | $12.71 |
| 2 | A0425, U3 and RJ | 14 | 4 paid miles x $1.67 = $6.68 |
| Total | $19.39 |
RJ means residence to freestanding dialysis facility. See NEMT origin and destination modifiers.
Most fee-for-service rides in Indiana are arranged by the broker Verida, and those claims go to Verida, not the state. The module says Verida’s rate schedule is based on the state fee schedule and that Verida can negotiate higher or special rates with each provider. See the Verida broker guide and the Indiana state guide.
Minnesota and Louisiana: T2003 through a coordinator or broker
Minnesota
Minnesota bills walk-on rides at two levels. Mode 3, unassisted curb-to-curb rides, uses A0100 at $12.10 per trip. Mode 4, assisted door-to-door and door-through-door rides, uses T2003 at $14.30. The state’s medical review agent decides who qualifies for Mode 4.
Ride companies cannot bill the state directly for these rides. You contract with MTM-MNET, SmartLink, or the local county or tribal agency, which pays you and bills the state. The Minnesota DHS rate page, revised July 31, 2026, sets these rules for the coordinator’s claim:
- Mileage: S0215 at $1.51 per mile as of July 1, 2026, up from $1.48 on April 1. The rate gets a fuel adjustment each quarter. It starts with the first mile the member is in the vehicle, by the most direct route.
- Units: up to 2 base units per line for a date of service. A third or later ride that day goes on a new line with the repeat service modifier.
- Location: every Mode 3 and Mode 4 line needs an origin and destination modifier pair.
- Rural add-on: a rural adjustment may apply, based on the ZIP code of the member’s home.
Your contract with the coordinator sets what it pays you. See the Minnesota state guide.
Louisiana
Louisiana’s NEMT fee schedule, effective October 1, 2025, lists T2003 at $13.50 per trip leg plus $1.10 per mile from mile zero. The rate itself dates from January 1, 2022. A wheelchair van leg (A0130) pays $21.50 plus $1.30 per mile.
In Louisiana the transportation broker arranges and pays the ride. The Medicaid manual’s transportation chapter, issued July 14, 2025, says brokers must pay providers no less than the published fee-for-service rate on the date of service, unless the broker and the provider agree otherwise in the provider agreement. Read the rate section of your agreement before you sign it. The same chapter says scheduled trips where no member rides are not billable.
Nevada: T2003 for secure behavioral health rides
Nevada Medicaid uses T2003 for non-emergency secure behavioral health transports. These carry a person in a mental health crisis, or with a behavioral health condition, in a vehicle that is not an ambulance. Only providers enrolled as provider type 35, specialty 987, may bill it, and the transport must meet the accreditation rules of the state’s Division of Public and Behavioral Health.
The billing guide updated July 27, 2026 sets the claim format:
- Bill T2003 with the UA modifier on one line, with 1 unit.
- Bill S0215 with UA on a second line, one unit per mile.
- Send the claim to Nevada Medicaid’s fiscal agent. No prior authorization is needed.
Nevada’s other non-emergency rides go through the state’s contracted NEMT vendor.
How to bill T2003 without denials
- Confirm the code. Find T2003 on your state’s transportation fee schedule for your provider type. See NEMT billing codes.
- Read the modifier rules. Use only the modifiers your state defines for T2003, in the order its manual shows.
- Count units the state’s way. Leg, trip, or seat.
- Bill miles on their own line. Use the state’s mileage code, and only where miles are paid.
- Match the authorization. The authorization number or broker trip ID, date, and rider must match the trip record.
- File on time. Texas allows 95 days for in-state providers. Broker contracts set their own limits. See timely filing limits.
- Fix denials fast. A wrong modifier or unit count is the usual cause. See NEMT claim denials.
Frequently asked questions
Does Medicare pay the T2003 billing code?
No. The October 2026 CMS HCPCS file gives T2003 coverage code I, which means not payable by Medicare. T2003 is paid by state Medicaid programs and by the health plans and brokers that work for them. For a rider with both Medicare and Medicaid, bill the ride to Medicaid, its health plan, or its broker under your state's rules.
Is T2003 billed per mile?
No. T2003 is a per-trip code, so one unit usually means one ride. Where a state pays for distance, miles go on their own line with a mileage code: Indiana uses A0425 with the U3 modifier, and Minnesota and Nevada use S0215. Texas pays demand response rides a flat rate per leg, and its fee schedule for those providers lists no mileage code.
What do the U1, U2, and U3 modifiers mean with T2003?
The HCPCS file defines U1 as "Medicaid level of care 1, as defined by each state," and U2 through UD the same way. Each state fills in the meaning. For T2003, Texas uses U1 for a metro or urban county, U2 for a rural county, and U3 for a micro or suburban county. Indiana's fee schedule uses U1 and U2 on T2003 for waiver transportation instead, so always read your own state's manual.
How is T2003 different from T2002 and T2004?
T2003 is one charge per trip. T2002 is "non-emergency transportation; per diem," a charge for a whole day. T2004 is "non-emergency transport; commercial carrier, multi-pass." Indiana uses T2004 for the second and later members on the same walk-on trip, paid at $6.36 each as of January 1, 2026, with no mileage or wait time. Oregon's provider guide, last updated December 22, 2025, lists T2004 for train travel instead.
How many units do I bill with T2003?
It depends on the state. Texas pays the per-leg rate times the number of seats the state authorized for that leg. Indiana bills 1 unit for a one-way trip and 2 units for a round trip at the same level on the same day. Minnesota allows up to 2 units per line for each date of service. Nevada allows one unit per claim for secure behavioral health transports. Your authorization or broker trip record usually shows the number.
Can I bill T2003 for a rider who can walk but rides in my wheelchair van?
In Indiana, yes. Its transportation module says to bill by the level of service, not the vehicle, so a walk-on rider in a wheelchair van or an ambulance is billed as a T2003 trip. In Texas, the handbook lists wheelchair vans among demand response services, and T2003 is the only code on the demand response fee schedule. Elsewhere, check whether your state manual pays by the rider's level of service or by the vehicle.
Official resources
- CMS: HCPCS quarterly update files
- TMHP: Medical Transportation Program Handbook (September 2026)
- Indiana Health Coverage Programs: Transportation Services module
- Indiana Health Coverage Programs: Fee schedules
- Minnesota DHS: NEMT codes, modifiers, and rates for coordinated rides
- Louisiana Medicaid: NEMT fee schedules
- Nevada Medicaid: Secure behavioral health transport billing guide