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Is it time for more pediatric billing transparency in vaccine costs?

Writer: Hemant Apte, Chief Executive Officer

Parental skepticism of pediatric vaccines is growing. One of the reasons is that some parents question the profit motive of pharmaceutical companies [1], leaving pediatricians caught in the middle. Anyone familiar with pediatric billing and coding knows the truth – there’s little money for physicians to make in pediatric vaccines. In reality, physicians often lose money when protecting the health of children. 

Take the HPV vaccine, for example. A 2023 study found that net returns were as low as $0.34/dose for family physicians and at their highest, only reached $5.08/dose for pediatricians [2]. These are not rates that drive doctors to vaccinate children unnecessarily. Some physicians even lose money on their vaccine programs. A Virginia pediatrician recently reported to MedCity News that he spends about half a million dollars every year on vaccines, and possibly isn’t even breaking even [3]. 

Vaccines are the second-highest expense for pediatric practices, coming in second only to staff salaries. In addition to the effort of getting reimbursed for vaccines through pediatric medical billing, many physicians are simply absorbing the costs and risks just to maintain their childhood vaccination programs. 

Turning Pediatric Billing Hesitancy Into an Asset

While there is a need for multiple types of education to address parental vaccine hesitancy, pediatric billing leaders could have an opportunity to add their voice to the discussion. Transparency in billing and creativity in pediatric billing communications can be a first step in not only helping parents and guardians make informed decisions about vaccination but also function as a powerful tool in building trust and sparking a deeper conversation about children’s health. 

Improved communication and awareness are especially important this flu season, where pediatric flu deaths have reached their highest rate since the 2009-10 H1N1 pandemic [4]. More children are presenting with conditions associated with the flu, like acute necrotizing encephalopathy (ANE). At the same time, hesitancy is as high as 56% for COVID vaccines and 12% for routine childhood vaccinations [5]. 

The American Academy of Pediatrics offers some guidance on talking with vaccine hesitant parents [6]. Use these as a starting point and guide rails for educating parents on the lack of profitability in pediatric vaccines for providers. 

To learn more about how you can bring your pediatric billing strategy up to date with current challenges or how to strengthen your pediatric billing and coding workflows, feel free to message me here, or connect with one of our experienced team members.

References

[1] U. Uğrak, A. Aksungur, S. Akyüz, H. Şen and F. Seyhan, “Understanding the rise of vaccine refusal: perceptions, fears, and influences,” BMC Public Health, 29 July 2025. Available: https://pmc.ncbi.nlm.nih.gov/articles/PMC12306073/.
[2] Y. Zhu, Y.-Y. Lin, R. Li, C. He, D. R. Lairson, A. A. Deshmukh and K. Sonawane, “Reimbursement for HPV Vaccine Cost in the Private Sector: A Comparison Across Specialties,” Ann Fam Med, Jul-Aug 2023. Available: https://pmc.ncbi.nlm.nih.gov/articles/PMC10365861/.
[3] P. Sánchez de Lozada, “Pediatricians Subsidize the Vaccinations That Keep Kids Healthy and Prevent Pandemics. They Shouldn’t Have To,” MedCity News, 10 August 2025. Available: https://medcitynews.com/2025/08/pediatricians-subsidize-the-vaccinations-that-keep-kids-healthy-and-prevent-pandemics-they-shouldnt-have-to/.
[4] E. Edwards, “More kids are severely ill or dying from the flu, CDC reports,” NBC News, 25 September 2025. Available: https://www.nbcnews.com/health/health-news/flu-vaccines-children-complication-cdc-deaths-rcna233436.
[5] J. Wappes, “CDC analysis shows high rate of parental hesitation toward kids’ vaccinations,” CIDRAP – Center for Infectious Disease Research & Policy, 17 July 2024. Available: https://www.cidrap.umn.edu/childhood-vaccines/cdc-analysis-shows-high-rate-parental-hesitation-toward-kids-vaccinations.
[6] American Academy of Pediatrics, “Talking with Vaccine Hesitant Parents,” 9 October 2025. Available: https://www.aap.org/en/patient-care/immunizations/communicating-with-families-and-promoting-vaccine-confidence/talking-with-vaccine-hesitant-parents/?srsltid=AfmBOoq1xtyeMH9IyvlwnZwVv9OJLQGlgegBy5m2im8Q_Aa7FI6h6umY.

 

Hemant Apte, Chief Executive Officer in

Hemant Apte, Founder & Chief Executive Officer of 3Gen Consulting, is a seasoned executive leader with deep domain expertise in US healthcare management practices. He founded 3Gen Consulting in 2006 and has been instrumental in offering thought leadership to his clients and providing services and solutions that are unique in the market.

AAP Releases 2025 Pediatric Billing Guide for Preventive Care 1

AAP Releases 2025 Pediatric Billing Guide for Preventive Care

A healthy patient financial experience is critical for pediatric providers. Errors in pediatric billing, coding or documentation can lead to unfavorable outcomes such as unnecessary denials, prior authorization issues, and delayed billing – all of which can cause financial stress and extra strain on families with the added risk of reduced reimbursement for practices. 

To support accurate billing practices, the American Academy of Pediatrics (AAP) has released its 2025 Coding for Pediatric Preventive Care guide [1]. This document serves as a valuable resource for training and educating team members involved in pediatric billing services. We’ve compiled a summary of the most important sections for your review. For more detailed information, you can access the full pediatric medical billing document on the AAP website.

Preventive Medicine Service Codes

Preventive medicine service codes (99381–99385 for new patients and 99391–99395 for established patients) form the foundation for billing well-child visits. These codes encompass comprehensive evaluations that include age-appropriate medical history, physical examinations, and anticipatory guidance. Unlike traditional Evaluation and Management (E/M) codes, preventive codes are not time-dependent – code selection is based on the scope of services provided, not the length of the visit.

Accurate use of ICD-10 codes, such as Z00.121 for preventive visits with abnormal findings, also supports clean claim submissions. Understanding these nuances is critical to prevent unnecessary denials and underpayments. Partnering with pediatric billing companies who specialize in preventive care coding can further enhance reimbursement accuracy and financial performance.

Counseling and Behavior Change Intervention

Counseling codes (99401–99404) are used for time-based health promotion discussions on topics such as nutrition, safety, and pediatric mental health. These codes require documentation of the time spent but should not be billed in conjunction with preventive visits – a common error in pediatric medical billing. To ensure compliance with pediatric billing services, here are key points your billers should keep in mind:

  • Symptomatic patients: If counseling is related to an active condition (e.g., depression management), an office visit code should be used instead.
  • Group counseling: For sessions involving multiple participants, such as parenting classes, use code 99078.
  • Documentation: Billers must clearly document the counseling topics discussed and the duration of the session.

Because pediatric visits often involve extensive counseling, it’s essential that billers are properly trained to distinguish between preventive services and problem-focused care. Accurate coding is key to staying compliant and avoiding billing errors with pediatric billing services.

Health Risk Assessments

Health Risk Assessments (HRAs) for pediatric patients are specialized tools designed to evaluate the overall health and well-being of children and adolescents are an essential part of pediatric billing workflows. These assessments help healthcare providers identify potential physical, developmental, behavioral, and social risks early, enabling timely interventions to promote healthy growth and development.

CPT Codes for Health Risk Assessments

Developmental and Behavioral Screening

  • 96110: Developmental screening, with interpretation and report (e.g., developmental milestone assessments)
  • 96127: Brief emotional/behavioral assessment (e.g., ADHD screening)

Health and Behavior Assessment/Intervention

Sometimes used if specific behavioral health risks are assessed:

  • 96150–96155: Health and behavior assessment or intervention codes (may apply depending on service scope)

Outsourcing to pediatric billing companies with expertise in HRAs can help navigate payer-specific requirements and reduce denial risk.

Vaccines and Immunizations for Children

Vaccine billing is one of the most complex parts of pediatric billing. It depends on factors such as the child’s age and specific visit components – like multivalent vaccines. Navigating state-specific program requirements, Medicaid reimbursement guidelines, and frequent CPT updates (including those for COVID-19 and RSV vaccines) can be challenging.

One of the key benefits of working with pediatric billing companies is their expertise in maintaining accurate documentation and ensuring compliance with the continually evolving immunization policies, helping to optimize reimbursement and reduce errors.

Labs

Coding for labs in pediatric medical billing varies based on the testing location. When tests are performed in-house, your staff should bill for both the venipuncture procedure (36415) and the laboratory test. If the testing is outsourced, only the specimen collection code (99000 or 36415) should be billed. Additionally, staff must be well-trained in accurate ICD-10 code linkage to help minimize denials and ensure compliance with pediatric billing services.

Other Challenges in Pediatric Billing

There are many intricacies involved in pediatric billing – one of the most common being whether both a preventive and sick visit can be billed on the same day.

According to AMA CPT guidelines, if a provider addresses a new or existing condition that requires significant additional work beyond routine preventive care, both services may be billed together. To do so, the provider must document key elements of evaluation and management (E/M), such as prescribing treatment, adjusting medications, or performing a detailed assessment.

This situation frequently arises during well-child visits when a provider also manages chronic conditions like asthma, addresses behavioral concerns alongside ADHD screening, or evaluates acute issues such as a persistent cough. In these cases, modifier -25 must be appended to the E/M code to indicate a separately identifiable service performed on the same day.

Clear communication with families is essential. Many parents assume all services during a preventive visit are fully covered. Staff should be trained to explain that when problem-focused care is provided in addition to preventive services, copays or out-of-pocket costs may apply. Consider using signage or patient handouts to help set expectations and reduce billing misunderstandings.

Maximizing Value from AAP Guidance

As you review the AAP guidelines, be sure to explore the included vignettes – they offer valuable insight into pediatric coding for real-world scenarios.

At 3Gen Consulting, we deliver comprehensive pediatric billing services with specialized expertise in preventive care, immunization billing, and risk adjustment coding. Whether you’re strengthening internal teams or evaluating pediatric billing companies to enhance your revenue cycle, we’re ready to support you. Contact us today to learn how we can help.

 

References

[1] American Academy of Pediatrics, “Coding For Pediatric Preventive Care 2025,” 15 February 2025. Available: https://downloads.aap.org/AAP/PDF/Coding%20Preventive%20Care.pdf.

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