CPT 29881 cost and Medicare rate

For code 29881, removal of knee cartilage using an endoscope, Medicare's 2026 national rate for the hospital's facility fee is about $3,343, and its rate for the doctor's part nationally is about $516, so about $3,859 in all. In 2024, doctors nationally typically billed about $4,957 for their part. The hospital and the doctor usually send separate bills. Medicare rates are a common benchmark, not what every plan pays.

CPT 29881: Removal of knee cartilage using an endoscope

Medicare 2026 fee schedule, hospital outpatient rates July 2026, providers' billed amounts from 2024 · Checked 28 September 2026

$3,342.87Hospital facility fee, Medicare 2026, national
$515.71Doctor's part, Medicare 2026, national
$4,957.23Typically billed by providers, 2024, national

What CPT 29881 is

Removal of knee cartilage using an endoscope.

What Medicare pays for 29881 nationally

SettingMedicare 2026Medicare allowed 2024Typically billed 2024
Hospital or surgery center (doctor's part)$515.71$762.79$4,957.23

Medicare 2026 is the national fee schedule rate (conversion factor 33.4009). "Medicare allowed" and "typically billed" are averages from Medicare claims in 2024.

If it was done in a hospital

Medicare's national hospital outpatient (OPPS) rate for the hospital's own facility fee, before each hospital's local wage adjustment, which raises it in high-cost areas and lowers it in low-cost ones. The doctor bills separately under the fee schedule.

Medicare's July 2026 national rate for the hospital's facility fee for 29881 is $3,342.87 (payment group APC 5113).

If the visit became an observation stay

In the CMS Outpatient Hospitals data, the Level 3 Musculoskeletal Procedures bundle had a typical hospital charge of $20,992.58 and a Medicare allowed amount of $2,985.87 (12,308 stays).

29881 by state

Where you were treated changes the benchmark. Medicare's 2026 rate depends on the pricing area. The table shows the rest-of-state rate and the range across each state's pricing areas; some big cities have their own, higher rate. Billed amounts are what providers typically billed in a hospital or other facility in 2024.

State and Medicare pricing areaDoctor's part 2026Range in state (doctor's part)Typically billed 2024
California
Rest of California
$520.96$520.96 to $625.33
29 pricing areas
$5,915.62
New York
Rest of New York
$489.81$489.81 to $615.82
5 pricing areas
$6,151.97
Texas
Rest of Texas
$498.93$490.78 to $533.44
8 pricing areas
$4,894.03
Florida
Rest of Florida
$528.66$528.66 to $597.05
3 pricing areas
$5,768.36
Illinois
Rest of Illinois
$521.14$521.14 to $579.07
4 pricing areas
$5,867.39
Ohio
Statewide
$495.19One rate statewide$4,026.03
Georgia
Rest of Georgia
$498.75$498.75 to $529.64
2 pricing areas
$6,240.64
Washington
Rest of Washington
$520.24$520.24 to $573.11
2 pricing areas
$2,758.78
Pennsylvania
Rest of Pennsylvania
$493.45$493.45 to $538.70
2 pricing areas
$4,105.22
Arizona
Statewide
$501.53One rate statewide$4,667.36

What your charge for 29881 means

Med Bill Check compares a charge with Medicare's rate and with what providers typically billed. Here is how it reads three national charges, each compared with the hospital facility fee plus doctor's fee:

Medicare rates are a common benchmark, not what every plan or provider charges, and never proof a bill is wrong. Enter your own charge and state on the home page for your figures.

Common billing questions for 29881

How to question a charge for 29881

  1. Ask for an itemized bill with codes, units and prices. Itemized bill letter.
  2. Compare each line with your Explanation of Benefits if you have insurance.
  3. Ask the billing office to review the charge in writing, and to hold the account from collections meanwhile. Charge review letter.
  4. Ask for a prompt-pay or self-pay discount, or an interest-free payment plan. Discount letter.
  5. If it was a hospital, ask for its financial assistance policy. Financial assistance letter and which hospitals must offer it.

With your code and amount, the review letter adds the benchmark for you, for example: For reference, Medicare's 2026 fee schedule rate for code 29881 nationally is about $516, and Medicare's published data shows providers nationally typically billed about $4,957 in 2024.

Keep a copy of everything you send, and note the date and the name of anyone you speak to. If you have insurance, call your insurer too. They can check whether the claim was processed correctly.

Quick answers

What is CPT 29881?
Removal of knee cartilage using an endoscope.
How much does Medicare pay for 29881 in 2026?
Nationally, Medicare's 2026 rate is $3,342.87 for the hospital's facility fee and $515.71 for the doctor's part. The hospital and the doctor usually send separate bills.
What do providers typically charge for 29881?
In 2024, providers nationally typically billed $4,957.23 for 29881 in a hospital or other facility.
Is $15,450 for 29881 too much?
Your $15,450 is about 4 times what Medicare would pay the hospital and the doctor together. If it is only the hospital's charge, it is about 4.6 times the hospital's rate. That is a common benchmark rather than a verdict, and an itemized bill will show which charges are the hospital's and which are the doctor's.
How much is 29881 in Texas?
For code 29881, removal of knee cartilage using an endoscope, Medicare's 2026 national rate for the hospital's facility fee is about $3,343, and its rate for the doctor's part in Texas is about $499, so about $3,842 in all. In 2024, doctors in Texas typically billed about $4,894 for their part. The hospital and the doctor usually send separate bills. Medicare rates are a common benchmark, not what every plan pays.
How many units of 29881 can be billed in one day?
Medicare's automated limit is 1 for one patient on one day. Going over is a reason to ask, not proof of an error, since some cases are allowed with records.

Sources

General information, not medical, legal or financial advice. Medicare rates are a common benchmark, not what every plan or provider charges. For your own bill, check with the billing office, your insurer or your doctor.

Ask Med Bill Check yourself

Enter the code or the service in plain words, your state and what you were charged, and see how it compares with Medicare's rate. Open Med Bill Check, free, no sign-up.

In Claude or any app that takes MCP connectors, add https://goodturn-mcp.pages.dev/medbillcheck/mcp and ask: “Is $7,700 for 29881 in Texas too much?”

More procedures and surgery