HCPCS and CPT-4 Coding

The Healthcare Common Procedure Coding System (HCPCS) is divided into two principal subsystems referred to as level I and level II of the HCPCS.

Level I of the HCPCS is comprised of Current Procedural Terminology (CPT-4), a numeric coding system maintained by the American Medical Association (AMA). The CPT-4 is a uniform coding system consisting of descriptive terms and identifying codes that are used primarily to identify medical services and procedures furnished by physicians and other health care professionals. These health care professionals use the CPT-4 to identify services and procedures for which they bill public or private health insurance programs. Level I of the HCPCS does not include codes needed to separately report medical items or services that are regularly billed by suppliers other than physicians. CPT-4 codes are 5 digits long, with given ranges corresponding to six categories of medical services and procedures:

Level II of the HCPCS is a standardized coding system that is used primarily to identify products, supplies, and services not included in the CPT-4 codes. These products, supplies, and services are used outside of a physician's office and include ambulance services and DMEPOS, or durable medical equipment, prosthetics, orthotics, and supplies. Because Medicare and other insurers cover a variety of services, supplies, and equipment that are not identified by CPT-4 codes, the level II HCPCS codes were established for submitting claims for these items.