The Healthcare Common Procedure Coding System (HCPCS) is divided into two principal subsystems: 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 used primarily to identify medical services and procedures furnished by physicians and other health care professionals. These healthcare 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 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:
- Evaluation and Management: 99201–99499
- Anesthesia: 00100–01999; 99100–99140
- Surgery: 10021–69990
- Radiology: 70010–79999
- Pathology and Laboratory: 80047–89398
- Medicine: 90281–99199; 99500–99607
Level II of the HCPCS is a standardized coding system used primarily to identify products, supplies, and services not included in the CPT-4 codes. These products, supplies, and services are used outside a physician's office, including 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 not identified by CPT-4 codes, the level II HCPCS codes were established for submitting claims for these items.
- The payment amount for a test, procedure, service, or product/supply depends on the HCPCS or CPT-4 code.
- In the laboratory setting, HCPCS or CPT-4 codes should be assigned under the supervision of the laboratory technical staff.
- Billing department employees should never change an HCPCS or CPT-4 code without the approval of a manager or compliance officer.
- If billing department clerks notice that a payer is rejecting a particular HCPCS or CPT-4 code, they should report it to their manager.
- It is against the law to use the wrong HCPCS or CPT-4 code to cause or increase payment for a test, procedure, service, or product/supply.
