Healthcare Common Procedure Coding System (HCPCS)

Introduction In 1983, Medicare created Healthcare Common Procedure Coding System(HCPCS) ( pronounced hick picks). HCPCS codes are required when 1.reporting services 2.procedures provided to medicare and Medicaid beneficiaries.

HCPCS is three- level coding system Level 1- CPT codes The physicians current procedural Terminology (CPT ), published by the American medical Association CPT Is a listing of descriptive terms with codes for 1.reporting medical services 2. and procedures performed by health care providers. CPT provides uniformity in accurately describing medical, surgical, and diagnostic services for effective communication among physicians, patients, and third party payers

CPT was introduced in 1966,and has undergone editing and modification to the current revision. The greatest change in CPT, having a major impact on coders occurred in 1992 when " evaluation and management services were created This CPT section requires practitioners to make a decision as to level of service for offices, hospitals, nursing home services etc…

Level 2- National codes ( referred to as HCPCS) Level 2 consists of alphanumeric "National codes". These codes supplement CPT codes enabling providers to report non physician services such as  durable medical equipment  ambulance services  supplies and medications  particularly injectable drugs.

Level 3- Local codes Level 3 codes called "Local codes" were deleted under HIPAA regulations (Health Insurance Portability and Accountability Act ). Many local codes concepts were moved to level 2