Medicare and Medicaid use HCPCS (Healthcare Common Procedure Coding System) which is based on the American Medical Association’s CPT system. Codes are globally grouped into Level I and Level II:
- Level I codes include the 5-digit numeric CPT (Current Procedural Terminology) codes. These were developed by the American Medical Association (AMA) in 1966 and remain proprietary to the AMA. The codes are updated in October and become effective as of the next calendar year. They are available as a printed manual or as an electronic file.
- Level II codes are national codes developed by the Centers for Medicare and Medicaid Services (CMS) to describe medical services and supplies not covered in the CPT. They consist of alphabetic characters (A through V) and four digits.
BTW, HCPCS is pronounced “hick-picks.”