Healthcare Common Procedure Coding System (HCPCS)

Each year in the U.S., health care insurers process over 5 billion claims for payment. Standardized coding systems are essential so Medicare and other health insurance programs can process claims in an orderly and consistent manner. HCPCS is divided into 2 main subsystems — Level I and Level II.

HCPCS Level I: Comprised of Current Procedural Terminology (CPT ® ), a numeric coding system maintained by the American Medical Association (AMA).

HCPCS Level II: A standardized coding system that is used primarily to identify products, supplies, and services not included in the CPT® codes, such as ambulance services or durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) when used outside a physician's office.