Correct Coding Guidelines
Policy No: 129
Originally Created: 03/01/2017
Last Reviewed: 12/01/2019
Last Revised: 12/01/2019
This policy applies to all physicians, other health care professionals, hospitals and other facilities.
Current Procedural Terminology (CPT®)
A medical code set maintained by the American Medical Association (AMA) that is used to report medical, surgical, and diagnostic procedures and services to entities such as physicians, health insurance companies and accreditation organizations. CPT is included in Level I Healthcare Common Procedure Coding System (HCPCS).
HCPCS Level II
A standardized coding system that is used primarily to identify medical supplies, durable medical equipment, non-physician services, and services not represented in the Level I code set CPT.
National Correct Coding Initiative (NCCI or CCI)
The Centers for Medicare & Medicaid Services (CMS) developed these edits to promote consistent, correct coding and appropriate payment. These coding edits are developed based on the AMA CPT code set and the HCPCS code set, as well as analysis of standard medical and surgical practice and input from various groups, including specialty societies, other national healthcare organizations, Medicare contractors, providers, and consultants.
The National Uniform Billing Committee (NUBC) and the state uniform billing committees (SUBC)
Committees responsible for the revenue code definitions and requirements for use.
Uniform Billing Editor (UBE)
A reference tool utilized by facilities to manage the constant changes to Medicare billing and reimbursement processes. The UBE provides detailed, accurate, and timely information about Medicare and UB-04 billing rules and requirements.
International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM)
A morbidity classification system for classifying diagnoses and reason for visits in all health care settings for the purpose of coding and reporting. Valid for dates of service prior to 10/1/2015.
International Classification of Diseases, 10th Revision, Clinical Modification (ICD-10-CM)
A morbidity classification system for classifying diagnoses and reason for visits in all health care settings for the purpose of coding and reporting. Valid for dates of service on and after 10/1/2015.
Revenue Codes (Rev Codes)
Revenue codes are 4-digit numbers that are used on hospital bills to identify where a member was located in a facility when they received treatment or services, or what service a member received as a patient.
Providers are required to submit accurate and complete claims for all medical and surgical services, supplies and items rendered to members using industry standard coding guidelines. Coding guidelines include, but are not limited to, AMA, CPT, HCPCS, CMS Coding Initiatives, UBE, ICD-9 and ICD-10.
Any medical or surgical service, supply or item, either inpatient or outpatient, reported by any code, must be clearly documented in an appropriate medical record. Our health plan will not allow reimbursement for undocumented professional, inpatient or outpatient medical and surgical services, supplies and items.
Hospitals and facilities must report all services, supplies and items using accurate revenue codes.
Our health plan will not allow reimbursement for incorrectly reported codes, including revenue codes, for medical and surgical services and supplies and items, for professional, inpatient or outpatient facility claims.
ICD-10-CM Official Guidelines for Coding and Reporting 2020 - Centers for Medicare & Medicaid Services
Medicare Claims Processing Manual, Chapter 23 - Fee Schedule Administration and Coding Requirements
Noridian Revenue Codes
National Correct Coding Initiative (NCCI) Policy Manual for Medicare Services
American Medical Association. Current Procedural Terminology: CPT 2020, Professional Edition. AMA Press
American Academy of Professional Coders (AAPC). HCPCS Level II Expert Codebook, 2020. AAPC