What are the two levels of the HCPCS coding system?

The HCPCS coding system is structured into two main levels that serve different purposes in the healthcare reimbursement process. The first level, known as HCPCS Level I, consists of Current Procedural Terminology (CPT) codes, which are developed and maintained by the American Medical Association (AMA). These codes primarily address healthcare procedures, services, and evaluations performed by healthcare professionals.

The second level, designated as HCPCS Level II, encompasses national codes that are used primarily for non-physician services, supplies, and durable medical equipment (DME). Level II codes are maintained by the Centers for Medicare & Medicaid Services (CMS) and are essential for billing and reimbursement of products and services not covered by CPT codes.

This distinction is important for ensuring accurate coding and billing practices in healthcare settings, facilitating effective communication among providers, insurers, and patients regarding the services rendered. Understanding this two-level structure allows healthcare professionals and coders to appropriately choose and apply the correct codes, which is critical for successful claims processing and reimbursement.