Healthcare Common Procedure Coding System

History

Levels of codes

• Level I consists of the American Medical Association's Current Procedural Terminology and is numeric.
• Level II codes are alphanumeric and primarily include non-physician services such as ambulance services and prosthetic devices, and represent items and supplies and non-physician services, not covered by CPT-4 codes.
• Level III codes, also called local codes, were developed by state Medicaid agencies, Medicare contractors, and private insurers for use in specific programs and jurisdictions. The Health Insurance Portability and Accountability Act of 1996 instructed CMS to adopt a standard coding systems for reporting medical transactions. The use of Level III codes was discontinued on December 31, 2003, in order to adhere to consistent coding standards. Level III codes were different from the modern CPT Category III codes, which were introduced in 2001 to code emerging technology.