Current Procedure Terminology (CPT) codes

Current Procedure Terminology (CPT) codes are part of the code set standard selected by HIPAA, used to describe health care services in electronic transactions.

CPT was developed by the American Medical Association (AMA) in the 1960s, and soon became part of the standard code set for Medicare and Medicaid. In subsequent decades it was adopted by private insurance carriers and managed care companies, and became the de facto standard.

CPT is now in its fifth version (CPT-5). In CPT-5, there are three categories of CPT codes. Category I codes are designated for services common in "contemporary medical practice and being performed by many physicians in clinical practice in multiple locations." For each, there is a five-digit code and a text descriptor -- e.g., "82270 - Fecal occult blood test."

Category II and III codes are designed to facilitate data collection for performance measurement or for new services and technologies that have not yet become common. They consist of four digits and an alphanumeric -- e.g., "1234C" -- along with an appropriate descriptor.

The Healthcare Common Procedure Coding System (HCPCS) incorporates CPT codes as part of its system for classifying services for reimbursement.

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