HCPCS - Level II is the Healthcare Common Procedure Coding System, established by CMS's Alpha-Numeric Editorial Panel. HCPCS primarily represents items, supplies, non-physician services not covered by the AMA's CPT-4 codes. Medicare, Medicaid, and private insurers use HCPCS procedures and modifier codes for claims processing.
The HCPCS level II coding system is a comprehensive and standardized system that classifies similar products that are medical in nature into categories for the purpose of efficient claims processing. For each alphanumeric HCPCS code, there is descriptive terminology that identifies a category of like items. These codes are used primarily for billing purposes. For example, suppliers use HCPCS Level II codes to identify items on claim forms that are being billed to a private or public health insurer.
In summary, the HCPCS level II coding system has the following characteristics: