What are HCPCS codes used for?

HCPCS codes, or Healthcare Common Procedure Coding System codes, are utilized primarily to identify equipment and supply materials received. This coding system is essential in the medical billing process as it standardizes the identification of products and services provided to patients, particularly those that are not covered by the more common Current Procedural Terminology (CPT) codes. HCPCS codes are especially relevant for durable medical equipment (DME), prosthetics, orthotics, and certain drugs and supplies utilized in patient care.

By assigning specific codes to different supplies and equipment, providers can communicate more effectively about the items used during treatment, ensuring accurate billing and reimbursement processes. This coding is critical for healthcare providers, insurers, and government programs seeking to adequately manage costs and services provided in the healthcare system.