ACA CCS study materials
ACA CCS study resources

ACA CCS key terms

ACA CCS · Get comfortable with the vocabulary.

Current Procedural Terminology (CPT)

A standardized code set maintained by the American Medical Association that describes medical, surgical, and diagnostic services and is used mainly to report physician and outpatient procedures for reimbursement.

Related: HCPCS Level II, Evaluation and Management Code, Modifier
HCPCS Level II

A national code set maintained by CMS that identifies products, supplies, and services not represented in CPT, such as drugs, durable medical equipment, and ambulance transport.

Related: Current Procedural Terminology (CPT), National Drug Code
ICD-10-CM

The diagnosis classification system used in the United States to report diseases, injuries, and health conditions on claims and in medical records, organized by body system and chapters.

Related: ICD-10-PCS, Principal Diagnosis, Excludes Note
ICD-10-PCS

The inpatient procedure classification system used in the United States, built from seven-character alphanumeric codes that describe the body system, root operation, body part, approach, device, and qualifier.

Related: Root Operation, ICD-10-CM, Principal Procedure
Root Operation

In ICD-10-PCS, the third character of a procedure code that defines the objective of the procedure, such as excision, drainage, or repair, and determines how the code is built.

Related: ICD-10-PCS, Principal Procedure
Principal Diagnosis

The condition established after study to be chiefly responsible for occasioning the patient's admission to the hospital for care, and the first-listed diagnosis on an inpatient claim.

Related: Secondary Diagnosis, Present on Admission Indicator, ICD-10-CM
Principal Procedure

The inpatient procedure performed for definitive treatment that is most closely related to the principal diagnosis, or the procedure most related to the reason for admission.

Related: ICD-10-PCS, Root Operation, Principal Diagnosis
Secondary Diagnosis

Any additional condition documented in the record that coexists at the time of admission, develops during the stay, or affects patient care and treatment during the encounter.

Related: Principal Diagnosis, Present on Admission Indicator
Present on Admission Indicator

A flag reported on inpatient claims showing whether a diagnosis was present when the patient was admitted, used to distinguish hospital-acquired conditions from preexisting ones.

Related: Hospital-Acquired Condition, Principal Diagnosis
Excludes Note

An instructional note in ICD-10-CM telling the coder that a condition is classified elsewhere or that two codes are required, guiding correct code selection and preventing misclassification.

Related: ICD-10-CM, Includes Note
Includes Note

An instructional note in ICD-10-CM that clarifies the conditions, synonyms, or sites covered by a particular code or category, helping the coder confirm that a code is appropriate.

Related: Excludes Note, ICD-10-CM
Modifier

A two-character code appended to a procedure code that provides additional information about the service, such as a distinct site, laterality, or reduced service, without changing the base code's definition.

Related: Current Procedural Terminology (CPT), Bundling
Evaluation and Management Code

A category of CPT codes used to report patient visits and consultations, selected based on factors such as medical decision making or time rather than the performance of a procedure.

Related: Current Procedural Terminology (CPT), Medical Decision Making
Medical Decision Making

The complexity of establishing a diagnosis and selecting a management option, judged by the number and complexity of problems, the amount of data reviewed, and the risk of complications.

Related: Evaluation and Management Code, Chief Complaint
Bundling

The practice of combining services that are routinely performed together into a single payment, so that separate codes for the component services are not reimbursed individually.

Related: Unbundling, Modifier, National Correct Coding Initiative
Unbundling

Reporting components of a bundled service as separate codes to obtain higher payment, which is generally improper and may be treated as a compliance violation or fraud.

Related: Bundling, National Correct Coding Initiative, False Claims Act
National Correct Coding Initiative

A CMS program that publishes edit pairs identifying code combinations that should not be billed together because they represent overlapping or redundant services.

Related: Bundling, Unbundling, Modifier
Medical Necessity

The determination that a service is reasonable and required for the diagnosis or treatment of a condition, consistent with accepted standards of care and supported by documentation.

Related: Documentation, Advance Beneficiary Notice
Advance Beneficiary Notice

A written notice given to a Medicare beneficiary before a service that may not be covered, informing the patient of possible financial responsibility if the claim is denied.

Related: Medical Necessity, Explanation of Benefits
Explanation of Benefits

A statement from an insurer to a patient and provider showing services billed, the amount allowed, the amount paid, and any patient responsibility such as coinsurance or deductible.

Related: Remittance Advice, Coinsurance, Advance Beneficiary Notice
Remittance Advice

An electronic or paper document from a payer that explains payment decisions on submitted claims, including paid, denied, or adjusted amounts and associated reason codes.

Related: Explanation of Benefits, Claim Denial, Clearinghouse
Clearinghouse

An intermediary that receives claims from providers, checks them for formatting and data errors, and forwards them electronically to the appropriate payer.

Related: Remittance Advice, Claim Scrubbing
Claim Scrubbing

An automated pre-submission review that checks a claim for missing data, invalid code combinations, and formatting problems before it is sent to the payer.

Related: Clearinghouse, Claim Denial
Claim Denial

A payer's refusal to pay a claim, often because of missing authorization, incorrect coding, lack of medical necessity, or eligibility problems, requiring follow-up and possible appeal.

Related: Remittance Advice, Appeal, Medical Necessity
Appeal

A formal request by a provider or patient asking a payer to reconsider a denied or underpaid claim, usually supported by clinical documentation and citing the specific denial reason.

Related: Claim Denial, Medical Necessity
Coinsurance

The share of covered healthcare costs that a patient pays after meeting the deductible, typically expressed as a percentage of the allowed amount.

Related: Deductible, Explanation of Benefits, Copayment
Deductible

The amount a patient must pay out of pocket for covered services before an insurance plan begins to pay its share of the cost.

Related: Coinsurance, Copayment
Copayment

A fixed dollar amount a patient pays at the time of a covered service, such as a set fee for an office visit or prescription.

Related: Coinsurance, Deductible
Relative Value Unit

A numeric value assigned to a service under the Medicare fee schedule that reflects physician work, practice expense, and malpractice cost, used to calculate payment amounts.

Related: Fee Schedule, Current Procedural Terminology (CPT)
Fee Schedule

A list of predetermined payment amounts that a payer will reimburse for specific services, often derived from relative value units and a geographic adjustment factor.

Related: Relative Value Unit, Allowed Amount
Allowed Amount

The maximum amount a payer will recognize as payable for a covered service under its contract, which serves as the basis for calculating payer and patient responsibility.

Related: Fee Schedule, Coinsurance
Hospital-Acquired Condition

A medical condition or complication that develops during a hospital stay and was not present at admission, which may reduce or eliminate payment under federal programs.

Related: Present on Admission Indicator, Medical Necessity
Documentation

The clinical record entries that describe the patient's history, findings, diagnoses, and services provided, which must support the codes reported on a claim.

Related: Medical Necessity, Chief Complaint, Audit Trail
Chief Complaint

The patient's stated reason for seeking care, usually recorded in the patient's own words and used to focus the history and examination.

Related: Documentation, Medical Decision Making
Audit Trail

A chronological record of system activity that tracks who accessed or changed health information and when, supporting accountability and data integrity.

Related: Documentation, Minimum Necessary Standard
Minimum Necessary Standard

A privacy rule requirement that covered entities limit the use, disclosure, and request of protected health information to the least amount needed to accomplish the purpose.

Related: Protected Health Information, Audit Trail
Protected Health Information

Individually identifiable health information held or transmitted by a covered entity or business associate, in any form, that relates to a person's health, care, or payment.

Related: Minimum Necessary Standard, Health Insurance Portability and Accountability Act
Health Insurance Portability and Accountability Act

A federal law that protects the privacy and security of health information, sets standards for electronic transactions, and provides rules for handling breaches.

Related: Protected Health Information, Minimum Necessary Standard
False Claims Act

A federal law that imposes liability on individuals and organizations that knowingly submit false or fraudulent claims to government payers, with penalties and whistleblower provisions.

Related: Unbundling, Medical Necessity
Upcoding

Reporting a service with a code that reflects a higher level or greater payment than the service actually performed, which is a form of fraudulent billing.

Related: Unbundling, False Claims Act, Medical Necessity