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CPC key terms

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ICD-10-CM Tabular List

The numeric and alphanumeric classification volume that organizes diagnosis codes by body system and chapter, showing code hierarchy, includes and excludes notes, and required seventh characters.

Related: Alphabetic Index, Excludes1 Note, Seventh Character
Alphabetic Index

The ICD-10-CM volume used to look up a diagnosis by main term first, then subterm, before verifying the code in the Tabular List. Never code from the index alone.

Related: ICD-10-CM Tabular List, Code First
Excludes1 Note

A note stating that two conditions cannot be reported together because they are mutually exclusive; the excluded code is a distinct, unrelated condition rather than a component of the coded condition.

Related: Excludes2 Note, Combination Code
Excludes2 Note

A note indicating that the excluded condition is not part of the condition represented by the code, so both may be reported together when each is documented and clinically relevant.

Related: Excludes1 Note
Seventh Character

An additional character required at certain ICD-10-CM codes to capture episode of care, laterality, or encounter type. Omitting it makes the code invalid and unprocessable.

Related: ICD-10-CM Tabular List, Unspecified Code
Unspecified Code

A code used when documentation does not support a more specific diagnosis. Report it only when the record truly lacks detail, and query the provider rather than guessing.

Related: Physician Query, Seventh Character
Combination Code

A single ICD-10-CM code that fully captures two diagnoses, a diagnosis with an associated manifestation, or a diagnosis with a related complication, replacing the need for multiple codes.

Related: Excludes1 Note, Code First
Code First

An instructional note requiring the underlying condition to be sequenced before the manifestation or complication code, reflecting the causal relationship between the two documented conditions.

Related: Use Additional Code, Combination Code
Use Additional Code

A note directing the coder to report a secondary code that adds detail the primary code does not contain, such as an organism or a manifestation, when documented.

Related: Code First, Principal Diagnosis
Principal Diagnosis

The condition established after study to be chiefly responsible for the inpatient admission. Sequencing it first drives MS-DRG assignment and inpatient payment.

Related: First-Listed Diagnosis, Present on Admission
First-Listed Diagnosis

For outpatient and physician claims, the diagnosis reported first on the claim. It should represent the main reason for the encounter, though it need not be the most severe condition.

Related: Principal Diagnosis, Medical Necessity
Present on Admission Indicator

A flag on inpatient claims showing whether a condition was present when the patient was admitted. Hospitals report it to support quality reporting and payment adjustments for hospital-acquired conditions.

Related: Principal Diagnosis, Hospital-Acquired Condition
CPT Category I Code

A five-digit procedure code for established services and procedures that have met criteria for clinical efficacy and widespread use, maintained by the AMA and updated annually.

Related: CPT Category III Code, HCPCS Level II Code, Add-On Code
CPT Category III Code

A temporary five-character alphanumeric code assigned to emerging technology, services, or procedures without established widespread use, used to gather data for possible future Category I conversion.

Related: CPT Category I Code
HCPCS Level II Code

A five-character alphanumeric code beginning with a letter, used for drugs, supplies, durable medical equipment, and services not represented in CPT, maintained by CMS.

Related: CPT Category I Code, Revenue Code
Add-On Code

A CPT code describing a service always performed with a primary procedure. It is never reported alone and is exempt from multiple procedure reduction rules.

Related: CPT Category I Code, Multiple Procedure Reduction
Global Surgical Package

The bundle of pre-operative, intra-operative, and post-operative services included in a surgical code payment, with postoperative days varying by major versus minor procedure classification.

Related: Modifier 24, Modifier 25, Modifier 57
Modifier 25

Appended to an evaluation and management service to show it was significant, separately identifiable, and above the usual pre- or post-operative care of a procedure performed the same day.

Related: Modifier 24, Global Surgical Package, Evaluation and Management Service
Modifier 24

Reports an unrelated evaluation and management service during the postoperative period of a procedure, indicating the service was not part of the surgical package.

Related: Global Surgical Package, Modifier 25
Modifier 57

Appended to an evaluation and management service when the encounter resulted in the initial decision to perform surgery, removing the service from the global surgical package.

Related: Modifier 25, Global Surgical Package
Modifier 59

Indicates that a procedure or service was distinct and independent from other services on the same day, used to bypass bundling edits when no more specific modifier applies.

Related: National Correct Coding Initiative, Multiple Procedure Reduction
National Correct Coding Initiative

CMS edits that define code pairs generally not reportable together, including procedure-to-procedure and medically unlikely edits, with modifier indicators showing when an override is permitted.

Related: Modifier 59, Multiple Procedure Reduction
Multiple Procedure Reduction

A payment rule reducing fees for the second and subsequent surgical procedures in the same operative session, applied by ranking procedures by allowed amount.

Related: Add-On Code, Modifier 59
Evaluation and Management Service

A CPT category covering cognitive services such as office visits, hospital visits, and consultations, selected by documented history, examination, and medical decision making or time.

Related: Medical Decision Making, Total Time, Modifier 25
Medical Decision Making

The complexity element of E/M selection based on number and complexity of problems addressed, amount of data reviewed, and risk of complications, morbidity, or mortality.

Related: Evaluation and Management Service, Total Time
Total Time

The cumulative minutes on the date of the encounter spent in face-to-face and non-face-to-face activities by the reporting practitioner, used to select E/M level when counseling and coordination dominate.

Related: Medical Decision Making, Evaluation and Management Service
Split/Shared Visit

An encounter in a facility setting where a physician and non-physician practitioner each furnish part of the E/M service; billing rules follow the practitioner who performed the substantive portion.

Related: Incident-To Service, Evaluation and Management Service
Incident-To Service

A service furnished by auxiliary personnel under a physician's direct supervision and billed under the physician's number, allowed only when the service is part of the physician's plan of care.

Related: Split/Shared Visit, Medical Necessity
Medical Necessity

The requirement that services be reasonable and necessary for diagnosis or treatment of illness or injury, judged against accepted standards and the documentation in the record.

Related: Advanced Beneficiary Notice, First-Listed Diagnosis
Advance Beneficiary Notice

A written notice given to a Medicare beneficiary before a service likely to be denied as not medically necessary, shifting financial liability to the patient when properly executed.

Related: Medical Necessity, Local Coverage Determination
Local Coverage Determination

A Medicare contractor policy stating which services are covered and under what clinical conditions in a specific jurisdiction, including covered and non-covered diagnosis lists.

Related: National Coverage Determination, Medical Necessity
National Coverage Determination

A CMS national policy that defines whether and under what circumstances Medicare covers a specific service, applying uniformly across all contractors and jurisdictions.

Related: Local Coverage Determination, Advance Beneficiary Notice
Outpatient Prospective Payment System

The Medicare payment method for hospital outpatient departments and ambulatory surgical centers, assigning services to ambulatory payment classifications with published payment rates.

Related: Ambulatory Payment Classification, Ambulatory Surgical Center
Ambulatory Payment Classification

A grouping of clinically similar outpatient services that share a payment rate under the outpatient prospective payment system, with packaging rules for ancillary items.

Related: Outpatient Prospective Payment System, Revenue Code
Ambulatory Surgical Center

A facility that performs outpatient surgical procedures and is paid under a separate prospective payment system based on covered surgical procedures and device categories.

Related: Outpatient Prospective Payment System, Global Surgical Package
Revenue Code

A four-digit code on the UB-04 claim identifying the type of service or accommodation furnished, paired with HCPCS codes to describe what was provided.

Related: HCPCS Level II Code, Ambulatory Payment Classification
Physician Query

A formal, non-leading communication asking the provider to clarify, specify, or resolve conflicting documentation so the record supports accurate code assignment.

Related: Unspecified Code, Medical Necessity
Hospital-Acquired Condition

A condition that develops during an inpatient stay and was not present on admission. Certain categories trigger reduced Medicare payment for the entire discharge.

Related: Present on Admission Indicator
Upcoding

Reporting a service at a higher level of payment than the documentation supports. It is a compliance violation that can trigger audits, recoupment, and civil or criminal liability.

Related: Medical Necessity, Physician Query