California has historically used thousands of HCPCS Level III or local codes (also known as interim codes) for billing and reimbursement of services and supplies. National codes, such as Current Procedural Terminology (CPT®) Category I or HCPCS Level II codes, are typically more specific in nature compared to local codes. Using HIPAA-compliant national codes will:
- Simplify the processes and decrease the costs associated with payment for health care services;
- Improve the efficiency and effectiveness of the health care system and decrease administrative burdens on providers (for example, medical practices, hospitals and health care plans);
- Provide standardization and consistency in medical service coding; and
- Characterize a general administrative situation, rather than a medical condition or service, by using non-clinical or non-medical code sets.