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HCFA Common Procedural Coding System

A medical code set that identifies health care procedures, equipment, and supplies for claim submission purposes. It is maintained by HCFA, and has been selected for use in the HIPAA transactions. HCPCS Level I contains numeric CPT-4 codes which are maintained by the AMA. HCPCS Level II contains alphanumeric codes used to identify various items and services that are not included in the CPT-4 code set. These are maintained by HCFA, BCBSA, and HIAA. HCPCS Level III contains alphanumeric codes that are assigned by Medicaid State agencies to identify additional items and services not included in levels I and II. These are usually called "local codes," and must have "W", "X", "Y", or "Z" in the first position. They are not named as HIPAA standard codes. HCPCS Procedure Modifier Codes can be used with all three levels, with the WA-ZY range used for locally assigned procedure modifiers.

Definition reproduced with permission of FOX Systems Inc. and HIPAA Consulting.

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