Q:

What are Medicare billing codes?

A:

Quick Answer

Medicare billing codes are numbers that designate diagnostic, medical and surgical procedures, as well as products, that medical practitioners can provide for Medicaid patients. Health care providers use these codes when invoicing costs for a covered patient's treatment.

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Full Answer

The use of standardized codes provides consistency across all Medicare providers and ensures that all providers receive the same reimbursement rate for each service. Level I codes apply to services that physicians provide, while Level II codes apply to services from other providers such as device suppliers and ambulance services.

The Centers for Medicare and Medicaid pays a fixed dollar amount for each code. Medicare bundles codes together for some standard procedures that commonly use the same products and services .

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