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HCPCS Level II Coding

Each year, in the United States, health care insurers process over 5 billion claims for payment. For Medicare and other health insurance programs to ensure that these claims are processed in an orderly and consistent manner, standardized coding systems are essential. The HCPCS Level II Code Set is one of the standard code sets used for this purpose. The HCPCS is divided into two principal subsystems, referred to as level I and level II of the HCPCS.

Level I of the HCPCS is composed of CPT (Current Procedural Terminology), a numeric coding system maintained by the American Medical Association (AMA). The CPT is a uniform coding system consisting of descriptive terms and identifying codes that are used primarily to identify medical services and procedures furnished by physicians and other health care professionals. These health care professionals use the CPT to identify services and procedures for which they bill public or private health insurance programs. Decisions regarding the addition, deletion, or revision of CPT codes are made by the AMA. The CPT codes are republished and updated annually by the AMA. Level I of the HCPCS, the CPT codes, does not include codes needed to separately report medical items or services that are regularly billed by suppliers other than physicians.

Level II of the HCPCS is a standardized coding system that is used primarily to identify products, supplies, and services not included in the CPT codes, such as ambulance services and durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) when used outside a physician's office. Because Medicare and other insurers cover a variety of services, supplies, and equipment that are not identified by CPT codes, the level II HCPCS codes were established for submitting claims for these items. The development and use of level II of the HCPCS began in the 1980's. Level II codes are also referred to as alpha-numeric codes because they consist of a single alphabetical letter followed by 4 numeric digits, while CPT codes are identified using 5 numeric digits.

HCPCS is a system for identifying items and services. It is not a methodology or system for making coverage or payment determinations, and the existence of a code does not, of itself, determine coverage or non-coverage for an item or service. While these codes are used for billing purposes, decisions regarding the addition, deletion, or revision of HCPCS codes are made independent of the process for making determinations regarding coverage and payment. The coding system is not a methodology for making coverage or payment determinations. Each payer makes determinations on coverage and payment outside this coding process.

National codes also include "miscellaneous/not otherwise classified" codes. These codes are used when a supplier is submitting a bill for an item or service and there is no existing national code that adequately describes the item or service being billed. The importance of miscellaneous codes is that they allow suppliers to begin billing immediately for a service or item as soon as it is allowed to be marketed by the Food and Drug Administration (FDA) even though there is no distinct code that describes the service or item. A miscellaneous code can be used during the period of time a request for a new code is being considered under the HCPCS review process.

The use of miscellaneous codes also helps us to avoid the inefficiency and administrative burden of assigning distinct codes for items or services that are rarely furnished or for which we expect to receive few claims.

Because of miscellaneous codes, the absence of a specific code for a distinct category of products does not affect a supplier's ability to submit claims to private or public insurers and does not affect patient access to products. Claims with miscellaneous codes are manually reviewed, the item or service being billed must be clearly described, and pricing information must be provided along with documentation to explain why the item or service is needed by the beneficiary.

Application to Lymphedema Garments

In theory, lymphedema compression garment systems, compression garments and compression devices are coverable as Prosthetic Devices under Medicare (Medicare Benefit Policy Manual, CMS Publication 100-02, Chapter 15, Section 120), In practice, they are denied as uncovered. Part of the process of making a claim that can be disputed is the assignment of a HCPCS Code describing the item. Furthermore, the code selected must be one that the Medicare Contractor's computer must accept into the system.

The following codes have been used for insurance billing of lymphedema garments:
 A4465Non-elastic binder for extremity (Reid Sleeve)
 A6531Graduated Compression Stockings, Below Knee, 30-40 mmHg
 A6532Graduated Compression Stockings, Below Knee, 40-50 mmHg
 A6542Gradient Compression Stocking, Custom Made
 A6543Gradient Compression Stocking, Lymphedema
 A6545Grad. Compr. Wrap, Non-Elastic, Below Knee, 30-50mmHg (CircAid)
 A6549Gradient Compression Stocking/Sleeve Not Otherwise Specified
 E0676Intermittent Limb Compression Device (Includes all Accessories) NOS
 E1399DME NOS (Reid Sleeve, CircAid, Farrow Wrap, Jobst Sleeve)
 L2999Lower Extremity Garment
 L3912Flex Glove w/ elastic finger
 L3999Gauntlet with Fingers, Upper Extremity Garment
 L7499Upper Extremity Prosthesis Not Otherwise Specified
 L8010Compression Sleeve
 L8220Compression Sleeve
 L8239Gradient Compression Stocking NOS, (Arm Sleeve w/ Shoulder Strap)
 L8499Unlisted Procedure for Miscellaneous Prosthetic Services
 L9900Orthotic and Prosthetic Supply, Accessory and/or Service Component

Special HCPCS Medicare Non-Covered Insurance Codes
 S8420Gradient pressure aid (sleeve and glove combination), custom made
 S8421Gradient pressure aid (sleeve and glove combination), ready made
 S8422Gradient pressure aid (sleeve), custom made, medium weight
 S8423Gradient pressure aid (sleeve), custom made, heavy weight
 S8424Gradient pressure aid (sleeve), ready made
 S8425Gradient pressure aid (glove), custom made, medium weight
 S8426Gradient pressure aid (glove), custom made, heavy weight
 S8427Gradient pressure aid (glove), ready made
 S8428Gradient pressure aid (gauntlet), ready made
 S8429Gradient pressure exterior wrap
 S8430Padding for compression bandage, roll
 S8431Compression bandage, roll

HCPCS Codes for Intermittent Compression Devices and Pneumatic Garments
 E0650Pneumatic compressor, non-segmental home model
 E0651Pneumatic compressor, segmental home model without calibrated gradient pressure
 E0652Pneumatic compressor, segmental home model with calibrated gradient pressure
 E0655Non-segmental pneumatic appliance for use with pneumatic compressor, half arm
 E0656Segmental pneumatic appliance for use with pneumatic compressor, trunk
 E0657Segmental pneumatic appliance for use with pneumatic compressor, chest
 E0660Non-segmental pneumatic appliance for use with pneumatic compressor, full leg
 E0665Non-segmental pneumatic appliance for use with pneumatic compressor, full arm
 E0666Non-segmental pneumatic appliance for use with pneumatic compressor, half leg
 E0667Segmental pneumatic appliance for use with pneumatic compressor, full leg
 E0668Segmental pneumatic appliance for use with pneumatic compressor, full arm
 E0669Segmental pneumatic appliance for use with pneumatic compressor, half leg
 E0670Segm. Pneu. Appl. for use with pneumatic compressor, integrated, 2 full legs and trunk
 E0671Segmental gradient pressure pneumatic appliance, full leg
 E0672Segmental gradient pressure pneumatic appliance, full arm
 E0673Segmental gradient pressure pneumatic appliance, half leg
 E0675Pneu. Compr. device, high pressure, rapid inflation/deflation cycle, for arterial insufficiency (unilateral or bilateral system)
 E0676Intermittent limb compression device (includes all accessories), not otherwise specified