Practice Management

How Often Are CPT Codes Updated?

How Often Are CPT Codes Updated?

11 Jan 2022
5 min
How Often Are CPT Codes Updated?

Healthcare providers use CPT (Current Procedural Terminology) codes to bill insurance companies for services rendered. Each year, the American Medical Association (AMA) updates and maintains these codes.

The AMA releases a new set of codes each October, which take effect on January 1st of the following year. In addition to the annual update, there may also be occasional interim updates throughout the year. For example, the addition of new codes or revisions to existing codes.

It is, therefore, essential to stay up-to-date with the latest changes by regularly checking the AMA website or subscribing to their CPT updates.

Curious about the frequency of updates for CPT codes? Keep reading to discover all the details about finding CPT codes and their updates!

What Are CPT Codes?

CPT codes are five-digit codes used by healthcare providers to describe the procedures and services they provide to patients. As previously mentioned, they are developed and maintained by the AMA.

Insurance companies and government programs use these codes to reimburse providers for their services. Both inpatient and outpatient settings use CPT codes and cover various procedures and services. For example:

  • Surgical procedures
  • Diagnostic tests
  • Office visits

Each CPT code corresponds to a specific procedure or service. It helps to standardize the billing process across different providers and insurance companies. AMA updates CPT codes annually to keep up with advances in medical technology and changes in the healthcare landscape.

They are an essential part of the medical billing process, and it makes sure that healthcare providers are paid correctly for the services they provide. Currently, there is a 2023 CPT code set in play.

Further Reading:

Why Use CPT Codes?

Another critical aspect of CPT codes is that they determine the patient's level of care.

The codes classify procedures and services according to their complexity and the skill level required to perform them. Insurance companies use this information to determine the reimbursement level. It also helps providers understand which procedures and services the insurance covers.

CPT codes also play a crucial role in the quality of care provided to patients. The codes track the services given to patients, which helps providers to identify patterns and trends in their practice. This information can improve the quality of care by identifying areas that need improvement.

Why Are CPT Codes Updated Regularly?

CPT codes are often updated to convey changes in medical technology, procedural changes, and services. They also cover shifts in reimbursement policies.

The AMA changes the codes annually to ensure they are still accurate and reflect how the treatment is done. In addition, the Centers for Medicare and Medicaid Services (CMS) may also ask for changes to codes to make them fit with their reimbursement policies.

How to Stay Up to Date With CPT Changes

In the medical field, you must stay up-to-date with CPT code changes to be reimbursed correctly for your services. But how do you do this? To keep up-to-date with CPT code changes, you can:

Having a system to track and implement code changes within your practice is also essential.

CPT Impact Outside Emergency Medicine

CPT codes are not just used in emergency medicine. Medical services use these codes in all areas of healthcare. The CPT codes for office or other outpatient consultations

  • Primary care
  • Surgical specialties
  • Radiology and laboratory services

As a result, all healthcare practitioners need to maintain awareness regarding changes to CPT codes. This is critical if you want to be reimbursed correctly.

Challenges Around Using the Correct Code

One of the biggest challenges in using CPT codes is ensuring coding accuracy. Incorrectly coding a service can result in the following:

  • Denied claims
  • Lost revenue
  • Potential legal issues

The frequent code changes can also make it difficult for providers to keep up with the latest codes. Therefore, as a provider, you must always use the correct codes for each service.

What CPT Codes Require a QW Modifier

CPT codes considered "qualifying laboratory" tests require the QW modifier. This modifier indicates that the test was performed in a laboratory that meets the Clinical Laboratory Improvement Amendments (CLIA) regulations.

The QW modifier must be added to the CPT code when billing for the laboratory test. These codes are for laboratory tests such as:

  • Blood tests
  • Urine analysis
  • Other diagnostic laboratory procedures

It is important to note that not all CPT codes require a QW modifier, only those considered "qualifying laboratory" tests.

What If There Is No CPT Code For a Treatment?

A provider can use unlisted CPT codes to charge for unlisted operations or services. You use these codes when a process or service does not have a CPT code, or a new procedure or service has been established.

A provider using an unlisted CPT code must describe the treatment or operation and include supporting evidence, including:

  • Radiological pictures
  • Surgical reports
  • Other medical documents

Based on the documents, insurance companies will analyze the claim and decide the proper payout. However, unlisted codes may have less predictable reimbursement than designated codes.

What Is the Difference Between CPT and ICD Codes?

CPT codes and ICD (International Classification of Diseases) codes are both codes used in the medical billing process, but they serve different purposes.

CPT codes describe the procedures and services that healthcare providers perform. For example, as mentioned above, providers use CPT codes to determine reimbursement from insurance companies and government programs.

ICD codes, however, describe medical diagnoses and conditions. They help classify and track diseases and injuries for reporting and research purposes.

ICD codes are more diagnostic codes, and CPT codes are more therapeutic codes. Simply put, ICD codes describe the problem, and CPT codes describe the treatment. Both codes are essential for accurate billing, reimbursement, and healthcare data tracking.

Further Reading:

Always Keep Up to Date With Your CPT Codes

So, now you understand "how often are CPT codes updated." You also know that CPT codes are essential for healthcare providers to bill insurance companies for services rendered and for accurate reimbursement for the services they provide.

They also play a crucial role in determining the level of care a patient receives and tracking patterns and trends in the practice. Therefore, healthcare providers must stay up-to-date with the latest codes to ensure they are using the correct codes and avoid lost revenue.

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