Extension of HCPCS Level III codes

The use of HCPCS Level III (local codes) has been extended until December 31, 2003. The Centers for Medicare & Medicaid has determined that the term, HCPCS Level III codes, as used in the Medicare, Medicaid, and State Child Health Insurance Programs (S-CHIP) Benefits Improvement and Protection Act (BIPA) provision, applies to both the codes that Medicare has approved for local contractor use and to the local codes that state Medicaid agencies and SCHIP programs have developed and used for their own purposes. Therefore, the facilities may continue to use local codes on services provided through December 31, 2003...

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Note:  The following article synopsis was NOT provided by the AHA. It was created by Find-A-Code/innoviHealth.

Article Overview

This article covers a time-limited extension affecting HCPCS Level III local codes in Medicare, Medicaid, and S-CHIP-related contexts. It is relevant to coders, billing staff, and facility compliance teams who need to understand the scope of the extension, which programs are affected, and the general transition from local to standard national HCPCS codes. The article also highlights that the extension is limited in scope and may vary by area.

Why This Topic Matters

Readers need to know whether local code usage remains permitted for a defined period and which public programs are covered. This helps support compliance and reduce disruption during the move to national HCPCS coding.

What You Will Learn

  • The scope of the temporary extension for local HCPCS code use
  • Which public programs are affected by the extension
  • The general transition from local codes to national HCPCS codes
  • Why local verification may still be necessary by area or program

Who Should Read This

  • Medical coders
  • Billing staff
  • Revenue cycle teams
  • Compliance staff
  • Facility administrators

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The AHA Coding Clinic for HCPCS includes:

  • The official publication for Level I HCPCS (CPT-4 codes) for hospital providers
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