Implementation delay: 2002 HCPCS code changes

The Centers for Medicare & Medicaid Services (CMS) issued Program Memorandum A-01-145 on December 21, 2001. This transmittal delays the 2002 update to the Outpatient Prospective Payment System (OPPS). More importantly, it delays implementation of the 2002 HCPCS changes. This delay applies to both level I (CPT-4) and level II HCPCS codes. Hospitals and Community Mental Health Centers should continue to use the 2001 HCPCS codes and definitions when billing for outpatient services rendered to Medicare beneficiaries on or after January 1, 2002. This directive applies to the following types of bills: Hospital Inpatient Part B (12X), Hospital Outpatient...

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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 CMS program memorandum that delayed implementation of the 2002 HCPCS update for certain Medicare outpatient claims. It is relevant to hospital coders, outpatient billing staff, and compliance teams who need to understand which billing settings were affected, which services were excluded from the delay, the effective timing discussed in the notice, and the large set of impacted HCPCS identifiers.

Why This Topic Matters

It helps readers determine whether Medicare outpatient claims should follow the older or newly updated HCPCS code set during the transition period. The article is especially useful for facilities and billing teams that needed to avoid claim processing issues related to the delayed update.

Article Sections

  1. CMS program memorandum and implementation delay

    Summarizes the CMS action that postponed the 2002 outpatient payment update and the related HCPCS implementation timing. It also notes the general Medicare outpatient billing context addressed by the notice.

  2. Affected bill types and services

    Describes the types of claims and outpatient services covered by the delay notice. This section also identifies categories that were not affected by the change.

  3. Effective date and processing impact

    Addresses the timing referenced in the notice and the claim-processing implications during the delay period. It explains the article’s discussion of system recognition and payment handling at a broad level.

  4. New HCPCS codes affected by the delay

    Provides the long list of HCPCS identifiers associated with the implementation delay. The list spans multiple HCPCS categories and code families.

What You Will Learn

  • What CMS guidance changed the timing of the 2002 HCPCS update
  • Which broad Medicare outpatient billing categories were affected
  • Which types of claims and services were discussed in relation to the delay
  • How the article frames the transition from the older code set to the updated one
  • Which HCPCS identifier families are included in the notice

Who Should Read This

  • Hospital outpatient coders
  • Medicare billing staff
  • Revenue cycle professionals
  • Compliance teams
  • Community Mental Health Center billing staff

Codes Discussed


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The AHA Coding Clinic for HCPCS includes:

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