Which system was developed by CMS for classifying medical procedures and services?

The system developed by the Centers for Medicare & Medicaid Services (CMS) for classifying medical procedures and services is the Healthcare Common Procedure Coding System, commonly known as HCPCS. This coding system is integral to the healthcare reimbursement process and includes codes for a variety of services, such as medical procedures, equipment, and supplies that are not included in the Current Procedural Terminology (CPT) coding system.

HCPCS is composed of two levels. Level I consists of the CPT codes, which are maintained by the American Medical Association, while Level II codes are specifically designed and maintained by CMS to address services and products not covered by CPT, such as ambulance services and durable medical equipment. This dual-level structure allows for a comprehensive classification of services and ensures proper billing and reimbursement processes.

Understanding the role of HCPCS is crucial for professionals involved in the prior authorization process, as it directly impacts the way services are reported and authorized for coverage by Medicare and Medicaid.