Every year in health care insurers in the US process more than 5 billion claims to receive payment. Nobody wants to be over-billed, and professionals in the medical field, whether they are doctors, hospitals or oxygen concentrator manufacturers, need to be paid fairly. For this reason, a standardized code set had to be established to make sure they claims can be processed smoothly, quickly and efficiently, with no errors.
What are HCPCS Codes?
All insurance companies, including Medicaid and Medicare, use HCPCS codes to identify what classification of medical supply or service is being paid for. These codes are used used across the board, and were developed by the Centers for Medicaid and Medicare Services (CMS), and are described as Category II procedure codes.
These codes are separate from the CPT codes, mainly since the prescribed use of oxygen concentrators is a newer thing. CPT codes are part of category I codes, which include ambulance services and durable medical equipment, prosthetics, orthotics, and supplies when these things are used outside of a doctor's office or hospital.
These alpha-numeric codes make it much easier to bill a medical service or supply, than if they tried to write down the names for these things. The longer a description is, the more room there is for error. These codes are composed of 5 letters and numbers, usually starting with a letter.
All HCPCS codes fall under categories, so they can be identified and located much easier than if they were scattered around and coded randomly. The products we sell here at here at American Medical fall under the category of Positive Airway Pressure and Oxygen Therapy Devices.
What are the HCPCS Codes for Oxygen Concentrators?
The classification of these codes are broken down even more by how much oxygen they can deliver. An Oxygen Concentrator, Single Delivery Port, Capable Of Delivering 85 Percent Or Greater Oxygen Concentration At The Prescribed Flow Rate, has a HCPCS code of E1390.
If you were to purchase a portable oxygen concentrator, the code would be E0433. If you were to just rent a portable oxygen concentrator, the code would be E1392. If you were to purchase a stationary oxygen concentrator that fills its own portable cylinders, the code would be K0738. There are also others, for more specific break downs of the different types of equipment, which would effect how much they cost.