What Is CPT Coding?

If the jargon used by doctors and insurance companies wasn't enough to leave the average person in a state of confusion, the health-care industry reduces all of its diagnoses and procedures into a uniform code to help ensure that information is transcribed correctly. In reality, the Current Procedural Terminology, or CPT, is a very useful tool for streamlining the medical information technology field, allowing the use of computers and the increase of efficiency.

Identification

• CPT coding is a set of numbers used to identify medical procedures and services. A single CPT code is five numeric digits ranging from 00100 through 99499, to which a two-digit modifier can be appended to modify or describe variations. In all, there are over 7,800 CPT codes to describe the medical, surgical, radiology, laboratory, anesthesiology and evaluation/management services of physicians, hospitals and other health-care providers.

Function

• CPT was developed by the American Medical Association (AMA) in 1966 to provide uniformity to medical records and other communications between doctors, hospitals, patients and third parties like insurers. CPT code is the unique language of the health-care industry, and is used at every stage from diagnosis to treatment and billing. It can be quite specific; for example, there are 13 different codes for influenza vaccination, relating to different types of the vaccine and its use.

Types

• CPT is the most common form of medical coding, but it is not the only one. The Physician's Current Procedural Terminology Specially Annotated for Hospitals version contains all the information in the original CPT, plus special guidelines and notation specific to Medicare eligibility and outpatient billing. As new health-care practices develop, the AMA publishes and copyrights new codes, possibly revising or discarding obsolete codes. It is estimated that the AMA takes in $70 million annually through the sale of software, books and manuals related to CPT coding that are needed by medical professionals.

Significance

• Knowledge of CPT coding can be an essential prerequisite to work in the medical field, even in an entry-level position in a doctor's office. A certificate in CPT coding can be a powerful credential to open doors to a health-care industry career. Understanding the code is especially important for employees of records, billing and insurance firms, who don't possess any medical training but rely on their knowledge of the code for their work.

Facts

• The average salary for an entry-level coder or reimbursement specialist was approximately $30,000 in 2003, with some facilities offering higher salaries to highly trained individuals with experience and certification. The U.S. Department of Labor has projected that the overall number of careers in medical information technology will have increased by almost 50 percent between 2003 and 2010. CPT coders are one of the major components of this fast-growing job market.