Medicare requires the use of which coding system for services?

Medicare requires the use of the Healthcare Common Procedure Coding System (HCPCS) for services, as it is specifically designed to describe and code services, supplies, and non-physician providers that are not covered under other coding systems. HCPCS comprises two levels: Level I, which is the CPT coding system used primarily for physician services, and Level II, which includes codes for non-physician services, equipment, and supplies.

The use of HCPCS codes is essential for the claims process, as they help ensure that providers are reimbursed for the services they deliver under Medicare. These codes provide a standardized way to report healthcare services and procedures, improving consistency and clarity within the billing process.

In contrast, the other coding systems mentioned have different specific applications. For example, ICD-10 is primarily used for diagnosis coding, while CPT focuses on coding medical procedures and services performed by healthcare professionals. Diagnosis-Related Groups (DRG) are used for hospital reimbursement related to inpatient stays, not individual service coding directly related to Medicare claims for outpatient services. This shows why HCPCS is the appropriate choice in the context of what Medicare requires for the coding of services.