--- title: "Category III CPT Codes, Definition | MedTech Terms" description: "Temporary CPT codes for emerging technologies, services, and procedures. Plain-English Reimbursement definition for MedTech teams, with examples and related ter" lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/category-iii-codes#term", "name": "Category III CPT Codes", "description": "Category III CPT codes (T codes) allow data collection on emerging procedures and devices. 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They enable claims tracking and data collection, which can support future reimbursement decisions." } }, { "@type": "Question", "name": "What happens if a Category III code is not converted to Category I within five years?", "acceptedAnswer": { "@type": "Answer", "text": "Category III codes have a five-year sunset provision. If not converted to Category I within this timeframe, the code will expire unless an extension is granted, requiring reapplication if the technology is still in use." } } ] } ] } --- [ MedTech Terms The authoritative reference ](/) Browse Learn [Latest](/latest) About 1. [Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Reimbursement](/terms?cat=Reimbursement) 6. / 7. Category III CPT Codes [All terms](/terms) Reimbursement [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer) # Category III CPT Codes Temporary CPT codes for emerging technologies, services, and procedures. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 5, 2026 ## Definition Category III [CPT codes](/terms/cpt-codes) (T codes) allow data collection on emerging procedures and devices. They sunset after five years unless converted to Category I, but can be extended. What the regulation says The Centers for Medicare & Medicaid Services (CMS) and private payers use Category III [CPT codes](/terms/cpt-codes) for tracking new technologies and services. While they do not assure reimbursement, these codes facilitate data collection essential for assessing efficacy and utilization, which can be a prerequisite for future coverage decisions and conversion to Category I CPT codes. ## What this means in practice Category III codes do not guarantee payment but enable claims tracking and serve as evidence for future Category I applications and coverage decisions. ## Examples - A medical device company launches an innovative surgical robot, and its procedures are initially billed using Category III CPT codes to track patient outcomes and adoption. - A hospital uses a Category III CPT code to report services for a novel diagnostic test, gathering data on its effectiveness and impact on patient care. - A new non-invasive therapy for a chronic condition receives a Category III CPT code, allowing healthcare providers to submit claims and collect utilization data for potential future coverage. Common pitfalls - • A common pitfall is misunderstanding that Category III codes do not guarantee reimbursement, leading to financial planning inaccuracies for new MedTech products. - • Another mistake is neglecting to collect robust data during the Category III period, which can hinder efforts to upgrade to Category I status. - • Companies often fail to monitor the five-year sunset provision, risking the loss of a code before adequate data for conversion is gathered. ## Frequently asked questions What is the primary purpose of Category III CPT codes? The primary purpose is to allow for the tracking and data collection of new and emerging medical technologies, procedures, and services that do not yet meet the requirements for a Category I [CPT](/terms/cpt-codes) code. Do Category III CPT codes assure reimbursement? What happens if a Category III code is not converted to Category I within five years? ## Cross-references ### Part of A larger framework or document this term belongs to. - [ Current Procedural Terminology Codes(CPT) ](/terms/cpt) ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Reimbursement Current Procedural Terminology Codes(CPT) AMA-maintained codes used to report medical procedures and services for billing. ](/terms/cpt)[ Reimbursement National and Local Coverage Determinations(NCD / LCD) Medicare coverage policies issued nationally (NCD) or by individual MAC contractors (LCD). ](/terms/ncd-lcd) ### More in Reimbursement · Same category [ Reimbursement 340B Drug Pricing Program(340B) Federal program providing discounted drugs to safety-net providers. ](/terms/340b)[ Reimbursement Ambulatory Payment Classification(APC) The Medicare grouping system that determines hospital outpatient payment amounts under OPPS, analogous to MS-DRGs for inpatient. ](/terms/apc)[ Reimbursement ASC Site-of-Service Shift Migration of procedures from hospitals to ambulatory surgery centers. ](/terms/asc-shift)[ Reimbursement Budget Impact Model(BIM) Financial model that estimates the total cost consequences of adopting a new technology to a payer's budget over a defined horizon. ](/terms/budget-impact-model) Cited by Where this term appears across MedTech Terms. Ecosystems (1) - [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer) ## Primary references 3 sources Link health: 3 verified · last checked 2026-06-20 AMA· 2 AdvaMed· 1 1. [1 AMA Category III Codes Verified AMA · ama-assn.org ](https://www.ama-assn.org/practice-management/cpt/cpt-category-iii-codes) 2. [2 AdvaMed - Payment & Coverage Verified AdvaMed · advamed.org ](https://www.advamed.org/our-work/) 3. [3 AMA CPT Resources Verified AMA · ama-assn.org ](https://www.ama-assn.org/practice-management/cpt) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Need cybersecurity expertise on a connected-device launch? Blue Goat Cyber helps MedTech teams ship connected products that hospital security teams will actually procure. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Reimbursement Sources 3 Updated 5/5/2026 [Compare with another term](/compare?a=category-iii-codes) Learn in 60 seconds Card Lesson Quiz Temporary CPT codes for emerging technologies, services, and procedures. - · Category III codes do not guarantee payment but enable claims tracking and serve as evidence for future Category I applications and coverage decisions. - · They sunset after five years unless converted to Category I, but can be extended. Remember this Watch out: A common pitfall is misunderstanding that Category III codes do not guarantee reimbursement, leading to financial planning inaccuracies for new MedTech products. Related terms - [Current Procedural Terminology Codes(CPT) ](/terms/cpt) - [National and Local Coverage Determinations(NCD / LCD) ](/terms/ncd-lcd) You may also need Auto-suggested from Reimbursement and shared keywords. - [Category III CPT Code ](/terms/category-iii-cpt) - [CPT Codes(CPT) ](/terms/cpt-codes) - [Coverage with Evidence Development(CED) ](/terms/ced) - [Transitional Pass-Through Payment(TPT) ](/terms/tpt) - [Post-Market Performance Follow-up(PMPF) ](/terms/pmpf) - [Transitional Coverage for Emerging Technologies(TCET) ](/terms/tcet) [All Reimbursement terms](/terms?cat=Reimbursement) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. 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