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Reimbursement [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer)HCPCS 

# HCPCS Codes

CMS-maintained codes for products, supplies, and services not in CPT.

Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 5, 2026 

## Definition

Healthcare Common Procedure Coding System Level II codes describe products, supplies, drugs, and services not included in  [CPT](/terms/cpt-codes) - durable medical equipment, prosthetics, orthotics, supplies ( [DMEPOS](/terms/dmepos)), and physician-administered drugs (J-codes). 

What the regulation says

HCPCS codes are maintained by the Centers for Medicare & Medicaid Services (CMS) and are essential for billing medical devices and services to Medicare, Medicaid, and other insurers. While not directly a regulatory requirement for medical device approval, accurate HCPCS coding is crucial for market access and reimbursement in the United States, as outlined in CMS guidance. 

## What this means in practice

DME, supplies, and many home-use medical devices are billed under HCPCS. Code assignment, coverage, and pricing are coordinated through CMS quarterly and annual updates. 

## Examples

-   A manufacturer of a new type of wound dressing must identify the appropriate HCPCS code to ensure their product can be billed to Medicare beneficiaries.
-   A MedTech company developing a novel home-use diagnostic device needs to obtain a specific HCPCS code or ensure their device fits an existing code for reimbursement.
-   A provider billing for a physician-administered drug, a J-code, uses HCPCS codes to get reimbursement from health insurance payers.

Common pitfalls

-   • Misinterpreting HCPCS code descriptions can lead to claim denials and payment delays. 
-   • Failing to regularly check CMS updates for HCPCS codes can result in using outdated or incorrect codes. 
-   • Assuming a HCPCS code guarantees reimbursement without verifying coverage policies of specific payers is a common mistake. 
-   • Coding medical devices with generic HCPCS codes when more specific, product-specific codes exist can lead to lower reimbursement or scrutiny. 
-   • Not understanding the difference between HCPCS Level I (CPT) and Level II codes can result in incorrect billing practices. 

## Frequently asked questions

What is the primary purpose of HCPCS Level II codes? 

HCPCS Level II codes primarily describe products, supplies, drugs, and services not included in  [CPT codes](/terms/cpt-codes), such as durable medical equipment, prosthetics, orthotics, and physician-administered drugs. 

Who is responsible for maintaining HCPCS codes? 

How do HCPCS codes impact market access for MedTech companies? 

## Cross-references

### See also

Closely related context worth reading.

-   [
    
    Current Procedural Terminology Codes(CPT) 
    
    
    
    ](/terms/cpt)

## Related terms

Grouped by theme 

### Editor's picks

· Hand-selected related concepts 

[

Reimbursement

CPT Codes(CPT) 

AMA-maintained codes that describe medical procedures and services.





](/terms/cpt-codes)

### Reimbursement & Market Access

· From this learning path 

[

Reimbursement

ICD-10-CM / ICD-10-PCS

Diagnosis (CM) and inpatient procedure (PCS) coding systems used in U.S. claims.

Adjacent lesson 

](/terms/icd-10?from=reimbursement-and-market-access)[

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?from=reimbursement-and-market-access)[

Reimbursement

Current Procedural Terminology Codes(CPT) 

AMA-maintained codes used to report medical procedures and services for billing.





](/terms/cpt?from=reimbursement-and-market-access)[

Reimbursement

Health Technology Assessment(HTA) 

Systematic evaluation of clinical and economic value of a health technology.





](/terms/hta?from=reimbursement-and-market-access)

### More in Reimbursement

· Same category 

[

Reimbursement

LCD and NCD

Local and National Coverage Determinations from Medicare.





](/terms/lcd-ncd)[

Reimbursement

Medicare Administrative Contractor(MAC) 

Private contractors that process Medicare Part A/B and DME claims and issue Local Coverage Determinations within their jurisdictions.





](/terms/mac)[

Reimbursement

National and Local Coverage Determinations(NCD / LCD) 

Medicare coverage policies issued nationally (NCD) or by individual MAC contractors (LCD).





](/terms/ncd-lcd)

Cited by

Where this term appears across MedTech Terms.

Learning paths (1)

-   [Reimbursement & Market Access](/paths/reimbursement-and-market-access)Lesson 3 of 14 

Ecosystems (1)

-   [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer)

## Primary references

3 sources 

Link health:  3 verified · last checked 2026-06-20 

CMS· 1 AdvaMed· 1 AMA· 1 

1.  [1 
    
    CMS HCPCS
    
    Verified 
    
    CMS · cms.gov 
    
    
    
    ](https://www.cms.gov/medicare/coding/medhcpcsgeninfo)
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.

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On this term

Category

Reimbursement

Acronym

HCPCS

Sources

3

Updated

5/5/2026

[Compare with another term](/compare?a=hcpcs)

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Card Lesson Quiz

CMS-maintained codes for products, supplies, and services not in CPT.

-   · DME, supplies, and many home-use medical devices are billed under HCPCS. 
-   · Code assignment, coverage, and pricing are coordinated through CMS quarterly and annual updates. 

Remember this

Watch out: Misinterpreting HCPCS code descriptions can lead to claim denials and payment delays.

Related terms

-   [CPT Codes(CPT) ](/terms/cpt-codes)

You may also need

Auto-suggested from Reimbursement and shared keywords.

-   [Durable Medical Equipment, Prosthetics, Orthotics, and Supplies(DMEPOS) ](/terms/dmepos)
-   [ICD-10-CM / ICD-10-PCS ](/terms/icd-10)
-   [Current Procedural Terminology Codes(CPT) ](/terms/cpt)
-   [Prior Authorization ](/terms/prior-authorization)
-   [340B Drug Pricing Program(340B) ](/terms/340b)
-   [Category III CPT Code ](/terms/category-iii-cpt)

[All Reimbursement terms](/terms?cat=Reimbursement)

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