HCPCS Level I and Level II codes differ in which way?

• A. Level I codes are CPT; Level II codes cover products and services not in CPT
• B. Level I codes relate to diagnoses; Level II relate to procedures
• C. Level I are hospital codes; Level II are physician codes
• D. Level I are for medications; Level II are for imaging

Answer: (A)

HCPCS is split into two levels to separate what is billed as procedures and services from items and supplies that aren’t captured by those procedure codes. Level I codes are the CPT codes, which specifically describe medical procedures and physician services. Level II codes, on the other hand, cover products, supplies, and certain services that aren’t included in CPT—things like durable medical equipment, prosthetics, ambulance services, vaccines, and many drugs. This setup allows billing to reflect both the service performed and the non-procedural items used, which is why the statement that Level I codes are CPT and Level II codes cover products and services not in CPT is the correct distinction. (Diagnoses are coded with ICD-10-CM, not HCPCS.)