An Update on Medicare's Correct Coding Initiative (April 1999)

April 1999 pages 7-9 Coding Update An Update on Medicare's Correct Coding Initiative On January 1, 1996, the Medicare program implemented its national "Correct Coding Initiative" employing nearly 83,000 code edits in an attempt to eliminate unbundling or other inappropriate reporting of CPT codes. We first addressed this issue in a July 1996 CPT Assistant article. This article will provide an update on the Health Care Financing Administration's activities related to "correct coding" over the past three years. What is the CCI? The Health Care Financing Administration (HCFA) contracts with Administar Federal, Inc, a Medicare carrier in Indiana...

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Note:  The following article synopsis was NOT provided by the AMA. It was created by Find-A-Code/innoviHealth.

Article Overview

This article reviews Medicare’s Correct Coding Initiative as of April 1999, focusing on how coding edits were developed, reviewed, and updated over time. It is relevant to coders, physicians, compliance staff, and reimbursement professionals who need to understand the broader policy context, the organizations involved, and the types of edit revisions discussed for CPT reporting.

Why This Topic Matters

The piece helps readers understand how Medicare’s national edit system evolved, why some edits were challenged or retained, and how professional societies participated in review. It is useful for assessing compliance risk, staying current on quarterly edit updates, and understanding the policy environment around CPT coding and claim edits.

Article Sections

  1. Coding Update

    Introduces the article’s focus on Medicare coding edits and the purpose of the update. It frames the discussion as a status report on correct coding activities over several years.

  2. What is the CCI?

    Explains the structure of Medicare’s national edit system, how it is maintained, and how quarterly updates are issued. It also discusses the scope of edits and the general categories used in the program.

  3. Example of a Correct Coding Edit for Comprehensive Codes

    Presents a sample edit involving CPT codes and illustrates the relationship between the paired services. The section is part of the article’s discussion of how comprehensive and component edits are organized.

  4. Example of a Correct Coding Edit for Mutually Exclusive Codes

    Provides a sample mutually exclusive edit using CPT codes and shows how the article categorizes a second type of edit. It supports the broader explanation of edit review and claim reporting.

  5. Modifier - 59

    Describes the modifier discussed in connection with the edit examples and places it in the context of distinct services. The section also notes an alternative modifier code referenced by the article.

  6. The Correct Coding Policy Committee

    Outlines the committee structure and the roles of specialty societies, advisory groups, and other participants in edit review. It explains how stakeholder input is gathered before implementation.

  7. Phase I

    Summarizes the first phase of the initiative and the review of the initial edit set. It describes the committee and specialty society response to early edits.

  8. Phase II and Phase III

    Covers later phases of review for additional proposed edits and references CPT update years. The section focuses on the general treatment of proposed edits during those periods.

  9. Phase IV

    Discusses a later wave of proposed edits, the review process, and the timing of scheduled implementation. It also notes the relationship between the edits and claim data analysis.

  10. Phase V

    Addresses planned future coding changes and pending review activity. It mentions timing considerations and the anticipated handling of additional edits.

  11. Proprietary Coding Edits

    Compares public Medicare edit processes with proprietary editing software and discusses concerns about confidentiality and access. The section also covers carrier implementation and review limitations.

  12. Other Information

    Provides contact and ordering information for related reference materials and carrier resources. It serves as a closing administrative section with practical reference details.

What You Will Learn

  • How Medicare’s Correct Coding Initiative is organized and updated
  • Which organizations and committees participate in edit review
  • How the article distinguishes broad categories of edit relationships
  • How the article frames the role of CPT modifiers in edit examples
  • What the article says about public versus proprietary coding edit systems
  • How the update fits into the 1999 timeframe for coding policy changes

Who Should Read This

  • Medical coders
  • Physician practices
  • Compliance staff
  • Billing and reimbursement professionals
  • Health care administrators
  • Specialty society coding staff

Codes Discussed

Modifiers Discussed


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