Program_Memos / 2002 / AB-02-005

Why This Topic Matters

Organizations that maintain Medicare claims processing systems needed this guidance to align local code inventories with federal standardization efforts and to meet required implementation dates. It also helps readers understand the administrative workflow CMS expected for identifying, reviewing, and retiring non-national codes.

Article Sections

1. Overview

   Introduces the CMS memorandum and the broader policy context for standardizing procedure coding under HIPAA-related requirements.

2. Part I — Elimination of Unapproved Local Codes/Modifiers

   Covers the handling of unapproved local procedure and modifier codes, including review, cleanup, and reporting activities for contractors and regional offices.

3. Part II — Elimination of Official HCPCS Level III Local Codes/Modifiers

   Addresses the planned phase-out of official HCPCS Level III local codes and modifiers, including the general transition timeline and related coordination steps.

4. Part III — Regional Office Confirmation

   Describes the confirmation and reporting responsibilities assigned to regional office staff for tracking code elimination progress.