What You Need to Know About Medical Codes
What Are Medical Codes?
Medical codes are the way doctors and other healthcare professionals describe medical diagnoses and treatments. These codes are important for understanding how medical billing works and can affect what you pay and what is covered under your health insurance.
Why Are They Important?
The insurance companies who provide your health coverage are often called health plans. Healthcare providers, such as doctors, submit claims to health plans to ask for payment. They use medical codes to show the health plans the services they gave to patients. Health plans use the codes to review whether the services were needed and to decide how much to pay the healthcare providers for their work. If your healthcare providers or health plan make a coding error, your health plan could deny your claim, or you might have to pay more out of pocket.
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