Final answer:
Procedure codes, such as CPT codes, are used to describe medical services and procedures performed. They are included on the claim to facilitate billing and reimbursement processes. ICD codes, on the other hand, provide contextual information about the patient's health condition.
Step-by-step explanation:
Procedure codes that are being billed on a claim are typically referred to as Current Procedural Terminology (CPT) codes. These codes are used to describe medical services and procedures performed by healthcare providers. They provide a standardized way to communicate the specific services provided to patients and are essential for billing and reimbursement processes. For example, if a patient undergoes a surgical procedure such as a knee replacement, the CPT code for that particular procedure, such as CPT code 27447, would be included on the claim. This code helps the insurance company understand exactly what procedure was performed and enables them to determine the appropriate reimbursement amount. Another type of code that could be included on the claim is an International Classification of Diseases (ICD) code. These codes are used to identify and classify diseases, injuries, and other health conditions. Although they are not procedure codes, ICD codes provide important contextual information to support the medical necessity of the services being billed.