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The Healthcare Common Procedure Coding System is based on the American Medical Association's Current Procedural Terminology (CPT). Used for reporting physician services for Medicare. Commonly pronounced Hix-Pix. HCPCS includes three levels of codes. Level I consists of the American Medical Association's Current Procedural Terminology (CPT) and is numeric. Level II codes are alphanumeric and primarily include non-physician services such as ambulance services. Level III consists of local codes for state Medicaid agencies.

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