Glossary · Updated Jul 4, 2026
HCPCS (Healthcare Common Procedure Coding System)
HCPCS is the code set Medicare uses to identify procedures, services, supplies, and drugs. It has two levels: Level I is the CPT code set, and Level II is a set of alphanumeric codes maintained by CMS for items not covered by CPT.
Level I vs Level II
Level I HCPCS codes are the numeric CPT codes used for most physician services. Level II codes are alphanumeric (a letter followed by four digits) and cover things like drugs, durable medical equipment, ambulance services, and supplies. Level II descriptions are maintained by CMS and are freely usable; CPT descriptions are maintained by the AMA.
How it relates to the fee schedule
The Physician Fee Schedule assigns RVUs and a status indicator to HCPCS codes at both levels where the service is a physician or practitioner service. Our code pages accept either a numeric CPT code or an alphanumeric Level II code.
Frequently asked
What is the difference between HCPCS and CPT?
CPT is Level I of HCPCS. When people say “HCPCS codes” they often mean the Level II alphanumeric codes (like J-codes for drugs), but technically CPT is part of HCPCS too.
Are HCPCS Level II descriptions free to use?
Yes — Level II codes and descriptions are maintained by CMS and are not subject to AMA licensing.
Related
Sources
Written from primary CMS sources — see how we source, compute, and verify everything on this site.