General Information Guide

National Correct Coding Initiative

In 1996, CMS developed the NCCI to promote national correct coding methodologies and to eliminate improper coding. NCCI edits are developed based on coding conventions defined in the American Medical Association’s CPT Manual, current standards of medical and surgical coding practice, input from specialty societies and analysis of current coding practice.

The edits were developed based on anatomic considerations, HCPCS/CPT code descriptors, CPT instructions, CMS policies, nature of service/procedure, nature of analyte, nature of equipment and clinical judgment. Prior to implementation, all edits were reviewed by national healthcare organizations and their alternative recommendations were taken into consideration.

NCCI includes two types of edits:

  • Comprehensive/component edits identify code pairs that CMS determined should not be billed together because one service inherently includes the other (bundled services). The code describing a broader and inclusive set of services is identified as being “comprehensive.” While the code describing a more discrete service that is actually a subcomponent of the broader service is described with the term “component.” Since the component code represents a portion of the service described by the comprehensive code it is therefore bundled and may not be reported separately. When two bundled procedures are submitted for the same patient during the same session, Medicare payers will ordinarily pay you only for the higher-valued between the two.
  • Mutually exclusive edits identify code pairs that Medicare has determined, for clinical reasons, are unlikely to be performed on the same patient on the same day. For example, a mutually exclusive edit might identify two different types of testing that yield equivalent results. When two mutually exclusive services are submitted on a claim, only the service of lesser value will be reimbursed.

NCCI edits are updated quarterly and can be found on the CMS website. For the NCCI Policy Manual and the latest version of the NCCI Edits, visit the National Correct Coding Initiative Edits web page.

If you have concerns regarding specific NCCI edits, please submit your comments in writing to:

NCCIPTPMUE@cms.hhs.gov

Reviewed 10/21/2024