HCFA Common Procedure Coding System (HCPCS)

A system of reporting medical services performed that is used nationally. The system consists of three levels of codes: Level 1 is the AMA's CPT codes; Level 2 is HCFA assigned codes and nomenclature; and Level 3 is the local codes and nomenclature assigned by each Medicare Carrier or the insurance carrier and is unique to them. This system is updated annually.