What are CPT® codes?

CPT® stands for Current Procedural Terminology, and they are five-digit numerals that describe the procedures or services that the physician (or other healthcare provider) provided to the patient. These may include office and hospital visits, surgeries, x-rays, lab tests and home health services.

Sometimes it takes more than one code to describe what the physician actually did for the patient, and other times it takes additional two digits (a modifier) appended to the CPT® code to describe the service.


CPT® codes have been around since Medicare was established and are updated every year by the AMA. The AMA adds new CPT® codes for medical services, procedures, diagnosis, equipment, etc. every year as new procedures develop and standards of medical care change. It is for this reason that it’s called Current Procedural Terminology. Some other codes are deleted as procedures become obsolete. It thus becomes extremely important for medical practices to get a new CPT® manual each year.

Why use CPT® codes                     
CPT® codes are used in the healthcare sector mainly to:

• identify symptoms that must be diagnosed and to inform other healthcare professionals about allergies
• report services performed by a physician or surgeon and to get reimbursed by the Medicare or other insurance payers
• plan for service requirement in underserved areas