HCPCS Is Composed of Level I and Level II Codes;

question 11

Multiple Choice

HCPCS is composed of Level I and Level II codes; the differences between the two levels are:

• A) Level I codes are used to report outpatient procedures and services, whereas Level II codes are used to report products, supplies, and services not included in Level I.
• B) Level I codes are maintained by the AMA, whereas Level II codes are developed by hospitals as part of their chargemaster.
• C) Level I codes are submitted separately from Level II codes for reimbursement.
• D) Insurance companies need Level II codes to process claims; insurers do not process Level I codes.

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Definitions:

Demand Function

A mathematical representation showing the relationship between product demand and various factors like price, income, and preferences.

Supply Function

A relation that shows the quantity of a good or service that producers are willing and able to sell at each possible price, holding all other factors constant.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, and the market is in balance, without any excess supply or shortage.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.