Medical Coding Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

Medical Coding Questions and Answers | Latest Version | 2025/2026 | Correct & Verified What is a placeholder character in ICD-10-CM coding? The letter “X” used to fill empty positions in codes for future expansion. What is the purpose of the seventh character in ICD-10-CM injury codes? It identifies the encounter type, such as initial, subsequent, or sequela. What is the correct seventh character for an initial encounter? A. What is the correct seventh character for a subsequent encounter? D. What is the correct seventh character for a sequela? S. 2 What is an external cause code used for? To describe how an injury or health condition happened. What is the purpose of coding guidelines? To provide consistent rules and instructions for accurate code assignment. What does NCCI stand for? National Correct Coding Initiative. What is the purpose of NCCI edits? To prevent improper coding and overpayment by identifying code pairs that should not be billed together. What should a coder do if a procedure code and diagnosis code do not match? Verify documentation to ensure medical necessity and correct linkage. What is the purpose of a code audit trail? To track changes and ensure accountability in coding and billing processes. 3 What does the term “local coverage determination (LCD)” mean? A Medicare policy that defines when and how certain services are covered in specific regions. What is the importance of accurate documentation in coding? It ensures correct code selection, proper reimbursement, and compliance with regulations. What is the main purpose of medical coding? To translate healthcare diagnoses, procedures, and services into standardized alphanumeric codes. What does ICD-10-CM coding identify? It identifies diagnoses and medical conditions. What does CPT coding identify? It identifies medical, surgical, and diagnostic procedures performed by healthcare providers. 4 What does HCPCS Level II coding identify? It identifies non-physician services, equipment, and supplies not covered by CPT codes. Which coding system is used in hospitals for inpatient procedures? ICD-10-PCS. What is the purpose of assigning modifiers in CPT coding? To provide additional information about a service or procedure performed. What is a coding audit? A review process to ensure coding accuracy, compliance, and documentation integrity. What does upcoding mean? Assigning a code that represents a higher level of