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Writer's pictureCorliss

420 AMA CPT Code Set (2025) Updates: Will AI Medical Coding Vendors Be Ready?

Authored by Corliss Collins, BSHIM, RHIT, CRCR, CAIP, CSM, CCA, CBCS, CPDC

AHIMA ICD-10-CM/PCS Approved Trainer - ISO 9001:2015 Certified Internal Auditor

 

Introduction

The American Medical Association (AMA) annually releases medical codes for the Current Procedural Terminology (CPT) coding system. AMA's 2025 CPT code sets will be available on October 1, 2024. These updates are crucial for accurate medical coding, billing, and reimbursement transactions. As such, advancements in artificial intelligence (AI) medical coding technology vendors, emerging healthcare trends, and the evolving AI landscape should ensure annual updates are completed before January 1, 2025, to minimize exposure to compliance risks. AI-powered accuracy, consistency, and quality assurance reviews should be scheduled to reduce medical coding automation and technology errors, as shown in the AMA Report for AI Integration in Healthcare.  

 

Brief History of Annual AMA CPT Code Set Updates

  • About the New, Revised, and Deleted Codes: 

Each year, the AMA introduces new CPT code updates and revisions that reflect deletions and outdated and redundant code set changes. This process ensures that the coding system stays relevant and accurately reflects current medical coding, billing, and reimbursement best practices. Regular update reviews and maintenance must be done to ensure that medical coding technologies are up-to-date.

 

  • Technological Advancements

Introducing new codes should correspond with the development and innovation of AI technical applications. For instance, emerging fields like telemedicine and molecular diagnostics have seen a surge in specific CPT codes to accommodate new medical services rendered to patients. Medical coding software vendors must adapt to ensure these specialized codes are updated. Quality, compliance, and accuracy protocols should be established and completed regularly.

 

  • Impact on Revenue Cycle Management (RCM) Compliance

Accurate coding algorithms are vital for ensuring proper reimbursement from payers. These annual CPT Code updates can alter how services are billed and reimbursed, affecting the RCM's financial projections. Developers and programmers must be aware and responsive to these change requirements to prevent billing errors that can potentially cause claim denials.

 

  • Enhanced Data Analytics and Reporting

Updated CPT codes can help provide more granular-level data, improving AI-powered coding technology performance, data analytics, and reporting capabilities. This, in turn, supports better decision-making for healthcare providers and payers by offering more detailed insights into patterns, risks, and trends. 

 

What Kind of Challenges do AI Medical Coding Technology Vendors Face?

I.       Not Completing Frequent Updates

Medical coding software vendors may struggle to keep up with annual updates. However, they have an opportunity to shine by ensuring their systems are up-to-date and avoid disruptions in the medical coding process 2025 AMA CPT Code Releases.

 

II.      Minimizing Training Requirement

Coders, clinicians, and healthcare providers should be trained on the new code changes. AI-powered coding technologies must be updated promptly to ensure integration and training are completed by the go-live date, usually January 1st of each year.  

 

III.     Electronic Health Records (EHR) Inefficiencies

The CPT code updates should be upgraded and integrated seamlessly into the EHR systems (i.e., Epic, Cerner, NextGen, etc.) to support coding accuracy, documentation consistency, and billing quality. Robust inspection, detection, and correction audits can help to identify inconsistencies.  

 

Why Are CPT Code Updates for AI Medical Coding Software So Important?

AI-powered coding technologies must have the correct code sets to suggest appropriate code assignments and flag discrepancies based on the new 2025 AMA CPT Code Set Release guidelines. This reduces the manual workload for coders, can enhance accuracy, and ultimately improves the revenue cycle efficiency. 

 

420 AMA CPT Code Set (2025) Releases include the following:

o   420 overall CPT Codes were updated

o   270 New Codes

o   112 Deletions

o     38 Revisions


Conclusion

AI Medical Coding Automation use has increased substantially. The AMA annual CPT code releases ensure that the medical coding systems are accurate, consistent, and compliant. AI-powered technology vendors are responsible for providing healthcare organizations, providers, and patients with proper oversight and transparency and keeping their coding software applications up-to-date. These updates ensure that the coding software accurately reflects current coding best practices and reduces the risk of billing errors and claim denials. 


By incorporating the latest CPT codes, vendors enhance the functionality of their software and support accurate coding and appropriate billing transactions. Failing to implement these updates can result in outdated software, leading to financial losses for healthcare providers and negatively impacting the vendor's reputation. Ultimately, prioritizing timely AMA CPT code updates is a crucial strategy for vendors to support their clients' success and remain leaders in the evolving artificial intelligence healthcare industry. 

 

To learn more about annual AMA CPT Code Set updates for all AI-powered medical coding technologies before the go-live effective date of January 1, 2025, Click here 



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