Common Coding Errors and How to Avoid Them

→ Including Upcoding, Unbundling, Modifier Misuse, and More
❌ 1. Upcoding
-
What It Is:
Reporting a higher-level service than what was actually performed to receive higher reimbursement. -
Example:
Coding a moderate-level visit (99214) when the documentation supports only a low-level visit (99213). -
How to Avoid:
-
Always match codes to the actual documentation.
-
Use official coding guidelines and audit regularly.
-
Stay current with payer rules and code descriptions.
-
❌ 2. Unbundling
-
What It Is:
Billing separately for procedures that are normally included in a bundled code. -
Example:
Coding for a surgical procedure and separately billing for anesthesia, sutures, or post-op care when they’re already included. -
How to Avoid:
-
Refer to National Correct Coding Initiative (NCCI) edits.
-
Use bundled CPT codes when appropriate.
-
Learn which services are inherently part of another.
-
❌ 3. Modifier Misuse
-
What It Is:
Using the wrong modifier or applying it without medical necessity to alter payment. -
Example:
Using Modifier -25 (significant E/M service) on a visit that was not separate from the procedure. -
How to Avoid:
-
Understand when and how each modifier applies.
-
Do not use modifiers to force payment.
-
Train staff on correct documentation support for modifiers.
-
❌ 4. Incorrect Code Selection
-
What It Is:
Selecting a code that does not reflect the provider’s note. -
Example:
Using a general diagnosis when a more specific ICD-10 code is available. -
How to Avoid:
-
Use updated code books or software.
-
Double-check with documentation.
-
Seek clarification from providers when unclear.
-
❌ 5. Missing or Incomplete Documentation
-
What It Is:
Submitting codes without proper chart notes or provider signatures. -
How to Avoid:
-
Verify that all services are fully documented.
-
Encourage providers to complete documentation in real-time.
-
Don’t code from memory or assumptions.
-
❌ 6. Duplicate Coding
-
What It Is:
Reporting the same procedure or diagnosis multiple times. -
How to Avoid:
-
Check EHR and billing software for duplicate alerts.
-
Carefully review claims before submission.
-
✅ Best Practices to Avoid Coding Errors
-
Conduct internal audits regularly
-
Stay updated with coding guidelines (ICD-10, CPT, HCPCS)
-
Train coders and billers on payer-specific rules
-
Use certified coding software
-
Maintain clear communication with providers
🎓 Discover one of the best Pharmaceutical Medical coding courses available — click below to explore the course that’s shaping future Medical coding skills.