Which statement best describes HCPCS Level 2?

• A. It identifies products, supplies, and services
• B. It codes diagnoses
• C. It codes inpatient procedures only
• D. It is not used for durable medical equipment

Answer: (A)

HCPCS Level 2 codes are alphanumeric five‑digit codes used to report products, supplies, and services that aren’t covered by CPT. They encompass items like durable medical equipment, prosthetics and orthotics, certain pharmaceuticals and supplies, ambulance services, and other non-procedural items used in patient care. That’s why identifying products, supplies, and services is the best description.

Diagnoses are coded with ICD-10-CM, not HCPCS. Procedures and many professional services are primarily coded with CPT (Level I), and Level II isn’t limited to inpatient procedures. In fact, Level II includes many items used in outpatient settings and for DME, so it does include durable medical equipment.