How To Tell If The Facebook.Code.Is From A Legit Source Taxonomy Code For NPI Number-What Is A Taxonomy Code And Why Is It Important?

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Taxonomy Code For NPI Number-What Is A Taxonomy Code And Why Is It Important?

Need to choose a taxonomy code for NPI number? What is a taxonomy code and why is it important when applying for your NPI number? Selecting the correct taxonomy code is extremely important as it can directly affect your reimbursement by insurance companies.

Taxonomy Codes are an administrative code set for identifying the type of provider and area of ​​specialization for healthcare providers. They are alphanumeric and are ten characters long. Taxonomy codes allow providers to identify their specialty. A provider can have more than one taxonomy code.

Taxonomy codes have 3 distinct levels. Level I is the provider type that is a

large group of healthcare providers. For example: dentists, osteopathic doctors, and chiropractors.

Level II is Classification as a more specific service or profession related to the provider type.

Level III is the area of ​​specialization. This is a more specialized area of ​​the classification in which a provider chooses to practice or provide services. This is usually based on the subspecialty certificate.

Taxonomy Codes allow the provider to identify their specialty at the claim level so that this can directly affect your reimbursement from insurance companies. If you have an incorrect taxonomy code linked to your NPI number, your services may be paid at a lower reimbursement rate, or denied outright by an insurance company.

Example: If you​​​​are a pediatric surgeon and you choose a taxonomy code for just focused Pediatrics, your services may be denied. You should choose the more specific Pediatric Surgeon code (at level III) to ensure proper reimbursement for your services.

In order for healthcare providers to receive reimbursement from insurance companies after May 23, 2007, they must apply for an NPI number and choose a taxonomy code. When applying for your NPI number it is extremely important that you choose the correct taxonomy code. It may affect your payments from insurance companies. The NPI number application has a list of the available taxonomy codes.

Copyright – Michele Redmond 2007

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