The Basis for Coding and Billing in the Medical Industry. Coding is used to categorize medical diagnoses, diseases, and treatments precisely. These codes are used to charge insurance companies and other third-party payers for medically relevant services that healthcare practitioners deliver. The second use is for research. What is an example of medical coding? One example of medical coding is the use of Current Procedural Terminology (CPT) codes which are used to identify procedures performed by healthcare providers.
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