American Academy of Professional Coders (AAPC) Practice Exam

What does the acronym CPT represent?

1. Current Procedure Taxonomy

2. Common Procedural Terminology

3. Current Procedural Terminology

4. Code of Procedural Techniques

The correct answer is: Current Procedural Terminology

The correct answer is the term "Current Procedural Terminology," which is the full name represented by the acronym CPT. This standardized system is used primarily by healthcare professionals to report medical, surgical, and diagnostic services and procedures to health insurance companies. The purpose of CPT codes is to provide a uniform language for describing procedures, which helps in billing and ensures consistency in the documentation across healthcare providers. Understanding the significance of CPT codes is essential for proper coding practices, as they are necessary for reimbursement processes and tracking healthcare trends. By using an established set of codes, healthcare providers can effectively communicate the services they have performed, facilitating a smooth transaction between the provider and the insurance company. Other options do not accurately reflect the official meaning of CPT, which underscores why "Current Procedural Terminology" is the correct interpretation. This understanding is crucial for any professional working with medical coding and billing, as it lays the foundation for navigating the complexities of healthcare documentation and reimbursement.