Place Of Service Code

What Does Place Of Service Code Mean?

Place of Service (POS) codes are two-digit codes assigned to healthcare professional claims. They are used to standardize these claims and indicate the setting in which a service was provided.

The Centers for Medicare & Medicaid Services (CMS) maintains a database of POS codes that are commonly used in the healthcare industry.

Insuranceopedia Explains Place Of Service Code

All professional healthcare claims must include a POS code, as required by regulatory standards. These codes specify the location where the service was provided. Different parties, such as Medicare, Medicaid, and private insurers, typically have distinct reimbursement policies based on these codes.

The POS code set is mandatory under the national standard for the electronic transmission of professional healthcare claims, as regulated by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA is responsible for publishing the code sets that all health plans and providers must use in their standard transactions.