---
title: New Medical Billing and Coding Changes from 2023-2025
description: Stay ahead with the latest medical billing and coding changes from 2023 to 2025 to ensure accurate claims and timely reimbursements for your FQHC.
image: https://blog.altruis.com/hubfs/coding-changes.jpg
---

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# Altruis Blog

## [New Medical Billing and Coding Changes from 2023-2025](https://blog.altruis.com/new-medical-billing-and-coding-changes)

 Jul 30, 2025 7:15:00 PM / by [Altruis](https://blog.altruis.com/author/altruis)

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![New Medical Billing and Coding Changes Coming in 2024](https://blog.altruis.com/hs-fs/hubfs/14.png?width=800&height=533&name=14.png)Are you staying ahead of new coding changes impacting federally qualified health centers (FQHCs) in the coming year? By keeping up with the latest medical billing and coding changes, you’ll ensure high rates of correct and quickly paid claims for reimbursement. In healthcare, [medical coding](https://blog.altruis.com/why-medical-coding-is-so-important-for-revenue-cycle-management-in-medical-billing) uses alphanumeric sequences to track every diagnosis, medical service, procedure, and piece of equipment used during patient appointments. As a result, all healthcare providers and reimbursement sources nationwide have a universal language to process payments for medical services rendered. 

Proper coding is an essential part of the U.S. healthcare system’s accountability-based reimbursement for programs like Medicare and Medicaid. Without proper coding, these programs will deny or delay your valuable reimbursements, impacting your [revenue cycle](https://blog.altruis.com/revenue-cycle-optimization). 

In this article, we’ll highlight the most important coding-related updates for FQHCs and healthcare centers with Medicare patients, including those in the state of California. 

## Medical Billing and Coding Changes for 2023-2025 

Medicare typically issues [International Classification of Disease](https://blog.altruis.com/what-is-icd-10-how-do-icd-10-codes-work-altruis) (ICD) coding updates twice a year to highlight new medical billing and coding changes impacting all Medicare-eligible facilities in the upcoming months. A significant [coding change update](https://www.cms.gov/medicare/coding-billing/icd-10-codes/2023-icd-10-cm) was issued in April 2023. 

It sets forth 42 new diagnostic codes within the ICD, Tenth Revision, Clinical Modification (ICD-10-CM), and Procedure Coding System (ICD-10-PCS). You can download [code lists and descriptions](https://www.cms.gov/files/zip/2023-code-descriptions-tabular-order-updated-01/11/2023.zip), plus other related documents, from CMS.gov or work with Altruis to stay in sync with these changes. 

**2024 updates included:** further refinements in behavioral health coding and expanded codes around chronic conditions and telehealth documentation. 

**2025 updates to watch for:** The next [full annual update](https://www.cms.gov/files/document/fy-2025-icd-10-cm-coding-guidelines.pdf) will bring additional ICD-10-CM and PCS changes. Expect new diagnosis codes, procedure classifications, and updates to instructional notes, especially in behavioral health, neurological disorders, and social determinants of health. 

## California Coding Challenges 

New California coding changes are impacting facilities across the state. Here are highlights from the coding experts at Altruis. 

### Behavioral Health Payment Reform 

The [CalAIM Behavioral Health Reform initiative](https://www.dhcs.ca.gov/Pages/BH-CalAIM-Webpage.aspx) is moving California’s counties away from cost-focused reimbursements to value-focused reimbursements for Medi-Cal and Medicaid. It’s a multi-year project with key medical billing and coding changes. 

Behavioral healthcare facilities in California should: 

- Ensure you’re using the new [Medicaid Section 1115 Demonstration application](https://www.medicaid.gov/medicaid/section-1115-demonstrations/1115-application-process), which was introduced in 2023 and remains in place. 

- Read the California Department of Healthcare Services’ summary of the [Medi-Cal](https://www.dhcs.ca.gov/CalAIM/Documents/CalAIM-BH-a11y.pdf) changes to behavioral health. 

- Discuss these changes with Altruis to see how your behavioral health center can adopt them while continuing to optimize and refine its revenue cycle. 

## From CPT to HCPCS 

In October 2023, the Centers for Medicare & Medicaid Services (CMS) [announced a transition](https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system) from traditional Current Procedural Terminology (CPT) coding to the Healthcare Common Procedure Coding System (HCPCS) for drugs and biologicals. 

New[public-use coding system files](https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system/quarterly-update) are now available for 2025. Check to see if your organization is using the correct coding information according to the latest information from the CMS. 

## Billing for Street Medicine 

Street medicine, or caring for the unhoused, is a trending issue in California. The CMS has issued an official description of [street medicine for coding purposes](https://www.streetmedicine.org/index.php?option=com_dailyplanetblog&view=entry&year=2023&month=06&day=27&id=33:new-pos-code-for-street-medicine-from-cms-), which is: 

A non-permanent location on the street or found environment, not described by any other POS code, where health professionals provide preventive, screening, diagnostic, and/or treatment services to unsheltered homeless individuals. 

Providers must properly code for street medical services to receive the correct reimbursement from Medicaid. To this end, please review the latest [Place of Service Code Set](https://www.cms.gov/medicare/coding-billing/place-of-service-codes/code-sets) from the CMS regarding definitions and codes related to street medicine. 

## Tips for Optimizing Medical Billing and Coding with These Changes 

Keep your FQHC running smoothly by working proactively to incorporate new medical billing and coding changes. Here are our tips and best practices for meeting the challenges of new coding changes. 

### Keep Codes Current 

As you can see from the information presented above, outdated codes are always a risk and can cause problems with the reimbursement process. Keep your coders up to date on new coding information to facilitate a smooth workflow. 

### Build Coding Alignment 

Align clinical notes with the latest medical codes. Include code reviews as a built-in part of your process and prevent any reimbursement request from leaving your facility until it is 100% correct. 

### Set Speed Standards 

Do you have standards for how quickly coding should occur? Ideally, reviews should happen within 8 to 12 hours, and some systems allow just 72 hours to wrap up the process. Make it a goal to keep reviews within 12 hours to reliably stay within this window. 

## Frequently Asked Questions About Medical Billing and Coding Changes 

**How do CPT and HCPCS codes differ, and why does it matter?**   
CPT codes, created by the AMA, describe medical, surgical, and diagnostic procedures. [HCPCS Level II codes](https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system/level-ii-coding-process), managed by CMS, cover non-physician services like ambulance rides, durable medical equipment (DME), and certain medications. Recent shifts require HCPCS codes for drugs and biologicals, which is crucial for correct billing and reimbursement. 

**Has CMS officially replaced CPT codes for drugs?**   
Yes. Since late 2023, CMS requires HCPCS Level II codes for drug and biological billing. Continuing to use CPT codes in this category risks delayed or denied claims. 

**What is POS Code 27 and when should it be used?**   
POS Code 27 covers street medicine — care delivered at non-permanent, outdoor locations such as sidewalks or encampments. It is critical for billing Medicaid correctly for outreach services to unsheltered individuals. 

**How often are ICD-10 codes updated?**   
ICD-10-CM and ICD-10-PCS codes are updated annually on October 1, with occasional smaller updates in April. Preparing your coding team ahead of these dates prevents reimbursement disruptions. 

**What are the risks of using outdated billing codes?**   
Using outdated codes can lead to claim denials, payment delays, audit issues, and negatively affect patient trust. 

**How can providers stay on top of future coding changes?** 

- Regularly review CMS and AMA coding publications. 

- Incorporate coding review checkpoints into billing workflows. 

- Train staff on new updates and guidelines. 

- Leverage billing experts to reduce errors and stay compliant. 

## How Altruis Can Help You Adapt to Medical Billing and Coding Changes 

Altruis helps our partners accomplish fast, proactive, and effective coding through an industry-leading collaborative approach. We work with you in a customized and individualized process that always conforms to the latest coding standards. 

Our fully digitized and automated processes help you eliminate coding errors while ensuring you capture every available dollar for the services you provide. Altruis is so much more than just a billing and coding platform. We’re your full-service partner in optimized revenue management. 

To learn more about adapting to the latest trends in medical coding, please contact us for a [free billing assessment](https://info.altruis.com/freebilling_assessment) and a discussion of your needs. 

[![Free Billing Assessment](https://no-cache.hubspot.com/cta/default/4042684/0bed609c-a7fd-40da-8c38-f85d79d9cf58.png)](https://cta-redirect.hubspot.com/cta/redirect/4042684/0bed609c-a7fd-40da-8c38-f85d79d9cf58)

 

 Topics: [Medical Billing](https://blog.altruis.com/topic/medical-billing)

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- [CMS Final Rule (1)](https://blog.altruis.com/tag/cms-final-rule)
- [CVS (1)](https://blog.altruis.com/tag/cvs)
- [California COVID-19 Vaccination Billing Assistance (1)](https://blog.altruis.com/tag/california-covid-19-vaccination-billing-assistance)
- [Cash Flow (1)](https://blog.altruis.com/tag/cash-flow)
- [Coding errors (1)](https://blog.altruis.com/tag/coding-errors)
- [Consolidation (1)](https://blog.altruis.com/tag/consolidation)
- [Critical Access Hospital Billing (1)](https://blog.altruis.com/tag/critical-access-hospital-billing)
- [FQHC Requirements (1)](https://blog.altruis.com/tag/fqhc-requirements)
- [FQHC coding (1)](https://blog.altruis.com/tag/fqhc-coding)
- [FQHC reimbursement (1)](https://blog.altruis.com/tag/fqhc-reimbursement)
- [ICE (1)](https://blog.altruis.com/tag/ice)
- [Integrated Care Models (1)](https://blog.altruis.com/tag/integrated-care-models)
- [KPIs (1)](https://blog.altruis.com/tag/kpis)
- [MACRA (1)](https://blog.altruis.com/tag/macra)
- [Medicaid Costs (1)](https://blog.altruis.com/tag/medicaid-costs)
- [Medical Billing Guidelines (1)](https://blog.altruis.com/tag/medical-billing-guidelines)
- [Medical bills (1)](https://blog.altruis.com/tag/medical-bills)
- [Medicare for All (1)](https://blog.altruis.com/tag/medicare-for-all)
- [Modifiers (1)](https://blog.altruis.com/tag/modifiers)
- [Net Collection Rate (1)](https://blog.altruis.com/tag/net-collection-rate)
- [Orb Health (1)](https://blog.altruis.com/tag/orb-health)
- [PT Billing (1)](https://blog.altruis.com/tag/pt-billing)
- [Patient Access (1)](https://blog.altruis.com/tag/patient-access)
- [Payer Mix (1)](https://blog.altruis.com/tag/payer-mix)
- [Payment System (1)](https://blog.altruis.com/tag/payment-system)
- [Regional Hospital Billing (1)](https://blog.altruis.com/tag/regional-hospital-billing)
- [Regional Hospital Billing Companies (1)](https://blog.altruis.com/tag/regional-hospital-billing-companies)
- [Rejection of a Claim (1)](https://blog.altruis.com/tag/rejection-of-a-claim)
- [Rejection of claim (primary) (1)](https://blog.altruis.com/tag/rejection-of-claim-primary)
- [Retroactive Medicaid (1)](https://blog.altruis.com/tag/retroactive-medicaid)
- [Retroactive Medicaid Coverage (1)](https://blog.altruis.com/tag/retroactive-medicaid-coverage)
- [Revenue Cycle Billing (1)](https://blog.altruis.com/tag/revenue-cycle-billing)
- [Revenue Cycle Management Staffing (1)](https://blog.altruis.com/tag/revenue-cycle-management-staffing)
- [Revenue Recovery (1)](https://blog.altruis.com/tag/revenue-recovery)
- [Security (1)](https://blog.altruis.com/tag/security)
- [Surprise medical billing (1)](https://blog.altruis.com/tag/surprise-medical-billing)
- [Telehealth (1)](https://blog.altruis.com/tag/telehealth)
- [UDS Reporting (1)](https://blog.altruis.com/tag/uds-reporting)
- [Uncategorized (1)](https://blog.altruis.com/tag/uncategorized)
- [Uniform Data System (1)](https://blog.altruis.com/tag/uniform-data-system)
- [WalMart (1)](https://blog.altruis.com/tag/walmart)
- [What is FQHC (1)](https://blog.altruis.com/tag/what-is-fqhc)
- [behavioral health modifiers (1)](https://blog.altruis.com/tag/behavioral-health-modifiers)
- [billing cycle in medical billing (1)](https://blog.altruis.com/tag/billing-cycle-in-medical-billing)
- [clinical revenue cycle (1)](https://blog.altruis.com/tag/clinical-revenue-cycle)
- [community health billing department (1)](https://blog.altruis.com/tag/community-health-billing-department)
- [community health network billing (1)](https://blog.altruis.com/tag/community-health-network-billing)
- [corporate revenue cycle (1)](https://blog.altruis.com/tag/corporate-revenue-cycle)
- [denials (1)](https://blog.altruis.com/tag/denials)
- [fast 50 (1)](https://blog.altruis.com/tag/fast-50)
- [louisville business first (1)](https://blog.altruis.com/tag/louisville-business-first)
- [medicare wrap (1)](https://blog.altruis.com/tag/medicare-wrap)
- [reducing hospital readmissions (1)](https://blog.altruis.com/tag/reducing-hospital-readmissions)
- [revenue cycle healthcare (1)](https://blog.altruis.com/tag/revenue-cycle-healthcare)
- [revenue cycle management software (1)](https://blog.altruis.com/tag/revenue-cycle-management-software)
- [uncompensated care (1)](https://blog.altruis.com/tag/uncompensated-care)
- [what is medical credentialing (1)](https://blog.altruis.com/tag/what-is-medical-credentialing)

see all

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