HCPCS (Healthcare Common Procedure Coding System) is a standardized coding system used in the U.S. for billing and reporting medical procedures, services, and supplies to Medicare, Medicaid, and other insurance programs.

Level II consists of alphanumeric codes developed by the Centers for Medicare & Medicaid Services (CMS) to represent products, supplies, and services.

CMS stands for Centers for Medicare & Medicaid Services. It is a federal agency within the Department of Health. Its main goal is to ensure beneficiaries have access to high-quality healthcare, while working to improve the overall health care system by setting quality standards, managing payments, and encouraging efficiency and effectiveness.

CMS plays a central role in the creation, maintenance, and administration, of HCPCS codes.

A HCPCS code is a standardized alphanumeric code used in the medical field to report procedures, products, and services for billing and claims processing, particularly for Medicare and Medicaid.

The PDAC contractor, reporting to CMS, verifies whether a product qualifies for an existing HCPCS code.

PDAC stands for Pricing, Data Analysis, and Coding (PDAC). The PDAC contractor is hired by CMS (Centers for Medicare & Medicaid Services). The role of the PDAC contractor is to help suppliers and manufacturers correctly code Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) items for Medicare billing.

The PDAC contractor is responsible for verifying which codes apply to products, then maintain the Durable Medical Equipment Coding System (DMECS), an online database of verified products.

PDAC approved means that a product — typically a Durable Medical Equipment, Prosthetic, Orthotic, or Supply (DMEPOS) item—has been formally reviewed and verified by the Pricing, Data Analysis, and Coding (PDAC) contractor to ensure it matches a specific HCPCS Level II code used for Medicare billing.

It also means the following:

• The product has been assigned a specific HCPCS code that accurately reflects its function and design.
• The product meets Medicare’s standards for reimbursement.
• The product meets Medicare’s quality, durability, and functionality standards, adding credibility and trust for healthcare providers and patients.
• The product is published on the PDAC website via the Durable Medical Equipment Coding System (DMECS), typically used by billing teams and Medicare Administrative Contractors to verify coding.