Understanding ICD-10-CM Codes: A Complete Guide for Medical Coders

  • Jan 15, 2025

ICD-10-CM (International Classification of Diseases, 10th Revision, Clinical Modification) is the official diagnostic coding system used in the United States for medical billing, insurance claims, and healthcare reporting. Whether you're a medical coder, biller, or healthcare administrator, this comprehensive guide covers everything you need to know about ICD-10-CM codes.

What is ICD-10-CM?

ICD-10-CM codes are alphanumeric codes used to document patient diagnoses on medical claims submitted to Medicare, Medicaid, and private insurance payers. The coding system replaced ICD-9-CM on October 1, 2015, expanding from approximately 14,000 codes to over 70,000 codes for greater clinical specificity.

Key uses of ICD-10-CM codes:
- Medical billing and insurance reimbursement
- Healthcare statistics and epidemiology
- Clinical decision support
- Quality reporting and value-based care programs
- Public health surveillance

ICD-10-CM Code Structure

ICD-10-CM codes are 3 to 7 characters long and follow a consistent format:

  • First character: Always a letter (A-Z, except U which is reserved)
  • Second character: Always a number (0-9)
  • Third character: A number or letter identifying the category
  • Characters 4-7: Provide etiology, anatomic site, severity, and other clinical detail

Code Example: Type 2 Diabetes with Hyperglycemia

The code E11.65 breaks down as:
- E = Chapter 4: Endocrine, nutritional and metabolic diseases
- 11 = Type 2 diabetes mellitus category
- .65 = With hyperglycemia

ICD-10-CM Chapter Overview

ICD-10-CM organizes diagnosis codes into 21 chapters by body system or condition type:

ChapterCode RangeDescription
1A00-B99Certain infectious and parasitic diseases
2C00-D49Neoplasms
3D50-D89Diseases of the blood and immune mechanism
4E00-E89Endocrine, nutritional and metabolic diseases
5F01-F99Mental, behavioral and neurodevelopmental disorders
6G00-G99Diseases of the nervous system
7H00-H59Diseases of the eye and adnexa
8H60-H95Diseases of the ear and mastoid process
9I00-I99Diseases of the circulatory system
10J00-J99Diseases of the respiratory system
11K00-K95Diseases of the digestive system
12L00-L99Diseases of the skin and subcutaneous tissue
13M00-M99Diseases of the musculoskeletal system
14N00-N99Diseases of the genitourinary system
15O00-O9APregnancy, childbirth and the puerperium
16P00-P96Certain conditions originating in the perinatal period
17Q00-Q99Congenital malformations and chromosomal abnormalities
18R00-R99Symptoms, signs and abnormal clinical findings
19S00-T88Injury, poisoning and certain other consequences of external causes
20V00-Y99External causes of morbidity
21Z00-Z99Factors influencing health status and contact with health services

Browse all chapters from our ICD-10-CM index.

Billable vs Non-Billable ICD-10-CM Codes

Understanding the difference between billable and non-billable codes is critical for proper claims submission:

Billable codes (also called "valid for submission"):
- Are the most specific codes available
- Can be submitted on insurance claims
- Have no further subdivisions
- Example: J06.9 - Acute upper respiratory infection, unspecified

Non-billable codes (header or category codes):
- Require additional characters for specificity
- Cannot be submitted on claims
- Serve as groupings for related codes
- Example: J06 - Acute upper respiratory infections of multiple and unspecified sites

Rule: Always code to the highest level of specificity supported by the medical documentation.

7th Character Extensions for Injury Codes

Many codes in Chapter 19 (Injury codes S00-T88) require a 7th character extension to indicate the episode of care:

ExtensionMeaningWhen to Use
AInitial encounterFirst visit for active treatment of the condition
DSubsequent encounterFollow-up care during healing or recovery phase
SSequelaLate effects or complications from the original injury

Placeholder X Rule: If a code requires 7 characters but the base code has fewer than 6 characters, use the letter "X" as a placeholder.

Example: S52.001A - Unspecified fracture of upper end of right ulna, initial encounter

ICD-10-CM Coding Guidelines

Follow these official coding guidelines from CMS and NCHS:

  1. Code to the highest specificity - Select the code that most accurately describes the documented diagnosis
  2. Use combination codes - When a single code describes both the condition and a common manifestation or complication
  3. Understand Excludes notes:
  4. Follow sequencing instructions - "Code first" and "Use additional code" notes indicate proper ordering
  5. Apply laterality - Specify left, right, or bilateral when the code provides the option
  6. Document medical necessity - Ensure diagnosis codes support the services billed

How to Look Up ICD-10-CM Codes

Finding the correct ICD-10-CM code requires systematic searching:

  1. Use our ICD-10 code search to find codes by keyword
  2. Browse by chapter starting from the ICD-10-CM index
  3. Try our AI clinical note analyzer to automatically extract codes from physician documentation
  4. Check common codes by specialty for frequently used diagnoses

Frequently Asked Questions

How many ICD-10-CM codes are there?

The current ICD-10-CM code set contains approximately 72,000+ diagnosis codes, updated annually by CMS.

When was ICD-10-CM implemented?

ICD-10-CM was mandated for use in the United States on October 1, 2015, replacing the ICD-9-CM system.

What is the difference between ICD-10-CM and ICD-10-PCS?

ICD-10-CM is used for diagnosis coding in all healthcare settings. ICD-10-PCS (Procedure Coding System) is used only for inpatient hospital procedure coding.

How often is ICD-10-CM updated?

CMS releases annual updates effective October 1st each year, with new codes, revised codes, and deleted codes. Check our 2026 new codes page for the latest changes.

Who maintains ICD-10-CM?

ICD-10-CM is maintained by the National Center for Health Statistics (NCHS) and the Centers for Medicare & Medicaid Services (CMS).

Start Searching ICD-10-CM Codes

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