Which level of CPT modifier is denoted by alphabetical characters?

The correct answer is Level II, which uses alphabetical characters to denote specific modifiers. Level II modifiers are part of the National Level II coding system developed by the Centers for Medicare and Medicaid Services (CMS) and are used primarily for non-physician services, such as those provided by ambulance services, durable medical equipment, and certain medical supplies. These modifiers help clarify billing and reimbursement processes for various services and items.

To provide additional context, Level I modifiers, which are used in the CPT system, are numeric and primarily focus on the description and reporting of medical procedures performed by healthcare providers. Level III modifiers are used by certain state Medicaid programs or private payers and sometimes include alpha or numeric codes that may not be universally recognized. Finally, Level IV is not formally categorized as a specific level of modifiers within the CPT coding system. Therefore, understanding that Level II is the unique set of modifiers denoted by alphabetical characters is crucial for accurate coding and billing in healthcare practices.