What is a taxonomy code?
Taxonomy codes are administrative codes used to classify the type of provider and the region of specialization for health care professionals.
Each taxonomy code is a ten-character alphanumeric identifier that identifies a provider’s expertise at the claim level. Taxonomy codes are assigned at both the individual provider and organizational provider level.
Taxonomy codes are divided into three levels: Level I represents the provider category, Level II represents classification, and Level III represents the Specialization Field.
A full list of taxonomy codes can be found on the Washington Publishing Company’s (WPC) website under the Health Insurance Portability and Accountability Act (HIPAA) related code list section http://www.wpc- edi.com/products/codelists/alertservice.
The Purpose of Taxonomy Codes
Taxonomy codes are designed to be used in an electronic setting, primarily in ASC X12N Health Care transactions and some HIPAA-mandated transactions.
When applying for a National Patient Identifier (NPI) with the National Plan and Provider Enumeration System, taxonomy codes are also used.
How do I get a taxonomy code?
Find the taxonomy code that best describes your provider’s category, classification, or specialty using the National Uniform Claim Committee (NUCC) code system.
How can I access the taxonomy code data set?
CMS has created a crosswalk of taxonomy codes that connects the categories of providers and suppliers who are eligible to enrol in the Medicare programme with the appropriate taxonomy codes for healthcare providers.
Finding your taxonomy code is easy. Here’s how:
1. Visit https://npiregistry.cms.hhs.gov/
2. Enter your NPI Number into the field, then click Search.
Why is it important that I select the correct taxonomy code?
In addition to mandating the selection of a proper taxonomy code when applying for an NPI, many insurers demand the use of taxonomy codes to issue billing credentials, process health insurance claims, and assess network adequacy.
As a result, providers must select the taxonomy code that most closely reflects their specialty to assure accurate claim payment.