In medical billing, what does “bundling” refer to?

Bundling in medical billing refers to the practice of combining multiple related services into a single code. This approach simplifies the billing process and reflects that certain services are typically performed together as part of a comprehensive clinical procedure or treatment plan.

For example, if a patient undergoes a surgical procedure that includes pre-operative and post-operative care, these services might be bundled into one code to avoid separate billing for each service. This is advantageous for both providers and payers, as it reduces administrative work and often aligns with the way the services are clinically connected.

Understanding bundling is crucial for accurate coding and billing, as it helps avoid accidental overbilling for services that are inherently linked, ensuring compliance with insurance requirements and facilitating smoother reimbursement processes.