In the healthcare industry, medical coding is used for medical insurance reimbursement and also for maintaining patient records. For insurance agencies to know that there is no cheating or fraud happening, medical codes should be done accurately. This way they can find out the correct illness or injury and the treatment undergone for the patient.
Medicare has established a national fee schedule that comes under the National Social Security Act. This fee schedule shall be followed by the physicians based on Relative Value Units (RVU), which come under the Resource Based Relative Value Scale (RBRVS) that has been followed by Medicare ever since 1992.