What does "unbundling" mean in coding?

Unbundling in coding refers to the practice of separately coding services that are typically billed together as a single comprehensive service. This is often done to maximize reimbursement from insurers; however, it is generally considered inappropriate and can lead to compliance issues. For instance, if a procedure is supposed to include several components that are typically billed as one unit, breaking them down into individual codes to charge for each component separately is unbundling. It is important for coders to understand the bundled payment guidelines for particular services to avoid errors in billing and potential audits from insurance companies.

The other choices refer to different coding practices. Combining multiple codes into one is a form of bundling. Using multiple codes for a single service can indicate improper coding but does not specifically define unbundling, while documenting services in a patient’s chart is related to proper record-keeping but not the coding process itself.