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To begin to answer this question, let's review the exact wording in the CPT codebook:

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Many healthcare organizations are not aware of how critically important it is to screen their employees against ALL state and federal exclusions databases. The OIG is reviewing organizations in ALL federal healthcare programs - this includes Medicare, Medicaid, CHIP, etc. - for those who have employed individuals on ANY exclusions database. Not only must you screen employees on the OIG Exclusions database, but employers are also responsible to check state exclusions databases as well.

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One of the significant coding changes with ICD-10-CM was including laterality within the code itself. This concept should help reduce billing errors and claim denials. Interestingly, CMS issued a statement regarding the reporting of laterality in their provider newsletter (emphasis added).

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The use of the 7th character used in certain chapters (e.g., Obstetrics, Injury, Musculoskeletal, and External Cause chapters).  However,  it is not used in every chapter and may have a different meaning depending on the section where it is being used.  One thing that is consistent, is that it must be used in the 7th character position (using the x place holder if necessary) when a 7th character applies and it is not used the code is considered invalid.

Use of 7th Characters by Chapter

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