Underutilization of ICD-10-CM Z Codes for Medicare Beneficiaries

CMS report is based on 2016-2017 data.

It’s been two years since the American Hospital Association (AHA) shouted from the rooftops that documentation by any interprofessional team would be accepted as validation to use the ICD-10-CM Z codes, as opposed to only documentation by physicians.

In the social determinants of health (SDoH) age, these Z codes are viewed as a logical way for healthcare organizations to recoup the massive costs incurred for treatment and hospitalization of admissions related to non-clinical psychosocial and socioeconomic needs. However, if the healthcare industry has learned one thing over the years, it is never to cloud an issue with logic.

The release of the January 2020 Centers for Medicare & Medicaid Services (CMS) Office of Minority Health Issue Brief reveals the glaring reality of how infrequently those ICD-10-CM Z codes are being used. In the issue brief, Z Codes Utilization among Medicare Fee-for-Service (FFS) Beneficiaries in 2017, a snapshot is provided:

  • Among 33.7 million total Medicare FFS beneficiaries in 2017, just 1.4 percent had claims with Z codes.
  • The five most utilized Z codes were:
    • Z59.0 – Homelessness
    • Z60.2 – Problems related to living alone
    • Z63.4 – Disappearance and death of family member
    • Z65.8 – Other specified problems related to psychosocial circumstances
    • Z630 – Problems in relationship with spouse or partner
  • Of the 467,136 Medicare beneficiaries with Z code claims,
    • 334,373 individuals (72 percent) had hypertension
    • 248,726 individuals (53 percent) had depression
  • In addition, for this same population:
    • 349,658 individuals (75 percent) were not dual-eligible
    • 117,478 were dual-eligible (25 percent)
    • 161,559 individuals (35 percent) were under 65 years of age.
  • Z59.0, homelessness, was the only Z code with a higher utilization for males than females.

There is one important fact to bear in mind about the results. The data is from 2016-2017. While not long ago, this was just as organizations were becoming aware of the dramatic financial implications of the SDoH, and potential value of the codes. However, it was still prior to the heavy industry emphasis for organizations to use the codes.

Even though CMS missed a prime opportunity to provide organizations a fiscal hand by approving Z59.0, homelessness, as a co-morbidity for the 2020 Inpatient Prospective Payment System (IPPS), the codes are of undeniable value to healthcare organizations. They speak to population health needs by providing valuable case mix complexity data to organizations, plus countless other fiscal imperatives (e.g., grants, cross-sector collaboration, mergers, and acquisitions).

Appropriate use of the ICD-10-CM Z codes will not only impact future reimbursement but all current advocacy efforts underway by entities to increase the codes available for use. Expanded utilization will also continue to force CMS’s hand in approving the codes’ reimbursement.

Our Monitor Mondays listeners’ survey hit to the core of this issue, asking:

What are the most utilized ICD-10-CM Z Codes for the Medicare FFS beneficiaries at your organization? Do the responses surprise you?

Programming Note: Listen to Ellen Fink-Samnick’s live reporting on the State of the Social Determinants weekly on Monitor Mondays, 10-10:30 a.m. EST.

Facebook
Twitter
LinkedIn

Ellen Fink-Samnick, MSW, ACSW, LCSW, CCM, CRP

Ellen Fink-Samnick is an award-winning healthcare industry expert. She is the esteemed author of books, articles, white papers, and knowledge products. A subject matter expert on the Social Determinants of Health, her latest books, The Essential Guide to Interprofessional Ethics for Healthcare Case Management and Social Determinants of Health: Case Management’s Next Frontier (with foreword by Dr. Ronald Hirsch), are published through HCPro. She is a panelist on Monitor Mondays, frequent contributor to Talk Ten Tuesdays, and member of the RACmonitor Editorial Board.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering OB GYN Coding Accuracy: Precision Coding for Compliance and Reimbursement

Gain clarity and confidence in OB‑GYN coding with this expert‑led webcast featuring Sherri L. Clayton, RHIT, CSS. You’ll learn how to apply global maternity package rules accurately, select the right CPT codes for procedures and visits, and identify documentation gaps that lead to denials. With practical guidance and real examples, this session helps you strengthen compliance, reduce audit risk, and ensure accurate reimbursement for women’s health services.

May 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover essential coding insights with nationally recognized coding authority Kay Piper, RHIA, CDIP, CCS. Through ICD10monitor’s interactive, on‑demand webcast series, Kay walks you through the AHA’s 2026 ICD‑10‑CM/PCS Quarterly Coding Clinics, translating each update into practical, easy‑to‑apply guidance designed to sharpen precision, ensure compliance, and strengthen day‑to‑day decision‑making. Available shortly after each official release.

April 13, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Fourth Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s fourth quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

December 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Third Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s third quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

October 12, 2026

Trending News

Featured Webcasts

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

BLOOM INTO SAVINGS! Get 25% OFF during our spring sale through March 27. Use code SPRING26 at checkout to claim this offer.

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24