ICD-10 coding services assign and review the diagnosis and procedure codes behind every claim you submit. With the FY 2027 code set already in use and the first quarter usually bringing more volume, many practices are deciding now whether their in-house team can keep up. If you already know you need extra coding capacity, talk to our team. If not, here's what to look at before January.
What do ICD-10 coding services include?
They cover the coding work between the patient visit and the claim. That usually means assigning ICD-10-CM diagnosis codes from the provider's documentation, assigning ICD-10-PCS procedure codes for inpatient stays, and reviewing charts to catch missing or vague details before the claim goes out.
Most ICD-10 medical coding services also send documentation queries back to providers when a note doesn't support a specific code, run accuracy audits, and work coding-related denials once they come back from the payer. The scope varies from one provider to another, so it's worth asking exactly which of these tasks are included.
What changed in ICD-10 codes for FY 2027?
The FY 2027 update added 190 new ICD-10-CM codes, deleted 30 and revised four, according to the figures CMS finalized in its FY 2027 IPPS rule. On the procedure side, ICD-10-PCS added 101 new codes.
These codes apply by date of service, for encounters from October 1, 2026, through September 30, 2027. CMS also notes that ICD-10 applies to every HIPAA-covered entity, not just providers who bill Medicare or Medicaid. A smaller update than last year's doesn't mean less risk. Any template, superbill or EHR rule still pointing to a deleted code will keep producing rejections until someone updates it.
Is there another ICD-10 update coming in 2027?
Yes. CMS published the FY 2027 ICD-10-PCS files for discharges only through March 31, 2027, which points to an April 1 procedure code update. Then the full code set changes again on October 1, 2027, when FY 2028 begins. In practice, coding teams get two adjustment points in the same year, and the first one lands right after the busiest quarter.
Why are coding denials more common at the start of the year?
Because several changes hit at once. The new code set is still recent, patients arrive with new insurance plans after open enrollment, deductibles reset, and many teams come back from the holidays with a backlog. Under that pressure, unspecified codes and outdated code choices slip through more easily.
Each of those errors costs more than the time it takes to fix the code. Industry estimates cited by MGMA and HFMA put the cost of reworking a denied claim between $25 and $117, before counting the delay in payment. If you want to see which denials show up most often, our guide to the top 10 denial codes in medical billing breaks them down.
Should you outsource ICD-10 coding services?
Outsourcing makes sense when your current team can't keep up without losing accuracy. The most common signs are a growing coding backlog, frequent coder turnover, specialties your team doesn't code often, or no coverage when someone takes time off.
If your volume is stable, your coders are certified and your denial rate is low, you may not need outside help. Many practices land somewhere in between and choose to outsource ICD-10 coding services only for overflow, audits or a specific specialty, while keeping their core team in-house.
What to ask an ICD-10 coding provider before signing
A few direct questions will tell you more than a sales presentation:
- Which certifications do your coders hold, such as AAPC or AHIMA credentials?
- How do you measure coding accuracy, and how often do you audit?
- Do you work directly in our EHR and billing system?
- What turnaround time do you commit to?
- Which specialties do you code on a regular basis?
- How do you protect patient data, and which compliance standards do you meet?
For a broader look at pricing models and contracts, see our medical coding outsourcing guide.
How nearshore ICD-10 coding works with your team
With a nearshore team, your coders work during U.S. business hours, so a question about a chart gets answered the same day instead of the next morning. Vinali Group's healthcare teams operate from Colombia and Honduras, and our operations are backed by SOC 2 Type II, ISO 27001 and HIPAA compliance.
Coding also works best when it's connected to billing. If you're reviewing both, our page on how to outsource medical billing services explains how they fit together. When you're ready, schedule a conversation with our team and we'll look at your current coding volume and where support would help most.
Frequently asked questions
Do ICD-10 codes change every year?
Yes. The ICD-10-CM and ICD-10-PCS code sets are updated every October 1, and CMS can release additional updates on April 1.
When do the FY 2027 ICD-10 codes expire?
FY 2027 ICD-10-CM codes are valid for encounters through September 30, 2027. The current FY 2027 ICD-10-PCS files cover discharges through March 31, 2027.
Is ICD-10 coding the same as CPT coding?
No. ICD-10-CM codes describe the patient's diagnosis, while CPT codes, maintained by the AMA, describe the services and procedures performed, mainly in outpatient and physician billing. Inpatient hospital procedures use ICD-10-PCS instead.
Start January without a coding backlog
If your team needs extra ICD-10 coding capacity for the first quarter or beyond, contact Vinali Group to talk through your options.
The information in this article is based on publicly available sources from CMS and industry publications as of November 2026. Coding requirements change regularly, so always confirm current guidance with official CMS and CDC resources and with your payers.
