A three-digit code that describes a classification of a product or service is known as what?

The three-digit code that describes a classification of a product or service is known as a revenue code. Revenue codes are specifically used in the healthcare billing system to categorize different types of services or products provided by healthcare facilities. These codes are essential for billing purposes as they help hospitals and other providers accurately report services to insurance companies.

Revenue codes help in the management of claims and ensure that the services rendered are correctly represented on billing statements. They function by simplifying the categorization of services, allowing for clearer documentation and communication between providers and payers.

The other options represent different coding systems. ICD-10-CM codes specifically classify diagnoses and health conditions, while CPT codes (Current Procedural Terminology) primarily describe medical procedures and services provided by healthcare professionals. HCPCS Level II codes are used for non-physician services and supplies. While all these codes are important for healthcare billing and data management, the correct terminology for a three-digit classification of a product or service is indeed revenue code.