What is commonly referred to as 'upcoding' in healthcare fraud?

'Upcoding' refers specifically to the practice of billing for a higher-level service or procedure than what was actually performed. This typically occurs when a healthcare provider assigns a code that represents a more complex or resource-intensive service than what the patient received. By doing this, the provider seeks to increase reimbursement from insurance companies or government programs unjustly.

The significance of recognizing upcoding lies in its implications for healthcare fraud, as it distorts the reality of the care provided, leading to inflated costs for insurance and healthcare systems as a whole. This practice not only violates ethical standards but also legal guidelines designed to ensure that providers are reimbursed appropriately for the services they render.