Unbundling refers to which practice?

Unbundling is a billing practice that occurs when a healthcare provider uses multiple codes to represent different components of a single treatment rather than using one comprehensive code that encompasses all elements of the procedure. This practice can lead to increased costs for the patient and insurance companies, as it creates the appearance of a more extensive service than what was actually provided.

For example, if a service requires a combination of procedures or elements, a provider might bill for each individual part separately instead of using one code that covers all aspects of the service. This can potentially lead to overcharging and is generally considered unethical, which is why healthcare regulations and coding guidelines typically advise against this practice. By using multiple codes for different components, it disrupts the intended bundling that is often designed to streamline billing and reflect the lower total risk associated with receiving an entire treatment as one cohesive package.