How Does Bundling Affect Medical Billing Reimbursement?

Bundling occurs when payers group multiple related services into a single payment rather than paying for each separately. The Correct Coding Initiative (CCI) defines which codes bundle and under what circumstances. Some bundled services can be billed separately with appropriate modifiers like -59 or -25 when documentation supports distinct services. Bundling significantly impacts reimbursement because practices receive one payment instead of multiple, often resulting in lower total reimbursement than if services were paid separately.