What does unbundling mean in medical billing?

Unbundling in medical billing refers to the practice of billing each step of a procedure separately rather than billing for the entire procedure as a whole. This can lead to increased costs for both patients and insurers, as it may result in the creation of multiple invoices for services that would typically be included in a single comprehensive fee. The intent of unbundling is often to maximize reimbursement by breaking down a procedure into its individual components. It is essential for healthcare providers to adhere to coding guidelines that indicate when unbundling is appropriate, as improper unbundling could be viewed as fraudulent billing. Therefore, recognizing unbundling is crucial for understanding how medical billing works and ensuring compliance with billing regulations.