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Code Sets. Medical codes are used for encoding data, such as tables of terms, medical concepts, medical diagnosis codes, or medical procedure codes. Codes are used for statistical and medical billing purposes. Three code sets are primarily used in healthcare: 1  ICD-9, ICD-10 in 2015.
1 ICD-9-CM codes are required under HIPAA for reporting patients' conditions in both the inpatient and outpatient settings. Codes are made up of three, four, or five numbers and a description.  Two volumes of ICD-9-CM are used for diagnostic coding: the Tabular List (Volume 1) and the Alphabetic Index (Volume 2). The Alphabetic Index is used first in the process of finding a code. It contains an index of all the diseases that are classified in the Tabular List.