In a new press release from HHS, Secretary Kathleen Sebelius announced a proposed rule that would delay the compliance date for ICD-10 from October 1, 2013 to October 1, 2014.

The proposed rule would delay by one year the implementation date by which covered entities must comply with International Classification of Diseases, 10th Edition diagnosis and procedure codes (ICD-10). Covered entities are defined in HIPAA as (1) health plans, (2) health care clearinghouses, and (3) health care providers who electronically transmit any health information in connection with a transaction for which HHS has adopted a standard.

The shear change in the volume of codes will be daunting.  ICD-9 has 13,000 diagnosis codes and 4,000 procedure codes totaling 17,000 codes, while ICD -10 has 68,105 diagnosis codes and 72,589 procedure codes totaling 140,694 codes.  The ICD -10 codes will also have more digits and will be in different formats.

Many healthcare groups had expressed serious concerns about the industry's ability to meet the October 1, 2013 target date. CMS and HHS believe the change in the implementation date would give providers and other covered entities more time to prepare and fully test their systems to ensure a smooth and coordinated transition among all industry segments.