The FY2027 ICD-10-CM code set takes effect October 1, 2026. It adds 190 codes, deletes 30 and revises 4 titles, according to CMS and the CDC. For GI, orthopedic and ASC billing teams, start with the new plantar fasciitis codes, the expanded osteomyelitis codes and a change to how cecal polyps are indexed.
When do the FY2027 codes actually take effect?
The new codes apply to encounters and discharges from October 1, 2026 through September 30, 2027. The code year follows the date of service, so the day you send the claim has no bearing on which codes you use.
This is the part that trips teams up in the first week of October. A visit on September 28 still uses FY2026 codes, even if the claim goes out October 15. A visit on October 2 uses FY2027 codes. If your clearinghouse edits run off the submission date instead of the date of service, expect rejections on your first October batch.
It is worth pulling every claim with a late-September date of service that is still unbilled on October 1 and giving it a second look before it goes out. Those are the claims most likely to pick up a new code by mistake, especially if a coder has already updated their favorites list.
Inpatient claims follow the discharge date, not the admission date, so a hospital stay that starts in September and ends in October uses FY2027 codes. That matters less for office and ASC billing, but it is worth knowing if your providers also see patients in the hospital.
Before October 1, confirm with your clearinghouse and EHR vendor that their edits are loaded for the new code year, then send a few test claims across the date boundary and watch how they land.
What changed for orthopedic and ASC billing?
Most of the orthopedic and ASC changes are in Chapter 13, which covers the musculoskeletal system. Foot and ankle practices will notice them first.
Plantar fasciitis now has its own code. Since ICD-10 took effect in 2015, it has shared M72.2 with plantar fascial fibromatosis. Starting October 1, you code it by side:
- M67.A01, right foot
- M67.A02, left foot
- M67.A09, unspecified foot
Because laterality is built into the code, a note that never says which foot was treated leaves the coder with the unspecified option, and payers are more likely to question it. The fix starts with documentation. When the provider records the treated foot, the coder can assign the right side and the claim goes out clean.
M72.2 also changes meaning. It now covers only plantar fascial fibromatosis (Ledderhose disease) and splits into M72.20, M72.21 and M72.22. A superbill that still maps plantar fasciitis to M72.2 is now reporting the wrong diagnosis.
Two other changes affect ortho and podiatry. The M86.8X- codes for other osteomyelitis now expand by site and laterality and require a seventh character, so coders should look up the new subcategory rather than code from memory. S23.420, the sternoclavicular sprain code, is deleted. If it sits in a shoulder or chest template, check the CMS conversion table for its replacement and update the template before October claims go out.
If your surgery center does a lot of foot, ankle and shoulder cases, these codes will show up on your October schedule. Our ASC billing team can check your most common procedures and diagnoses against the new code set before the cutover.
What should GI billing teams check?
FY2027 adds very few new GI codes. For GI practices, the risk is mostly in the index and in older templates.
The Alphabetic Index now sends a polyp of the cecum to K63.5, a digestive system code in Chapter 11, instead of a benign neoplasm code in Chapter 2. If you code screening and surveillance colonoscopy findings, make sure your coders and any coding software follow the new index path. The diagnosis you assign to a polyp finding affects both payment and quality reporting.
The bigger job for GI practices this month is reviewing templates. Endoscopy superbills often go years without a close look, and one retired code on a template can reject a full day of cases. Our GI billing specialists can compare your superbills against the new CMS files so nothing outdated carries over. Also spot check the codes your providers use most, since a change to one high-volume code can affect a lot of revenue.
What should you tell your providers before October 1?
Coders can only assign what the note supports, so several of this year’s changes have to start in the exam room. A short memo or a five-minute huddle before October 1 covers most of it.
For orthopedic and podiatry providers, the main task is to name the side on every foot and ankle diagnosis and to document the site of any osteomyelitis as specifically as possible. For GI providers, it is to describe polyp location clearly in procedure notes, since location now changes where the code comes from in the index.
Keep the memo to one page and list the old code next to the new one. Providers are far more likely to read a short table than a long email, and your coders and front desk end up working from the same reference. Our earlier post on 2026 medical coding updates covers the CPT and HCPCS changes that took effect in January.
How do deleted codes turn into denials?
Deleted codes are only part of the problem. Some codes stay in the code set but become category headers, which cannot be billed on their own. They still come up in a search, and they will still deny a claim. A code list carried over from last year will not flag them.
The FY2027 conversion table from CMS and the CDC maps each inactive code to its replacement. You do not need to read it cover to cover. Run it against your most-used codes instead. Most specialty practices bill the bulk of their volume on a fairly short list of diagnosis codes, so a focused review finds the problems quickly. If no one has looked in over a year, a coding audit will turn up retired codes, missing laterality and documentation gaps before they show up as November denials. When you find a retired code, update your EHR favorites and superbills that day so no one picks it from an old list. MHS has more than 30 certified coders on staff if you would rather hand that review off.
Frequently asked questions
Do FY2027 codes apply to September visits we bill in October?
No. The date of service sets the code year. A September visit uses FY2026 codes even if you bill it in October.
Is there still a code for plantar fasciitis?
Yes. It moves to M67.A0- with laterality: M67.A01 right, M67.A02 left, M67.A09 unspecified, effective October 1, 2026.
What happens if we keep billing M72.2 for plantar fasciitis?
M72.2 now means plantar fascial fibromatosis, or Ledderhose disease. Using it for plantar fasciitis reports the wrong diagnosis and is likely to be denied.
How many codes changed this year?
CMS and the CDC list 190 new, 30 deleted and 4 revised codes. Some vendors report different totals because they count non-billable headers separately.
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