ICD-10 vs ICD-11: What’s Out, What’s In, Here’s What’s Changing in 2025 Medical Billing

Dr.Alex Carter
April 8, 2025
5 min read

Table of Contents

Introduction

Medical coding faces its biggest transformation yet. The switch from ICD-10 to ICD-11 brings approximately 17,000 diagnostic categories and over 1.6 million medical terms. The World Health Assembly gave its approval to ICD-11 in May 2019, and the system went live globally on January 1, 2022. The new system lets medical staff describe health conditions with better detail by combining codes. This change takes time to implement properly. Countries like the US with complex healthcare systems need 4-5 years to adapt these changes completely. The matching rate between old and new systems stands at just 23.5%. Medical professionals must learn what's changing, what's new, and how to get ready for this radical alteration in medical billing that arrives in 2025.

ICD-10 vs ICD-11: Key Differences ICD-10 ICD-11 Structure: • 14,000 codes • Paper-based design • Limited specificity Mental Health: • Basic categorization • Limited detail Integration: • Adapted for digital use • Limited interoperability Special Features: • Laterality coding • 7th character extensions • No traditional medicine Status: • Maintenance ended 2018 Structure: • 55,000+ codes • Digital-first design • Enhanced specificity Mental Health: • Expanded categories • Detailed descriptions Integration: • API & FHIR support • Full EHR integration • Natural language processing Special Features: • Traditional medicine chapter • Antimicrobial resistance • Functioning assessment • 50+ languages Status: • In effect since Jan 2022

What Are the Key Differences Between ICD-10 and ICD-11?

ICD-11 revolutionizes medical coding compared to its predecessor. The new version brings major structural and content changes. Medical professionals must understand these differences to prepare for the upcoming transition.

How has the code structure changed in ICD-11?

ICD-11's revamped coding structure stands out immediately. ICD-10 used alphanumeric codes from A00.0 to Z99.9. The new version expands this format from 1A00.00 to ZZ9Z.ZZ1. This framework introduces a "clustered" code approach that combines a primary "stem" code with optional "post-coordination" codes. These codes capture clinical details with greater precision16.

Medical professionals can now represent a duodenal ulcer with acute gastrointestinal bleeding as "DA63/ME24.90". This replaces the need for a single pre-coordinated code28. A 2021 study revealed that only 23.5% of ICD-10-CM codes could match with a single ICD-11 stem code. Multiple post-coordination codes will help maintain the same level of detail16.

What new categories have been added to ICD-11?

ICD-11 now has 28 chapters compared to ICD-10's 22. The system adds several new sections4. The dedicated chapters cover:

  • Diseases of the immune system
  • Sleep-wake disorders
  • Conditions related to sexual health

The new version includes over 5,500 rare diseases. It also adds new diagnostic categories like gaming disorder, complex post-traumatic stress disorder, and prolonged grief disorder29. Healthcare providers can now access 17,000 diagnostic categories with over 100,000 medical diagnostic index terms6.

Which ICD-10 elements have been removed or reorganized?

ICD-11 brings notable changes to organize information better. The system removes schizophrenia's previous subtypes (paranoid, hebephrenic, catatonic). A single "schizophrenia" category takes their place7. ICD-11 unites the separate personality disorder categories from ICD-10 into one personality disorder diagnosis. Severity levels now distinguish these conditions rather than types8.

Some categories now appear in different chapters. The "mental and behavioral disorders" chapter contributes to new sleep-wake disorders and sexual health chapters4. The system removes the artificial limit of ten major groupings within mental disorders. This change allows more clinically useful diagnostic groupings30.

When Will ICD-11 Be Implemented in the United States?

Medical billing operations need to prepare for upcoming changes as ICD-11's global rollout takes a different path from its US healthcare system implementation. Understanding these timelines plays a significant role in this preparation.

What is the official ICD-11 release timeline?

WHO published ICD-11 for review in 2018. The World Health Assembly formally adopted it on May 25, 201910. ICD-11 became effective globally on January 1, 2022111012. WHO started using this new classification system to report global health statistics at this milestone13.

WHO data from May 2024 shows growing implementation momentum worldwide. A total of 132 member states and areas are moving forward with ICD-11 adoption14. The progress varies - 72 countries have begun implementation processes including translations. Another 50 countries conduct or expand implementation pilots, while 14 countries already collect or report data using ICD-11 codes14.

Why is the US implementation timeline different from global adoption?

The United States follows a unique implementation path despite ICD-11's global effectiveness. Several factors contribute to this difference. The US adoption involves two separate aspects: mortality reporting for cause of death and morbidity reporting for diseases and conditions in healthcare settings10.

US healthcare systems' complexity demands a longer transition period. Multiple sources indicate that upgrading to ICD-11 will take at least 4-5 years1516. This extended timeline results from the need to complete regulatory alignment, funding models, and system modifications17.

The United States hasn't set a definitive implementation date yet. Projections suggest ICD-11 implementation might happen between 2025 and 202718. The National Committee on Vital and Health Statistics created a dedicated ICD-11 Workgroup in 2023. This workgroup gathers information and develops recommendations for Health and Human Services regarding adoption1917.

This careful approach helps avoid repeating the lengthy and expensive transition from ICD-9 to ICD-10. That previous transition took 25 years from WHO's endorsement to US implementation10.

How Will ICD-11 Change Medical Billing Processes?

The move to ICD-11 will reshape medical billing operations in healthcare practices nationwide. This revision brings new ways to capture and process diagnostic information that go beyond simple code updates.

What is the new clustered code structure?

ICD-11's clustered code structure is a complete shift from ICD-10's linear coding system.

It combines a primary stem code with optional extension codes for detailed clinical descriptions.
Example: Instead of a single code for "duodenal ulcer with bleeding," You use a stem code for duodenal ulcer linked with an extension code for bleeding. This flexible approach improves clinical documentation without creating an overwhelming number of code combinations. It reduces the need for many pre-coordinated codes but enables more detailed medical descriptions.

How will post-coordination affect billing workflows?

Post-coordination allows combining multiple codes to describe a diagnosis more precisely. It adds details like:

  • Laterality (left/right)
  • Severity
  • Anatomical location

Billing teams must learn to select and link multiple codes instead of relying on a single code.
A 2021 study found only 23.5% of ICD-10-CM codes could be represented by a single ICD-11 stem code.

Coders must become skilled at:
  • Identifying the correct stem code.
  • Adding relevant extension codes to ensure accurate reimbursement.

Will ICD-11 require new software systems?

Yes, significant software upgrades are necessary.

Current systems must accommodate:

  • Longer character lengths for clustered codes.

  • New coding patterns and validation rules.

  • EHR systems and billing software will need updates for ICD-11 compliance.

Vendors are developing ICD-11-ready solutions with:

  • Advanced search functions.

  • Automated post-coordination tools.

How might reimbursement patterns change?

More precise coding may end up improving reimbursement accuracy24. ICD-11 allows detailed documentation of complex conditions, which gives payers a better understanding of services rendered24. All the same, different implementation strategies between facilities could lead to varied data quality. This might affect revenue and make healthcare system inequities worse16.

What Steps Should Medical Billing Teams Take to Prepare for ICD-11?

Medical billing teams need strategic planning to prepare for ICD-11 well before the US implementation date. The transition will take 4-5 years minimum15, so starting early will ensure success.

Which technology updates will be necessary?

Your current EHR and billing systems need assessment for ICD-11 compatibility22. Most systems need substantial updates to handle ICD-11's unique features25. The required technology updates include:

  • Upgraded billing software that supports clustered code structures and post-coordination
  • EHR modifications to accommodate longer character lengths and new validation rules
  • Integration with WHO's API services for full search and coding functionality26
  • Security updates to protect sensitive patient information during transition24

Your vendors should confirm their ICD-11 development roadmaps right away27. Early planning of these updates helps spread costs across fiscal years and reduces financial disruption.

How can you test your systems for ICD-11 compatibility?

Sample patient charts help test systems through pilot programs before full implementation9. A dedicated testing team should include people from coding, billing, IT, and clinical departments3. The testing approach starts with simulated coding exercises that show knowledge gaps or workflow problems22. A backup plan helps manage potential financial disruptions during the transition period3.

Comparison Table

ICD-10 vs ICD-11 Comparison

Questions ICD-10 ICD-11
Total number of chapters 22 chapters 28 chapters
Code structure range A00.0 to Z99.9 1A00.00 to ZZ9Z.ZZ
Code organization method Single precoordinated codes Clustered codes with stem and post-coordination options
Code match percentage between versions 100% (baseline) Only 23.5% direct match with ICD-10 codes
Additional dedicated chapters N/A • Diseases of the immune system
• Sleep-wake disorders
• Conditions related to sexual health
Available diagnostic categories Not mentioned 17,000 diagnostic categories
Medical terms included Not mentioned Over 1.6 million medical terms
Personality disorder classification Multiple discrete categories Single category with severity levels
Global implementation date Not mentioned January 1, 2022
US implementation timeline Not mentioned Projected between 2025-2027
Complex condition documentation Single precoordinated codes Combined codes using post-coordination
Recommended training duration Not mentioned 20 classroom hours + 40 hours coding practice

Conclusion

Medical coding is undergoing its most important transformation yet. ICD-11 introduces major improvements with its innovative clustered code structure, expanded chapters, and detailed diagnostic categories. ICD-11 goes beyond a simple coding update - it shows healthcare's progress toward greater precision and adaptability. The transition brings challenges, but proper preparation will help practices direct these changes well and result in improved patient care documentation and optimized billing processes.

FAQs

Q1. When will ICD-11 be implemented in the United States? 

While ICD-11 became effective globally on January 1, 2022, the United States is expected to implement it between 2025 and 2027. The exact date is yet to be determined, as the US healthcare system requires a longer transition period due to its complexity.

Q2. What are the major differences between ICD-10 and ICD-11? 

ICD-11 introduces significant changes, including an expanded code structure (from 1A00.00 to ZZ9Z.ZZ), 28 chapters instead of 22, and a new clustered code approach. It also adds new categories like diseases of the immune system and sleep-wake disorders, and incorporates over 5,500 rare diseases.

Q3. How will ICD-11 affect medical billing processes? 

ICD-11 will introduce a clustered code structure and post-coordination, allowing for more detailed clinical descriptions. This change will require billing teams to adapt to selecting and linking multiple codes where a single code previously sufficed. It will also necessitate software upgrades and may impact reimbursement patterns.

Q4. What preparations should medical billing teams make for ICD-11? 

Medical billing teams should start training immediately, with each staff member needing about 60 hours of training. Technology updates will be necessary, including upgrades to billing software and EHR systems. Teams should also conduct thorough testing of their systems for ICD-11 compatibility before implementation.

Q5. How does the code structure in ICD-11 differ from ICD-10? 

ICD-11 uses a clustered code structure that combines a primary "stem" code with optional "extension" codes. This allows for more precise clinical documentation without the need for an excessive number of precoordinated codes. Only 23.5% of ICD-10 codes directly match their ICD-11 counterparts, indicating a significant change in coding practices.

References

[1] - https://www.nurse.com/nursing-resources/icd-10-codes/icd-11-vs-icd10/?srsltid=AfmBOoqgmAbxXtyP--hp2tbgi8bevkSocqW5FzaLVdq97nMZlcozEW6F
[2] - https://pmc.ncbi.nlm.nih.gov/articles/PMC9112606/
[3] - https://www.nachc.org/nachc-content/uploads/2024/02/APC_-ICD-11-Coding-Readiness-HCC-SDOH-NACHC-2024.pdf
[4] - https://pmc.ncbi.nlm.nih.gov/articles/PMC7309235/
[5] - https://pmc.ncbi.nlm.nih.gov/articles/PMC9644463/
[6] - https://www.wedi.org/2023/08/10/opportunities-and-challenges-moving-from-icd-10-to-icd-11/
[7] - https://www.researchgate.net/publication/339930103_ICD-11_vs_ICD-10_-_a_review_of_updates_and_novelties_introduced_in_the_latest_version_of_the_WHO_
International_Classification_of_Diseases
[8] - https://pmc.ncbi.nlm.nih.gov/articles/PMC7365296/
[9] - https://yes-himconsulting.com/preparing-for-icd-11-codes-steps-for-a-smooth-transition/
[10] - https://ncvhs.hhs.gov/wp-content/uploads/2021/09/NCVHS-ICD-11-recommendations-for-HHS-Sept-10-2021-Final-508.pdf
[11] - https://www.who.int/standards/classifications/frequently-asked-questions/icd-11-implementation
[12] - https://en.wikipedia.org/wiki/ICD-11
[13] - https://ncvhs.hhs.gov/wp-content/uploads/2023/09/ICD-11-Overview-September-2023-508.pdf
[14] - https://www.who.int/standards/classifications/classification-of-diseases
[15] - https://jamanetwork.com/journals/jama-health-forum/fullarticle/2807690
[16] - https://pmc.ncbi.nlm.nih.gov/articles/PMC10495107/
[17] - https://academic.oup.com/healthaffairsscholar/article/3/3/qxaf037/8037567
[18] - https://yes-himconsulting.com/icd-11-overview/
[19] - https://libmaneducation.com/us-timeline-for-icd-11-implementation/
[20] - https://racmonitor.medlearn.com/introduction-to-the-who-s-icd-11/
[21] - https://icd.who.int/docs/codingtool/en/Postcoordination/
[22] - https://www.simbo.ai/blog/understanding-the-impact-of-icd-11-on-medical-coding-and-billing-practices-preparing-for-the-transition-3802488/
[23] - https://medwave.io/2024/07/the-impact-of-icd-11-on-medical-billing-practices/
[24] - https://www.glenwoodsystems.com/post/icd-11-impact-medical-billing
[25] - https://www.medicalbillersandcoders.com/blog/icd-11-compliance/
[26] - https://icd.who.int/en/docs/ICD-11%20Implementation%20or%20Transition%20Guide_v105.pdf
[27] - https://multimedia.3m.com/mws/media/2351059O/overview-icd-11-and-the-future-of-coding.pdf
[28] - https://ncvhs.hhs.gov/wp-content/uploads/2020/01/Presentation-Changes-from-ICD-10-to-ICD-11-Pickett-Anderson.pdf
[29] - https://www.who.int/news/item/08-03-2024-new-manual-released-to-support-diagnosis-of-mental--behavioural-and-neurodevelopmental-disorders-added-in-icd-11
[30] - https://pmc.ncbi.nlm.nih.gov/articles/PMC6313247/

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