developed by AMA to provide a terminology and coding system for physician billing?

 The terminology and coding system developed by the American Medical Association (AMA) for physician billing is called the Current Procedural Terminology (CPT). CPT codes are a set of codes used by medical professionals to standardize the description of services and procedures provided to patients. Physicians and other healthcare providers use CPT codes when submitting insurance claims to describe the type of service or procedure they have performed. This standardized coding system ensures that all parties involved—including healthcare providers, insurance companies, and other payers—use a common language when referring to medical, surgical, and diagnostic services, which simplifies the billing and payment process.

Extra: CPT coding is essential in the field of healthcare as it helps facilitate the processing and payment of insurance claims. The CPT code set is divided into three categories:

1. Category I: These are the most commonly used codes and represent procedures and services that are widely performed and accepted in medical practice. Category I codes are five-digit numerical codes and they are updated annually by the AMA.

2. Category II: These codes are used for performance management and additional data tracking. They are optional and are not used for billing, but rather for helping healthcare providers collect information about the quality of care.

3. Category III: These codes represent emergin