I have the sneaking suspicion that this is going to backfire massively. They'll have bad data hither and yon as overworked medicos end up entering the wrong codes (hey, it's a broken femur, who cares which side?) as often as the right ones. They won't get the supposed benefits of more granular data because the data will be so screwed up that they won't be able to draw any conclusions at all.
Nothing like an industry standard to screw things up on a grand scale.
It won't backfire, it'll work perfectly.
The insurance companies sit between the doctor and the patient, view medical care as an expense, and seek to avoid paying by any means.
Having an enormously complicated system of classification gives them many more ways to deny claims, leaving the patient on the hook for the bill.
I've had personal experience with this: for a procedure which was 100% covered, the anesthesiologist put the wrong diagnosis code in his notes and the insurance company wouldn't reimburse him for that reason (but everyone else - doctors, nurses, hospital - was OK).
It took 2 1/2 years and about half a vertical inch of paperwork to straighten it out, and was a nightmare. Some tidbits:
1) The insurance company could tell the doctor that he used the wrong code, but wouldn't say what the right code was.
2) The med techs swore up and down that it was the right code (in fact, the *only* code), the insurance company stated with equal strength that it was not.
3) Since it is a mistake with either the doctor or insurance company, nothing the patient can do will help - they are completely helpless.
4) A doctor can't "just change" their notes, even when they've made a clear and unarguable mistake.
5) If you resubmit a claim, the company will deny it based on the previous denial, even if the mistake has been corrected.
#3 above is the most frustrating. The patient has to convince someone else to spend time and effort to fix something which is not their problem.
This new system is just a bureaucratic boondoggle that lets insurance companies avoid payments.
It's saying, in effect, that they care more for paperwork than they do about providing health care.