CMS FY2027 MS-DRG V44 errata adds 2 ICD-10-PCS codes on October 1
A Friday afternoon MS-DRG Version 44 errata adds two ICD-10-PCS New Technology codes for recombinant human bone morphogenetic protein-2 with collagen scaffold in joints. CMS says the codes will not affect MS-DRG assignment. Effective October 1, 2026.
By the HCC Buddy Coding Team
Published August 24, 2026
Key Takeaways
- →CMS posted ERRATA — ICD-10 MS-DRGs Version 44, effective October 1, 2026. The PDF last-modified timestamp is August 21, 2026 at 1:31 p.m. ET.
- →CMS is implementing 2 new ICD-10-PCS codes on top of the 101 it had already announced, for a total of 103 new procedure codes.
- →The two adds are XW0U3CC (percutaneous) and XW0U4CC (percutaneous endoscopic): introduction of recombinant human bone morphogenetic protein-2 with collagen scaffold into joints, new technology group 12.
- →CMS says these codes are non-O.R. and will not affect MS-DRG assignment. There is no assigned MDC or MS-DRG.
- →This is not the FY 2027 replaced-device credit list (CR 14519), and it is not a CMS-HCC or V28 model update. The FY 2027 ICD-10-CM Coding Guidelines PDF is still marked not yet available.
CMS posted ERRATA — ICD-10 MS-DRGs Version 44, effective October 1, 2026. The file is linked from the CMS ICD-10 page as 2027 ERRATA (PDF). The PDF last-modified time is August 21, 2026, 17:31 GMT (1:31 p.m. ET). The ICD-10 page itself shows Page Last Modified 08/21/2026 01:37 PM.
This is not Friday's FY 2027 replaced-device credit-list update. That CR changed which MS-DRGs take a device-credit payment cut. This errata adds two ICD-10-PCS codes to the FY 2027 / Version 44 files.
The two new codes
CMS says it is implementing 2 new procedure codes, in addition to the 101 new procedure codes previously announced, bringing the total to 103 new ICD-10-PCS codes, effective October 1, 2026.
| Code | Title in the V44 errata | O.R. |
|---|---|---|
| XW0U3CC | Introduction of recombinant human bone morphogenetic protein-2 with collagen scaffold into joints, percutaneous approach, new technology group 12 | N |
| XW0U4CC | Introduction of recombinant human bone morphogenetic protein-2 with collagen scaffold into joints, percutaneous endoscopic approach, new technology group 12 | N |
The table addenda puts both codes in Section X (New Technology), body system W (Anatomical Regions), operation 0 (Introduction), body part U (Joints), device/substance C (recombinant human bone morphogenetic protein-2 with collagen scaffold), qualifier C (New Technology Group 12). Approach 3 is percutaneous. Approach 4 is percutaneous endoscopic.
They do not change the MS-DRG
CMS is explicit: these codes will not affect the MS-DRG assignment. They are designated non-O.R. There is no assigned MDC or MS-DRG. The grouper still uses the principal diagnosis, CC/MCC secondaries, other procedures, age, sex, and discharge status.
The errata says the ICD-10 MS-DRG Grouper software package that accommodates these 2 additional codes, Version 44, is effective for discharges on or after October 1, 2026. The V44 Grouper software, Definitions Manual, and Definitions of Medicare Code Edits V44 manual are pointed to the MS-DRG Classifications and Software page.
The FY 2027 PCS count
The errata reprint of the change-summary table:
| 2026 total | New codes | Revised titles | Deleted codes | 2027 total |
|---|---|---|---|---|
| 79,193 | 103 | 3 | 38 | 79,258 |
That is 79,193 + 103 − 38 = 79,258. Revised titles do not change the count. Do not treat the 103 as a list to recode by hand. Use the official FY 2027 PCS files on the ICD-10 page.
What this is not
It is not a CMS-HCC or V28 mapping change. These are inpatient procedure codes. If the question is risk adjustment, use the model year you are actually coding in ICD-10 to HCC.
It is not the FY 2027 ICD-10-CM Coding Guidelines. That PDF is still marked not yet available on the CMS ICD-10 page.
It is not the Table 6A–6K file list and it is not the housing Z-code CC→NonCC change.
What to do before October 1
1. If your encoder or grouper still shows 101 new FY 2027 PCS codes, add XW0U3CC and XW0U4CC from this errata.
2. Do not expect either code to drive an MS-DRG. CMS said they will not.
3. Pull the Version 44 grouper / MCE package from the MS-DRG software page when CMS posts the files that go with this errata.
4. Keep waiting on the FY 2027 ICD-10-CM guidelines PDF. CMS has not posted it.
Look up the two codes in the encoder when you need the long descriptor next to a record, not a count of 103.
Frequently Asked Questions
Which ICD-10-PCS codes did the FY 2027 MS-DRG V44 errata add?
XW0U3CC and XW0U4CC. Both are introduction of recombinant human bone morphogenetic protein-2 with collagen scaffold into joints, new technology group 12. One is percutaneous. The other is percutaneous endoscopic. Effective October 1, 2026.
Do XW0U3CC and XW0U4CC change the MS-DRG?
No. CMS says these codes will not affect MS-DRG assignment. They are non-O.R. and have no assigned MDC or MS-DRG.
Did CMS post the FY 2027 ICD-10-CM Coding Guidelines?
No. The CMS ICD-10 page still marks the FY 2027 ICD-10-CM Coding Guidelines PDF as not yet available.
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Every HCC Buddy news article is checked against the current CMS-HCC model and the active FY ICD-10-CM tabular release before it publishes.
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