Question: What does HIPPS stand for? Minnesota Subscriber Answer: HIPPS refers to the “Health Insurance Prospective Payment System” code, which is comprised of five digits. The code encompasses — and thus provides — a lot of information. The first four positions of the HIPPS code refer to the specific Patient Driven Payment Model (PDPM) case mix component that is billable to Medicare Part A for reimbursement, and the fifth position refers to the type of assessment completed. The RAI Manual adds these important notes, including important formatting guidance for coding: