What Is an NPI Number?

[Complete Guide for Home Care Providers & Healthcare Agencies]

If you’re starting a home care agency, group home, or providing independent care services in the U.S., you’ve likely been asked: “What is an NPI number?” This guide will walk you through everything you need to know about NPI numbers, who needs them, how to apply, and why it matters for your business.


What Is an NPI?

NPI stands for National Provider Identifier. It’s a unique 10-digit number issued by the Centers for Medicare & Medicaid Services (CMS) to healthcare providers in the United States. The purpose of an NPI number is to identify you or your organization in all administrative and financial healthcare transactions—especially those regulated under HIPAA.


Why Do You Need an NPI Number?

Whether you're a home care nurse, operate a non-medical home care business, or run a group home, an NPI is a non-negotiable part of getting paid, maintaining compliance, and building trust.

  • Required for Insurance Claims: Medicare, Medicaid, and private insurers require NPIs for billing.
  • Mandatory Under HIPAA: NPIs are used in all HIPAA-regulated transactions.
  • Credentialing and Licensing: States and insurers often ask for an NPI during application processes.
  • Streamlined Provider Identification: Enables consistent identification across healthcare systems.
  • Avoid Reimbursement Delays: Claims submitted without valid NPI numbers are usually denied or delayed.

Who Must Have an NPI?

NPI numbers are required for two major provider types:

1. Type 1 – Individual Healthcare Providers

  • Registered Nurses and LPNs
  • Personal Care Aides (in some states)
  • Physicians, therapists, social workers
  • Counselors and behavior specialists
  • Independent home care professionals

2. Type 2 – Healthcare Organizations

  • Home Care Agencies
  • Home Health Agencies
  • Group Homes
  • Mental Health Clinics
  • Assisted Living Facilities
  • Durable Medical Equipment (DME) Suppliers

If you're applying for a license using CarePolicy.us's services, obtaining an NPI is a critical early step.


What Is the Format of an NPI Number?

  • A 10-digit numeric code
  • No embedded meaning (unlike a Social Security Number or EIN)
  • Example: 1234567893
  • It stays with you permanently—even if you move states or change business entities

How to Apply for an NPI Number

Applying for an NPI is free and can be done entirely online.

Steps to Apply:

  • Visit the NPPES website.
  • Create or log in to your account.
  • Choose your provider type (Type 1 or Type 2).
  • Enter your personal or business details.
  • Choose a taxonomy code that defines your role (see below).
  • Submit and wait 1–10 business days for confirmation.

What Is a Taxonomy Code?

When applying for your NPI, you’ll select a taxonomy code that identifies your specialization or the nature of your organization.

Code Provider Type
251E00000X Home Health Agency
253Z00000X In-Home Supportive Care
310400000X Assisted Living Facility
251S00000X Community Residential Treatment Facility (MH)
208D00000X General Practice (Physician)

👉 View the full taxonomy code list here.


Can Someone Look Up My NPI?

Yes. The NPI Registry is public. You can search your own or another provider’s NPI at the official NPI Registry.


Do You Need an NPI If You're Private Pay Only?

  • Licensing and certification
  • Business legitimacy
  • Future growth or credentialing

What’s the Difference Between Type 1 and Type 2 NPI?

Feature Type 1 NPI (Individual) Type 2 NPI (Organization)
Who applies? A single provider A business or entity
Example Independent nurse Licensed home care agency
Required for? Personal licensure, tax ID use State licensure, insurance plans
Can I have both? Yes Yes

What Happens After You Get an NPI?

  • Used on every claim you submit
  • Included on your licensing and business paperwork
  • Required for state and federal enrollment (Medicaid, Medicare, etc.)
  • You are responsible for updating your NPI record when your business info changes

NPI and CarePolicy.us

At CarePolicy.us, we help providers not only obtain their NPI numbers, but also ensure your licensing, business setup, and compliance documentation meets state-specific standards.

If you're setting up a new business, don't stop at the NPI. Let us help with:

  • Customized Policies and Procedures
  • Licensing Support Across All U.S. States
  • Free Consultation Calls

Frequently Asked Questions

Q: How long does it take to get an NPI number?
Typically 1–10 business days.

Q: Can I operate without an NPI?
No, if you're planning to accept insurance or apply for licensure.

Q: Is the NPI the same as a business license?
No, the NPI is a federal identifier, while your business license is state-specific.

Q: Do I need an EIN before I apply for a Type 2 NPI?
Yes. For organizations, an EIN is required to complete the NPI application.

Q: Can CarePolicy.us help with the application?
Yes. Our team can guide you through NPI registration, taxonomy selection, and all related compliance steps.