Simply put, the Health Care Provider Taxonomy code is a unique alphanumeric code that is ten characters long and used for identifying the health care provider’s type, classification, and area of specialization. The code is designed to be used in an electronic domain, particularly within the ASC X12N Health Care transactions. This also includes the transactions directed under The Health Insurance Portability and Accountability Act of 1996, that is, HIPAA. The Taxonomy codes of various health care experts also enable the providers to specify their specialty during the time of filing claims. They are also needed when applying for an NPI number.