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E/M Coding Changes You Need to Know from the Physician Fee Schedule Final Ruling

New rules for reporting evaluation and management (E/M) services in most places of service took effect January 1, 2023. The coding and documentation revisions, adopted by the American Medical Associationโ€™s CPT Editorial Panel and approved by the Centers for Medicare and Medicaid Services (CMS), substantially simplify code selection and documentation.

Effective January 1st, E/M services have their own thresholds of the three medical decision-making elements. When reviewing an encounter, if what was medically necessary, performed, and documented meets the threshold of two of the three elements for that level, that E/M level may be selected.

Although you should still perform a medically appropriate history and/or physical exam, it/they do not determine the level of service.

Coding Based on MDM

The four levels of MDM remain the same: straightforward, low, medium, and high. To qualify for a level of MDM, two of the three elements for that level of decision-making must be met.

The three core elements have remained essentially the same and they are:

  1. Number and complexity of problem(s)
  2. Amount and/or complexity of data to be reviewed and analyzed.
  3. Risk of complications and/or morbidity or mortality of patient management decisions made at the visit.

Coding Based on Time

The biggest change in E/M coding and documentation is that code selection for patient visits can now be based entirely on time spent on the day of the encounter – even if counseling and coordination of care do not dominate the encounter. Clinical staff time does not count.

Contact Us about E/M Coding Changes

To learn more about how Blue & Co. can help your organization with opportunities surrounding the 2023 Physician Fee Schedule Final Rule and E/M coding changes, reach out to your local Blue & Co. advisor or contact a member of our Revenue Cycle team below.

Beverly Strube, CPC, COC, CPC-I, CPMA, CEMC, COBGC, Senior Physician Coding Consultant
317-713-7928

Scott Treida, Director
317-713-7950

Maddie Gookins, Director
317-713-7945

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