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A guide to the new office evaluation and management codes for 1992
1East Carolina University School of Medicine, Greenville, NC.
This article explains the new office evaluation and management codes introduced in 1992. These codes are designed to help physicians accurately select the appropriate codes for billing based on the components of a patient visit. The three key components are the patient’s history, physical examination, and medical decision-making. New-patient visits require all three components, while established-patient visits require only two. Time is a controlling factor only when counseling or coordination of care takes more than half of the visit. The 1992 CPT book will include only the new codes, and physicians are advised to confirm that local insurance carriers will adopt them.
Area of Science:
- Medical coding standards within clinical practice
- Healthcare reimbursement systems in outpatient settings
Background:
Prior research has shown that accurate medical coding is essential for proper reimbursement in clinical settings. However, prior to 1992, office evaluation and management codes lacked standardized definitions that could guide physicians in selecting appropriate codes. Established knowledge includes the use of level-of-service codes, which were based on subjective assessments of patient complexity. That uncertainty drove the need for updated coding systems that could better reflect clinical work. No prior work had resolved the ambiguity surrounding which components of a visit should determine code selection. This gap motivated the CPT Editorial Panel to introduce new definitions and criteria for office visits. The new system aimed to clarify the role of history, physical examination, and medical decision-making in code selection. These changes were intended to reduce variability in coding practices across providers. The 1992 update was expected to streamline billing processes and improve consistency in healthcare documentation.
Purpose Of The Study:
The purpose of this study was to explain the new office evaluation and management codes introduced in 1992. The authors aimed to clarify how physicians should interpret the updated definitions provided by the CPT Editorial Panel. A specific problem was the lack of clarity around which components of a visit determine code selection. The motivation for this work was to ensure accurate and consistent coding practices among healthcare providers. The authors sought to highlight the three key components—history, physical examination, and medical decision-making—as central to code selection. They also aimed to address how new-patient and established-patient visits differ in code requirements. The study aimed to emphasize the importance of avoiding time-based coding unless counseling or coordination of care dominates the visit. The ultimate goal was to guide physicians in applying the new codes effectively in clinical practice.
Main Methods:
The study reviewed the definitions and criteria established by the CPT Editorial Panel for the new office evaluation and management codes. The authors analyzed the seven components used in code selection, focusing on the three key components. They compared new-patient and established-patient visits to explain how code requirements differ. The authors described the five levels of office visits based on service complexity. They outlined the conditions under which time becomes a controlling factor in coding. The study included examples to illustrate when counseling or care coordination exceeds 50 percent of the visit. The authors emphasized the importance of avoiding time-based coding unless explicitly required. The approach was to provide a clear framework for physicians to apply the new coding system.
Main Results:
The study found that code selection is based on seven components, with three being key: history, physical examination, and medical decision-making. New-patient visits require all three components for any level of service. Established-patient visits require only two of the three components. The five levels of office visits are based on the complexity of the service provided. Time is a controlling factor only when counseling or coordination of care exceeds 50 percent of the visit. Physicians are advised not to rely solely on time descriptors for code selection. The 1992 CPT book will include only the new codes, removing the old level-of-service codes. The authors emphasized the need for physicians to verify that local insurance carriers will adopt the new codes.
Conclusions:
The authors concluded that the new office evaluation and management codes require a clear understanding of the updated definitions. They emphasized that physicians should use the three key components to guide code selection. The study proposed that time should not be the primary factor unless counseling or care coordination dominates the visit. The authors suggested that physicians should consult the 1992 CPT book for accurate code listings. They proposed that local insurance carriers should be contacted to confirm adoption of the new codes. The study indicated that the new system aims to improve consistency in coding practices. The authors suggested that proper training on the new codes is necessary for accurate implementation. The study concluded that the new system may reduce variability in billing and documentation.
Frequently Asked Questions
The three key components are the history, the physical examination, and medical decision-making.
New-patient visits require all three key components, while established-patient visits require only two.
Time is considered a controlling factor when counseling or coordination of care dominates more than 50 percent of the visit.
The authors suggest that time should not be the primary factor unless counseling or care coordination dominates the visit.
The 1992 CPT book will list only the new evaluation and management codes, deleting the old level-of-service codes.
Physicians are encouraged to contact local insurance carriers to ensure they will use the new codes in 1992.