Specialty Physicians Ready to Push Back

Proposed E&M code changes would impact specialty physicians.

Some physicians are probably not very happy with recently proposed changes to the Medicare Physician Fee Schedule.

The Centers for Medicare & Medicaid Services (CMS) designed the changes to reduce paperwork and enable physicians to spend more time with patients. Those seem like good ideas. However, CMS may face pushback from specialty physicians who will see significantly lower reimbursements for their most complex patients under the new fee schedule.

The proposed changes affect evaluation and management (E&M) coding for office and outpatient visits. CMS proposed to chang the reimbursement schedule for new patients and established payments from five separate levels to two. Although the new reimbursements are higher for levels 1-3, they are lower for levels 4-5, which represent more complex cases commonly seen by specialty physicians.

To better explain how the E&M code changes could impact specialty physicians, here is a hypothetical comparison of a visit to a family practice physician and a visit to a specialist, emphasizing the difference in reimbursement.

Scenario 1: A 56-year-old male patient presents to his family practice physician’s office for a six-month evaluation of his hypertension and long-term use of Lipitor for hyperlipidemia. On examination, the physician documents the patient’s blood pressure as 144/90 and his most recent LDL at 131.

The physician recommends that this patient continue to take Lipitor for hyperlipidemia and prescribes Ziac (2.5 mg/6.5 mg) for hypertension. She tells the patient to return in six months for a follow-up exam and complete blood workup.

The patient has two established diagnoses. The provider reviewed his clinical lab tests and provided prescription drug management.

The CPT® code assigned by the family practice for this office visit would be 99213 (medical decision-making low complexity). Under the previous rule, reimbursement would be $74. Under the new rules, reimbursement would be $93.

Scenario 2: A 62-year-old female patient presents to the endocrinologist with altered mental status, increased sweating, tingling of extremities, and weakness. The patient has chronic pancreatitis, causing diabetes, coronary artery disease, and hypertension. She is currently on a sliding scale of Humalog to control her diabetes.

Just recently, the patient was placed on Tresiba. Tests indicated that her blood glucose level was 37 mg/dL. The patient was given IV glucose. When reassessed, her blood glucose level was 86 mg/dL. Her vital signs showed blood pressure 160/110 mm Hg, pulse 82 beats per minute, respirations 16 breaths per minute, SaO2 98 percent on room air.

Due to the patient’s elevated blood pressure, fluctuating blood glucose levels, and other symptoms, the endocrinologist instructs her to go to the hospital. He contacts the hospitalist on call and facilitates her admission.

The patient had four established diagnoses, with two worsening, and a chronic illness that posed a threat to life or bodily function. The provider ordered tests, reviewed the results, treated the patient with intravenous glucose, and arranged for her to be admitted to the hospital.

The CPT® code assigned by the endocrinologist for this office visit would be 99215 (medical decision-making high complexity). Under the previous rule, reimbursement would be $148. Under the new rules, reimbursement would be $93.

Focus on Medical Decision-Making

The previous rules were driven by three key components: history, exam, and medical decision-making. The new rule focuses solely on medical decision-making.

This change places greater pressure on physicians to provide detailed documentation to support the complexity of establishing a diagnosis and/or selecting a management opinion or treatment plan. Physicians must also document all possible diagnoses to be considered, including the following:

  • Amount and/or complexity of data to be obtained, reviewed, and analyzed
  • Risk of significant complications, morbidity, and/or mortality associated with the patient’s presenting conditions
  • Diagnostic procedure(s)
  • Possible management options or treatment plans

Finally, providers need to continue to focus on what is needed to report risk adjustment and quality initiatives. 

The proposed rules regarding the Physician Fee Schedule discussed in this article, along with other rules, are currently under review. If you have comments, you can submit them to CMS before midnight on Sept. 10 using the following link: https://www.regulations.gov/document?D=CMS-2018-0076-0621

Comment on this article

Facebook
Twitter
LinkedIn

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

2025 Coding Clinic Webcast Series

2024 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover critical guidance. HIM coding expert, Kay Piper, RHIA, CDIP, CCS, provides an interactive review on important information in each of the AHA’s 2025 ICD-10-CM/PCS Quarterly Coding Clinics in easy-to-access on-demand webcasts, available shortly after each official publication.

April 14, 2025

Trending News

Featured Webcasts

Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Providers face increasing Medicare audits when using skin substitute grafts, leaving many unprepared for claim denials and financial liabilities. Join veteran healthcare attorney Andrew B. Wachler, Esq., in this essential webcast and master the Medicare audit process, learn best practices for compliant billing and documentation, and mitigate fraud and abuse risks. With actionable insights and a live Q&A session, you’ll gain the tools to defend your practice and ensure compliance in this rapidly evolving landscape.

April 17, 2025
Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Dr. Ronald Hirsch dives into the basics of Medicare for clinicians to be successful as utilization review professionals. He’ll break down what Medicare does and doesn’t pay for, what services it provides and how hospitals get paid for providing those services – including both inpatient and outpatient. Learn how claims are prepared and how much patients must pay for their care. By attending our webcast, you will gain a new understanding of these issues and be better equipped to talk to patients, to their medical staff, and to their administrative team.

March 20, 2025

Rethinking Observation Metrics: Standardizing Data for Better Outcomes

Hospitals face growing challenges in measuring observation metrics due to inconsistencies in classification, payer policies, and benchmarking practices. Join Tiffany Ferguson, LMSW, CMAC, ACM, and Anuja Mohla, DO, FACP, MBA, ACPA-C, CHCQM-PHYADV as they provide critical insights into refining observation metrics. This webcast will address key issues affecting observation data integrity and offer strategies for improving consistency in reporting. You will learn how to define meaningful metrics, clarify commonly misinterpreted terms, and apply best practices for benchmarking, and gain actionable strategies to enhance observation data reliability, mitigate financial risk, and drive better decision-making.

February 25, 2025
Navigating the 2025 Medicare Physician Fee Schedule: Key Changes and Strategies for Success

Navigating the 2025 Medicare Physician Fee Schedule: Key Changes and Strategies for Success

The 2025 Medicare Physician Fee Schedule brings significant changes to payment rates, coverage, and coding for physician services, impacting practices nationwide. Join Stanley Nachimson, MS., as he provides a comprehensive guide to understanding these updates, offering actionable insights on new Medicare-covered services, revised coding rules, and payment policies effective January 1. Learn how to adapt your practices to maintain compliance, maximize reimbursement, and plan for revenue in 2025. Whether you’re a physician, coder, or financial staff member, this session equips you with the tools to navigate Medicare’s evolving requirements confidently and efficiently.

January 21, 2025

Trending News

Prepare for the 2025 CMS IPPS Final Rule with ICD10monitor’s IPPSPalooza! Click HERE to learn more

Get 15% OFF on all educational webcasts at ICD10monitor with code JULYFOURTH24 until July 4, 2024—start learning today!

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24