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CPT Coding

Evaluation & Management Codes — A Plain English Introduction

📅 March 2026 📖 4 min read ✍️ Clear CPC Team
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Evaluation and Management codes — commonly called E&M codes — are the most frequently used codes in all of outpatient medical billing. Every office visit, every hospital encounter, every consultation involves an E&M code. For the CPC exam, E&M coding is tested heavily and the 2023 revised guidelines changed how these codes are selected. This guide covers everything a beginner needs to understand E&M coding from the ground up.

What Are E&M Codes?

E&M codes describe physician or qualified healthcare professional visits and services — the face-to-face (or now telehealth) encounters where a patient is evaluated and managed. They cover office visits, hospital admissions, emergency department encounters, nursing facility visits, home visits, and more. E&M codes are found in the 99202–99499 range of the CPT codebook.

Unlike surgery codes that describe a specific procedure, E&M codes capture cognitive work — the thinking, evaluating, and decision-making that physicians do when they assess and treat patients.

New Patient vs Established Patient

The first determination in outpatient E&M coding is whether the patient is new or established to the practice. This matters because new patient visits have different code numbers and generally higher reimbursement than established patient visits.

  • New patient: Has not received any professional services from the physician or another physician of the same specialty and subspecialty in the same group practice within the past three years
  • Established patient: Has received professional services from the physician or another physician of the same specialty in the same group within the past three years
💡 Key Point: The three-year rule applies to the group practice and specialty — not just the individual physician. If a patient sees Dr. A (family medicine) at a clinic, then sees Dr. B (family medicine) at the same clinic two years later, the patient is established even though they have never seen Dr. B before.

Office Visit Code Ranges

Patient Type Code Range Levels
New patient — office or outpatient 99202–99205 4 levels (level 1 deleted in 2021)
Established patient — office or outpatient 99211–99215 5 levels

Note that 99211 (established patient, minimal service) does not require physician presence — it is used for services performed by clinical staff under physician supervision, such as a nurse taking a blood pressure reading.

The 2023 E&M Guidelines — Medical Decision Making

Before 2021, E&M level selection was based on three components — history, physical examination, and medical decision making. The 2021 and 2023 guidelines eliminated the documentation-counting approach for office visits and replaced it with two options: Medical Decision Making (MDM) or Total Time.

Option 1 — Medical Decision Making (MDM)

MDM is based on three elements. The overall MDM level is determined by meeting or exceeding requirements in at least two of the three elements:

  • Number and complexity of problems addressed
  • Amount and/or complexity of data reviewed and analyzed
  • Risk of complications and/or morbidity or mortality
MDM Level Code (New) Code (Est.) Problems Data Risk
Straightforward 99202 99212 Minimal Minimal/none Minimal
Low complexity 99203 99213 Low Limited Low
Moderate complexity 99204 99214 Moderate Moderate Moderate
High complexity 99205 99215 High Extensive High

Option 2 — Total Time on the Date of Service

Physicians may also select the E&M level based on total time spent on the date of the encounter — including not just face-to-face time but also time spent reviewing records, ordering tests, coordinating care, and documenting. The time ranges for each level are specified in the CPT guidelines and vary between new and established patients.

Other Common E&M Categories

Beyond office visits, several other E&M categories are frequently tested:

  • Hospital Inpatient (99221–99223, 99231–99233): Initial hospital care and subsequent hospital care
  • Emergency Department (99281–99285): No new vs established distinction in the ED
  • Critical Care (99291–99292): Time-based, requires direct delivery of high complexity care
  • Preventive Medicine (99381–99397): Annual wellness visits by age group
  • Nursing Facility (99304–99318): Care provided in skilled nursing or long-term care facilities
⭐ CPC Exam Tip: E&M questions on the CPC exam always describe a clinical scenario. Your job is to identify: Is this a new or established patient? What setting? What MDM level does the documentation support? Practice applying the MDM table to clinical scenarios — this is the most efficient way to get E&M questions right on the exam.
⚠️ Common Mistake: Using the old history/exam/MDM counting method for office visits after 2023. The current guidelines for office and outpatient E&M codes use MDM or total time — not history and exam element counting. Make sure your CPT book is a current edition reflecting 2023 guidelines.
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