E/M Coding: Incorrect E/M Coding Is A $6.7 Billion Per Year Problem, OIG Says

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This article covers an OIG report on evaluation and management coding accuracy, focusing on the major categories of billing and documentation errors found in Medicare claims. It is relevant to physicians, coders, and billing staff who want to understand why E/M claims are frequently reviewed and what broad documentation concerns are driving audit attention.

Why This Topic Matters

The article highlights why E/M coding remains a high-scrutiny area for payers and why documentation quality can affect compliance and reimbursement risk.

Article Sections

  1. Overview of the OIG report

    Introduces the report’s findings about E/M coding accuracy and the scale of improper payments identified in Medicare claims. It also frames why the issue matters to audit activity and payer scrutiny.

  2. Upcoded claims

    Discusses one major category of E/M claim error and the associated documentation concerns. The section also notes the role of supporting the selected level of service.

  3. Downcoded claims

    Addresses claims that were reported at a lower level than supported by the record. It emphasizes the impact of underreporting on reimbursement and documentation practices.

  4. Insufficient documentation

    Reviews situations where documentation was incomplete, illegible, or lacked necessary elements. The section explains how these shortcomings affect claim review outcomes.

  5. No documentation

    Covers claims that were treated as lacking documentation in response to a request. It highlights the importance of submitting complete records when asked.

  6. Billing the wrong code

    Describes claims that involved using an inappropriate code for the service documented. The section also touches on broader coding and bundling concerns.

What You Will Learn

  • How the article categorizes common E/M claim errors
  • What types of documentation problems the OIG identified
  • Why E/M claims are frequently targeted for review
  • What general compliance issues can lead to incorrect claim reporting

Who Should Read This

  • Physicians
  • Medical coders
  • Billing staff
  • Practice managers
  • Compliance teams

Codes Discussed


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