Whether you use time based coding or strict E/M coding guidelines, medical necessity must always be met. Also, note that for out patient settings, time based coding is based on face-to-face time? 40 minutes reviewing diabetes logs and insulin pump logs separate from the pt does not "start the clock" for time based coding.
If the complexity of information in these logs affect the pt's care/tx planning (documented) the E/M level should be higher. But if not, time spent reviewing this information should not be the basis for a higher coding schedule.
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