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How to Bill 99205 CPT Code - Time, MDM & Payment Tips

A men and women see on mobile device to the dolor sign about the medical billing services payment about the 99205 CPT Code.

If you’re a healthcare provider or medical biller, you know that the 99205 CPT code is more than just a number; it’s one of the most complex and high-reimbursing E/M codes in outpatient care. But getting paid for it? That requires accurate documentation, the right medical decision-making (MDM) level, and time tracing.

At Cures, we’ve worked closely with practices across various specialties, including psychiatry and internal medicine, to help them bill 99205 successfully and compliantly. Here’s what you need to know from both a real-world billing and clinical documentation perspective.

What CPT Code is 99205?

CPT code 99205 is used for a new patient office visit that’s both very detailed and time-consuming. It is the high-level code for evaluating and managing a new patient in an outpatient setting.

You should use 99205 when:

  • You spend 60 to 74 minutes with the patient (including documentation, care planning, etc.)
  • Or, the visit involves high-level medical decision-making like managing serious conditions, reviewing complex records, or coordinating with other doctors.

Because of the time and complexity involved, it also comes with higher reimbursement, but that means you need to document clearly to avoid denials.

CPT Code 99205 Definition

CPT Code 99205 is defined as:

A workplace or other outpatient visit for the assessment and management of a new patient is needed:

  • A medically appropriate history and/or examination
  • High level of MDM, or
  • 60–74 minutes of total time on the meet date (when using time as the basis)

This code sits at the top of the E/M code level for new patient visits, just above the 99204 CPT code.

99205 CPT Code Time Requirement (2025)

If you choose this code based on time, here’s what to know:

  • Total time: 60–74 minutes
  • This includes face-to-face and non-face-to-face activities on the same calendar date (e.g., chart review, documentation, orders)

This extended time reflects a complex patient scenario, think multisystem chronic conditions, coordination of care, or comprehensive mental health evaluations.

High MDM & Documentation Requirements

To bill 99205 by MDM, documentation must show:

  • Extensive data review or workup
  • High risk of morbidity or mortality
  • Complex decision-making (e.g., drug therapy requiring monitoring, hospitalization consideration)

We’ve seen providers under-document their complexity, leading to downcoding or denials. Our billing experts at Cures Medical Billing Services often catch missing components during audits.

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99205 CPT Code Reimbursement & Cost Insights

This code pays significantly higher than lower-level E/M codes, but it comes with scrutiny.

Category

Approximate Values

Medicare Reimbursement (2024)

~$224–$245

RVUs

~3.17

Private Payers

Often higher, depending on the contract

Psychiatry 99205 Usage

Accepted for complex diagnostic visits

Note: Always verify payer-specific policies, especially for televisit CPT scenarios.

Real Experience Tip - Don’t Default to Time Alone

In our billing experience, many providers try to justify 99205 only with time, which isn’t wrong—but often risky. Why?

Because payers audit high-level time-based codes more aggressively. If your chart says “spent 65 minutes” but lacks detailed documentation on patient complexity, it can raise flags.

Pro tip: If you’re using 99205 CPT code for psychiatry, include behavioral assessments, medication risk factors, and coordination notes with outside providers.

99204 vs 99205 CPT Code - Know the Difference

Feature

99204

99205

MDM Level

Moderate

High

Time

45–59 minutes

60–74 minutes

Reimbursement

Lower

Higher

If you’re hovering between 99204 and 99205, ask:

  • Did the visit require risk analysis or review of extensive records?
  • Was time spent coordinating care with specialists?

If yes, 99205 might be justified.

How Cures Medical Billing Services Helps

At Cures Medical Billing Services, we:

  • Validate time-based coding
  • Audit documentation for compliance
  • Fight denials tied to the 99205 CPT code reimbursement
  • Train providers on E/M guidelines

Need help? We specialize in psychiatry, family medicine, internal medicine, and more.

Final Thoughts

Billing for the 99205 CPT code doesn’t have to be complicated; it does demand precision. Whether you’re a provider juggling complex patients or a billing team managing payer policies, it all comes down to proper documentation, justified time, and understanding the full picture of what this high-level E/M code represents.

Ready to code with confidence? Visit us at Cures Medical Billing Services or call for a free E/M coding consultation. We help you get the reimbursement you deserve without the audit stress.

Frequently Asked Questions (FAQs)

Use 99205 when the patient visit contains high-level medical decision making or 60–74 minutes of total time spent. This is typically for complex cases that require deeper analysis, risk assessment, and coordination of care.

Yes, 99205 can be billed for a telehealth visit if the payer allows it and if the documentation supports the time or complexity requirements. Don’t forget to add modifier 95 or POS 10 as needed based on payer guidelines.

If documentation doesn’t clearly support the code, insurers may down code it to 99204 or even 99203, which lowers your reimbursement. In some cases, frequent overuse or errors can trigger an audit. Proper charting protects your payment—and your practice.

Both are valid, but time-based coding is ideal if you spend the required minutes and document all activities clearly. MDM-based coding is often preferred when time is close to the threshold or when clinical complexity is high.

Absolutely, psychiatrists can use 99205, especially during detailed intake evaluations. The time and decision-making involved in psychiatric diagnoses, risk assessments, and treatment planning often justify this code when documented appropriately.

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