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You should not code based on a medication list. The patient could be pre-diabetic, etc.
The physician must indicate in the notes. Now, if DM is in the PMH and current medication list says person is on Metformin, then by all means pick up the appropriate 250 code.
Remember, each note also must stand alone. Every HCC must be on a note that supports itself.
You need to be careful, because if you get called for a RAD-V audit you open yourself up to discrepancies and potential financial loss. Coding is gray enough with out assuming patients have something based on a medication. Also, I try to keep in mind - even though notes are stand alone - if I don't see something often it could be a typo and I am leary about reporting it.
For example, if in the entire reporting year - you see one mention of diabetes and that is it - no medication, no nothing. I am cautious that the transcriptionist made an error, the doctors Dragon device, etc... whatever - I just can't help but wonder if it's accurate if I see something once and that is it. Generally, most conditions are chronic so you expect to see them frequently in a medical record. unless - of course - the comment says newly diagnosed.
Just be cautious. Don't give someone a condition they don't have and don't assume that just because they are on something you know what condition it is for. Many medications have multiple purposes. You want your note to support itself and there be no question if that person is the one in the RADV audit.