In the Wake of the CARES Act, CMS Issues Additional Guidance for RHCs and FQHCs

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On April 17, 2020, the Centers for Medicare and Medicaid Services (CMS) issued an MLN Matters Special Edition Article with additional guidance for rural health clinics (RHCs) and federally qualified health centers (FQHCs) during the COVID-19 public health emergency (COVID-19 PHE).

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020, permits RHCs and FQHCs to furnish distant site telehealth services to Medicare beneficiaries during the COVID-19 PHE. Prior to the CARES Act, Medicare would reimburse RHCs and FQHCs for telehealth services when the patient was located at the RHC or FQHC. Now, any RHC or FQHC practitioner may provide telehealth services (within the practitioner’s scope of practice) during the COVID-19 PHE from wherever the practitioner is located to a patient of the RHC or FQHC wherever the patient is located, including the home. A list of approved distance site telehealth services is available here.

CMS announced that the new payment rate for distant site telehealth services will be $92, and beginning in July, when the Medicare claims processing system is updated, all distance site provider telehealth claims will be reprocessed and RHCs and FQHCs will be paid based on the $92 rate for telehealth services provided since January 27, 2020.

Additionally, CMS made the following announcements:

  • The online digital evaluation and management CPT codes 99421, 99422 and 99423 are billable during the COVID-19 PHE;
  • Effective March 1, 2020, and for the duration of the COVID-19 PHE, the area typically served by the RHC and the area included in the FQHC service area plan is determined to have a shortage of home health agencies, meaning the RHC or FQHC is not required to request such a determination before billing for visiting nursing services furnished to homebound individuals; and
  • The RHC or FQHC may obtain patient consent at the same time services are initially furnished, and patient consent may be obtained by auxiliary personnel under the general supervision of the RHC or FQHC practitioner.

CMS has issued additional guidance documents for RHCs and FQHCs, which can be found here and here. For additional web-based resources regarding evolving changes to Medicare policies, visit Medicare’s current emergencies webpage.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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