Medicare Reimbursement of Pharmacy-Based COVID-19 Testing

Chambliss, Bahner & Stophel, P.C.
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Chambliss, Bahner & Stophel, P.C.On May 8, 2020, CMS issued guidance clarifying how pharmacies and other suppliers can obtain waivers to allow them to temporarily enroll as independent clinical diagnostic laboratories for the purpose of providing COVID-19 diagnostic testing. This move is seen as a critical step in expanding the public’s access to convenient testing locations. Prior to this guidance, reimbursement was a significant impediment to the implementation of testing in this setting because pharmacies were not designated as Medicare providers, and, therefore, could generally only offer the tests as a cash service. In order to be eligible for reimbursement, eligible pharmacies and their suppliers must be enrolled in the Medicare program and obtain a certificate of waiver from the laboratory standards established under the Clinical Laboratory Improvement Act (CLIA). The expansion of Medicare-reimbursed testing in a pharmacy setting is just one more example of the extraordinary changes that COVID-19 has produced within the health care system over the past few weeks. 

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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