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October 9,2020


Medicaid Telehealth Policies in Response to COVID-19


Medicaid, authorized in Title XIX of the Social Security
Act (SSA), is a federal-state programthat jointly finances
primary and acute medical services, as well as long-term
services and supports (LTSS), to a diverse low-income
population. The 50 states, theDistrict of Columbia (DC),
and the five U.S. territories (American Samoa, the
Commonwealth of Northern Mariana Islands, Guam, Puerto
Rico [PR], and the U.S. Virgin Islands [USVI]) must follow
broad federalrules to receive federal Medicaid funding, but
they have flexibility to designtheir own versions of
Medicaid within the federal statute's basic framework. In
addition, several waiver authorities allow states to operate
their Medicaid programs outside of federal programrules.
(For information on waivers, see CRS Report R43357,
Medicaid An Overview, and CRS Leg al Sidebar
LSB10430, Section] 135 Waivers and COVID-19: An
Overview). This flexibility results in variability across state
Medicaid programs in factors such as use oftelehealth as a
service delivery method.

This In Focus provides backgroundon Medicaid telehealth
and an overview of telehealth actions in response to the
Coronavirus Disease 2019 (COVID-19) Public Health
Emergency (PHE). It discusses how states leveraged
existing flexibilities and PHE-specific federal authorities to
increase thenumber of services, provider types, andother
telehealth coverage options under Medicaid.

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While federalMedicaid statute does not reco2nize
telehealth as a distinct service, the Centers for Medicare &
Medicaid Services (CMS) defines Medicaid telehealth as
the us e o ftelecommunications and information technology
to provide access to health assessment, diagnosis,
intervention, consultation. sunervision and information
across distance. CMS provides states with broad flexibility
to define which (if any) telehealth services to provide (e.g.,
primary care, behavioralhealth, LTSS), allowable
modalities (e.2.. live video, audio onlv), where services can
be provided, which provider types are authorized to provide
the service (subject to federal and statelaw), and the
populations served, among other criteria. States that limit
telehealth geographically, or to specific providers, must
ensure that enrollees in areas without telehealth coverage
have face-to-face provider access. In general, states must
reimburse providers for a telehealth service at the same rate
as an in-person service, unless theyhaveCMS annroval to
pay a different rate or with a unique reimbursement
methodology. For example, CMS approval is required for
payment rates that factor in ancillary costs (e.g., equipment
necessary for the delivery oftelehealth services,
trans mis sion charges) or cos ts as sociated with time and
resources. Medicaid managed care plans are not limited by


the payment arrangements outlined in the Medicaid state
plan.

A September2019 Center for Connected Health Policy's
survey of state and DC telehealth laws and Medicaid
policies foundthat, as of April2019, all 50 states andDC
allowed telehealth as a service delivery mechanismbut
allowable provider types, modalities, and s ervice categories
varied by state.


The COVID-19 pandemic accelerated interest in telehealth
as a way to protect health careproviders and to maintain or
improve patients' access to care and safety. This section
identifies the federal authorities states can leverage to
enhance Medicaid telehealth coverage during the PHE and
provides an overview of the most commonly added
services, provider types, modalities, andcare delivery sites.

   Summary of Certain Emergency-Related
           Authorities under Medicaid
Disaster Relief State Plan Amendments: Allow states to
revise Medicaid eligibility, enrollment, and benefit requirements
in their state plan for the duration of a disaster or emergency.
Section IllS Waivers: Authorize the Secretary of Health and
Human Services (HHS) to waive a number of Medicaid
requirements to the extent necessary to allow a state to
undertake an experimental, pilot, or demonstration project ' In
an emergency, these waivers may be approved without regard to
normal process-related requirements and do not need to be
budget neutral to the federal government.
Section 1915(c) Appendix K Waivers: Appendix K is a
stand-alone appendix that states may use during emergency
situations to request amendments to existing 191 5(c) Home and
Community Based waivers.
Section 1135 Waivers: When certain emergency conditions
are met, allow the HHS Secretary to temporarily waive Medicaid
statutory requirements, such as provider licensure, to ensure
sufficient health care items and services are available to meet the
needs of enrollees in an emergency area.


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CMS released a series ofsub-regulatoryguidance (e.g.,
frequently asked questions, fact sheets, tool kits) to
facilitate increased state reliance on telehealth as a
Medicaid service delivery tool. These materials identify
existing state flexibilities available to augment telehealth
and provide guidance intended to help states identify and
address state-levelbarriers to the adoption of new teleheaklh
delivery options. For Medicaid changes requiring CMS
approval, CMS provided templates and checklists to
expedite s taterequests for time-limited Medicaid


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