Be Ready for a Return to Prepandemic Telehealth Rules
Requirements regarding originating and distant sites may now determine payment. Telehealth is a boon to patients and providers, making healthcare more convenient and accessible. However, billing for telehealth services can be a headache because the rules and requirements can be burdensome to navigate. Additionally, the rules and requirements have changed significantly during and since the COVID-19 public health emergency (PHE). The Centers for Medicare & Medicaid Services (CMS) has recently issued updated guidance about a return to stricter requirements for billing telehealth services, which goes into effect October 1. Here’s some information you need to know to bill telehealth services confidently and accurately. Understand Originating and Distant Site A basic premise of telehealth is that the patient and the provider are in different locations. So, when you need to figure out the origin site, you need to know which of those locations counts as the origin. According to the CMS Medicare Learning Network (MLN), the originating site is where the patient is receiving the services. The location of the provider is referred to as the “distant site.” Prepare for Different Telehealth Requirements This information pertains to providers who can bill Medicare for their services; check with your patients’ respective payers for their specific guidance on telehealth services. Right now, the originating site requirements are pretty flexible: “Through September 30, 2025, COVID-19 PHE telehealth flexibilities allow patients to get telehealth wherever they’re located. They don’t need to be at an originating site, and there aren’t any geographic restrictions.” Starting October 1, however, only patients receiving services regarding behavioral or mental health via telehealth can do so without being subject to originating site requirements and geographic location restrictions. Providers offering telehealth services to patients for other care, including hospice certification services, will have to follow specific guidance on the patient’s originating and provider’s own distant site to bill the services. This is basically a return to telehealth rules before the flexibilities offered during the COVID-19 PHE. MLN says that starting October 1, statutory limitations for Medicare telehealth services regarding geographic restrictions, location restrictions on where providers can furnish services, and limitations on the scope of practitioners who can provide telehealth services will again go into effect. However, the rules are a little murky because some flexibility extends through the end of calendar year (CY) 2025. Here’s some of what you need to know, according to MLN: Remember These Tips for Billing Here are some helpful tips from Novitas on information you may need to bill for Medicare telehealth services beginning October 1: Originating site Payment methodology Bill type Revenue code Outpatient hospital - includes rural emergency hospitals (REHs) Outside of outpatient prospective payment system (OPPS) 13X 078X Inpatient hospital Outside diagnostic related group codes (DRGs) 12X 078X Critical access hospital (CAH) Separate from cost-based (80% or the originating site facility fee) 12X or 85X 078X Federally qualified health center (FQHC) or rural health center (RHC) Separate from prospective payment system (PPS) or all-inclusive rate (AIR) 77X or 71X 078X Hospital-based or CAH-based renal dialysis center In addition to ESRD PPS or monthly capitation payment 72X 078X Skilled nursing facility (SNF) Outside of the SNF PPS (not subject to consolidated billing) 22X or 23X 78X Community mental health center (CHMC) Not a partial hospitalization service (or used to determine payment for partial hospitalization). Not bundled in per diem 76X 078X According to a Telehealth FAQ CY 2025 document by CMS: “Physicians and/or practitioners should use [place of service code] POS 02 for Telehealth Provided Other than in Patient’s Home or POS 10 for Telehealth Provided in Patient’s Home (which is a location other than a hospital or other facility where the patient receives care in a private residence).” Such claims would be paid at a non-facility rate. Keep an eye out for further updates and potential clarifications as CMS evaluates how telehealth services are furnished and how to pay providers for their services. Rachel Dorrell, MA, MS, CPC-A, CPPM, Production Editor, AAPC
