Telemedicine Reimbursement For Oregon

1. Telemedicine Reimbursement For Oregon

2. Telemedicine Reimbursement Why is it important? Encourages use of telemedicine services Provides mechanism to reimburse providers One tool to ensure sustainability of program

3. Telemedicine Reimbursement What is happening nationally?

4. Telemedicine Reimbursement • Medicare • First authorized in BBA of 1997 • -Fee splitting -Limited CPT code reimbursement -Limited eligible presenters

5. Telemedicine Reimbursement • Medicare • BIPA of 2000-some improvements • -Eliminated fee sharing • -Eliminated need for “telepresenter” • -Expanded eligible services • -Included payment to distant site • physician only

6. Telemedicine Reimbursement • Medicare • BIPA of 2000-some improvements • -Expanded definition of originating site • -Expanded eligible geographical regions • -Allowed originating site facility fee • -Permitted use of store and forward

7. Telemedicine Reimbursement • Medicare • BIPA of 2000-some improvements • But • Still substantial limitations: • -Eligible geographic locations • -Eligible originating sites • -Eligible services • -Eligible providers

8. Telemedicine Reimbursement Medicare Eligible Geographical Locations -Must be a primary care Health Professional Shortage Area (HPSA) -Cannot be a Metropolitan Statistical Area (MSA)

9. Telemedicine Reimbursement Medicare Eligible Geographical Locations HPSA: Three Criteria -Rational area for delivery of primary care -<1 primary care physician per 3,500 people -Insufficient capacity of providers

10. Telemedicine Reimbursement Medicare Eligible Geographical Locations MSA: County or contiguous counties with: -One city with population of 50,000 or more -Census Bureau-defined urbanized area of at least 50,000 and metropolitan population of at least 100,000

11. Telemedicine Reimbursement Medicare MSA December 2006 Oregon 13460 Bend, OR 18700 Corvallis, OR 21660 Eugene-Springfield, OR 32780 Medford, OR 38900 Portland-Vancouver-Beaverton, 41420 Salem

12. Telemedicine Reimbursement Medicare Eligible Originating Sites: Medicare includes: Office of a Physician Hospital Critical Access Hospital Rural Health Clinic Federally Qualified Health Center Additions Needed: Skilled Nursing Facilities Community Mental Health Centers County Mental Health Departments Public Health Departments Indian Health Service Sites

13. Telemedicine Reimbursement Medicare Eligible Medical Practitioners Medicare Includes: Physician Nurse Practioner Physician Assistant Nurse Midwife Clinical Nurse Specialist Clinical Psychologist Clinical Social Worker Nutrition Professional Recommended Additions: Dieticians Genetics Counselors Physical Therapists Occupational Therapists Speech Therapists

14. Telemedicine Reimbursement • Medicare • Eligible Services Covered BIPA - Consultations - Office or other outpatient visits - Individual psychotherapy - Pharmacologic management

15. Telemedicine Reimbursement Medicare Eligible Services • Covered • Added since BIPA • - ESRD services, 2-3, or 4 or more visits per month • - Individual nutritional therapy

16. Telemedicine Reimbursement Medicare Eligible Services • Requested but not yet approved • - Nursing facility care - Speech language pathology • - Audiology • - - Physical therapy services.

17. Telemedicine Reimbursement • Medicaid • State administered program, Federal Match • Each state sets its Medicaid telemedicine • reimbursement policy

18. Telemedicine Reimbursement Medicaid 35 States Reimburse for Telemedicine Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

19. Telemedicine Reimbursement Medicaid Reimbursement models vary among states: -Internal agency decision -Legislative initiatives -Regulatory initiatives -Other: SCHIP, Waivers

20. Telemedicine Reimbursement Medicaid Per 2004 Survey (Institute for Child Health Studies, U of Florida): 27 States have been reimbursed for telemedicine: -Medical consultations or treatments-22 states -Psychological consultations or treatment-12 states -Home health-2 states -Case management-2 states - Patient education (diabetes)-1 state

21. Telemedicine Reimbursement Private Payers -Less published information on private payer reimbursement -Progress is being made…..

22. Telemedicine Reimbursement Private Payers • States with government mandated legislation - California, Louisiana, Texas, Oklahoma, Kentucky • All prohibit payers from excluding services solely because they are delivered telemedically

23. Telemedicine Reimbursement Private Payers • Growing number of states enacting legislation: • - Example: Kansas • HB 2065: Private insurers should cover medical care • provided via telemedicine as they do for in-person • Coverage should include: -Office visits or consultations -Individual psychotherapy -Pharmacological management -Emergency services If passed, effective in 2008

24. Telemedicine Reimbursement Private Payers • 2005 Survey:American (Telemedicine Association and AMD Telemedicine) • - Phone survey of 72 programs as offering potentially • billable services • - 38 receiving reimbursement from private payers • -Payers reimbursing in at least 25 states • -Many are following lead of Blue Cross/Blue Shield www.amdtelemedicine.com/private_payer

25. Telemedicine Reimbursement Private Payers • 2005 Survey (American Telemedicine Association and AMD Telemedicine) • - 3 programs receive reimbursement for store and • forward • - 7 programs receive reimbursement for facility fees • - Over 100 private payers currently reimburse • for telemedicine services

26. Telemedicine Reimbursement What is happening in Oregon

27. Telemedicine Reimbursement Oregon • Oregon’s Landscape • HJR4 • What’s Next

28. Oregon’s Landscape

33. Telemedicine Reimbursement Oregon • Oregon HJR4 passed in 2003 legislative session • Three major goals: • Quality health care should be available to all Oregonians • To assure best access possible, Telehealth should be an appropriate tool for delivery of service • To reduce healthcare costs, Telehealth should be an appropriate tool for delivery of service

34. Telemedicine Reimbursement Oregon HJR4: Key Points: • Providers reimbursed for in-person services should receive same reimbursement for services delivered via telemedicine • Any service reimbursed on an in-person basis should be reimbursed if delivered via telemedicine • With exception of “store-and-forward”, reimbursable services should include clinician to patient services (not clinician to clinician)

35. Telemedicine Reimbursement Oregon HJR4: Key Points: • Informed consent document specific to telemedicine should be signed by patient prior to services • Patient should have the right to choose telemedicine or in-person services when both are available • Payers should consider reimbursing transmissions costs

36. Telemedicine Reimbursement Oregon Recommended contract language: • Matches existing Medicare language, with the following exceptions: • Originating sites are not specific to geographic locations • Eligible originating sites: Additions: Skilled Nursing Facilities Community Mental Health Centers County Mental Health Departments Public Health Departments Indian Health Service Sites Medicare includes: Office of a Physician Hospital Critical Access Hospital Rural Health Clinic Federally Qualified Health Center

37. Telemedicine Reimbursement Oregon Recommended Contract Language: • Matches existing Medicare language, with the following exceptions: • Payment is permitted for asynchronous “store and forward” technology • Eligible Medical Practitioners: Medicare Includes: Physician Nurse Practioner Physician Assistant Nurse Midwife Clinical Nurse Specialist Clinical Psychologist Clinical Social Worker Recommended Additions: Dieticians Genetics Counselors Physical Therapists Occupational Therapists Speech Therapists

38. Telemedicine Reimbursement Criteria By Payer

39. Telemedicine Reimbursement Criteria By Payer

40. Telemedicine Reimbursement Oregon What’s Next? Convene workgroup to draft telemedicine reimbursement bill for 2009 legislative session. -Who should be at the table? -What is our strategy?

41. Telemedicine Reimbursement What’s Next? Convene workgroup to draft telemedicine reimbursement bill for 2009 legislative session. -What should language contain? Eligibel Services? Eligible Originating Sites? Eligible Providers? “Should” vs. “Will”?

42. Contact Us Kim HoffmanOutreach Coordinator, ITG, OHSUSenior Manager, HERONTelehealth Coordinator, ITG, OHSU1515 SW 5th Avenue, 9th FloorPortland, Or  97201Mail Code:  MSB 9th FloorOffice (503) 494-6089Email: hoffman@ohsu.edu Catherine S. BritainCSBritain Consulting Secretary, Telehealth Alliance of OregonEmail: csbritain@ gmail.com