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Becky Glitman
Andrea Lee
May 9, 2018
Presentation to the Health Care Law Section
of the State Bar of Michigan
2
AGENDA
Basics Licensing Reimbursement
TELEMEDICINE BASICS
Basics
4
STATISTICS
*Survey conducted by National Business Group
By 2018, there will
be over 7 million
telehealth users,
which is up from just
350,000 users in
2013.
66% of Americans
are willing to see a
doctor over video
96% of large
employers will
make telehealth
services available.
*Survey conducted by Teladoc *Survey conducted by Teladoc *Survey conducted by American Well
76% of U.S. hospitals
and health systems
either have in place or
expect to implement a
consumer telehealth
program by 2018.
76% of organizations
without a consumer
telehealth program
indicate it is a high
strategic priority for their
organizations.
76
%
24
%
10
0
%
96
%
4%
10
0%
10
0%
5
STATE LAW DEFINITIONS
▪ Telehealth (MCL 333.16283)
The use of electronic information and telecommunication
technologies to support or promote long-distance clinical health
care, patient and professional health-related education, public
health, or health administration.
▪ Telemedicine (MCL 500.3476)
The use of an electronic media to link patients with health care
professionals in different locations. The health care professional
must be able to examine the patient via a real-time, interactive
audio or video, or both, telecommunications system and the patient
must be able to interact with the off-site health care professional at
the time the services are provided.
6
Telemedicine
Telehealth
STATE LAW DEFINITIONS (CONT.)
7
METHODS
▪ Synchronous
“Real time” communication
(e.g., TeleICU)
▪ Asynchronous
“Store and forward” (e.g.,
Teleradiology)
▪ Telemonitoring/Remote
Patient Monitoring
WHO CAN PROVIDE
TELEMEDICINE
SERVICES?
Licensing
9
PHYSICIAN AND PROVIDER
LICENSURE REQUIREMENTS
▪ Provider must be licensed in the state where patient is located.
• For Michigan insurance reimbursement: Telemedicine services
must be provided by a health care professional who is licensed,
registered, or otherwise authorized to engage in his or her health
care profession in the state where the patient is located. MCL
500.3476; 550.1401k
▪ Would the provider be licensed to provide the service in person?
▪ Has the provider established a provider-patient relationship?
Have the patient and the provider met face-to-face? Is audio
communication sufficient?
▪ Does the provider’s physical location matter?
▪ Consultation exception.
10
OTHER STATES AND MEDICAL LICENSURE
COMPACT
▪ Some states offer special purpose telemedicine licenses.
▪ New Michigan laws (e.g., patient-prescriber
requirements) considering the impact of telehealth.
▪ Interstate Medical Licensure Compact
• Current Legislation: House Bills 4066 and 4067
• Increase access to physicians and providers via telehealth
across state lines.
• Voluntary for physicians and state medical board where
adopted.
• MI legislation only applies to
Board-certified MDs and DOs.
• MI legislation has different
definition of “physician” than the
MI Public Health Code.
11
INTERSTATE MEDICAL LICENSURE
COMPACT
12
ENFORCEMENT
▪ Does the Michigan Board of Medicine enforce
telemedicine requirements against out of state
physicians?
• Recent physician enforcement action (2014-2017)
▪ Licensed in MI, provided prescriptions to patients located
in MI based on patient responses to an on-line form.
▪ Physician located in GA.
▪ Also licensed in WV, website based in WV.
▪ MI Board of Medicine suspended license and issued a
fine.
‒ No patient/provider relationship established,
therefore prescribing was negligent and
incompetent.
‒ Physicians should consider appropriateness of care
provided via telemedicine.
▪ WV Board of Medicine decision considered action by the
MI Board of Medicine.
▪ Would the MI Board of Medicine consider other states’
requirements laws for physicians located in MI and
providing telemedicine services to patients in other states?
▪ MCL 333.16286 – physicians may face restrictions if
violating telehealth prescribing rules
13
PRIVILEGING
▪ Joint Commission Requirements:
• Credentialed by the originating site, or specific
acknowledgment of reliance on the distant site’s
credentialing procedures. Joint Commission
Standard MS.13.01.01
• Also requires a written telemedicine services
agreement
 As a practical matter, facilities should determine how they will credential
these physicians located remotely (e.g., will they be limited to physicians
who also provide in-person services? Limited based on particular
arrangements)
 Impacts hospitals that are originating sites without a prior relationship with
the physician providing services.
TELEMEDICINE REIMBURSEMENT
Reimbursement
15
MEDICARE REIMBURSEMENT
▪ Covers synchronous, not asynchronous telemedicine
▪ Geographic Location
• Originating site (where the patient is) must be in either:
▪ a rural Health Professional Shortage Area (HPSA) or
▪ a county outside of a Metropolitan Statistical Area (MSA)
• Federal telehealth demonstration project qualifies regardless of
location
• Medicare Telehealth Payment Eligibility Analyzer
https://datawarehouse.hrsa.gov/tools/analyzers/geo/Telehealth.aspx
MEDICARE REIMBURSEMENT (CONT.)
16
Originating Sites
Offices of physicians or practitioners
Hospitals
Critical Access Hospitals
Rural Health Clinics
Federally Qualified Health Centers
Hospital-based or CAH-based Renal
Dialysis Centers (including satellites)
(historically not Independent Renal
Dialysis Facilities)
Skilled Nursing Facilities
Community Mental Health Centers
Distant Site Practitioners
Physicians
NPs
PAs
Nurse-midwives
Clinical nurse specialists
Certified registered nurse
anesthetists
Clinical psychologists and clinical
social workers
Registered dietitians or nutrition
professionals
17
MEDICARE REIMBURSEMENT (CONT.)
▪ Covered Services
• CY 2018
▪ Telehealth consultations, emergency department or initial inpatient
▪ Follow-up inpatient to beneficiaries in hospitals or SNFs
▪ Office or other outpatient visits
▪ Kidney disease education
▪ ESRD related services (must furnish at least one “hands on” visit each
month to examine the vascular access site)
▪ Nutrition therapy
▪ Behavioral therapy
▪ Psychoanalysis/psychotherapy
▪ Critical care consultations
• Full list - https://www.cms.gov/Medicare/Medicare-General-
Information/Telehealth/Telehealth-Codes.html
18
OIG REPORT
▪ April 2018 OIG report found that 31% of audited
telemedicine claims did not meet Medicare conditions
of payment for telemedicine services.
▪ OIG recommends that CMS conduct telemedicine
periodic post payment reviews.
19
BIPARTISAN BUDGET ACT OF 2018
▪ Telestroke (2019). Geographic and type requirements
waived for telehealth consultations
▪ ESRD (2019). Patients can receive telehealth visits
without geographic requirements if face-to-face is once
every three months
▪ MA Plans (2020). May offer additional telehealth
benefits
▪ ACOs (2020). May expand telehealth services and
allow the home to be an originating site – eliminates
geographic location criteria
20
MICHIGAN MEDICAID
▪ Permitted when travel by the patient is prohibitive or causes an
“imminent health risk” (50-mile rule no longer applies).
▪ Store-and-forward services are not reimbursable.
▪ Only specific services included.
▪ Patients must be located at one of the facilities listed in the Medicaid
manual.
▪ Both sites and all providers must be enrolled in Medicaid for
reimbursement.
▪ The originating site can only bill Medicaid for medically necessary
services.
▪ Like Medicare, specific coding modifiers are required.
Medicaid Manual, Section 17
21
MICHIGAN INSURANCE CODE
▪ Interactive video or audio required, but not necessarily
face-to-face contact.
▪ Another healthcare professional must be physically
present and able to interact with the patient.
▪ Insurers have discretion for which telemedicine
services they will reimburse and for how much.
▪ Noted trend in increased list of telehealth services
available for reimbursement.
WWW.HONIGMAN.COM
Andrea Lee
alee2@honigman.com
313-465-7294
Becky Glitman
bglitman@honigman.com
313-465-7378

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Telemedicine Licensure in Michigan

  • 1. Becky Glitman Andrea Lee May 9, 2018 Presentation to the Health Care Law Section of the State Bar of Michigan
  • 4. 4 STATISTICS *Survey conducted by National Business Group By 2018, there will be over 7 million telehealth users, which is up from just 350,000 users in 2013. 66% of Americans are willing to see a doctor over video 96% of large employers will make telehealth services available. *Survey conducted by Teladoc *Survey conducted by Teladoc *Survey conducted by American Well 76% of U.S. hospitals and health systems either have in place or expect to implement a consumer telehealth program by 2018. 76% of organizations without a consumer telehealth program indicate it is a high strategic priority for their organizations. 76 % 24 % 10 0 % 96 % 4% 10 0% 10 0%
  • 5. 5 STATE LAW DEFINITIONS ▪ Telehealth (MCL 333.16283) The use of electronic information and telecommunication technologies to support or promote long-distance clinical health care, patient and professional health-related education, public health, or health administration. ▪ Telemedicine (MCL 500.3476) The use of an electronic media to link patients with health care professionals in different locations. The health care professional must be able to examine the patient via a real-time, interactive audio or video, or both, telecommunications system and the patient must be able to interact with the off-site health care professional at the time the services are provided.
  • 7. 7 METHODS ▪ Synchronous “Real time” communication (e.g., TeleICU) ▪ Asynchronous “Store and forward” (e.g., Teleradiology) ▪ Telemonitoring/Remote Patient Monitoring
  • 9. 9 PHYSICIAN AND PROVIDER LICENSURE REQUIREMENTS ▪ Provider must be licensed in the state where patient is located. • For Michigan insurance reimbursement: Telemedicine services must be provided by a health care professional who is licensed, registered, or otherwise authorized to engage in his or her health care profession in the state where the patient is located. MCL 500.3476; 550.1401k ▪ Would the provider be licensed to provide the service in person? ▪ Has the provider established a provider-patient relationship? Have the patient and the provider met face-to-face? Is audio communication sufficient? ▪ Does the provider’s physical location matter? ▪ Consultation exception.
  • 10. 10 OTHER STATES AND MEDICAL LICENSURE COMPACT ▪ Some states offer special purpose telemedicine licenses. ▪ New Michigan laws (e.g., patient-prescriber requirements) considering the impact of telehealth. ▪ Interstate Medical Licensure Compact • Current Legislation: House Bills 4066 and 4067 • Increase access to physicians and providers via telehealth across state lines. • Voluntary for physicians and state medical board where adopted. • MI legislation only applies to Board-certified MDs and DOs. • MI legislation has different definition of “physician” than the MI Public Health Code.
  • 12. 12 ENFORCEMENT ▪ Does the Michigan Board of Medicine enforce telemedicine requirements against out of state physicians? • Recent physician enforcement action (2014-2017) ▪ Licensed in MI, provided prescriptions to patients located in MI based on patient responses to an on-line form. ▪ Physician located in GA. ▪ Also licensed in WV, website based in WV. ▪ MI Board of Medicine suspended license and issued a fine. ‒ No patient/provider relationship established, therefore prescribing was negligent and incompetent. ‒ Physicians should consider appropriateness of care provided via telemedicine. ▪ WV Board of Medicine decision considered action by the MI Board of Medicine. ▪ Would the MI Board of Medicine consider other states’ requirements laws for physicians located in MI and providing telemedicine services to patients in other states? ▪ MCL 333.16286 – physicians may face restrictions if violating telehealth prescribing rules
  • 13. 13 PRIVILEGING ▪ Joint Commission Requirements: • Credentialed by the originating site, or specific acknowledgment of reliance on the distant site’s credentialing procedures. Joint Commission Standard MS.13.01.01 • Also requires a written telemedicine services agreement  As a practical matter, facilities should determine how they will credential these physicians located remotely (e.g., will they be limited to physicians who also provide in-person services? Limited based on particular arrangements)  Impacts hospitals that are originating sites without a prior relationship with the physician providing services.
  • 15. 15 MEDICARE REIMBURSEMENT ▪ Covers synchronous, not asynchronous telemedicine ▪ Geographic Location • Originating site (where the patient is) must be in either: ▪ a rural Health Professional Shortage Area (HPSA) or ▪ a county outside of a Metropolitan Statistical Area (MSA) • Federal telehealth demonstration project qualifies regardless of location • Medicare Telehealth Payment Eligibility Analyzer https://datawarehouse.hrsa.gov/tools/analyzers/geo/Telehealth.aspx
  • 16. MEDICARE REIMBURSEMENT (CONT.) 16 Originating Sites Offices of physicians or practitioners Hospitals Critical Access Hospitals Rural Health Clinics Federally Qualified Health Centers Hospital-based or CAH-based Renal Dialysis Centers (including satellites) (historically not Independent Renal Dialysis Facilities) Skilled Nursing Facilities Community Mental Health Centers Distant Site Practitioners Physicians NPs PAs Nurse-midwives Clinical nurse specialists Certified registered nurse anesthetists Clinical psychologists and clinical social workers Registered dietitians or nutrition professionals
  • 17. 17 MEDICARE REIMBURSEMENT (CONT.) ▪ Covered Services • CY 2018 ▪ Telehealth consultations, emergency department or initial inpatient ▪ Follow-up inpatient to beneficiaries in hospitals or SNFs ▪ Office or other outpatient visits ▪ Kidney disease education ▪ ESRD related services (must furnish at least one “hands on” visit each month to examine the vascular access site) ▪ Nutrition therapy ▪ Behavioral therapy ▪ Psychoanalysis/psychotherapy ▪ Critical care consultations • Full list - https://www.cms.gov/Medicare/Medicare-General- Information/Telehealth/Telehealth-Codes.html
  • 18. 18 OIG REPORT ▪ April 2018 OIG report found that 31% of audited telemedicine claims did not meet Medicare conditions of payment for telemedicine services. ▪ OIG recommends that CMS conduct telemedicine periodic post payment reviews.
  • 19. 19 BIPARTISAN BUDGET ACT OF 2018 ▪ Telestroke (2019). Geographic and type requirements waived for telehealth consultations ▪ ESRD (2019). Patients can receive telehealth visits without geographic requirements if face-to-face is once every three months ▪ MA Plans (2020). May offer additional telehealth benefits ▪ ACOs (2020). May expand telehealth services and allow the home to be an originating site – eliminates geographic location criteria
  • 20. 20 MICHIGAN MEDICAID ▪ Permitted when travel by the patient is prohibitive or causes an “imminent health risk” (50-mile rule no longer applies). ▪ Store-and-forward services are not reimbursable. ▪ Only specific services included. ▪ Patients must be located at one of the facilities listed in the Medicaid manual. ▪ Both sites and all providers must be enrolled in Medicaid for reimbursement. ▪ The originating site can only bill Medicaid for medically necessary services. ▪ Like Medicare, specific coding modifiers are required. Medicaid Manual, Section 17
  • 21. 21 MICHIGAN INSURANCE CODE ▪ Interactive video or audio required, but not necessarily face-to-face contact. ▪ Another healthcare professional must be physically present and able to interact with the patient. ▪ Insurers have discretion for which telemedicine services they will reimburse and for how much. ▪ Noted trend in increased list of telehealth services available for reimbursement.