Navigating the New Horizon: Understanding CMS’s 2023 and 2024 Policy Changes for Medicare Telehealth Payments

By: Christopher A. Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, Ma.

The Centers for Medicare & Medicaid Services (CMS) have implemented significant policy changes regarding Medicare payments for telehealth services, effective from January 1, 2023, and continuing through 2024. These policy changes, as outlined in the final rules issued on November 1, 2022, for the 2023 calendar year, and on November 2, 2023, for the 2024 calendar year, reflect a progressive approach towards telehealth services under the Physician Fee Schedule (PFS) and other Medicare Part B issues????.

Notably, the 2023 final rule included updates that were effective from January 1, 2023. In contrast, the 2024 final rule, issued on November 2, 2023, not only announces finalized policy changes but also extends many of the telehealth flexibilities through December 31, 2024. This extension is a significant step, indicating CMS’s commitment to evolving Medicare payment policies in response to the changing landscape of healthcare services, particularly in the realm of telehealth????.

Among the notable changes in the 2024 final rule are alterations to the categorization of codes for telehealth services and the billing procedures for these services. This reflects an effort to streamline telehealth service provision and reimbursement, ensuring that these services are more accessible and efficiently managed??.

Furthermore, these policy changes align with broader healthcare objectives, such as expanding behavioral health services, advancing the President’s Cancer Moonshot initiative, supporting family caregivers, and accelerating the shift towards value-based care. These objectives highlight the CMS’s focus on not just expanding telehealth services, but also ensuring they contribute to broader health equity and quality improvement in healthcare delivery??.

For Parrella Health Law, these developments present an opportunity to guide healthcare providers through the evolving regulatory landscape of telehealth services, ensuring compliance and optimization of Medicare reimbursements under the new rules. The extension of telehealth flexibilities and the focus on streamlined billing and coding can be pivotal in advising clients on best practices and strategic approaches to telehealth service provision.

The Centers for Medicare & Medicaid Services (CMS) have implemented significant policy changes regarding Medicare payments for telehealth services, effective from January 1, 2023, and continuing through 2024. These policy changes, as outlined in the final rules issued on November 1, 2022, for the 2023 calendar year, and on November 2, 2023, for the 2024 calendar year, reflect a progressive approach towards telehealth services under the Physician Fee Schedule (PFS) and other Medicare Part B issues????.

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