TITLE administration

Part XV. Health and Human Services Commission

Chapter 355. Medicaid Managed Care

Subchapter G. Telemedicine Services

1 TAC §355.7001

The Health and Human Services Commission proposes new §355.7001, concerning the reimbursement for telemedicine services for the Medicaid Program. House Bill 2386 and House Bill 2017 directed the Health and Human Services Commission to establish a system for reimbursing providers of services performed using telemedicine. The new Subchapter G, which contains the new section §355.7001, sets forth definitions related to telemedicine in §355.7001(a). The new §355.7001(b) establishes reimbursement for the attending provider for evaluation and management services and for the consulting provider for consultation services in accordance with existing Medicaid reimbursement methodology. It also stipulates that providers seeking reimbursement for telemedicine services must adhere to reimbursement and medical policies adopted by the Texas Department of Health for telemedicine services. This new section provides definitions, a description of services approved for reimbursement, and requirements of providers claiming reimbursement for services performed using telemedicine.

Mr. Steve Svadlenak, Director of Medicaid Reimbursement, has determined that for the first five-year period the section is in effect, there will be no net fiscal implications as a result of administering the new section. The use of telemedicine will result in an increase in expenditures due to the reimbursement for attending providers but will also result in a decrease in expenditures for medical transportation costs. Savings may also result because of earlier interventions that telemedicine may effectively provide by allowing clients in rural and medically underserved areas to access services more quickly and conveniently. The anticipated use of telemedicine is unknown; telemedicine networks are only beginning to be developed in the state. Providers must also cover hardware, software, and transmission costs. There will be no fiscal impact for local governments.

Mr. Svadlenak has also determined that for the first five-year period the section is in effect, the public benefit anticipated as a result of enforcing the section will be improved access to health care services for eligible recipients. There will be no costs to small businesses or persons complying with the section as proposed. There will be no impact on local employment.

Comments may be submitted to Linda K. Wertz at the Texas Health and Human Services Commission, 4900 North Lamar Boulevard, Austin, Texas 78751, (512) 424-6517. Comments will be accepted for 30 days following publication of this proposal in the Texas Register . In addition, a public hearing on the proposed sections will be held at 9:00 A.M. on February 19, 1998, in the HHSC Public Hearing Room located in the Brown Heatley Building at 4900 North Lamar Boulevard, Austin, Texas. Parking will be available at the Texas Department of Human Services complex, 701 West 51st Street.

The new rule is proposed under the Texas Government Code, Chapter 531, §531.033, which authorizes the Commissioner of Health and Human Services to adopt rules necessary to carry out the Health and Human Services Commissioner's duties under Chapter 531; and under Texas Government Code, §531.021, which provides the commission with the authority to administer federal medical assistance funds.

The new rule implements Government Code, §531.021 and Human Resources Code, §§32.001-32.047.

§355.7001.Telemedicine Services.

(a)

Definitions. The following words and terms, when used in this chapter, will have the following meanings, unless the context clearly indicates otherwise.

(1)

Telemedicine - A method of health care service delivery used to facilitate medical consultations by physicians to health care providers in rural or underserved areas for purposes of patient diagnosis or treatment that require advanced telecommunications technologies, including interactive video consultation, teleradiology, and telepathology.

(2)

Rural - Area defined as a county with a population of less than 50,000.

(3)

Underserved - Area that meets the definition of Medically Underserved Area (MUA) or Medically Underserved Population (MUP) by the U.S. Department of Health and Human Services.

(4)

Hub Site Provider - A physician at an accredited medical school, or a physician at one of the following entities affiliated with an accredited medical school: hospitals, teaching hospitals, tertiary centers, or health clinics. The hub site physician will provide consultation and diagnosis, and may develop the patient's plan of care and treatment.

(5)

Remote Site Provider - A health professional, such as a physician or advanced nurse practitioner, that is able to independently bill the Medicaid Program, or a Federally Qualified Health Center or Rural Health Clinic. Remote site providers must be located in rural or underserved areas. The remote site provider is responsible for carrying out or coordinating the plan of care and treatment after consulting with the hub site provider.

(b)

Reimbursement for Services Performed Using Telemedicine

(1)

Hub site providers can bill for consultation services provided using telemedicine. Remote site providers can bill for evaluation and management services provided using telemedicine.

(2)

Telemedicine services are reimbursed in accordance with the existing Medicaid reimbursement methodology.

(3)

Providers seeking reimbursement for telemedicine services must provide and bill for the service in the manner prescribed by the Texas Department of Health.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 26, 1998.

TRD-9801122

Marina Henderson

Executive Deputy Commissioner

Health and Human Services Commission

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 424-6576