Effective July 1st, 2019 providers from the State of Kentucky delivering care using telehealth will be able to receive reimbursement for their services. No more parity requirements and healthcare coverage resistance!
May 23, 2018 by Foley & Lardner LLP
Kentucky health care providers and patients will soon enjoy a revamped, and significantly improved, telehealth commercial insurance coverage law. Kentucky Governor Matt Bevin signed SB 112 into law on April 26, 2018, imposing both telehealth coverage and payment parity requirements for Kentucky Medicaid, Medicaid managed care organizations, and commercial health plans in the Bluegrass State. The law is effective July 1, 2019.
Rob Sprang, Director of Kentucky TeleCare, noted the legislation “will help providers from across the Commonwealth care for patients, no matter where they live” allowing healthcare providers to “leverage telehealth technology to extend vital healthcare services to our most vulnerable citizens, bringing the right care to the right people at the right time in the right place.”
The changes to Kentucky’s Insurance Code (Title XXV, Chapter 304, Subtitle 17a, Section 138) are even more provider and patient-friendly than some other recent state law changes (e.g., Iowa, Nebraska, New Jersey) because the statute mandates both coverage and payment parity. The key language in the statute states, in pertinent part, as follows:
“A health benefit plan shall reimburse for covered services provided to an insured person through telehealth as defined in Section 4 of this Act. Telehealth coverage and reimbursement shall be equivalent to the coverage for the same service provided in person unless the telehealth provider and the health benefit plan contractually agree to a lower reimbursement rate for telehealth services.”
Telehealth payment parity (i.e., that reimbursement rates for a service delivered via telehealth are equal to rates paid for the identical service delivered in-person) is an essential issue for lawmakers to consider when drafting and evaluating a proposed telehealth coverage bill, or when revisiting a previously-enacted coverage law. We have discussed this issue extensively in prior articles, and handled these issues in connection with our legislative work drafting bills to amend state insurance coverage laws.
For Kentucky commercial health plans, telehealth is defined as “the delivery of healthcare-related services by a health care provider who is licensed in Kentucky to a patient through a face-to-face encounter with access to real-time interactive audio and video technology or store and forward services that are provided via asynchronous technologies as the standard practice of care where images are sent to a specialist for evaluation. The requirement for a face-to-face encounter shall be satisfied with the use of asynchronous telecommunications technologies in which the health care provider has access to the patient’s or client’s medical history prior to the telehealth encounter.” The definition does not include “the delivery of services through electronic mail, text chat, facsimile, or standard audio-only telephone call.”
Under the new law, a health plan may not:
For Kentucky Medicaid and Medicaid Managed Care, the bill changes Kentucky Medicaid and Medicaid Managed Care laws (Title XVII, Chapter 205) in a manner that largely mirrors the changes to the Kentucky Insurance Code. Kentucky’s Cabinet for Health and Family Services will provide oversight, guidance, and direction to Medicaid providers delivering care using telehealth. These activities include:
Other highlights of the new law include the following:
The enactment of Kentucky’s telehealth insurance coverage law brings the count to approximately 36 states plus D.C. as having laws requiring insurance plans to cover telehealth services, and approximately nine states with payment parity language. We will continue to monitor Kentucky for any rule changes that affect or improve telemedicine opportunities in the state.