Rural Health Clinic Modernization Included in Final COVID Package

December 21, 2020

NARHC is pleased to report that Medicare reimbursement for RHCs will undergo a massive overhaul as part of the year-end COVID-19 relief and appropriations package passed by Congress. Notably, the RHC cap will be raised to $100 on April 1, 2020 and then the cap will gradually rise each year to $190 in 2028.

“Raising the cap has been the legislative priority of NARHC for over a decade,” said Bill Finerfrock, Executive Director of NARHC “we are ecstatic to see that Congress has opted to raise the cap for RHCs in this legislation.”

Senator Chuck Grassley (R-IA), Chair of the Senate Finance Committee, played an instrumental role at getting the RHC modernization language into the final package. “I can confidently say without Senator Grassley’s leadership, this would not have gotten done.” Finerfrock said.

All newly established RHCs would now also be subject to this increased cap, which means that no new RHC (even those purchased or established by hospitals with less than 50 beds) could receive uncapped cost-based reimbursement.

Uncapped RHCs in existence today would be grandfathered-inat their current All-Inclusive Rate and would still see year-over-year increases but would be constrained to their current AIR plus an adjustment for MEI (the Medicare Economic Index).

Notably, the changes ensure that no RHC sees a reduction in Medicare reimbursement. “When the President’s Budget included a proposal that put all RHCs on a single PPS rate, we were concerned that many provider-based RHCs would see massive declines in their Medicare reimbursement.” Finerfrock said. “That is why we strongly advocated for a grandfathering provision to ensure that RHCs did not see any year-over-year declines in their Medicare reimbursement.”

As the disparity between the RHC cap and the average uncapped all-inclusive rate grew, the RHC program was coming under increasing scrutiny in Washington D.C.

“The goal was to protect the business model of our current RHCs, while simultaneously creating a level playing field for all RHCs going forward,” explains Nathan Baugh, Director of Government Affairs for NARHC “this reimbursement policy puts the entire program on a sustainable path and averts cuts to our RHCs.”

NARHC had been working for years to craft a solution that was both budget neutral and fair for all RHCs. This is a gamechanger for all rural health clinics and for rural underserved communities across the country. NARHC wants to thank everyone who stepped up to advocate over the past decade-plus for RHCs! Victories like this only happen when we have grassroots support from the RHC community itself!

In addition to the RHC Modernization Act, there is another section that will allow RHCs to bill for hospice attending physician services. There is also expected to be additional provider relief fund money for rural providers as well as COVID-19 testing money which RHCs will be eligible for. The final votes on the $2.3 trillion package should occur later today. NARHC will have further updates on this package in the days and weeks to come.


Sincerely,

National Association of Rural Health Clinics

25 November, 2024 15:50

Dear NARHC Members, Please join us on December 10 at 4 PM Eastern Time for our 2024 Annual Membership meeting. In this virtual meeting, our NARHC Executive Committee (President Mandy Shelast, Vice President Shannon Chambers, and Secretary/Treasurer Denise Schentrup)...

read more
7 November, 2024 21:16

NARHC has been engaging with CMS over the last year in an attempt to resolve the CPT Category II code issue for RHCs, including through a letter to the CMS Administrator. We are very pleased to report that CMS recently issued a CMS Change Request to allow Category II...

read more
5 November, 2024 15:38

Dear RHC Community, On November 1, the Centers for Medicare and Medicaid Services (CMS) issued the CY 2025Medicare Physician Fee Schedule (MPFS) Final Rule. NARHC is very pleased to report that the rule finalizes several Rural Health Clinic (RHC) specific policy...

read more
27 September, 2024 16:44

Dear RHC Community, We hope you will join us for our free, upcoming technical assistance webinar, Strengthening Rural Health: The Role of HPV Vaccination, in partnership with St. Jude Children’s Research Hospital HPV Cancer Prevention Program. Rural life is a choice...

read more
16 September, 2024 18:32

Hello RHC Community! The American Telemedicine Association is celebrating the week of September 16th as “Telehealth Awareness Week.” NARHC is pleased to add its voice to the important discussion about how telehealth is used by the over 5,500 Rural Health Clinics...

read more
30 July, 2024 13:12

Free Webinar, Thursday August 15th The Centers for Medicare and Medicaid Services (CMS) recently released the 2025 Medicare Physician Fee Schedule (MPFS)Proposed Rule. This annual regulatory update contains a significant section specifically for RHCs, this year...

read more
11 July, 2024 11:56

Dear RHC Community, The Centers for Medicare and Medicaid Services (CMS) released the 2025 Medicare Physician Fee Schedule (MPFS) Proposed Rule. As a reminder, this annual rule provides regulatory updates to the fee schedule and also contains a significant section...

read more
27 June, 2024 14:40

RHC Community, We hope you will join us for our free, upcoming technical assistance webinar, HHS Finalizes Section 1557 Nondiscrimination Rule –Impacts for RHCs. The Department of Health and Human Services (HHS), through the Office of Civil Rights (OCR) recently...

read more
19 June, 2024 17:53

As Congress approaches the December 31st deadline to extend Medicare telehealth flexibilities, key committees in Congress have advanced differing pieces of legislation that will dictate federal telehealth policy in the years ahead. Since 2020, the use of telehealth...

read more
16 May, 2024 12:54

Dear RHC Community, Over the last several weeks, the HHS Office of Civil Rights (OCR), Centers for Medicare and Medicaid Services (CMS), Department of Labor (DOL), and the Federal Trade Commission (FTC) all released massive final rules covering policies ranging from...

read more