In surveys conducted in 2020 and 2021, APA set out to better understand how Covid-19 impacted mental health treatment and the work of practicing psychologists. The results showed that many psychologists were experiencing increases in workload and the demand for anxiety, depression, and trauma-related treatment, longer waitlists, and a low capacity for new patients. CMS cited these findings in their 2023 proposed and final rule, in their discussion regarding their goal to improve access to and quality of mental health care services.
In previous years, when behavioral health services were billed “incident to” a physician’s or nonphysician practitioner’s (NPP) services, direct supervision was required, which meant the physician or NPP must be present in the office suite and immediately available to furnish assistance and direction throughout the performance of the procedure. However, recognizing increased needs for behavioral health services and workforce shortages, effective for 2023, CMS created an exception to the direct supervision requirement under “incident to” regulation (42 CFR 410.26), and now allows mental and behavioral health services to be furnished by mental health professionals not recognized in Medicare, such as licensed professional counselors and licensed marriage and family therapists, under general supervision.
Under the new implemented general supervision requirements, behavioral health services can be performed under the direction and control of the physician or NPP, but they do not need to be physically present.
While CMS did not provide a specific definition for what they consider to be behavioral health services, they did state in the 2023 final rule that they generally understand a behavioral health service “to be any service for the diagnosis, evaluation, or treatment of a mental health disorder, including a substance use disorder (SUD).” The agency also provided examples, stating “behavioral health services could include, but are not limited to, psychotherapy; screening, brief intervention, and referral to treatment services; and psychiatric diagnostic evaluations.”
CMS indicates that any clinician who meets the definition of “auxiliary personnel” may serve as auxiliary personnel under the exception. “Auxiliary personnel” is defined as any individual who meets the following criteria:
- Is acting under the supervision of a physician (or another practitioner), regardless of whether the individual is an employee, leased employee, or independent contractor of the physician (or another practitioner) or of the same entity that employs or contracts with the physician (or another practitioner).
- Has not been excluded from Medicare, Medicaid, and all other federally funded health care programs by the Office of Inspector General or had their Medicare enrollment revoked.
- Meets any applicable requirements to provide incident-to services, including licensure requirements, imposed by the state in which the services are being furnished.