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The End of the Public Health Emergency is (Finally) Here

Client Alert

Dynamic causal modeling for future projection of the COVID-19 pandemic

The COVID-19 Public Health Emergency (“PHE”) that has been in effect for over three years is finally slated to end on May 11, 2023.[1] With the end of the PHE will come many changes for healthcare providers to be aware of; however, some changes may not come until much later.

For example, one of the major changes that came with the PHE was the expansion of coverage for telehealth services rendered to Medicare beneficiaries. These flexibilities are expected to remain in effect through December 31, 2024, thanks to the Consolidated Appropriations Act of 2023.[2]

Upcoming Changes:

However, there are still many changes that will be made following the end of the PHE on May 11. First, unless the Drug Enforcement Agency (“DEA”) implements rules stating otherwise, providers will no longer be able to prescribe controlled substances to patients without first performing an in-person evaluation.[3]

In addition, Medicare Part B beneficiaries, while they will still have coverage for laboratory-conducted COVID-19 tests without cost-sharing, they will no longer have access to free over-the-counter tests.[4] In addition, private insurers will no longer be required to cover tests without cost-sharing (for both over-the-counter and laboratory tests).[5]

Providers will also need to ensure that technology used to perform telemedicine services are HIPAA compliant following the end of the PHE.[6]

Lastly, following the PHE, hospitals treating patients diagnosed with COVID-19 will no longer receive a 20% increase in the Medicare payment rate, and the 3-day prior hospitalization requirement will no longer be waived for Medicare beneficiaries staying at skilled nursing facilities who are transferred for emergencies.[7]

What Will Not Change:

As briefly mentioned above, the Consolidated Appropriations Act of 2023 extended many of the PHE waivers through the end of 2024. Therefore, the following changes are expected to stick around:

  1. Medicare beneficiaries in any geographic area can receive telehealth services, rather than beneficiaries living in rural areas only;
  2. Beneficiaries can remain in their homes for telehealth visits reimbursed by Medicare, rather than needing to travel to a health care facility;
  3. Telehealth visits can be delivered via smartphone in lieu of equipment with both audio and video capability;
  4. An expanded list of Medicare-covered services can be provided via telehealth;
  5. Federally qualified health centers and rural health clinics can provide telehealth services to Medicare beneficiaries (i.e., can be distant site providers), rather than limited to being an originating site provider for telehealth (i.e., where the beneficiary is located).[8]

In addition, certain waivers implemented by the Food and Drug Administration (“FDA”) will also not be affected by the end of the PHE, including the availability of emergency use authorizations (“EUA”) for COVID-19 tests and treatments.[9]

State Law:

As far as Medicaid, many states have implemented their own rules in terms of telehealth flexibilities, and are therefore state-specific.[10] Along the same lines, while some states have created their own waivers for provider licensure requirements, other states have tied the requirements to the PHE. Therefore, providers should be cognizant of state laws as well in terms of the validity of any waivers. 

Conclusion:

Please note that while this Client Alert addresses many of the upcoming changes as a result of the end of the PHE, not all changes are listed. Therefore, we strongly encourage providers to review any waivers they are operating under to see whether they are permanent, and if not, when they are expected to expire.

If you have any questions regarding the expiration of a specific waiver, or any of the above information, please contact BMD Healthcare Member Jeana Singleton or Attorney Rachel Stermer. Jeana can be reached at jmsingleton@bmdllc.com or (330) 253-2001. Rachel can be reached at rcstermer@bmdllc.com or (330) 253-2019. 

 

[1] Kaiser Family Foundation, What Happens When COVID-19 Emergency Declarations End? Implications for Coverage, Costs, and Access, https://www.kff.org/coronavirus-covid-19/issue-brief/what-happens-when-covid-19-emergency-declarations-end-implications-for-coverage-costs-and-access/#medicaid-coverage (Jan. 31, 2023).

[2] Id.

[3] Id.

[4] Department of Health and Human Services, Fact Sheet: COVID-19 Public Health Emergency Transition Roadmap, https://www.hhs.gov/about/news/2023/02/09/fact-sheet-covid-19-public-health-emergency-transition-roadmap.html (Feb. 8, 2023).

[5] Id.

[6] Kaiser Family Foundation.

[7] Id.

[8] Id.

[9] U.S. Food and Drug Administration, FAQs: What happens to EUAs when a public health emergency ends?, https://web.archive.org/web/20230131165732/https:/www.fda.gov/emergency-preparedness-and-response/mcm-legal-regulatory-and-policy-framework/faqs-what-happens-euas-when-public-health-emergency-ends (Jan. 31, 2023).

[10] Kaiser Family Foundation.


Now in Effect: DOL Final Rule on Classification of Independent Contractors

Effective March 11, 2024, the U.S. Department of Labor (DOL) has adopted a new standard for the classification of employees versus independent contractors — a much anticipated update since the DOL issued its Final Rule on January 9, 2024, as previously discussed by BMD.  In brief, the Fair Labor Standards Act (FLSA) creates significant protections for workers related to minimum wage, overtime pay, and record-keeping requirements. That said, such protection only exists for employees. This can incentivize entities to classify workers as independent contractors; however, misclassification is risky and can be costly.

Florida's Recent Ruling on Arbitration Clauses

Florida’s recent ruling on arbitration clauses provides a crucial distinction in determining whether such clauses are void as against public policy and providers may have the opportunity to include arbitration clauses in their patient consent forms. On March 6, 2024, Florida’s Fourth District Court of Appeals reversed and remanded Florida’s Fifteenth Circuit Court ruling of Piero Palacios v. Sharnice Lawson. The Court of Appeals ruled that the parties’ arbitration agreement did not contradict the Legislature’s intent of Florida’s Medical Malpractice Act (the “MMA”), but rather reflects the parties’ choice to arbitrate claims entirely outside of the MMA’s framework. Therefore, the Court found that the agreement was not void as against public policy.

Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).

Another Transparency Obligation: The FinCEN Beneficial Ownership Information Reporting Requirements

Many physician practices and healthcare businesses are facing a new set of federal transparency requirements that require action now. The U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) Beneficial Ownership Information Reporting Requirements (the “Rule”), which was promulgated pursuant to the 2021 bipartisan Corporate Transparency Act, is intended to help curb illegal finance and other impermissible activity in the United States.