Contact us
Solution Finder

Understanding New Medicare Policies for Improved Behavioral Health Billing

by BillingFreedom | Apr 16, 2024

follow on facebook follow on x follow on linkdin
new medicare policies

In a healthcare environment that is constantly challenged, the annual regulation sets the tone for payment and coverage policies for clinician services under traditional Medicare.

At its core for 2024, the PFS rule establishes the payment and coverage policies that govern clinician services. This isn’t merely about financial transactions; it’s about shaping the framework of traditional Medicare, ensuring that the system is robust and responsive to the population’s diverse needs.

Key Changes in New Medicare Policies for Improved Behavioral Health Billing

The recent modifications to Medicare policies in behavioral health billing are centered around improving documentation requirements, optimizing reimbursement rates, and encouraging the adoption of technology solutions for increased efficiency. Providers must adjust to these changes, ensuring adherence to privacy regulations, addressing fraud prevention, and actively engaging in educational initiatives to navigate the evolving landscape effectively.

Behavioral Health Services

The recently introduced Medicare policies target the varied needs of patients within behavioral health services. The Centers for Medicare and Medicaid Services (CMS) suggest broader eligibility criteria for providers to bill these services, coupled with heightened payments for crisis care, substance use disorder treatment, and psychotherapy. By the Consolidated Appropriations Act of 2023, these proposals aim to improve beneficiaries’ access to behavioral health care, and the agency is actively soliciting feedback on additional measures for further enhancement.

New Benefit Category

Behavioral Health Billing has created a dedicated benefit category exclusively for Marriage and Family Therapists (MFTs) and Mental Health Counselors (MHCs). Acknowledging their unique skills and expertise in promoting family well-being and individual mental health creates accessible avenues for patients to receive therapy from these qualified professionals. This empowerment contributes to their overall well-being and facilitates the development of more accurate medical billing and coding practices tailored to these specialized services.

Social Needs In Health Relations

The Centers for Medicare and Medicaid Services (CMS) recommend introducing billing codes and payment structures to encompass the implementation of social determinants of health (SDOH) risk assessments. This encompasses community health integration (CHI) and principal illness navigation (PIN) services provided by certified community health workers, care navigators, peer support specialists, and other trained personnel. These proposed codes mark a groundbreaking effort to recognize the essential resources required when clinicians involve auxiliary personnel in delivering these services. This adjustment strengthens the legitimacy of incorporating auxiliary personnel into care teams and alleviates clinicians’ burdens, fostering increased access to essential services.

CMS’s Refined Approach

In 2021 Physician Fee Schedule (PFS), the Centers for Medicare and Medicaid Services (CMS) introduced a new add-on code to recognize the increased time and resources devoted to delivering primary care services to complex patients. Given the imperative of budget neutrality, the enhanced payment for certain providers entails adjustments for others. Congress postponed the implementation of this change until now to address concerns regarding potential payment reductions for physicians not typically offering these services.

In 2024, CMS proposes implementing the complexity add-on code as anticipated but with refined policies and significantly revised utilization estimates. Primary care providers, including those in internal, general, senior, family, or pediatric medicine, are expected to experience annual PFS payments increasing by 1 percent to 3 percent in 2024, primarily driven by the add-on code. CMS aims to improve patient access to continuous, comprehensive care by reimbursing practitioners for complex primary care services. This initiative is anticipated to enhance outcomes and align payment more effectively with the value of services rendered.

Revolutionizing Healthcare Strategies – Shifting from Illness to Wellness

The innovative medical health billing policies go beyond a reactive stance, emphasizing preventive and well-being initiatives. This transformation includes:

  1. Technology Integration

Embracing telehealth as a potent tool to overcome geographical barriers, these policies encourage its utilization. They address privacy concerns and advocate for technological proficiency among healthcare providers.

  1. Wellness Incentives

Medicare Advantage plans are exploring avenues to incentivize healthy behaviors and positive mental well-being. Bonus premiums or reduced co-pays are offered for participation in wellness programs, fostering a proactive approach to healthcare.

  1. Community-Based Partnerships

Acknowledging the impact of social determinants on mental well-being, these policies promote collaboration with community organizations, faith-based groups, and social service agencies. This collaborative effort addresses broader social and economic factors affecting mental health.

Despite the promising aspects of the new Behavioral Health Billing policies, a significant challenge remains—the shortage of behavioral health care professionals. 

Innovative Solutions Are Emerging To Bridge This Gap

  1. Loan Repayment Programs for Medical Billing Services

Financial assistance is provided to those committing to practice in underserved areas. This approach strengthens access to care in high-need communities, simultaneously addressing medical billing and patient accessibility concerns.

  1. Expanding Telehealth Opportunities for Better Billing Services

Leveraging telehealth as a powerful tool to break down geographical barriers, the expansion of telehealth infrastructure is encouraged. This approach promotes its utilization in medical billing and coding practices, significantly improving accessibility.

  1. Strength in Numbers for Billing and Coding

Encouraging collaboration between psychologists and other healthcare professionals creates a holistic approach. This collaborative method optimizes treatment outcomes and streamlines communication and billing processes within the healthcare system.

Empowering Caregivers in Healthcare

The Centers for Medicare and Medicaid Services (CMS) are proposing a transformative change in healthcare dynamics by acknowledging and compensating caregivers. This shift aims to provide support to Medicare patients facing specific diseases such as stroke and dementia, recognizing the invaluable role played by family members, friends, neighbors, or guardians.

Payment for Caregiver Training Services

Under this proposal, physicians, nonphysician practitioners, and therapists would be eligible for payment when delivering caregiver training services. These services are designed to complement diagnostic and treatment services directly provided to the patient, fostering a comprehensive approach to care.

Training Strategies for Enhanced Patient Support

The caregiver training services encompass strategies and specific activities to assist patients in implementing their treatment plans. This involves structuring the patient’s environment to reinforce desired behaviors, employing techniques to mitigate the negative impacts of the diagnosis on daily life, and imparting skills to manage challenging behaviors.

Improving Health Outcomes and Alleviating Caregiver Stress

Research demonstrates that engaging caregivers in the care plan and offering training can enhance health outcomes. Additionally, it alleviates the stress that caregivers frequently encounter in meeting the needs of their loved ones. This support is especially crucial for beneficiaries of color, as they are more inclined to depend on unpaid informal caregiving.

A Proactive Approach to Recognizing Caregiver Contributions

This proposal represents a proactive initiative to recognize and compensate caregivers for their crucial contributions to healthcare. CMS seeks to foster a more inclusive and supportive healthcare environment by reimbursing providers for caregiver training services, ultimately improving patient care and overall well-being.


How Medical Billing Services Can Help In Medicare Policies for Improved Behavioral Health Billing?

Billing for behavioral health services involves intricate compliance requirements, and expert billers ensure adherence to Medicare guidelines, minimizing the risk of claim denials. Their proficiency in coding and documentation facilitates accurate reimbursement, addressing the unique complexities of behavioral health billing.

Moreover, these services streamline the billing process, reducing administrative burdens for healthcare providers. By staying updated on Medicare policies, medical billers enhance billing accuracy, expedite reimbursements, and ultimately provide ease to healthcare professionals, allowing them to focus on delivering optimal behavioral health care to their patients.

Why Choose BillingFreedom For Behavioral Health Billing?

Choose BillingFreedom for Behavioral Health Billing in 2024 because we are dedicated to staying current with Medicare updates. Our commitment ensures we promptly understand and implement every update, guaranteeing compliance with the latest regulations. With BillingFreedom, you gain a partner that seamlessly navigates the dynamic healthcare landscape, providing accurate and up-to-date billing services. Trust us to optimize your reimbursement processes, allowing you to focus on delivering exceptional behavioral health care while we manage billing complexities with precision and efficiency.

We offer comprehensive support, including measuring outcomes in Mental & Behavioral Healthcare. Explore our Mental and Behavioral Health Assessment Tools resources for a deeper understanding. Our commitment to staying up-to-date ensures that we provide solutions for everything related to medical billing and healthcare. Count on us to keep you informed and equipped with the latest insights and tools, making your experience seamless and hassle-free.

For more details about our exceptional medical billing services, please don’t hesitate to contact us via email at or call us at +1 (855) 415-3472.

Call us now:Call us855-415-3472

Get a Quote

RCM Services

Charge Entry
Payment Posting
Denial Management and Appeals
Physician Credentialing
End to End RCM Services
boost your revenue

Ready to Boost Your Revenue?

Save your hard earned money, register, before it's gone.