1     
TELEHEALTH REVISIONS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ken Ivory

5     
Senate Sponsor: ____________

6     Cosponsor:
Steve Eliason

7     

8     LONG TITLE
9     General Description:
10          This bill amends the Medical Assistance Act and the Public Employees' Benefit and
11     Insurance Program Act to provide coverage for certain telehealth services.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     amends the Medical Assistance Act regarding reimbursement for telemedicine
16     services;
17          ▸     amends the Public Employees' Health Benefit and Insurance Program Act (PEHP)
18     regarding reimbursement for telemedicine services;
19          ▸     requires the Department of Health and PEHP to report to a legislative interim
20     committee and a task force regarding telehealth services;
21          ▸     requires a legislative study;
22          ▸     describes responsibilities of a provider offering telehealth services; and
23          ▸     amends the Electronic Prescribing Act to restrict certain prescriptions in conjuction
24     with telehealth services.
25     Money Appropriated in this Bill:
26          None

27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          26-18-13, as enacted by Laws of Utah 2008, Chapter 41
32          58-82-201, as last amended by Laws of Utah 2012, Chapter 160
33     ENACTS:
34          26-18-13.5, Utah Code Annotated 1953
35          26-58-101, Utah Code Annotated 1953
36          26-58-102, Utah Code Annotated 1953
37          26-58-103, Utah Code Annotated 1953
38          26-58-104, Utah Code Annotated 1953
39          26-58-105, Utah Code Annotated 1953
40          49-20-414, Utah Code Annotated 1953
41     

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 26-18-13 is amended to read:
44          26-18-13. Telemedicine -- Reimbursement -- Rulemaking.
45          (1) (a) [On or after July 1, 2008] Except as provided in Section 26-18-13.5 or Title 26,
46     Chapter 58, Telehealth Act, communication by telemedicine is considered face-to-face contact
47     between a health care provider and a patient under the state's medical assistance program if:
48          (i) the communication by telemedicine meets the requirements of administrative rules
49     adopted in accordance with Subsection (3); and
50          (ii) the health care services are eligible for reimbursement under the state's medical
51     assistance program.
52          (b) This Subsection (1) applies to any managed care organization that contracts with
53     the state's medical assistance program.
54          (2) The reimbursement rate for telemedicine services approved under this section:
55          (a) shall be subject to reimbursement policies set by the state plan; and
56          (b) may be based on:
57          (i) a monthly reimbursement rate;

58          (ii) a daily reimbursement rate; or
59          (iii) an encounter rate.
60          (3) The department shall adopt administrative rules in accordance with Title 63G,
61     Chapter 3, Utah Administrative Rulemaking Act, which establish:
62          (a) the particular telemedicine services that are considered face to face encounters for
63     reimbursement purposes under the state's medical assistance program; and
64          (b) the reimbursement methodology for the telemedicine services designated under
65     Subsection (3)(a).
66          Section 2. Section 26-18-13.5 is enacted to read:
67          26-18-13.5. Mental health telemedicine services -- Reimbursement -- Reporting.
68          (1) As used in this section:
69          (a) "Behavioral health care" means treatment or prevention of mental illness, whether
70     in person or remotely, by means of observation, description, evaluation, interpretation,
71     intervention, or treatment to effect modification of human behavior by the application of
72     generally recognized clinical mental health counseling principles, methods, and procedures for
73     the purpose of preventing, treating, or eliminating mental or emotional illness or dysfunction,
74     accompanying symptoms, or maladaptive behavior.
75          (b) "Mental illness" means a mental or emotional condition defined in an approved
76     diagnostic and statistical manual for mental disorders generally recognized in the professions of
77     mental health therapy listed in Section 58-60-102.
78          (c) "Telemedicine services" means the same as that term is defined in Section
79     26-58-102.
80          (2) This section applies to:
81          (a) a managed care organization that contracts with the Medicaid program; and
82          (b) a provider who is reimbursed for health care services under the Medicaid program.
83          (3) The reimbursement rate for in-office behavioral health care visits provided through
84     telemedicine services may be determined by applying:
85          (a) the same reimbursement rate offered for a traditional face-to-face in-office
86     behavioral health care visit;
87          (b) the rate described in Subsection (3)(a) with an applicable Medicare relative value
88     adjustment for telemedicine; or

89          (c) a rate that is at or above the rate offered for behavioral health care visits that the
90     Medicaid program has established with a telemedicine-based provider.
91          (4) The department shall report to the Legislature's Public Utilities and Technology
92     Interim Committee and Health Reform Task Force, before December 1, 2017, on:
93          (a) the result of the reimbursement rate parity described in Subsection (3);
94          (b) existing and potential uses of telehealth and telemedicine services;
95          (c) issues of reimbursement to a provider offering telehealth and telemedicine services;
96     and
97          (d) potential rules or legislation related to providers offering and insurers reimbursing
98     for telehealth and telemedicine services.
99          Section 3. Section 26-58-101 is enacted to read:
100     
CHAPTER 58. TELEHEALTH ACT

101          26-58-101. Title.
102          This chapter is known as the "Telehealth Act."
103          Section 4. Section 26-58-102 is enacted to read:
104          26-58-102. Definitions.
105          As used in this chapter:
106          (1) "Asynchronous store and forward transfer" means the transmission of a patient's
107     health care information from an originating site to a provider at a distant site over a secure
108     connection that complies with state and federal security and privacy laws.
109          (2) "Distant site" means the physical location of a provider delivering telemedicine
110     services.
111          (3) "Originating site" means the physical location of a patient receiving telemedicine
112     services.
113          (4) "Patient" means an individual seeking telemedicine services.
114          (5) "Provider" means an individual licensed in the state, under Title 58, Occupations
115     and Professions, to provide health care.
116          (6) "Synchronous interaction" means real-time communication through interactive
117     technology that enables a provider at a distant site and a patient at an originating site to interact
118     simultaneously through two-way audio and video transmission.
119          (7) "Telehealth services" means the transmission of health-related services or

120     information through the use of electronic communication or information technology.
121          (8) "Telemedicine services" means telehealth services:
122          (a) including:
123          (i) clinical care;
124          (ii) health education;
125          (iii) health administration;
126          (iv) home health; or
127          (v) facilitation of self-managed care and caregiver support; and
128          (b) provided by a provider to a patient through the use of:
129          (i) asynchronous store and forward transfer; or
130          (ii) synchronous interaction.
131          Section 5. Section 26-58-103 is enacted to read:
132          26-58-103. Scope of telehealth practice.
133          (1) A provider offering telehealth services shall:
134          (a) at all times:
135          (i) act within the scope of the provider's license under Title 58, Occupations and
136     Professions, in accordance with the provisions of this chapter and all other applicable laws and
137     rules; and
138          (ii) be held to the same standards of practice as those applicable in traditional health
139     care settings;
140          (b) in accordance with Title 58, Chapter 82, Electronic Prescribing Act, before
141     providing treatment or ordering a prescription drug, obtain, from the patient or another
142     provider, and document the patient's relevant clinical history and current symptoms to establish
143     a diagnosis and identify underlying conditions and contraindications to a recommended
144     treatment;
145          (c) be available to a patient who receives telehealth services from the provider for
146     subsequent care related to the initial telemedicine services, in accordance with community
147     standards of practice;
148          (d) be familiar with available medical resources, including emergency resources near
149     the originating site, in order to make appropriate patient referrals when medically indicated;
150     and

151          (e) in accordance with any applicable state and federal laws, rules, and regulations,
152     generate, maintain, and make available to each patient receiving telehealth services the patient's
153     medical records.
154          (2) A provider may not offer telehealth services if:
155          (a) the provider is not in compliance with applicable laws, rules, and regulations
156     regarding the provider's licensed practice; or
157          (b) the provider's license under Title 58, Occupations and Professions, is not active and
158     in good standing.
159          Section 6. Section 26-58-104 is enacted to read:
160          26-58-104. Enforcement.
161          The Division of Occupational and Professional Licensing, created in Section 58-1-103,
162     is authorized to enforce the provisions of this chapter.
163          Section 7. Section 26-58-105 is enacted to read:
164          26-58-105. Study by Public Utilities and Technology Interim Committee and
165     Health Reform Task Force.
166          The Legislature's Public Utilities and Technology Interim Committee and Health
167     Reform Task Force shall receive the reports required in Sections 26-18-13.5 and 49-20-414,
168     and study:
169          (1) the result of the reimbursement rate parity described in Sections 26-18-13.5 and
170     49-20-414;
171          (2) practices and efforts of private health care facilities, health care providers,
172     self-funded employers, third-party payors, and health maintenance organizations to create
173     parity between reimbursement rates for telehealth services, as defined in Section 28-58-102,
174     and reimbursement rates offered in a traditional face-to-face setting;
175          (3) existing and potential uses of telehealth and telemedicine services;
176          (4) issues of reimbursement to a provider offering telehealth and telemedicine services;
177     and
178          (5) potential rules or legislation related to providers offering and insurers reimbursing
179     for telehealth and telemedicine services.
180          Section 8. Section 49-20-414 is enacted to read:
181          49-20-414. Mental health telemedicine services -- Reimbursement -- Reporting.

182          (1) As used in this section:
183          (a) "Behavioral health care" means the same as that term is defined in Section
184     26-18-13.5.
185          (b) "Mental illness" means the same as that term is defined in Section 26-18-13.5.
186          (c) "Telemedicine services" means the same as that term is defined in Section
187     26-58-102.
188          (2) This section applies to the risk pool established for the state under Subsection
189     49-20-201(1)(a).
190          (3) The reimbursement rate under the program for in-office behavioral health care
191     visits provided through telemedicine services may be determined by applying:
192          (a) the same reimbursement rate offered for a traditional face-to-face in-office
193     behavioral health care visit;
194          (b) the rate described in Subsection (3)(a) with an applicable Medicare relative value
195     adjustment for telemedicine; or
196          (c) a rate that is at or above the rate offered for behavioral health care visits that the
197     program has established with a telemedicine-based provider.
198          (4) The program shall report to the Legislature's Public Utilities and Technology
199     Interim Committee and Health Reform Task Force, before December 1, 2017, on:
200          (a) the result of the reimbursement rate parity described in Subsection (3);
201          (b) existing and potential uses of telehealth and telemedicine services;
202          (c) issues of reimbursement to a provider offering telehealth and telemedicine services;
203     and
204          (d) potential rules or legislation related to providers offering and insurers reimbursing
205     for telehealth and telemedicine services.
206          Section 9. Section 58-82-201 is amended to read:
207          58-82-201. Electronic prescriptions -- Restrictions -- Rulemaking authority.
208          (1) Subject to the provisions of this section, a practitioner shall:
209          (a) provide each existing patient of the practitioner with the option of participating in
210     electronic prescribing for prescriptions issued for the patient, if the practitioner prescribes a
211     drug or device for the patient on or after July 1, 2012; and
212          (b) offer the patient a choice regarding to which pharmacy the practitioner will issue

213     the electronic prescription.
214          (2) A practitioner may not issue a prescription through electronic prescribing for a
215     drug, device, or federal controlled substance that the practitioner is prohibited by federal law or
216     federal rule from issuing through electronic prescribing.
217          (3) A pharmacy shall:
218          (a) accept an electronic prescription that is transmitted in accordance with the
219     requirements of this section and division rules; and
220          (b) dispense a drug or device as directed in an electronic prescription described in
221     Subsection (3)(a).
222          (4) The division shall make rules to ensure that:
223          (a) except as provided in Subsection (6), practitioners and pharmacies comply with this
224     section;
225          (b) electronic prescribing is conducted in a secure manner, consistent with industry
226     standards; and
227          (c) each patient is fully informed of the patient's rights, restrictions, and obligations
228     pertaining to electronic prescribing.
229          (5) An entity that facilitates the electronic prescribing process under this section shall:
230          (a) transmit to the pharmacy the prescription for the drug prescribed by the prescribing
231     practitioner however, this Subsection (5)(a) does not prohibit the use of an electronic
232     intermediary if the electronic intermediary does not over-ride a patient's or prescriber's choice
233     of pharmacy;
234          (b) transmit only scientifically accurate, objective, and unbiased information to
235     prescribing practitioners; and
236          (c) allow a prescribing practitioner to electronically override a formulary or preferred
237     drug status when medically necessary.
238          (6) The division may, by rule, grant an exemption from the requirements of this section
239     to a pharmacy or a practitioner to the extent that the pharmacy or practitioner can establish, to
240     the satisfaction of the division, that compliance with the requirements of this section would
241     impose an extreme financial hardship on the pharmacy or practitioner.
242          (7) A practitioner treating a patient through telehealth services, as described in Title 26,
243     Chapter 58, Telehealth Act, may not issue a prescription through electronic prescribing for a

244     drug or treatment to cause an abortion, except in cases of rape, incest, or if the life of the
245     mother would be endangered without an abortion.






Legislative Review Note
Office of Legislative Research and General Counsel