(Medicare Benefit Policy Manual)

40 - Other Covered Services and Items  (Rev. 1, 10- 01-03) A3-3112.4.C, HO -230.4.D   Covered services and items provided by the hospital in connection with a clinic visit or a physicians treatment of outpatients include the use of the following:    Hospital facilities, including the use of the emergency room;    Services of nurses, nonphysician anesthetists, psychologists, technicians, therapists, and other aides; and   Medical supplies such as gauze, oxygen, ointments, and other supplies used by physicians or hospital personnel in the treatment of outpatients.  Additional examples of covered items are surgical dressings; splints, casts, and other devices used for reduction of fractures and dislocations; prosthetic devices; leg, arm, back, and neck braces, trusses, and artificial legs, arms, and eyes.   50 - Sleep Disorder Clinics  (Rev. 1, 10- 01-03) A3-3112.5   Sleep disorder clinics are facilities in which certain conditions are diagnosed through the study of sleep.  Such clinics are for diagnosis, therapy, and research.  Sleep disorder clinics may provide some diagnostic or therapeutic services that are covered under Medicare.  These clinics may be affiliated either with a hospital or a freestanding facility.  Whether a clinic is hospital -affiliated or freestanding, coverage for diagnostic services under some circumstances is covered under provisions of the law different from those for coverage of therapeutic services.   60 - Intermittent Peritoneal Dialysis Services  (Rev. 1, 10- 01-03) A3-3112.6   See the discussion of dialysis services in the Medicare Benefits Policy Manual, Chapter 11, End Stage Renal Disease.   70 - Outpatient Hospital Psychiatric Services  (Rev. 1, 10- 01-03) A3-3112.7, HO -230.5  70.1 - General  (Rev. 12425; Issued: 12-21- 23: Effective: 01 -01-24; Implementation: 01-02-24)     There is a wide range of services and programs that a hospital may provide to its outpatients who need psychiatric care, ranging from a few individual services to comprehensive, full -day programs; from intensive treatment programs to those that provide primarily supportive services .    In general, to be covered the services must be:     Incident to a physicians service (see 20.4); and     Reasonable and necessary for the diagnosis or treatment of the patients condition.    This means the services must be for the purpose of diagnostic study or the services must reasonably be expected to improve the patients condition.     A.  Coverage Criteria  The services must meet the following criteria:     1.  Individualized Treatment Plan    Services must be prescribed by a physician and provided under an individualized written plan of treatment established by a physician after any needed consultation with appropriate staff members.  The plan must state the type, amount, frequency, and duration of the services to be furnished and indicate the diagnoses and anticipated goals.  (A plan is not required if only a few brief services are furnished.)     2.  Physician Supervision and Evaluation    Services must be supervised and periodically evaluated by a physician to determine the extent to which treatment goals are being realized.  The evaluation must be based on periodic consultation and conference with therapists and staff, review of medical records, and patient interviews.  Physician entries in medical records must support this involvement.  The physician must also provide supervision and direction to any therapist involved in the patient's treatment and see the patient periodically to evaluate the course of treatment and to determine the extent to which treatment goals are being realized and whether changes in direction or emphasis are needed.     3.  Reasonable Expectation of Improvement    Services must be for the purpose of diagnostic study or reasonably be expected to improve the patient's condition.  The treatment must, at a minimum, be designed to reduce or control the patient's psychiatric symptoms so as to prevent relapse or hospitaliz ation, and  improve or maintain the patient's level of functioning.    It is not necessary that a course of therapy have as its goal restoration of the patient to the level of functioning exhibited prior to the onset of the illness, although this may be appropriate for some patients.  For many other psychiatric patients, part icularly those with long-term, chronic conditions, control of symptoms and maintenance of a functional level to avoid further deterioration or hospitalization is an acceptable expectation of improvement.  "Improvement" in this context is measured by compar ing the effect of continuing treatment versus discontinuing it.  Where there is a reasonable expectation that if treatment services were withdrawn the patient's condition would deteriorate, relapse further, or require hospitalization, this criterion is met.    Some patients may undergo a course of treatment that increases their level of functioning, but then reach a point where further significant increase is not expected. Such claims are not automatically considered noncovered because conditions have stabilized , or because treatment is now primarily for the purpose of maintaining present level of functioning.  Rather, coverage depends on whether the criteria discussed above are met.  Services are noncovered only where the evidence clearly establishes that the cr iteria are not met; for example, that stability can be maintained without further treatment or with less intensive treatment.     B. Partial Hospitalization and Intensive Outpatient Program    Partial hospitalization is a distinct and organized intensive treatment program for patients who would otherwise require inpatient psychiatric care.  See 70.3 for specific program requirements.     An intensive outpatient program is a distinct and organized ambulatory treatment program for patients who have an acute mental illness, including substance use disorder (SUD). Intensive outpatient services are not required to be provided in lieu of inpatient hospitalization. See 70.4 for specific program requirements.  C.  Application of Criteria    The following discussion illustrates the application of the above guidelines to the more common modalities and procedures used in the treatment of psychiatric patients and some factors that are considered in determining whether the coverage criteria are met.     1.  Covered Services    Services generally covered for the treatment of psychiatric patients (including patients with SUD) are:     Individual and group therapy with physicians, psychologists, or other mental health professionals (including SUD professionals)  authorized by the State.     Occupational therapy services are covered if they require the skills of a qualified occupational therapist and be performed by or under the supervision of a qualified occupational therapist or by an occupational therapy assistant.     Services of social workers, trained psychiatric nurses, and other staff trained to work with psychiatric patients (including patients with SUD) . These include principal illness navigation services provided by auxiliary staff, including peer support specialists.    Drugs and biologicals furnished to outpatients for therapeutic purposes, but only if they are of a type which cannot be self-administered.     Activity therapies but only those that are individualized and essential for the treatment of the patient's condition.  The treatment plan must clearly justify the need for each particular therapy utilized and explain how it fits into the patient's treatmen t.     Family counseling services.  Counseling services with members of the household are covered only where the primary  purpose of such counseling is the treatment of the patient's condition. These include counseling services for caregivers.     Patient education programs, but only where the educational activities are closely related to the care and treatment of the patient. These services include caregiver training services furnished for the benefit of the patient.     Diagnostic services for the purpose of diagnosing those individuals for whom an extended or direct observation is necessary to determine functioning and interactions, to identify problem areas, and to formulate a treatment plan.    2.  Noncovered Services    The following are generally not covered except as indicated:     Meals and transportation.     Activity therapies, group activities , or other services and programs which are primarily recreational or diversional in nature.  Outpatient psychiatric day treatment programs that consist entirely of activity therapies are not covered.    "Geriatric day care" programs are available in both medical and nonmedical settings. They provide social and recreational activities to older individuals who need some supervision during the day while other family members are away from home.  Such programs are not covered since they are not considered reasonable and necessary for a diagnosed psychiatric disorder, nor do such programs routinely have physician involvement.     Psychosocial programs.  These are generally community support groups in nonmedical settings for chronically mentally ill persons for the purpose of social interaction.  Outpatient programs may include some psychosocial components; and to the extent these components are not primarily for social or recreational purposes, they are covered.  However, if an individual's outpatient hospital program consists entirely of psychosocial activities, it is not covered.     Vocational training.  While occupational therapy may include vocational and prevocational assessment and training, when the services are related solely  to specific employment opportunities, work skills or work settings, they are not covered.     3.  Frequency and Duration of Services    There are no specific limits on the length of time that services may be covered.  There are many factors that affect the outcome of treatment; among them are the nature of the illness, prior history, the goals of treatment, and the patient's response.  As long as the evidence shows that the patient continues to show improvement in accordance with his/her individualized treatment plan, and the frequency of services is within accepted norms of medical practice, coverage may be continued.    If a patient reaches a point in his/her treatment where further improvement does not appear to be indicated, evaluate the case in terms of the criteria to determine whether with continued treatment there is a reasonable expectation of improvement.    70.2 - Coverage Criteria for Outpatient Hospital Psychiatric Services  (Rev. 1, 10-01-03) A3-3112.7.B, HO-235.5.B  The services must meet the criteria outlined in the National Coverage Determinations Manual.   70.3 - Partial Hospitalization Services  (Rev.  12425; Issued: 12-21- 23: Effective: 01 -01-24; Implementation: 01-02-24)     Partial hospitalization programs (PHPs) are structured to provide intensive psychiatric care through active treatment that utilizes a combination of the clinically recognized items and services described in  1861(ff)  of the Social Security Act (the Act).  The treatment program of a PHP closely resembles that of a highly structured, short- term hospital inpatient program.  It is treatment at a level more intense than outpatient day treatment or psychosocial rehabilitatio n.  Programs providing primarily social, recreational, or diversionary activities are not considered partial hospitalization.    A. Program Criteria    PHPs work best as part of a community continuum of mental health services (including SUD services) which range from the most restrictive inpatient hospital setting to less restrictive outpatient care and support.  Program objectives should focus on ensuring important community ties and closely resemble the real- life experiences of the patients served. P HPs may be covered under Medicare when they are provided by a hospital outpatient department or a Medicare- certified CMHC.    Partial hospitalization is active treatment that incorporates an individualized treatment plan which describes a coordination of services wrapped around the particular needs of the patient, and includes a multidisciplinary team approach to patient care und er the direction of a physician.  The program reflects a high degree of structure and scheduling.  According to current practice guidelines, the treatment goals should be measurable, functional, time-framed, medically necessary, and directly related to the  reason for admission.    A program comprised primarily of diversionary activity, social, or recreational therapy does not constitute a PHP.  Psychosocial programs which provide only a structured environment, socialization, and/or vocational rehabilitation are not covered by Medicare.  A program that only monitors the management of medication for patients whose psychiatric condition is otherwise stable, is not the combination, structure, and intensity of services which make up active treatment in a PHP.    B. Patient Eligibility Criteria    1. Benefit Category    Patients must meet benefit requirements for receiving the partial hospitalization services as defined in 1861(ff) and 1835(a)(2)(F) of the Act.  Patients admitted to a PHP must be under the care of a physician who certifies the need for partial hospitalization , including the need for  a minimum of 20 hours per week of therapeutic services, as evidenced by their plan of care.  The patients also require a comprehensive, structured, multimodal treatment requiring medical supervision and coordination, provided under an individualized plan of care, because of a mental disorder (including SUD)  which severely interferes with multiple areas of daily life, including social, vocational, and/or educational functioning.  Such dysfunction generally is of an acute nature.  In addition, PHP patients must be able to cognitively and emotionally participate in the active treatment process, and be capable of tolerating the intensity of a PHP program.