Medicare and Professional Counselors
Additional Medicare Resources:
The Mental Health Access Improvement Act (H.R. 432), which recognizes mental health counselors and marriage and family therapists as approved Medicare Part B providers, became law through passage of the Consolidated Appropriations Act, 2023, Public Law No.117-328 on Dec. 29, 2022.
Beginning in 2024, counselors in private practices and agencies will be able to bill Medicare for treating older Americans with mental health conditions. The legislation also creates parity between counselors and other mental health providers in the Medicare program and reinforces that status with other public insurance program officials, as well as private payers. During 2023, NBCC will move from a legislative advocacy strategy to a regulatory implementation effort regarding Medicare. We will update NCCs on the implementation of the law and actions that counselors will need to take to ensure they are eligible to provide services to Medicare beneficiaries.
Medicare Administrative Contractors
What is a Medicare Administrator Contractor and what are their responsibilities?
Medicare Administrative Contractors (MACs) are private health care insurers that has been awarded a geographic jurisdiction by the Centers for Medicare and Medicaid Services (CMS) to process Medicare Part A and Part B medical care and mental health claims for Medicare Fee-For-Service (FFS) beneficiaries. CMS relies on a network of MACs to serve as the primary operational (intermediary) contact between the Medicare FFS program and the providers enrolled in the program. MACs are multi-state, regional contractors responsible for administering both Medicare Part A and Medicare Part B claims.
What Specific Services do MACs provide to practitioners?
Key services that MACs perform include:
Enrolling providers in the Medicare FFS program
Processing Medicare FFS claims
Handling provider reimbursement services
Responding to provider inquiries
Educating providers about Medicare FFS billing requirements
Establishing local coverage determinations (LCD's)
Providers enroll in Medicare through their designated MAC. You can find your designated MAC and their contact information and mailing address here.
Opt-Out Issues
If I opt out of Medicare, is that choice final and permanent and cannot be reversed later?
Medicare opt-out affidavits are good for two years and renew automatically every two years, unless the practitioner notifies the Medicare Administrative Contractor that they wish to enroll as a Medicare provider.
As part of their standard procedures, MACs send out renewal notifications 90 days prior to the opt- out affidavit's renewal date. Practitioners who do not want their opt-out to automatically renew at the end of a 2 year opt-out period, may cancel the renewal by notifying all contractors (MACS) with which they filed an affidavit in writingat least 30 days prior to the start of the next opt-out period.
Can a practitioner apply as a Medicare Provider and get accepted, but change one's mind?
Medicare providers may decide they no longer want to provide services to Medicare eligible patients, but in order to no longer be a participating provider, the provider would have to notify their MAC and take the appropriate steps to opt out as a Medicare provider. Those steps include filling out and mailing an opt-out affidavit to the appropriate MAC or MACs and entering into private pay contracts with Medicare eligible patients. Affidavits and private pay contract templates can be accessed through the MACs' websites.
I was told that if providers 'opt out' of Medicare, they will no longer be eligible for enrollment as 'in network' with the insurance company, in other words, they will be unpaneled?
A provider who has opted out of Medicare will still be able to participate as a provider with all health plans that are not Medicare managed care plans.
Do providers have to reapply if they are already in a Medicare Advantage network?
If you are already enrolled in a network that offers Medicare Advantage services, contact the health plan/network to request that the terms of your contract be expanded to include Medicare services.
Tele-Health and Provider Location Issues
Does CMS require a physical office location or can fully telehealth providers participate in the Medicare program?
It is possible to be a telehealth-only Medicare provider. However, you will need to include comments within your Medicare provider enrollment application that the practice location address you are listing is for administrative purposes only and that you are a telehealth-only provider.
I am licensed in multiple states and use teletherapy to provide services in American Sign Language to my clients. The new Medicare requirement states that there must be a face- to-face meeting annually. How is this addressed for long distance counseling?
There is an exception to the annual in-person visit requirement. You can read more about the exception on page 26 of CMS's Medicare Learning Network booklet titled, "Medicare and Mental Health." 42 CFR 405.2463(b)(3) says there must be an in-person visit 6 months before providing telehealth mental health services and there must be an in-person, non-telehealth service within 12 months of each mental health telehealth service unless the physician and patient agree the risks and burdens outweigh in-person visit benefits and it's documented in the medical record.
If approved through enrollment process in one state, would a provider be able to provide services in more than one state? If a provider relocated to another state next year, how would this process work?
Pursuant to current Medicare sub-regulatory guidance, the provider must be enrolled in the state or states where they provide services, such as the provider's office location and/or home location if they provide services from their homes. Current CMS guidance indicate that the provider need not enroll in each state where the beneficiary resides. However, CMS currently indicates that the provider must be licensed in both the states where they are delivering services (new office/home location) and also the state where the beneficiary is receiving the services. We recommend that providers stay up to date on CMS guidance as it emerges and also the final Medicare Physician Fee Schedule Rule expected to be released in November!
If a provider moves to a new state, he or she would need to get licensed there and also enroll in the location where they reside if that is the location from which they will deliver services.
Enrollment/Eligibility Issues
Are counselors approved providers in the Medicare program?
Yes. The 2022–23 federal budget legislation (called the omnibus) included the Mental Health Access Improvement Act language that allows mental health counselors and marriage and family therapists (MFTs) to receive payment under the Medicare Part B program for providing covered mental health services to Medicare beneficiaries.
Will counselors be able to provide treatments in 2024 to previous clients who were forced to switch providers when they turned 65 years of age?
Yes. Counselors who referred their older clients who enrolled in Medicare to other providers will be able to resume providing treatment to those clients—as long as the clients have terminated services with the referred provider.
How do I apply for Medicare-approved provider status?
During 2023, the Centers for Medicare & Medicaid Services (CMS), the federal agency that administers all aspects of the Medicare program and issues rules and regulations, will develop guidance on how to apply for Medicare recognition. CMS will offer guidance to counselors as new Medicare providers prior to 2024. NBCC will work with CMS and share information as soon as that application process is open for counselors.
Will there be opportunities to engage in the CMS implementation process in 2023?
Yes. NBCC will be collecting questions and comments from NCCs about rule development and implementation on Medicare recognition of counselors. Further, NBCC plans to hold a series of training sessions this year on Medicare application procedures and coding issues, and regular updates into 2024 and beyond.
What other federal programs recognize and provide reimbursement to counselors?
Many federal programs already recognize mental health counselors, including the National Health Service Corps, Department of Veterans Affairs, U.S. Army, and TRICARE.
Though I am not licensed as a "Mental Health Counselor" in my state because we have different designations will I be eligible to participate in the Medicare program?
Yes, as long as you meet the requirements described in the legislation. The provisions are similar to licensing at the state level.
If the practice group I am currently in is already a Medicare provider and has a provider number, does the 855b form still have to be completed?
No. However, the individual will need to make sure that a reassignment of benefits occurs. The updated version of CMS's internet-based application system, PECOS 2.0, reportedly combines the individual CMS-855I form with the CMS-855R (reassignment of benefits) form where necessary and appropriate. PECOS 2.0 reportedly tailors the application to the applicant based on a questionnaire the applicant answers at the outset of the online enrollment process.
Most licenses require 3000 hours of supervised clinical experience before you can apply for licensure, so if you have been licensed, shouldn't that count as documentation that you already completed the supervision requirement?
In those states that require 3,000 hours of supervised clinical experience for license eligibility, licensure would be one form of proof that the 3,000 hours requirement was met.
Hospice Billing Issues
Will hospices be able to bill for counselors and MFTs separately who are providing counseling in bereavement services? Hospice currently gets payment for bereavement services but not on a fee for service basis like nurses and others. Just curious if that will add additional payment for hospice services if a Counselor or MFT is on staff?
The short answer is no; hospices will likely not be able to bill for Part B services on top of their hospice per diem for services rendered by MFTs. Clinical Social Workers are not able to bill for Part B services on top of the per-diem rates, unless they are providing treatment for conditions unrelated to their terminal illness. They can receive SIA payments (defined below) for care rendered in the final 7 days of a hospice patient's life.
Generally, when hospice coverage is elected, the beneficiary waives all rights to Medicare Part B payments for services that are related to the treatment and management of his/her terminal illness during any period his/her hospice benefit election is in force, except for professional services of an attending physician not employed by the hospice (which may include a nurse practitioner or physician assistant.) ( Medicare Claims Processing Manual Chapter 11, Section 10.) Other than this narrow exception, Medicare payment for hospice care is made at one of four predetermined rates for each day that a Medicare beneficiary is under the care of the hospice. The four rates are prospective rates; there are no retroactive adjustments other than the application of the statutory “caps” on overall payments and on payments for inpatient care. The four rates are called: routine home care, continuous home care, inpatient respite care, and general inpatient care. Medicare Benefit Policy Manual Chapter 9, Section 40.)
A hospice service intensity add-on payment (“SIA payment”) may apply when social workers or nurses provide care, during routine home care, in the last seven days of life. (https://hospicenews.com/2019/05/20/medicare-service-intensity-add-on-underused-by-hospices/).
Administrative Issues
Will practices have to develop or modify their Policy and Procedure (P&P) manuals that meets certain specific Medicare/CMS standards and if so, will a boilerplate checklist or boilerplate/example of P&Ps address the requirements?
CMS expects all Medicare providers to have functional compliance programs to address Medicare requirements of all kinds, including financial, documentation, coding, and quality issues.
What is a mental health counselor service?
Services provided by mental health counselors are for the diagnosis and treatment of mental illness (not for services for an inpatient in a hospital) that the mental health counselor is legally authorized to perform in the state where they practice.
Will I be able to immediately bill Medicare for diagnosing and treating Medicare beneficiaries in my practice?
The effective date of the provisions regarding counselor inclusion in the Medicare program is Jan. 1, 2024. At that time, you will be able to bill for services provided to Medicare beneficiaries.
As a counselor, how do I know if I am an eligible Medicare provider?
The Mental Health Access Improvement Act specifically spells out who is eligible based on the following language:
The legislation defines a mental health counselor as holding a master's or doctoral degree as a mental health counselor, clinical professional counselor, or professional counselor in the state where they are licensed to provide services, and the counselor must have performed at least 2 years of supervised experience in mental health counseling.
How will I know which mental health service codes that I have provided to older clients are eligible for reimbursement?
In addition to the provider application process, CMS will provide guidance to counselors on which codes to use for billing for services provided to Medicare beneficiaries. NBCC will also discuss this process in our meetings with CMS officials.
What mental health and substance use disorder benefits does Medicare Part B cover for beneficiaries?
Medicare Part B covers one depression screening per year; a one-time “welcome to Medicare” visit, which includes a review of risk factors for depression; and an annual “wellness” visit where beneficiaries can discuss their mental health status. Part B also covers individual and group psychotherapy services provided by several licensed professionals, and depending on state rules, family counseling is covered if the main purpose is to help with treatment, psychiatric evaluation, medication management, and partial hospitalization.
Additionally, Part B covers outpatient services related to substance use disorders. These include opioid use disorder treatment services such as medication, counseling, drug testing, and individual and group therapy. Medicare covers one alcohol misuse screening per year, and for beneficiaries determined to be misusing alcohol, four counseling sessions per year. Medicare also covers some telehealth services, including for mental health and substance use disorder services as well as services unrelated to mental health, on both a permanent basis and on a temporary basis as part of the COVID-19 public health emergency.
In addition to counselors directly billing Medicare for services provided to older clients in their private practices, will there be opportunities for counselors to participate and receive reimbursement in other settings?
Yes. Counselors are now eligible Medicare Part B providers in Federally Qualified Health Centers (FQHCs). FQHCs are safety net providers that primarily provide services typically furnished in an outpatient clinic. FQHCs provide comprehensive services, including preventive health services and mental health and substance abuse services.
Counselors are also now eligible Medicare Part B providers in Rural Health Clinics (RHCs). The RHC program increases access to primary care services for patients in rural communities. RHCs are required to provide outpatient primary care services such as behavioral health care.
As part of the Mental Health Access Improvement Act, counselors are now required team members for Medicare hospice interdisciplinary teams. The hospice interdisciplinary team includes physicians, nurses, mental health providers, chaplains, and trained volunteers who work together to address a hospice patient's physical, emotional, and spiritual needs.
Are there other ways that counselors will be able to participate in Medicare behavioral health program initiatives?
The legislation will provide opportunities to participate in Medicare Behavioral Health Integrated (BHI) services and primary care programs. Public and private insurance programs now widely consider integrating behavioral health care with primary care an effective strategy for improving outcomes for millions of Americans with mental or behavioral health conditions. Medicare makes separate payment to physicians and non-physician practitioners for BHI services they supply to patients over a calendar month service period. Counselors also will be able to participate in "Medicare Innovative Delivery and Payment Programs" such as Accountable Care Organizations (ACOs).
After more than a decade of working to secure Medicare coverage for counselors’ services, NBCC, the Medicare Mental Health Workforce Coalition, and counselors across the country can celebrate the passing of the omnibus package, which achieved our goal! The package, which includes language from the Mental Health Access Improvement Act (S. 828/H.R. 432) that expands coverage of mental health counselors (MHCs) and marriage and family therapists (MFTs) under Medicare Part B, was signed into law by President Biden on Dec. 29, 2022.
Coverage of MHCs and MFTs under Part B of the Medicare program will begin Jan. 1, 2024. Medicare is the largest health care program in the country, covering more than 55 million people. It currently recognizes psychiatrists, psychologists, clinical social workers, and psychiatric nurses for outpatient mental health services, and now counselors and MFTs will be added to the list. Because Medicare is the country’s flagship health care program, counselor inclusion is key to ensuring parity with other professions.
The Centers for Medicare & Medicaid Services (CMS) will now develop specific rules on how counselors can apply for provider status, receive a Provider ID number, and bill for services. The rules will be developed in 2023 ahead of the Jan.1, 2024, implementation.
The NBCC Government Affairs team will work in conjunction with CMS to develop these rules and inform counselors about the enrollment process.
Legislative Information:
Latest Developments
2022
On Dec. 29, 2022, the Consolidated Appropriations Act, 2023 (H.R. 2617) was signed into law by President Biden after a bipartisan vote of approval in both of the United States legislative chambers. Included in the omnibus package is language from the Mental Health Access Improvement Act (S. 828/H.R. 432), which has added mental health counselors to the list of Medicare providers. Coverage of counselors will begin Jan. 1, 2024.
2021
S. 828/H.R. 432, the Mental Health Access Improvement Act of 2021, is introduced by Sen. John Barrasso (R-WY), Sen. Debbie Stabenow (D-MI), Rep. Mike Thompson (D-CA-5), and Rep. John Katko (R-NY-24).
2020
The House Committee on Energy and Commerce reports S. 286/H.R. 945 favorably out of a markup, the first time the legislation has been included in a markup in 11 years.
2020
In response to the COVID-19 pandemic, the Centers for Medicare & Medicaid Services issues a temporary emergency rule that allows mental health counselors working in Rural Health Centers and Federally Qualified Health Centers to be reimbursed by Medicare for telehealth services.
2020
S. 286/H.R. 945 gains 123 cosponsors in the House and 31cosponsors in the Senate, the most in the bill's history.
2019
S. 286/H.R. 945, the Mental Health Access Improvement Act of 2019, is introduced by Sen. John Barrasso (R-WY), Sen. Debbie Stabenow (D-MI), Rep. Mike Thompson (D-CA-5), and Rep. John Katko (R-NY-24).
2017
The President's Interdepartmental Serious Mental Illness Coordinating Committee (ISMICC), an advisory body composed of federal officials and behavioral health experts, recommended inclusion of counselors in the Medicare program. please feel free to download and read the full report .
2017
U.S. Sens. John Barrasso (R-WY) and Debbie Stabenow (D-MI) introduce S. 1879, the Seniors Mental Health Access Improvement Act of 2017, seeking to establish mental health counselors and marriage and family therapists as authorized Medicare providers.
2017
U.S. Reps. John Katko (R-NY) and Mike Thompson (D-CA) introduce H.R. 3032, the Mental Health Access Improvement Act of 2017, seeking to establish mental health counselors and marriage and family therapists as authorized Medicare providers.
2016
Representative Chris Gibson (R-NY) , Senator John Barrasso (R-WY) and counselor/MFT organizations pushed to include Medicare legislation in the pending mental health reform package.
2016
Retiring Representative Chris Gibson (R‐NY) made it a priority to pass H.R. 2759 and added 10 Republican cosponsors to the bill (the most House Republicans ever), raising the total to 50 cosponsors.
2016
Representative Robin Kelly (D-IL) introduced H.R. 5475, the Health Equity and Accountability Act. H.R. 5475 was sponsored by the House Tri-Caucus and addresses health disparities for minority populations.
2015
Senators John Barrasso (R‐WY) and Debbie Stabenow (D‐MI) introduced the Seniors Mental Health Access Improvement Act (S 1830), a companion Bill to H.R. 2759.
2015
Congressmen Chris Gibson (R‐NY) and Mike Thompson (D‐CA) introduced H.R. 2759, The Mental Health Improvement Act of 2015. The bill provides Medicare reimbursement for counselors and MFTs, mirroring bills introduced in prior sessions.
Legislative Highlights
2021-2022 - 117th Congress
On Dec. 29, 2022, the Consolidated Appropriations Act (H.R. 2617) was signed into law by President Biden after a bipartisan vote of approval in both of the United States legislative chambers. Included in the omnibus package is language from the Mental Health Access Improvement Act (S. 828/H.R. 432) adding mental health counselors as providers. Coverage of counselors will begin Jan. 1, 2024.
2016-2017 - 115th Congress
Congressmen John Katko (R-NY) and Mike Thompson (D-CA) introduced H.R. 3032, the Mental Health Access Improvement Act, on June 23. Senators John Barrasso (R-WY) and Debbie Stabenow (D-MI) introduced a companion bill in the Senate, S.1879, the Seniors Mental Health Access Improvement Act, on September 27.
2015-2016 - 114th Congress
Companion stand-alone bills S. 1830, the Seniors Mental Health Access Improvement Act of 2015, and H.R. 2759, the Mental Health Access Improvement Act, are introduced by Sens. John Barrasso (R-WY) and Debbie Stabenow (D-MI) and Reps. Chris Gibson (R-NY) and Mike Thompson (D-CA). The House TriCaucus health disparities bill, H.R. 5475, is introduced by Rep. Robin Kelly (D-IL).
2013-2014 - 113th Congress
Sen. Ron Wyden (D-OR) introduces stand-alone bill S. 604, the Seniors Mental Health Access Improvement Act of 2011. The MHC and MFT language is also included in S. 1680, the Craig Thomas Rural Hospital and Provider Equity Act of 2011, introduced by Sens. John Barrasso (R-WY), Pat Roberts (R-KS), Kent Conrad (D-ND) and Tom Harkin (D-IA).
2011-2012 - 112th Congress
Sen. Ron Wyden (D-OR) introduces stand-alone bill S. 604, the Seniors Mental Health Access Improvement Act of 2011. The MHC and MFT language is also included in S. 1680, the Craig Thomas Rural Hospital and Provider Equity Act of 2011, introduced by Sens. John Barrasso (R-WY), Pat Roberts (R-KS), Kent Conrad (D-ND) and Tom Harkin (D-IA).
2009-2010 - 111th Congress
The provision is re-introduced in companion stand-alone bills S. 671 and H.R. 1693 by Sens. Blanche Lincoln (D-AR) and John Barrasso (R-WY) and Rep. Bart Gordon (D-TN). The provision is included in H.R. 3200, the House reform legislation that passed the Energy and Commerce, Ways and Means, and Education and Labor Committees. The language passes the House as part of the health reform bill (H.R. 3962). The provision was reportedly in the final House-Senate compromise legislation until the election of Sen. Scott Brown (R-MA) changed the Senate balance.
2007-2008 - 110th Congress
Companion stand-alone bills S. 921 and H.R. 1588 are introduced by Sens. Craig Thomas (R-WY) and Blanche Lincoln (D-AR) and Rep. Barbara Cubin (R-WY). Rep. Pete Stark (D-CA) includes the MHC and MFT language in his omnibus Medicare mental health bill (H.R. 1663). The provision passes the House as part of the SCHIP Reauthorization Act (H.R. 3162). The Senate declines to consider the SCHIP bill.
2005-2006 - 109th Congress
In addition to companion bills S. 784 and H.R. 5324, introduced by Sens. Craig Thomas (R-WY) and Blanche Lincoln (D-AR) and Rep. Barbara Cubin (R-WY), the MHC and MFT provision is again included in the omnibus Medicare mental health bill (S. 927 and H.R. 1946) and the Medicare rural access bills (S. 3500 and H.R. 6030). The provision passes the Senate as part of the Deficit Reduction Act of 2005 (S. 1932) but does not make it through conference.
2003-2004 - 108th Congress
Sen. Craig Thomas (R-WY) introduces S. 310 as a stand-alone bill. The language is also included in the omnibus Medicare mental health bill (S. 646) and the omnibus Medicare rural access bill (S. 1185 and H.R. 2333). In 2003, the provision passes the Senate in the Medicare prescription drug bill (S. 1) but is not accepted during conference.
2001-2002 - 107th Congress
The provision to provide reimbursement for MHCs and MFTs in the Medicare program is introduced as stand-alone bill S.1760 by Sens. Craig Thomas (R-WY) and Blanche Lincoln (D-AR). The companion bill, H.R. 3899, is subsequently introduced on the House side by Rep. Brad Carson (D-OK). The same provision is additionally included in an omnibus Medicare mental health bill (S. 690 and H.R. 1522), but does not make it out of committee.
NBCC is proud to be a member of the Medicare Mental Health Workforce Coalition
Through the collaborative efforts of the coalition, we have achieved counselor inclusion in the Medicare program. Other members of the coalition are:
American Association for Marriage and Family Therapy
Association for Behavioral Health and Wellness
American Counseling Association
American Mental Health Counselors Association
California Association of Marriage and Family Therapists
Centerstone
Center for Medicare Advocacy
The Jewish Federations of North America
Michael J. Fox Foundation for Parkinson’s Research
National Association of Community Health Centers
National Association of County Behavioral Health and Developmental Disability Directors
National Association for Rural Mental Health
National Council on Aging
National Council for Mental Wellbeing
Network of Jewish Human Service Agencies

