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Kentucky · Snapshot 09/05/2026

KRS 304.17A-138: Telehealth coverage and reimbursement -- Requirements for health

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Where this section sits in the code

    benefit plan -- Reimbursement for rural health clinics, federally qualified

    health centers, and federally qualified health center look -alikes -- Benefits

    subject to deductible, copayment, or coinsurance -- Payment subject to

    provider network arrangements -- Audio-only encounters -- Administrative

    regulations.

    (1) As used in this section:

    (a) "Equivalent" means reimbursement in an amount equal to what

    reimbursement would have been had the service been furnished in person by

    that provider at the provider's place of service;

    (b) "Federally qualified health center" means the same as in 42 U.S.C. sec. 1396d;

    (c) "Federally qualified health center look -alike" means an organiza tion that

    meets all of the eligibility requirements of a federally qualified health center

    but does not receive federal grants issued pursuant to 42 U.S.C. sec. 254b;

    (d) "Originating site" means the site at which a Medicaid beneficiary is physically

    located at the time a telehealth service or telehealth consultation is provided;

    (e) "Provider" means the same as in KRS 304.17A -005 and also includes

    behavioral health professionals licensed under KRS Chapters 309, 319, and

    335;

    (f) "Telehealth" has the same meaning as in KRS 211.332; and

    (g) "Rural health clinic" means the same as in 42 U.S.C. sec. 1395x.

    (2) (a) A health benefit plan, issued or renewed on or after January 1, 2022, shall

    reimburse for covered services provided to an insured person through

    telehealth, including telehealth services provided by a home health agency

    licensed under KRS Chapter 216. Telehealth coverage and reimbursement

    shall, except as provided in paragraph (b) of this subsection, be equivalent to

    the coverage for the same service p rovided in person unless the telehealth

    provider and the health benefit plan contractually agree to a lower

    reimbursement rate for telehealth services.

    (b) Rural health clinics, federally qualified health centers, and federally qualified

    health center look -alikes shall be reimbursed as an originating site in an

    amount equal to that which is permitted under 42 U.S.C. sec. 1395m for

    Medicare-participating providers, if the insured was physically located at the

    rural health clinic, federally qualified health c enter, or federally qualified

    health center look-alike at the time of service or consultation delivery and the

    provider of the telehealth service or telehealth consultation is not employed by

    the rural health clinic, federally qualified health center, or f ederally qualified

    health center look-alike.

    (3) In accordance with KRS 211.336, a health benefit plan, issued or renewed on or

    after January 1, 2022:

    (a) Shall not:

    1. Require a provider to be physically present with a patient or client,

    unless the provider determines that it is necessary to perform those

    services in person;

    2. Require prior authorization, medical review, or administrative clearance

    for telehealth that w ould not be required if a service were provided in

    person;

    3. Require demonstration that it is necessary to provide services to a

    patient or client through telehealth;

    4. Require a provider to be employed by another provider or agency in

    order to provide t elehealth services that would not be required if that

    service were provided in person;

    5. Restrict or deny coverage of telehealth based solely on the

    communication technology or application used to deliver the telehealth

    services; or

    6. Require a provider to be part of a telehealth network;

    (b) Shall:

    1. Require that telehealth services reimbursed under this section meet all

    clinical, technology, and medical coding guidelines for recipient safety

    and appropriate delivery of services established by the Depar tment of

    Insurance or the provider's professional licensure board;

    2. Require a telehealth provider to be licensed in Kentucky, or as allowed

    under the standards and provisions of a recognized interstate compact, in

    order to receive reimbursement for telehealth services; and

    3. Reimburse a rural health clinic, federally qualified health clinic, or

    federally qualified health center look -alike for covered telehealth

    services provided by a provider employed by the rural health clinic,

    federally qualified health clinic, or federally qualified health center look-

    alike, regardless of whether the provider was physically located on the

    premises of the rural health clinic, federally qualified health clinic, or

    federally qualified health clinic look -alike when the tel ehealth service

    was provided; and

    (c) May utilize audits for medical coding accuracy in the review of telehealth

    services specific to audio-only encounters.

    (4) Benefits for a service provided through telehealth required by this section may be

    made subject to a deductible, copayment, or coinsurance requirement. A deductible,

    copayment, or coinsurance applicable to a particular service provided through

    telehealth shall not exceed the deductible, copayment, or coinsurance required by

    the health benefit plan for the same service provided in person.

    (5) Nothing in this section shall be construed to require a health benefit plan to:

    (a) Provide coverage for telehealth services that are not medically necessary; or

    (b) Reimburse any fees charged by a telehealth fac ility for transmission of a

    telehealth encounter.

    (6) Providers and home health agencies are strongly encouraged to use audio -only

    encounters as a mode of delivering telehealth services when no other approved

    mode of delivering telehealth services is available.

    (7) The department shall promulgate an administrative regulation in accordance with

    KRS Chapter 13A to designate the claim forms and records required to be

    maintained in conjunction with this section.

    Collected 2026-09-05T20:57:46Z. Source file · JSON

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