In late January, Noridian—California’s Medicare Administrative Contractor—issued an alert about a Medicare system issue that has resulted in Place of Service 10 telehealth claims being priced at the facility rate regardless of the provider specialty.

The Centers for Medicare & Medicaid Services (CMS) has fixed the issue that was causing some telehealth services to be underpaid. According to Noridian, the system logic was updated on February 27, 2024, to reflect the non-facility rate for claims received with POS 10.

Practices do not need to take any action. Automatic adjustments are being made back to January 1, 2024.