Temporary Waiver of Servicing Policy Regarding In-Person Borrower Contact

The United States Department of Housing and Urban Development (HUD) has issued a waiver of its requirement that mortgagees have face-to-face contact with borrowers to determine the borrower’s circumstances and appropriate repayment plan because of COVID-19.  This waiver is limited to Single Family Mortgage Insurance.

The mortgagee must establish contact with the borrower using alternative methods including telephone, email or video conference to inform the borrower that HUD will make information available about the status and payment history of the borrower’s loan available to local credit bureaus and prospective lenders, to inform the borrower of other available assistance, and to inform the borrower of names and addresses of HUD officials to contact.

The mortgagee must documents their contact with the borrower.  The waiver does not apply to the face-to-face requirement for the Section 248 insurance program.  The waiver is limited to a 12-month period from the date of issuance.  (FHA Letter 20-20, March 13, 2020.)

Covered California opening enrollment

In response to COVID-19, effective Friday March 20, Covered California opened the health insurance exchance to any eligible uninsured individuals who need health care coverage through the end of June.  After selecting a plan, coverage will begin on the first of the following month, which means individuals losing job-based coverage will not have a gap in coverage.

Consumers who sign up through CoveredCA.com may find out that they are eligible for Medi-Cal, which they can enroll in online.  Those eligible for Medi-Cal can have coverage that is immediately effective.

The Department of Managed Care and the California Department of Insurance will provide guidance to health plans on the special-enrollment period, which will include off-exchange health plans.

All plans offered through Covered California and Medi-Cal provide telehealth options.  All medically necessary screening and testing for COVID-19 is free of charge.  (Covered California Press Release, March 20, 2020.)

Medi-Cal Managed Care Health Plans COVID-19 screening and testing,pharmacy, telehealth and home health

In response to COVID-19, the California Department of Health Care Services (DHCS) has issued a reminder to all Medi-Cal managed care health plans (MCPs) regarding existing contractual requirements and state and federal laws to ensure access to medically necessary services in a timely manner.

These provisions include: 1) covering all medically necessary emergency care without prior authorization, 2) complying with utilization review timeframes for approving requests for urgent and non-urgent services 3) ensuring provider networks are adequate to handle an increase in need for services, 4) ensuring members are not liable for balance billing, 4) ensuring 24-hour access to a plan representative with authority to authorize services, 5) offering members and providers the option to use telehealth services to deliver care when medically appropriate.  MCPs must act proactively to ensure members can access all medically necessary screening and testing of COVID-19.   MHPs should work with contracted providers to use telehealth services when medically appropriate.

DHCS also allows reimbursement for virtual communication, which includes brief communication with another practitioner or patient who cannot be physically present.

MCPs must approve transportation requests in a timely manner if a member, who may be infected with COVID-19, needs to be seen in person and requests transportation.  Plans are responsible for determining the appropriate mode of transportation required to meet the members needs, paying special attention to those with urgent needs such as dialysis or chemotherapy.

MCPs must ensure that members are at a facility appropriate to the level of care they require.

MCPs must act proactively to ensure member access to needed prescriptions.  MCPs should 1) cover maintenance medications at a minimum 90 day supply (note that limits certain opioids still apply), 2) covering or waiving any prescription delivery costs MCPs should also waive prior authorization and/or step therapy requirements if the provider recommends the enrollee take a different drug and there is a shortage of any particular prescription drug, 3) approving out of network overrides for beneficiaries who may be temporarily outside the plan service area because of COVID-19, 4) setting refill-too-soon edits for maintenance medications to 75 percent or less to authorize early refills when 75 percent of the prior prescription has been used, 5) expanding pharmacy benefit coverage for all disinfectant solutions and wipes that can be processed through the pharmacy benefits system, and 6) ensuring 24/7/365 call center support for pharmacies, providers and members.

DHCS is allowing flexibility for Health Home Programs services to be conducted in a way that prioritized safety.  DHCS encourages MCPs and their contracted Community-Based Care Management Entities to implement telephone and video call assessments.  DHCS is suspending its current in-person visit requirement until further notice.

DHCS is seeking additional flexibility by exploring options to temporarily waive Medicaid and Children’s Health Insurance Program requirements under Section 1135. DHCS will issue additional guidance if waiver requests are granted. (Department of Health Care Services Memorandum, COVID-19 Screening and Testing, March 6, 2020, updated March 16, 2020.)

COVID-19 screening and testing for commercial health insurance

The California Department of Insurance (CDI) has issued a directive to all insurers providing commercial health coverage regarding steps to ensure that cost does not interfere with availability of COVID-19 testing.

CDI directs all insurers providing commercial health coverage to: 1) reduce cost-sharing to zero for all medically necessary screening and testing for COVID-19, 2) notify the plan’s contracted providers that the plan is waiving cost-sharing, 3) ensure that the plan’s advice nurse line and customer service representatives are so informed, 4) inform the insurer’s call center staff to advise their insureds to call their provider’s office or advice nurse line for instructions about how to best access care for screening and treatment of COVID-19, and 5) prominently display on their websites that cost-sharing for medically COVID-19 screening and testing is waived.

CDI reminds insurers that they: 1) must cover all medically necessary emergency care without prior authorization, 2) comply with utilization review timeframes for approving requests for urgent and non-urgent services, 3) ensure their provider networks are adequate to handle an increase in need for services and 4) ensure enrollees are not liable for balance billing.

CDI encourages plans to work with contracted providers to use telehealth services when medically appropriate, and to waive prior authorization and/or step therapy requirements if the provider recommends the enrollee take a different drug and there is a shortage of any particular prescription drug.  (CDI Bulletin, COVID-19 Screening and Testing, March 5, 2020.)

COVID-19 screening and testing for health plans

The California Department of Managed Care (DMHC) has issued a directive to all commercial health plans and full service Medi-Cal plans regarding steps to ensure that cost does not interfere with availability of COVID-19 testing.

DMHC directs all commercial health plans and full service Medi-Cal plans to: 1) reduce cost-sharing to zero for all medically necessary screening and testing for COVID-19, 2) notify the plan’s contracted providers that the plan is waiving cost-sharing, 3) ensure that the plan’s advice line and customer service representatives are so informed, and 4) display on their websites that cost-sharing for medically COVID-19 screening and testing is waived.

DMHC reminds plans that they must: 1) cover all medically necessary emergency care without prior authorization, comply with utilization review timeframes for approving requests for urgent and non-urgent services, 2) ensure their provider networks are adequate to handle an increase in need for services, 3) ensure enrollees are not liable for balance billing, and 4) ensure 24-hour access to a person with authority to authorize services.

DMHC encourages plans to work with contracted providers to use telehealth services when medically appropriate, and to waive prior authorization and/or step therapy requirements if the provider recommends the enrollee take a different drug and there is a shortage of any particular prescription drug.  (APL 20-006, March 5, 2020.)

Health plan social distancing measures — telehealth and pharmacy

The California Department of Managed Health Care Social Services (DMHC) encourages health plans to take measures regarding telehealth and pharmacy visits in response to COVID-19.

Health plans should expedite any pre-authorization or pre-certification requirements for contracted providers to cover care delivered by telehealth.  The plan should either expedite review or relax requirements to allow the plan to more quickly approve offering services via telehealth.  Plans should also waive applicable cost-sharing for telehealth, notwithstanding that cost-sharing might apply if the provider delivered the care in person.

Plans should allow at least a 90 day maintenance supply of drugs unless the enrollee’s provider indicates a shorter supply of the drug is appropriate for the enrollee.  Plans should suspend prescription drug refill limitations where the enrollee’s provider indicates a refill is appropriate.  Plans should waive delivery charges for home delivery of prescription medications.  (APL 20-007, March 12, 2020.)