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HB3164 would make Medicare Part B pay pharmacists for certain testing and treatment services

Establishes a new Medicare Part B benefit for pharmacist-delivered testing/treatment related to respiratory infections and public-health emergency needs, with defined payment rules and a balance-billing ban.

The Brief

This bill adds “pharmacist services” to the list of Part B-covered items and services and sets a distinct payment methodology and limits for those services. It permits pharmacists to bill Medicare for evaluation, management, testing, and treatment related to COVID-19, influenza, RSV, strep throat, and services tied to declared public health emergencies — when state law authorizes the pharmacist to provide them and any required supervision or collaboration with a clinician is satisfied.

The measure also prohibits balance billing by pharmacists for these Part B services and fixes an effective date of January 1, 2026. For compliance officers and payers, the bill creates a new provider class, a partial crosswalk to the physician fee schedule, and several implementation questions around state scope-of-practice variation, coding, and fiscal impact on Medicare Part B spending.

At a Glance

What It Does

The bill defines ‘pharmacist services’ for Medicare Part B coverage, limits covered clinical indications to specific respiratory infections and declared public-health-emergency services, requires state-law-authorized supervision/collaboration where applicable, and prescribes a payment formula tied to the physician fee schedule. It also extends the existing Medicare ban on balance billing to pharmacists for these services.

Who It Affects

Community pharmacists and pharmacies seeking Medicare Part B reimbursement, Medicare beneficiaries receiving pharmacist-delivered testing or treatment, CMS and Medicare administrative contractors that will need to credential and pay a new provider type, and state regulators whose scope-of-practice rules determine what services are reimbursable under the federal change.

Why It Matters

This is a targeted expansion of Medicare clinical coverage that could shift some primary-care and testing volume to pharmacies, especially in underserved or rural areas, while also introducing new billing, credentialing, and state-federal interplay that will affect cost, access, and oversight of outpatient testing and treatment services.

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What This Bill Actually Does

The bill adds a new defined term—‘pharmacist services’—to the Part B coverage statute, tying coverage to services a pharmacist is legally allowed to perform under the relevant State law. This means federal coverage only applies when state rules permit the pharmacist to provide the particular test or treatment, and any state-required physician supervision or collaborative practice arrangement is in place.

The definition is limited to evaluation/management visits for testing or treatment of COVID-19, influenza, respiratory syncytial virus, and streptococcal pharyngitis, plus testing or treatment services tied to declared public health emergencies.

On payment, the bill does not create a standalone pharmacist fee schedule. Instead it instructs payment at 80 percent of the lesser of the pharmacist’s actual charge or a percentage of the amount that would be paid under the physician fee schedule (section 1848): generally 85 percent of that physician-based amount, but 100 percent for services addressing a declared public-health emergency.

The bill also amends the general Part B payment provisions to include pharmacists in the list of providers covered by the no-balance-billing rule that prevents providers from charging Medicare beneficiaries above the program payment for covered services.Operationally, the statute relies heavily on state law for scope and on CMS (and Medicare contractors) for implementing how pharmacist claims are coded, credentialed, and paid under a crosswalk to physician payment amounts. The effective date is January 1, 2026, giving CMS and contractors a defined timeline to create billing instructions, determine allowed codes, and set up enrollment and claims-processing flows for pharmacies and individual pharmacists.Because the bill treats some pharmacist services as incident to physician services (when state law requires supervision) and otherwise aligns payment to physician-relative amounts, it creates a hybrid model: federal coverage plus state-determined authority and supervision.

That hybrid raises practical questions about who signs orders, how collaborative practice agreements are documented for Medicare auditing, and how contractors verify the service was within a pharmacist’s lawful scope before paying.

The Five Things You Need to Know

1

The bill defines ‘pharmacist services’ narrowly to testing and treatment evaluation/management for COVID‑19, influenza, RSV, streptococcal pharyngitis, and services tied to declared public health emergencies.

2

Payment is 80% of the lesser of the pharmacist’s actual charge or a physician-fee-schedule-based amount: generally 85% of the 1848 amount, but 100% when the service addresses a declared public-health emergency.

3

It adds pharmacists to the Medicare balance-billing prohibition in section 1842(b)(18), preventing pharmacists from charging beneficiaries above Medicare’s payment for covered Part B pharmacist services.

4

Coverage depends on state law: Medicare will only cover pharmacist services a pharmacist is 'legally authorized' to furnish under the State law in which the service occurs, including any state-required supervision or collaboration.

5

The amendments apply to services furnished on or after January 1, 2026, creating a clear implementation deadline for CMS, Medicare contractors, and pharmacies.

Section-by-Section Breakdown

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Section 1

Short title

Names the bill the 'Ensuring Community Access to Pharmacist Services Act.' This is purely stylistic but signals the bill’s focus on access to pharmacist-delivered clinical services rather than on drug reimbursement or pharmacy benefits management.

Section 2(a) — Amendments to 1861 (definition of covered items and services)

Creates the statutory category 'pharmacist services' and defines the scope

This subsection inserts a new coverage category for pharmacist services into the Part B definitions provision. It sets a two-part test: the service must be one a pharmacist is legally authorized to perform under state law, and it must be either an evaluation/management visit for a short list of respiratory infections or testing/treatment related to a declared public-health emergency. The provision also requires that when state law imposes supervision or collaborative practice requirements, those state-level requirements must be satisfied for Medicare coverage to apply. Practically, this ties federal reimbursement to a patchwork of state-authorized scopes and collaborative arrangements.

Section 2(b) — Amendment to 1833(a)(1) (payment rules)

Sets the payment formula for pharmacist services

Rather than creating a new fee schedule, the bill directs payment as 80% of the lesser of the actual charge or a percentage of the physician fee-schedule amount under section 1848. The percentage is 85% in ordinary cases but rises to 100% for services addressing a public-health emergency as described in the coverage definition. This design borrows physician-relative valuation but reduces it in most cases and preserves full parity during emergencies, creating a mixed incentive structure for pharmacies weighing whether to provide these services.

2 more sections
Section 2(c) — Amendment to 1842(b)(18) (balance billing)

Extends Medicare’s balance-billing prohibition to pharmacists

The bill amends the no-balance-billing rules that apply to practitioners to explicitly include pharmacists. That change prevents pharmacists from billing beneficiaries for amounts above the Medicare-approved payment for these Part B services. From an enforcement perspective, contractors will need to ensure pharmacies comply with assignment rules and that beneficiaries are protected from surprise charges when services are billed under Part B.

Section 2(d) — Application/effective date

Sets the effective date for claims and services

All amendments apply to items and services furnished on or after January 1, 2026. This deadline creates a discrete start point for CMS to issue billing guidance, for pharmacies to enroll or update credentials, and for states to reconcile any supervision or collaboration requirements relevant to coverage.

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Who Benefits and Who Bears the Cost

Every bill creates winners and losers. Here's who stands to gain and who bears the cost.

Who Benefits

  • Medicare beneficiaries in underserved or rural areas — they gain more local access to testing and immediate treatment for common respiratory infections without needing a physician visit.
  • Community pharmacists and independent pharmacies — they can bill Part B for certain clinical services, creating a new revenue stream and formalizing clinical roles beyond dispensing, subject to state scope rules.
  • Public health authorities and emergency response systems — the statute expands potential testing and treatment capacity during declared public-health emergencies by authorizing Medicare payment parity (100% physician-based amount) in those circumstances.

Who Bears the Cost

  • The Medicare Part B program/Trust Funds — broader coverage and a new provider class will likely increase utilization and program outlays, particularly if pharmacies capture visit volume previously provided by other clinicians.
  • CMS and Medicare administrative contractors — they must develop enrollment, credentialing, coding crosswalks, auditing policies, and systems to enforce the balance-billing prohibition for a new provider type.
  • State regulators and physician collaborators — states will need to reconcile supervision and collaboration requirements with federal coverage rules, and physicians who enter collaborative agreements may assume supervisory responsibilities and potential liability.

Key Issues

The Core Tension

The bill balances two competing objectives: increasing accessible, decentralized clinical capacity by paying pharmacists for targeted services, versus containing Medicare costs and preserving clarity about professional responsibilities. Federal reimbursement tied to state scope creates a trade-off between national access goals and variable state regulation, producing no simple fix that simultaneously guarantees uniform access, predictable payment, and straightforward oversight.

The bill deliberately defers to state law for scope-of-practice authority while creating a federal payment entitlement when state requirements are met. That deference produces practical ambiguity: a pharmacist in State A may be fully authorized to provide a service and bill Medicare, while the same pharmacist in State B cannot, leading to uneven access and administrative complexity for Medicare contractors verifying legal authorization across jurisdictions.

Contractors will need policies to validate whether a particular service was lawful under the state’s regulatory regime at the time of service.

The payment approach ties pharmacist reimbursement to the physician fee schedule but reduces it to an 85% relative amount (and to 80% of the billed charge when the charge is lower). That may undercompensate pharmacists for the overhead of delivering point-of-care clinical services in a pharmacy setting, potentially limiting uptake.

Conversely, the emergency parity (100%) could drive a surge in pharmacy-delivered services during declared emergencies, raising near-term program costs. Finally, the interplay of 'incident to' language, supervision/collaboration requirements, and Medicare auditing raises documentation and compliance questions: who must own the medical decision-making, what written agreements or protocols suffice, and how will contractors validate collaborative arrangements when processing or auditing claims?

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