- RuralServ
- CMS FQHC and RHC Flexibilities to Fight COVID-19 Update
- Original Medicare First Level of Appeal Tips Sheet for Medicare Providers
- Ambulance Rural ZIP Code Search
- CMS Rural Health Resources
- CMS Rural Health Clinics Center
- Coverage of Rural Air Ambulance Services
- FISS/DDE Provider Online Guide: Chapter IV - ZIP Code File (19)
- Fundamentals of Medicare: Skilled Nursing Facility Inpatient Care
- Answers to Common Fee-For-Time Compensation Arrangements Questions
- Federally Qualified Health Center Payment Limits
- Medicare Coverage at Federally Qualified Health Centers for Primary Health Care Services for Medicare Patients
- Medicare Coverage at Rural Health Clinics for Primary Health Care Services for Medicare Patients
- Health Professional Shortage Area
- Maximum Payment Limits for Rural Health Centers
- Medicare Learning Network Articles, Medicare Monthly Review
- Prepare and Submit a Cost Report
- New York State Ambulance Services in Rural Areas
- Prepare and Submit an MSP Conditional Claim
- Telehealth Services
- Submit Supporting Documentation
Health Professional Shortage Area
Table of Contents
- What is a HPSA
- Eligible Providers
- HPSA Eligibility and Designation
- Claim Coding Requirements and Payment
- Locating a HPSA Designation on HRSA Website
What Is a HPSA?
A HPSA is an urban or rural area designated as having a shortage of health care professionals. Physicians and specific mental health provider specialties are eligible to receive quarterly bonus payments for covered professional services provided in an underserved area. If an area is designated as both a primary care and mental health HPSA, only one bonus payment will be made for a covered service. The bonus is based on the ZIP code of the address where services were rendered.
To determine if your area is a designated HPSA area, visit CMS' Physician Bonuses web page. Use the ZIP code file in the downloads section as reference each calendar year. There are separate files for primary care and mental health.
Eligible Providers
HPSA bonus payments are limited to physicians only. Eligible physician specialties include medical doctors, psychiatrists, doctors of osteopathy, dentists, doctors of podiatric medicine, licensed chiropractors and optometrists.
HPSA Eligibility and Designation
The key to HPSA eligibility is where the service is actually provided (i.e., place of service). For example:
- A physician providing a service in the office, the patient’s home, or a hospital qualifies for the bonus payment as long as the specific location of the service is within an area designated as a HPSA.
- A physician may have an office in a HPSA but go outside the designated HPSA area to provide the service. In this case, the physician would not be eligible for the bonus.
- The physician office address is not located within a HPSA, the physician is not entitled to a bonus payment for services provided at this address. However, if this same physician travels to a nursing facility, the patient’s home, or a hospital within a HPSA designated area, the physician would be eligible for the bonus.
Claim Coding Requirements and Payment
The CMS provides Medicare contractors with an annual ZIP code file that includes all areas that are considered fully designated HPSAs. The HPSA physician bonus is automatically applied to claims for services that are rendered in a ZIP code that is designated by CMS.
For services rendered in a ZIP code that is not on CMS’s annual ZIP code file, physicians must submit payment modifier AQ on their eligible claims. All claims submitted with modifier AQ are subject to review.
- AQ ‒ Service was provided in a HPSA
- ZIP codes that are designated throughout the year are not eligible for the bonus payment until the following year.
The provider must also report the address where the service was performed in Item 32 of the CMS-1500 Claim Form or its electronic equivalent
Locating a HPSA Designation on HRSA Website
Verify the service location is a HPSA by using the look-up tool on the Health Resources and Services Administration (HRSA) website.
Enter the service location address and click Search.
Your search will return a “Yes” or “No” to identify if the location is a HPSA.
*Please ensure you are looking at the eligibility for the Mental Health or Primary Care. Here is an example search.
Reviewed 9/11/2024