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North Carolina Medicaid psychological testing coverage: telehealth and limits

The short answerNC Medicaid allows 8 hours of psychological testing per state fiscal year without prior approval, and no more than 8 hours on one date of service. Testing must happen in person, cannot be educational, and needs a DSM-5 diagnosis or suspected diagnosis. This policy is from 2021, so check for later amendments.

1 row: Medicaid (by state) · North Carolina. Public policy, not the member's benefits.

North Carolina Medicaid

Clinical Coverage Policy 8C, Outpatient Behavioral Health Services by Direct-Enrolled Providers (amended 09/01/2021) · North Carolina

Where it appliesAll criteria are required: a DSM-5 diagnosis or suspicion of one, functional impairment consistent with it, the ability to engage in testing, and no evidence that other tests would be more effective. Testing results must inform treatment selection and planning. [1]
Telehealth POSPolicy 8C (amended September 1, 2021) says testing is not covered if the service is not provided in person. Billing must occur only on dates when the beneficiary is seen in person, although testing activities on other dates may be billed. Check NC Medicaid's current telehealth policy. [1]
Visit limitsPer Policy 8C (amended September 1, 2021), unmanaged coverage is limited to eight hours of psychological testing per state fiscal year; prior approval is required to exceed it. A limit of eight units (hours) of testing per date of service also applies. A diagnostic interview is not allowed on the same day as testing by the same provider. [1]
AlsoNot covered for educational testing, when requested by the school or legal system unless medically necessary, when measures lack standardized norms or documented validity, or when the focus is not the symptoms of the DSM-5 diagnosis. A written report to the referral source is required. [1]
  1. NC Medicaid: Clinical Coverage Policy 8C Outpatient Behavioral Health Services Provided by Direct-Enrolled Providers (amended 09/01/2021), checked October 30, 2026

What North Carolina Medicaid's documents say

The table above has every field we found for North Carolina Medicaid, with numbered sources. In short:

Check North Carolina Medicaid's claim against the row

Before the claim goes out, compare it with the row above: the evaluation and administration codes pair the way the policy says, the hours fit any cap, the referral question is documented, and prior authorization covers the units. The psychological testing table compares Medicaid with every other payer we checked.

Sources

  1. NC Medicaid: Clinical Coverage Policy 8C Outpatient Behavioral Health Services Provided by Direct-Enrolled Providers (amended 09/01/2021)

Sources checked . Payer rules change; verify the member's benefits.

Frequently asked questions

Does North Carolina Medicaid pay for psychological testing by telehealth?

Place of service: Policy 8C (amended September 1, 2021) says testing is not covered if the service is not provided in person. Billing must occur only on dates when the beneficiary is seen in person, although testing activities on other dates may be billed. Check NC Medicaid's current telehealth policy.

Does North Carolina Medicaid limit psychological testing visits?

Per Policy 8C (amended September 1, 2021), unmanaged coverage is limited to eight hours of psychological testing per state fiscal year; prior approval is required to exceed it. A limit of eight units (hours) of testing per date of service also applies. A diagnostic interview is not allowed on the same day as testing by the same provider.

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