Every time the wheel goes around, forward or backwards, about 1/4 turn or so there is a click. I don't believe it did this before. Could this be bearing failure?

It could be the chain, if not clicking every each full rotation.

Look closely at the chain and listen to where and when the clicking occurs.

If you are still unsure, you could slide the wheel forward and remove the chain from the rear sprocket, then spin the wheel and see if you still have the noise. You may need to torque the axle nut down to spec to put pressure on the bearings to do an accurate test.

Chain, bearings, or a far left fielder: Cush drive.