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Why Medicare’s Expanded Telehealth Reimbursement Matters
In April, the Centers for Medicare & Medicaid Services finalized policies allowing Medicare Advantage plans to offer additional telehealth benefits by 2020. CMS Administrator Seema Verma called the move “a historic step in bringing innovative technology to Medicare beneficiaries” in a press release. Because 34 percent of Medicare recipients are enrolled in Medicare Advantage plans — with numbers projected to increase by 11.5 percent this year — I’m encouraged by the news.Not only does telehealth offer a bridge to treatment, especially for older patients with physical disabilities or who lack transportation, it can also help an organization’s bottom line. A 2019 telemedicine study published in the American Journal of Emergency Medicine found net cost savings range between $19 and $121 per visit.
Medigy Insights
A 2018 research letter published in JAMA notes that telehealth adoption is far from universal. But the letter, which cites data from privately insured and Medicaid Advantage enrollees, nonetheless reported double-digit annual growth between 2005 and 2017.One finding noted in the letter underscores the necessity of expansion: A large majority (83 percent) of telehealth users were urban residents, a clear signal to legislators and insurers that patients needn’t live in a remote area to benefit from a wide array of virtual care services.
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