Dive Brief:
- Centers for Medicare and Medicaid Services data indicate Medicare reimbursement for telemedicine totaled $13.9 million in 2014.
- Approximately $12.48 million of the total was for provider fees (in the location of telemedicine provider) and $1.45 million for originating sites fees (patient location).
- Medicare has reimbursed more than $57.6 million for telemedicine coverage since 2001, much less than the 2001 Congressional Budget Office's estimate of $150 million for the first five years.
Dive Insight:
More states are introducing bills establishing or expanding payer coverage for telemedicine. Currently, 43 states and the District of Columbia provide some form of Medicaid reimbursement for these services. And consumers are interested—according to a recent Harris Poll survey, 27% of healthcare consumers would choose telehealth if were an available option.
Although regulatory barriers continue to hamper expansion in some states, some private insurers are forging ahead, betting that those restrictions will ease in the long run. UnitedHealthcare made waves recently when it announced the roll-out of what will become the widest telemedicine coverage in the U.S., according to a company release. It will begin by providing access to nearly 1 million customers in self-funded plans in May, and will extend coverage to up to 20 million customers in fully-insured plans by Jan. 1, 2016.
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