Avalere Health
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Insights

Feb 03, 2016

New Analysis Finds Proposed Telehealth Policy Changes Would Decrease Federal Spending by $1.8 Billion

A new analysis by Avalere Health estimates that three proposed policy changes to expand Medicare reimbursement of telehealth and remote patient monitoring (RPM) would collectively decrease federal spending by $1.8 billion between FY2017 and FY2026.

  • Under Policy 1, Medicare would cover telehealth and RPM under a waiver from September 2016 until December 2018 for providers who will be eligible for the Merit-Based Incentive Payment System (MIPS). 
  • Under Policy 2, Medicare would cover telehealth and RPM for providers who participate in Alternative Payment Models (APMs). The coverage would begin six months from the enactment of the legislation. 
  • Under Policy 3, Medicare would cover RPM for patients with chronic conditions meeting specified criteria for all fee-for-service (FFS) physicians and practitioners. The coverage would begin six months from the enactment of the legislation.

Avalere’s estimates reflect the new cost to the Medicare program associated with reimbursing for telehealth and RPM services as well as savings due to the reduced Medicare spending for beneficiaries receiving RMP.

The full report is available here

Third Way provided funding for this research. Avalere maintained full editorial control.

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