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Medicare's limited coverage of telehealth services discourage innovation, pair claims.
December 3, 2015
By: Sens. Cory Gardner and Gary Peters
U.S. Sens. Cory Gardner (R-Colo.) and Gary Peters (D-Mich.) have introduced the Telehealth Innovation and Improvement Act, legislation that would expand access to healthcare in rural areas by paving the way for Medicare to cover additional telehealth services. Currently, Medicare covers limited telehealth services, a decision the senators claim sets a poor industry standard, discourages innovation, and restricts access to specialized services. “Telehealth has revolutionized healthcare, helping more patients receive life-saving treatment, and we must ensure that people living in rural areas have equal access to the care they need,” Peters said in a joint statement with Gardner. “I’m proud to join Senator Gardner in introducing this bipartisan, commonsense legislation that takes important steps to modernize Medicare, expand access to quality care for all seniors and improve patient outcomes.”
The Telehealth Innovation and Improvement Act requires the U.S. Department of Health and Human Services to allow eligible hospitals to test telehealth services through the Center for Medicare and Medicaid Innovation (CMI). Additionally, it directs CMI to review and independently evaluate telehealth models for cost, effectiveness, and improvement in quality of care without increasing the cost of delivery. If the telehealth model meets this criteria, then the model will be covered through the greater Medicare program.
“People living in rural Colorado should have access to the same health care services as those living in urban areas,” Gardner said. “Telemedicine has the power to increase access to specialized services in underserved communities, and potentially lower costs and improve patient outcomes. The Telehealth Innovation and Improvement Act would pave the way for Medicare to expand coverage to additional telehealth services, and potentially provide those living with life-threatening conditions in rural America with more opportunities and more options to receive the care they need. At the same time, this legislation would incentivize the industry to develop cutting edge technology that could revolutionize healthcare delivery. As we work toward a healthcare system that lowers costs and increases choices for consumers, it is important that we advance common-sense legislation like the Telehealth Innovation and Improvement Act to achieve those goals.” The legislation immediately garnered praise from the Advanced Medical Technology Association (AdvaMed), the medtech industry’s largest trade group. “Advances in telehealth and remote monitoring hold the promise to dramatically improve patient care while bringing greater efficiency and value to the U.S. healthcare system. AdvaMed commends Sens. Cory Gardner and Gary Peters for introducing the Telehealth Innovation and Improvement Act, which will allow more American patients to benefit from these innovative technologies,” J.C. Scott, AdvaMed’s senior executive vice president of government affairs, noted in prepared remarks. “The legislation would require CMS’s Center for Medicare & Medicaid Innovation to examine whether delivery reform initiatives, such as ACOs and bundled payments, can demonstrate how telehealth and remote monitoring services can help providers achieve program goals. We believe that extending coverage for these services can produce savings in the Medicare program while increasing access and improving or maintaining quality of care.”
“We look forward to working with members of Congress, CMS and other key stakeholders to move this important legislation forward,” Scott concluded.
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