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NDHI<br />

NAT IONAL DIALOGUE FOR<br />

Healthcare Innovation<br />

Inclusion of Telemedicine in<br />

Medicare<br />

Organization Overview<br />

• Teladoc is the first and largest provider of telehealth<br />

medical visits in the United States, with 15.4 million<br />

members and over 1.6 million visits since the organization’s<br />

inception in 2002<br />

• The company was founded with a vision to tackle<br />

three of the most significant issues in healthcare<br />

today: access, cost, and quality of care<br />

• Teladoc provides patients access to a nationwide<br />

network of board-certified physicians<br />

Background<br />

CMS’s current telemedicine reimbursement regulations<br />

indicate that a patient must seek care at one of eight<br />

kinds of facilities outside of a Metropolitan Statistical<br />

Area (MSA), in order for telemedicine services to<br />

be reimbursed: a physician’s office, hospital, critical<br />

access hospital, rural health clinic, federally-qualified<br />

health center, skilled nursing facility, community mental<br />

health center, or a hospital-based or critical access<br />

hospital-based dialysis facility. This usage restriction<br />

is a result of concerns from the Congressional Budget<br />

Office, CMS, and other groups, which believe that coverage<br />

of telemedicine services will lead to inappropriate<br />

utilization, increased government budget costs, and<br />

reduced quality of care.<br />

However, Teladoc rejects this hypothesis, as it lacks a<br />

basis of empirical evidence. On the contrary, Teladoc<br />

believes that CMS’s standpoint perpetuates outdated<br />

protocols created before innovations in telemedicine<br />

and the emergence of current technologies. In contrast<br />

to CMS’s limited use of this technology, telemedicine is<br />

not only used more widely by the commercial market<br />

and employer sector, but is also experiencing a sharp<br />

growth trajectory at the national level.<br />

Initiative Details<br />

Teladoc advocates for CMS to either allow telemedicine<br />

to be reimbursed, or to allow for a pilot study to<br />

demonstrate its associated cost savings. Specifically,<br />

Teladoc aims to expand telemedicine reimbursement<br />

for simple, non-emergent illnesses, as well as dermatology<br />

and behavioral health, while the patient is at<br />

home or at a site that is not currently included in the<br />

CMS regulations.<br />

Partners in this effort include the Alliance for Connected<br />

Care, Health IT Now and the American Telemedicine<br />

Association.<br />

An Initiative of the<br />

107 |<br />

Inclusion of Telemedicine in Medicare

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