Center for Medicaid and Medicare Services proposes making U.S. telehealth expansion rules permanent but will not reimburse providers

June 30, 2020
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Very important

There are two potential consequences from the decision not to reimburse: 1) telehealth use by providers will drop precipitously, and 2) costs will be put on the consumer directly, which will either cause current advancements to fizzle or drive the creation of a more price-sensitive market (Walmart has seen some success here in telehealth already). Telehealth has historically faced a Catch-22 where a lack of reimbursement stymies growth, but reimbursement parity with in-person visits undermines the promise of reduced healthcare costs. Clients should proceed with caution by focussing investments on telehealth services that are reimbursible as devices, such as remote monitoring and digital therapeutics, and not services.

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