News Feature | December 15, 2014

Despite Doc Shortage, No Money Available For Telemedicine

Katie Wike

By Katie Wike, contributing writer

Insurers  Raise Premiums

Telemedicine remains uncovered by many insurance providers which may prove to be problematic when coupled with the doctor shortage.

Earlier this year, Health IT Outcomes reported on a study which found telemedicine may be the answer to physician shortages. “A critical shortage in the supply of physicians in the United States has necessitated innovative approaches to physician service delivery. Telemedicine is a viable service delivery model for a variety of physician and health services,” explained authors.

“Shortages in critical care and neurology specialists have led to the use of tele-intensive care unit and telestroke services in hospital settings. These hospital-based services have gained acceptance and recommendation. Hospitalist staffing shortages may provide an opportunity to apply similar telemedicine models to hospitalist medicine.”

Now, however, USA Today reports that despite the need for doctors, telemedicine is lacking reimbursement from most insurance plans. Nearly 30 states do not allow reimbursement for video visits. Alabama, Arkansas, Missouri, Nebraska and Texas are the most restrictive when it comes to patients in rural areas being treated by a doctor on video whom they haven't met in person.

Jay Sanders, an internal medicine doctor, told USA Today that United Healthcare, Wellpoint, and Blue Cross/Blue Shield plans have been most receptive. He predicts others will soon realize “if my patient can have telemedicine for $50 and keeps out of emergency, which costs $1,500, I'm going to reimburse for that.”

“This technology can be so pervasive that states have got to catch on real quick,” says Jimmy Lewis, CEO of Hometown Health, which represents rural hospitals in Georgia and Alabama. “The ACA is going to require such massive changes that the only way to keep up is to implement telemedicine.”

Florida lawmakers Cary Pigman (R-Avon Park) and Mia Jones (D-Jacksonville) co-sponsored a bill that would require both Medicaid and private insurers in Florida to reimburse providers for telemedicine care.

In November, CMS included in its final rule on physician fee schedules several provisions which plan to increase reimbursement for telemedicine services.