Silicon Valley Pushes for Wider Adoption of Telemedicine through Medicare Reimbursement

Strategic Insights -

Silicon Valley's tech companies, including AT&T, Cisco Systems, IBM, and Intel, are urging the Senate Finance Committee to adopt a proposal that would allow Medicare to reimburse physicians for virtual care encounters in addition to face-to-face consultations. This move aims to encourage the wider adoption of telemedicine, which has shown promising results in reducing hospital admissions and improving patient care. According to Intel, embracing telehealth can lead to significant wins, including a 20% reduction in hospital admissions and a 25% decrease in bed days of care, as seen in the Veterans Affairs Department's electronic healthcare strategies.

Key Takeaways:

  • The tech sector is pushing for Medicare reimbursement for virtual care encounters to spur wider adoption of telemedicine.
  • Companies like AT&T, Cisco Systems, IBM, and Intel are advocating for this change, citing the benefits of telehealth in reducing hospital admissions and improving patient care.
  • Intel's Digital Health Group Innovation and Policy Director, Eric Dishman, emphasized the importance of considering virtual care beyond hospital doorways.
  • The Senate Finance Committee's policy options document discussed creating an innovation program to test payment processes for patient-centered care coordination, but did not mention technology or virtual care in these contexts.
  • A range of studies, including one from the Veterans Affairs Department, have shown big wins from embracing telehealth, despite earlier pilot projects indicating otherwise.
  • Intel lobbyist Alice Borrelli highlighted a three-year pilot program proposed by Sen. Ron Wyden, D-Ore., which would bring home-based primary care services to Medicare beneficiaries with multiple chronic conditions.
  • Rep. Edward Markey, D-Mass., has introduced a companion bill to the proposed Senate Finance package and plans to offer it as an amendment when the House moves its healthcare bill.

Statistics:

  • 20% reduction in hospital admissions achieved through the Veterans Affairs Department's electronic healthcare strategies.
  • 25% decrease in bed days of care attributed to the Veterans Affairs Department's electronic healthcare strategies.
  • 26 states to participate in a proposed three-year pilot program to bring home-based primary care services to Medicare beneficiaries with multiple chronic conditions.
  • The success of any telemedicine provision would depend on the Congressional Budget Office's (CBO) scoring of the proposal.

Sources:

  • The policy options document released by the Senate Finance Committee.
  • A memo from the 200-member health alliance Continua, which Intel helped launch.
  • A statement from Intel lobbyist Alice Borrelli.
  • A press release from Rep. Edward Markey, D-Mass.
  • A proposal by Sen. Ron Wyden, D-Ore.