New CMS proposal could lead to permanent changes in telemedicine reimbursement

A dramatic increase to Medicare reimbursements for telemedicine services that allowed health care providers to receive payment for services they provide online, could continue after the public health emergency is over.

In the country’s first weeks of the pandemic, the Centers for Medicare & Medicaid Services (CMS), a federal agency that oversees Medicare and Medicaid programs across the country, rolled out a series of rule changes that opened the door to reimbursements of telemedicine that were much closer to what a provider would make during an in-person meeting.

To promote social distancing and to protect at-risk patients from contacting COVID-19, the agency also introduced leniencies on HIPAA requirements that allowed providers to use a variety of video software while conferencing with patients.

Prior to the changes, approximately 14,000 Medicare beneficiaries across the country received telehealth services in any given week. Thanks to the changes in reimbursements, CMS reported that 10 million beneficiaries received a Medicare telehealth service from mid-March through early-July.

This month, CMS announced it will propose expanding telehealth reimbursements permanently after President Donald Trump signed an executive order on Improving Rural and Telehealth Access on Aug. 3. The order outlines CMS’ recent rule changes and the impact they’ve had on Medicare beneficiaries. In the order, Trump directs Secretary of Health and Human Services Alex Azar to review the temporary measures and propose an extension to them as appropriate within the next 60 days.

While the changes in reimbursements only apply to Medicare beneficiaries, some health care providers expect that a permanent change to reimbursements could drive third-party payers to provide similar services.