Favorable CBO score provides empowerment to Medicare telehealth bill

Legislation developed to offers Medicare Advantage plans and accountable care organizations (ACOs) greater flexibility in giving Medicare telehealth bill services to sufferers with chronic conditions got a huge boost this week from the Congressional Budget Office, which provided the Senate bill a favorable score.

Initially, the CBO has expressed uncertainties that changing Medicare reimbursement policy regarding telemedicine could dramatically increase healthcare spending.

Although, on the day of Tuesday the office issued a preliminary cost estimate of the CHRONIC Care Act, which involves 4 provisions expanding telehealth coverage under Medicare: nationwide coverage for telestroke, home remote patient monitoring for dialysis therapy, enhanced telehealth coverage for accountable care organizations, and more flexibility for Medicare telehealth bill coverage under Medicare Advantage plans.

“We’re pleased with the reasonable and restricted costs linked with the expansion of Medicare reimbursement of telemedicine, as projected by the Congressional Budget Office,” claims Jonathan Linkous, CEO of the American Telemedicine Association, who is a longtime critic of Medicare restrictions on telehealth.

ATA stated that CBO’s cost estimate summarized that the Medicare telehealth bill wouldn’t increase or reduce Medicare spending. Specifically, the group pointed out that CBO stated in its analysis that expanding telehealth to the home for Medicare dialysis treatment would be budget neutral.

Linkous pointed out that CBO has “finally appreciated cost savings when telemedicine is executed through value-based programs such as Medicare Advantage,” adding that the ATA hopes that these estimates “will now provide Congress the courage to pass this bill and permit Medicare patients to get the benefits that telemedicine can provide.”

The Senate Finance Committee on Thursday held a scheduled mark-up of the CHRONIC Care Act, at which the legislation was unanimously passed by a roll call vote of 26-0. The bill now moves on to the Senate for passage.

In accordance to the ATA, this CBO analysis is the 1st time that the office has scored telemedicine legislation since the year of 2001. Critics of Medicare policy have often cited restrictions on reimbursement as key obstacles to ensuring access to telehealth services for sufferers with chronic conditions. Now, they see the CBO score as green-lighting the expansion of Medicare coverage of telemedicine.