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Medicare Telehealth Extension: Crucial Lifeline or Short-Sighted Stopgap?

12/24/2024

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In a recent move, Congress has passed the American Relief Act of 2025, which was signed into law by President Biden on December 21. Included in this legislation is a three-month extension of Medicare telehealth flexibilities, providing a crucial lifeline to patients and providers alike. However, this extension raises questions about the future of telehealth services and the broader implications for healthcare.
The Details of the Extension
The new telehealth provisions extend many of the flexibilities introduced during the COVID-19 pandemic through March 31, 2025. Key aspects include:
  • Originating Site Flexibility: Patients can continue to receive telehealth services from their homes.
  • Geographic Restrictions Waived: There are no limitations based on patient location.
  • Audio-Only Communication: Services can be provided via audio-only communication when necessary.
  • Expanded Provider Types: A wider range of healthcare providers, including physical therapists and speech-language pathologists, can offer telehealth services.
  • Hospice and Hospital Care at Home: Telehealth remains an option for face-to-face encounters required for hospice care recertifications and for acute hospital care at home programs.
Concerns and Criticisms
Despite these positive strides, several flexibilities are set to expire at the end of 2024, including first-dollar coverage of telehealth services under high-deductible health plans (HDHPs) and health savings accounts (HSAs). This expiration will likely increase out-of-pocket costs for patients who have been relying on pre-deductible telehealth coverage.
Critics argue that the short duration of this extension creates ongoing uncertainty for both patients and providers. The American Telemedicine Association called the legislation "far from an ideal outcome." Stakeholders are pushing for a more permanent solution that can provide stability and continued access to telehealth services.
The Path Forward
The American Relief Act of 2025 offers a temporary solution, but the healthcare community is urging Congress to take further action before the March deadline. A more permanent extension of telehealth flexibilities is essential to ensure that patients, especially those in rural or underserved areas, continue to have access to critical healthcare services.
In the words of Kyle Zebley, Senior Vice President of Public Policy at the American Telemedicine Association, "Together, with future actions to come, we are on the brink of achieving landmark victories for patients, the healthcare system, and the future of care delivery."
As we look ahead, it's clear that the conversation around telehealth is far from over. The evolving landscape of healthcare delivery demands proactive measures to secure long-term solutions that benefit all stakeholders.
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    Mike and Nancy are independent consultants and coding educators.  They are a mother/son team who are active in local and regional professional organizations.

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