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NDHI<br />

NAT IONAL DIALOGUE FOR<br />

Healthcare Innovation<br />

Value Delivered<br />

Inclusion of a telemedicine benefit for appropriate<br />

illnesses will lead to:<br />

• Increased access to safe and high quality healthcare<br />

• Decreased costs<br />

• Reduced use of emergency facilities for non-emergent<br />

illnesses Increased quality of life<br />

These telemedicine benefits have already been determined<br />

and validated by independent third parties. One<br />

such study conducted by Red Quill Consulting, titled<br />

“Assessment of the Feasibility and Cost of Replacing<br />

In-Person Care with Acute Care Telehealth Services,”<br />

estimated that:<br />

• Medicare can save an average of approximately<br />

$45 per visit by replacing routine primary care visits<br />

with telehealth<br />

• The reimbursement of telehealth benefits would be<br />

unlikely to yield overutilization<br />

• The study concluded that the addition of telehealth<br />

services in the traditional Medicare fee-for-service<br />

program will not increase overall costs and will<br />

instead result in cost savings if telehealth visits<br />

are substituted for in-person acute care, when<br />

medically appropriate<br />

Teladoc’s study with Veracity Healthcare Analytics<br />

showed that, for commercial markets, telemedicine<br />

decreased 30-day episode-based spending by an<br />

average $191 compared to an office visit, and $2661<br />

compared to an emergency room visit. The weighted<br />

average of these cost savings is $673 per visit. These<br />

savings would translate into hundreds of millions of<br />

dollars for Medicare, along with the following benefits:<br />

• Reduces pressures on primary care providers<br />

• Decreases utilization overall within the health<br />

care system<br />

• Provides access solutions for rural patients<br />

• Leads to a more complete medical record<br />

• Enhances care coordination<br />

• Increases quality of care<br />

Path Forward<br />

Teladoc continues to advocate for the inclusion of<br />

telemedicine in Medicare reimbursement, with an<br />

ultimate goal of complete inclusion. Future efforts will<br />

also focus on validating an appropriate reimbursement<br />

level for these services that will drive more efficient<br />

use of resources and decrease costs.<br />

Inclusion of Telemedicine in Medicare<br />

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