Abstract
This Health Industry Insights report discusses the likely positive impact of
two separate Medicare-related events that occurred in July on the evolving
telemedicine market. Two recent changes to the Medicare regulations governing
reimbursement for telemedicine services are expected to spur growth in the
adoption of telemedicine technology. Up until now, telemedicine' s greatest
adoption challenge has been the limited degree of third-party reimbursement for
such services.
"In order to change this paradigm, it is essential for Medicare to increase its
acceptance of telemedicine along two dimensions: the diversity of services for
which it will reimburse and the diversity of providers it will authorize to
bill for those services," says Marc Holland, program director for Healthcare
Provider research at Health Industry Insights. "The recent Medicare
announcements constitute an expansion along both of these dimensions. Further
expansion, and a willingness of private insurers to follow suit, will be
necessary for real and sustainable growth in telemedicine to occur."
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