CTeL Urges Long-Term Action on Telehealth After Stopgap Funding Bill Passes
On March 14, 2025 Congress passed a continuing resolution (CR) funding the federal government through September 30 2025, including a critical extension of telehealth flexibilities originally introduced in 2020 as part of the COVID 19 waivers.
“We appreciate Congress’ ongoing support for telehealth by including an extension in this year’s CR," said Christa Natoli, CTeL Executive Director. "Allowing these waivers to expire could disrupt patient access and continuity of care. Our peer-reviewed research shows that telehealth is a cost-effective substitute, not an added expense to the federal budget.”
"Allowing these waivers to expire could disrupt patient access and continuity of care. Our peer-reviewed research shows that telehealth is a cost-effective substitute, not an added expense to the federal budget”, said Christa Natoli, CTeL Executive Director.
CTeL commends Congress for extending telehealth flexibilities in the recent Continuing Resolution (CR), a crucial step in maintaining patient access and care continuity. Allowing these waivers to expire could significantly disrupt healthcare services, particularly for Medicare beneficiaries. Notably, during the COVID-19 pandemic, telehealth usage among Medicare beneficiaries surged from 1% in 2019 to 44% in 2020, highlighting its critical role in healthcare delivery (Bipartisan Policy Center, 2022).
Research underscores telehealth's cost-effectiveness and its potential to reduce healthcare expenditures. A study by the University of Michigan found that initial telehealth visits resulted in Medicare spending $82 less per patient compared to in-person visits, primarily due to fewer lab tests and imaging services (Institute for Healthcare Policy & Innovation, 2023). Similarly, a Harvard Medical School analysis revealed that enhanced telemedicine services led to higher quality care and better access, with only a modest increase in spending (Mehrotra et al., 2020).
The current policies, extended through September, include:
Allowing Medicare patients to receive telehealth services for non-behavioral/mental health care in their homes.
Removing geographic restrictions for originating sites for Medicare non-behavioral/mental telehealth services.
Permitting all eligible Medicare providers to offer telehealth services.
Eliminating the requirement for an in-person visit within six months of an initial Medicare behavioral/mental telehealth service, and annually thereafter.
Despite these temporary measures, the lack of permanent telehealth policies creates uncertainty, hindering investment in innovative health technologies and potentially compromising patient care. A recent report indicates that 67.4 million Medicare recipients could face significant disruption if telehealth benefits are not extended, leading to potential "chaos" in the healthcare system (MarketWatch, 2024).
To support Congress in evaluating the long-term impact of telehealth on federal spending, we are preparing a follow-up to our initial cost-impact study, which demonstrated significant Medicare savings from 2020 to 2021.
We urge Congress to pass a permanent extension of these flexibilities to provide providers with the confidence needed to invest in telehealth technologies, ensuring sustained access to cost-effective, high-quality care for all patients.
References
Bipartisan Policy Center. (2022). Key findings: Telehealth utilization in Medicare. Retrieved from https://bipartisanpolicy.org/wp-content/uploads/2022/10/BPC-Key-Findings-Telehealth-Utilization-in-Medicare-Oct-2022.pdf
Institute for Healthcare Policy & Innovation. (2023). Telehealth didn’t increase total Medicare visits, but it did drive down post-visit costs. University of Michigan. Retrieved from https://ihpi.umich.edu/news-events/news/telehealth-didnt-increase-total-medicare-visits-did-drive-down-post-visit-costs
MarketWatch. (2024). 67 million Medicare recipients face "chaos" if Congress cuts telehealth benefits. Retrieved from https://www.marketwatch.com/story/67-million-medicare-recipients-are-facing-chaos-if-congress-cuts-telehealth-benefits-b7a5c00e
Mehrotra, A., Bhatia, R. S., & Snoswell, C. L. (2020). Telemedicine: Can it change healthcare for the better? Harvard Medical School. Retrieved from https://hms.harvard.edu/news/telemedicine-can-change-care-better-right-rules