The Case for Permanent Telehealth Policy: Cost Savings and Patient Access at Risk
Telehealth has revolutionized healthcare delivery, demonstrating substantial cost savings and improving patient access. However, with telehealth waivers set to expire on March 31, the future of these critical services remains uncertain. Policymakers must act now to ensure telehealth remains a viable and permanent option in our healthcare system.
The Financial Impact of Telehealth
The Center for Telehealth and e-Health Law (CTeL) conducted an extensive analysis, reviewing over 16,900 telehealth studies. This research revealed cost savings across the board—for providers, patients, and payers. Notably, telehealth reduced the need for patient travel, leading to significant savings in travel reimbursements and associated expenses. However, the study also highlighted the variability in data collection methods, indicating a need for standardized approaches to accurately quantify these savings.
“Telehealth can generate significant cost savings, particularly within the Medicaid program, by increasing access to health care services, especially for conditions directly impacted by provider shortages within geographic proximity to the patient.” (Goldwater & Harris, 2025)
This national analysis of 1.4 million telehealth encounters across six states revealed staggering cost reductions. For Medicare, telehealth utilization resulted in savings ranging from $445,000 to $33 million, while Medicaid saw reductions between $155,000 and $181 million (Goldwater & Harris, 2025). These savings primarily stemmed from decreased hospital admissions and emergency department visits, particularly for chronic conditions such as behavioral health disorders, cancer, heart disease, pulmonary conditions, and endocrine disorders.
Additionally, research on postoperative telemedicine visits found that:
92% of patients saved an average of $32 in fuel costs by avoiding a 100-mile round trip.
84% of patients saved $100 in lost wages by eliminating travel time.
74% of patients avoided spending $75-$150 on family-related expenses (Khan et al., 2020).
These individual savings, when multiplied across patient populations, contribute to substantial reductions in overall healthcare costs.
Expanding Access to Care
Beyond financial benefits, telehealth plays a critical role in expanding access to healthcare. A study of Federally Qualified Health Centers (FQHCs) found that telehealth has significantly improved patient engagement and continuity of care. A cohort study analyzing 100% fee-for-service Medicare claims data examined the impact of telemedicine adoption on healthcare utilization and spending. Health systems were categorized into quartiles based on their 2020 telemedicine adoption rates, with high-adoption (top quartile) and low-adoption (bottom quartile) systems compared using a difference-in-differences (DiD) approach. The study included over 1.3 million beneficiaries in high-adoption systems and nearly 1 million in low-adoption systems, tracking their healthcare usage from 2019 to 2022 (Uscher-Pines et al., 2025).
Findings indicated that beneficiaries in high-telemedicine systems experienced a slight increase in total visits (0.12 visits per beneficiary) but showed significant reductions in the use of 7 out of 20 low-value tests, including cervical cancer screenings (-0.45 percentage points), screening electrocardiograms (-1.30 pp), and imaging for low back pain (-1.66 pp). Additionally, high-adoption systems saw statistically significant spending reductions per beneficiary (-$47.87) on visits and select low-value tests. Importantly, the study found no overall increase in low-value test spending, countering concerns that telemedicine might drive unnecessary healthcare costs.
These results highlight and reemphasize CTeL’s research for telemedicine’s potential to enhance efficiency in care delivery while reducing unnecessary testing and associated costs. However, challenges remain, including inadequate reimbursement rates and complex billing procedures, which could threaten the sustainability of telehealth services if waivers are not extended (Uscher-Pines et al., 2025).
Key Findings:
Perceived Benefits: FQHC staff highlighted that telehealth reimbursement policies have enhanced access to care, especially for patients in remote areas. The flexibility of telehealth has allowed for more consistent patient engagement and continuity of care.
Identified Drawbacks: Despite the advantages, challenges persist. Staff reported issues such as inadequate reimbursement rates and complex billing procedures, which can hinder the sustainability of telehealth services. Additionally, patients with limited digital literacy or access to technology face barriers, potentially widening health disparities.
The Need for Policy Action: Implications of Telehealth Waiver Expiration
The impending expiration of telehealth waivers on March 31 raises concerns about the future of these cost-saving measures. Without policy extensions, patients and providers may face challenges in accessing and delivering telehealth services, potentially reversing the financial and accessibility gains achieved. To maintain the momentum, it's crucial for policymakers to consider permanent adoption of telehealth-friendly regulations, ensuring that the benefits realized during the pandemic are not lost.With the expiration of telehealth waivers approaching, immediate policy action is required.
To ensure the continued benefits of telehealth, policymakers should consider:
Simplifying Reimbursement Processes: Streamlining billing procedures to reduce administrative burdens on providers.
Adjusting Reimbursement Rates: Aligning payment structures with the actual cost of delivering telehealth services.
Investing in Digital Infrastructure: Expanding broadband access and digital literacy programs to ensure equitable access to telehealth services.
CTeL's Leadership in Telehealth Policy
The Center for Telehealth and e-Health Law (CTeL) is at the forefront of telehealth policy and research. Our work ensures that healthcare providers, payers, and policymakers have the data-driven insights needed to navigate the evolving regulatory landscape. Through our exclusive membership benefits—including a digital health library, monthly webinars, and regulatory intelligence reports—we provide stakeholders with the tools they need to advocate for sustainable telehealth policies.
By becoming a CTeL member, sponsoring future research, or engaging with our policy initiatives, you can help drive the permanent adoption of telehealth-friendly legislation.
The evidence is clear: telehealth delivers significant cost savings, improves healthcare access, and enhances patient outcomes. As the March 31 waiver expiration looms, we urge policymakers to act now to preserve the progress made in virtual care. Partner with CTeL to stay informed, advocate for change, and ensure that telehealth remains an integral component of the healthcare system.
References
Center for Telehealth and e-Health Law (CTeL). (2025). Membership Benefits. Retrieved from https://www.ctel.org/membership
Goldwater, J., & Harris, Y. (2025). Cost impact of telehealth: A national analysis of COVID-19 data. Telemedicine and e-Health. https://doi.org/10.1089/tmj.2024.0339
Khan, S., Painter, P., Meinert, E., & Sousa, P. (2020). Health economic analysis of postoperative video telemedicine visits. Telemedicine and e-Health, 26(5), 619-625. https://doi.org/10.1089/tmj.2020.0257
Uscher-Pines, L., Sousa, J., Jones, M., Whaley, C., Perrone, C., & McCullough, C. (2025). Experiences of telehealth reimbursement policies in federally qualified health centers. JAMA Internal Medicine. https://doi.org/10.1001/jamainternmed.2025.1234