Telehealth reimbursement mired in ‘climate of confusion’ as shutdown persists

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As the federal government shutdown stretches on, hospital leaders are voicing alarm over the lapse of Medicare telehealth flexibilities and the hospital-at-home program, which has been a disruptive blow to both patients and providers.

The expiration of these provisions has triggered a “climate of confusion and hesitation” across the healthcare industry, according to ATA Action, the advocacy arm of the American Telemedicine Association. This is particularly true for rural and underserved areas that rely heavily on virtual care to connect patients with essential services.

“The lapse of the Medicare telehealth flexibilities and absence of clear federal policy is disrupting care and creating anxiety across the healthcare system,” Kyle Zebley, executive director, ATA Action and senior vice president, public policy at the ATA, said in an Oct. 14 news release. “We’re hearing from many hospitals and healthcare systems that they are continuing to provide telehealth services to Medicare patients during the shutdown, hoping they will receive retroactive reimbursement once the government reopens. That’s a significant risk for these organizations.” 

Commercial payers, many of which typically follow Medicare’s lead on coverage decisions, have largely continued reimbursing for telehealth services during the shutdown, but advocates warn this may not last without swift federal action.

While most commercial insurers have maintained virtual care coverage for now, the absence of clear federal policy has created uncertainty. Many providers fear future reimbursement may dry up, prompting some to reconsider whether they can sustain their telehealth programs.

“As Medicare reimbursement goes, so often goes commercial coverage, forcing providers to make difficult choices about sustaining virtual care,” Mr. Zebley added. “The impact on healthcare delivery, and on patients’ well-being nationwide, is deeply concerning.”

ATA Action is urging Congress to enact a short-term solution to restore Medicare telehealth flexibilities and the acute hospital care at home program during the shutdown.

“Telehealth is not a temporary fix; it’s the basis of modern healthcare,” said Sara Collins, assistant vice president, professional medical affairs and telehealth for Brentwood, Tenn.-based Lifepoint Health. “We urge bipartisan collaboration to restore these vital flexibilities and safeguard access to care for the patients and communities who need it most.”

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