Shift to Managed Care Plans May Escalate Telemedicine Use

The trend toward managed care insurance plans may drive increased telemedicine use, according to an American Telemedicine Association news release.

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The number of patients who are covered under a managed care plan, which pays a flat fee for treatment, has increased 26 percent from 58 million in 2005 to 73 million today, according to the release. While the traditional fee-for-service model incentivizes providers to bill for as many services as possible, ATA predicts the new capped payment model may encourage healthcare providers to use telemedicine as a means of lowering cost and maintaining or improving quality.

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