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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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