The
telemedicine industry is projected to generate over USD 48 billion by 2019
globally. This influx of investment means consumers are likely to witness an
increase of innovative businesses working in this sector, trends towards greater
availability of telemedicine programs on a national scale, and increased
healthcare cost savings for both employers and employees. Access to
telemedicine programs has the potential to impact employer provided healthcare
plans in a very positive way. In the past, healthcare plans that incorporated
telemedicine services were restricted by differing state legislation and
regulations making it hard for employers located in multiple states to choose a
telemedicine provider or service that followed each state regulation separately.
TELEMEDICINE PLAN BENEFITS
Lately,
most of the news surrounding the telemedicine industry pertains to how various
state legislatures have started to remove barriers to telehealth service
development and develop clearer cost and implementation regulations for the
industry. This is making it much easier for companies and employers to begin
realizing telemedicine services as part of their standard healthcare plans or
as an elective component of their traditional plans. Most recently, the state
legislature in Florida passed a bill expanding coverage for Medicaid telemedicine
services. The bill expands coverage for real-time, audio-visual interactive
telemedicine services. Previously, telemedicine was not covered for Medicaid
patients in Florida, but thanks to the efforts of the Telehealth Association of Florida and industry experts, the bill was
revised to incorporate broader coverage of telemedicine services.
Even
more importantly, as certain taxes and legislation that have the potential to
increase the financial burden of healthcare for employers come into play, an
established robust telemedicine program can help offset or reduce costs for
employers and employees. For example, the “Cadillac Tax” which will apply to tax years beginning on or
after January 1, 2018, imposes an excise tax of 40% on the cost of employer-sponsored health coverage that exceeds
certain annual thresholds. The tax is meant to help finance the Affordable Care
Act and decrease excessive healthcare spending by employers and employees.
However, this can be costly for employers with employees seeking care for
chronic conditions or working in high risk situations.
Taking
into account evidence of quantifiable healthcare savings for both employers and
employees, more convenient access to medical care and the looming “Cadillac
Tax”, more and more employers are including telehealth services as an integral
part of their employee healthcare models. According to Mercer’s 2015 National Survey of
Employer-Sponsored Health Plans, large companies with 500 or more employees
offering telemedicine services jumped from 18% to 30%. Essentially, employers
are witnessing the added benefits of including telehealth services for
employees including fewer instances of decreased production due to excess time
spent on doctor or hospital visits, greater employee management of personal
health, increased patient knowledge and clinical outcomes, and greater access
to qualified medical providers.
TELEMEDICINE IMPLEMENTATION
GUIDELINES
Implementation
of telemedicine services as an employee healthcare benefit should be part of a
comprehensive workplace health plan. Whether you want to offer employees
chronic care management, mental health consultation services, or replace the
need for urgent care visits, your telemedicine plan needs to take into account
the needs of your employees and function accordingly. Communication is also
essential to a successful implementation. If your employees don’t understand
the specifics of your new standard or elective telemedicine program, they won’t
be keen to utilize the service.
Examples of
how you can foster a culture of broad acceptance and usage within your company:
- Send regular communications about your telemedicine program
- Have plan experts available for questions and concerns
- Make the services available to all employees and family members
- Speak about your own personal experience using telemedicine
While the
telehealth services environment is rapidly expanding and states are removing
barriers to access and reimbursement for telemedicine services, we understand there
are still challenges to telemedicine program implementation for employers.
Employers must decide whether or not to make telemedicine part of their
standard healthcare plan or add it as an elective component of an existing
model, choose a qualified telemedicine provider, and account for healthcare IT
rules and regulations. As the evolving healthcare industry focuses on employer-sponsored
telehealth services, MyOnCallDoc is available to guide you through the process
of incorporating standard or elective telehealth models for telehealth and
decode state and federal legislation. Don’t hesitate to reach out to us with
questions, comments or requests for more information about how you can start
implementing your employer-sponsored telemedicine program today.
