Jan 9, 2013
US legislators have proposed establishing a federal policy for reimbursement of telemedicine and mobile medical devices in order to increase public access to such technologies within health programs including Medicare, Medicaid and the Children’s Health Insurance Program.
Introduced recently in the US House of Representatives, the Telehealth Promotion act of 2012 (H.R. 6719) would remove all arbitrary coverage restrictions for medical devices and services provided via telecommunication platforms under federal health insurance systems, and would also create financial incentives for hospitals utilizing telemedicine to reduce rates of readmissions.
If the proposed legislation becomes law, manufacturers of mobile medical devices and technologies will benefit from easier access to reimbursement, and also potentially drive more demand for telehealth products among US healthcare providers. Furthermore, broader acceptance of mobile medical devices among government health insurance programs such as Medicare could lead to better reimbursement rates for such products among private insurers, as well.
A new Centers for Medicare & Medicaid Services (CMS) policy going into effect early next year will require prior authorization for some medical devices and equipment for Medicare patients in seven US states.
The new policy will also require pre-payment of reimbursement claims for some medical devices across 11 US states.
The worldwide market for telehealth products and services will reach more than $1 billion by 2016—and may reach $6 billion by 2020—according to a new study by medical electronics market research provider InMedica.