"The groundwork of all happiness is health." - Leigh Hunt

Does telemedicine save patients money or drive up costs?

April 5, 2023 – Barbara Rosebrock was on her technique to the doctor's office to learn the way to use her 8-year-old daughter's recent insulin pump when health care as she knew it modified without end.

It was March 11, 2020. As a mysterious recent virus invaded the United States, vulnerable patients like Aubrey – who had recently been diagnosed with type 1 diabetes – were advised to remain home.

Her doctor canceled the appointment and suggested a video consultation as an alternative.

Rosebrock was skeptical.

“I didn’t want to do anything wrong and end up hurting my child,” she said.

But the virtual visit went well and set a pattern. Three years later, Aubrey's doctor visits are all done from home unless lab work or a physical exam is required. Mom saves an hour within the automobile and saves on gas and child look after Aubrey's younger brother.

“It’s a few cents here and there, but it adds up,” Rosebrock said.

Telemedicine became routine for the Rosebrocks and tens of thousands and thousands of others in the course of the pandemic. For Medicare patients, distant visits rose from 840,000 in 2019 to 52.7 million in 2020, a 63-fold increase. Doctors had closed their doors to only probably the most serious patients, and insurers agreed to temporarilyReimburse audio and video visits at the identical rate as in-person visits.

Use has since dropped significantly. But patients proceed to demand distant care options. 70% of younger generations (Generation Z, Millennials and Generation X) say they like telemedicine to in-person visits, and 44% say they'd switch providers if it was not offered, in accordance with the American Hospital Association.

But despite this demand, questions on costs, effectiveness and alternative of provider remain unanswered in the long run.

Some pandemic-era exemptions, including state rules allowing patients to see doctors across state lines, have already been rolled back. Other rules, reminiscent of those allowing doctors to prescribe medications for ADHD or opioid addiction via telemedicine, are set to be rolled back on May 11. And by December 2024, Thanks to a two-year extension, the legislature must resolve whether to proceed to permit telemedicine visits via Health insuranceThis decision will inevitably have an effect on the actions of personal insurers.

A key query: Does telemedicine get monetary savings?

“It depends,” says Dr. James Marcin, director of the Center for Health and Technology on the University of California Davis. The answer relies on how and by whom the cash is used and whose money we're talking about.

“It's not a panacea,” Marcin said. “But COVID has definitely allowed us to realize its potential.”

Real savings for patients

When it involves cost savings, the advantages are clear, says Stephanie Crossen, MD, a pediatric endocrinologist in Sacramento. Many of her patients, including many from low-income rural areas, drive several hours to see her.

“My patients almost always say they save money by using telemedicine,” says Crossen. And regaining that lost time is precious, too.

A recent study of three million outpatient telemedicine visits in California found that patients saved a median 30-mile, 35-minute commute, saving about $11 in transportation costs. per visit.

If wage losses or childcare costs are taken under consideration, the savings are more likely to be even higher, especially for longer journeys, the authors say.

In-person visits often include additional facility fees that aren't charged with telehealth appointments, Marcin said. And doctors are likely to order more scans and tests when a patient is in-person (some needed, some questionable), driving up costs.

Telemedicine may save tens of hundreds of helicopter flights, for instance when a stroke patient or a baby with a sophisticated medical history shows up at a rural emergency room. Lack of skilled workers.

“Many patients are transferred between hospitals even though they don’t necessarily need to come to us,” says Marcin, a pediatric intensive care physician who often joins in via video to look at young patients in distant hospitals and make treatment suggestions.

In-person visits would normally be ideal, but cars break down, buses don't show up and relations get sick. In such cases, telehealth can prevent a cancellation and get monetary savings in the long term, Crossen said.

“We know that our diabetes patients have a lower risk of long-term kidney damage and all sorts of other problems when they are screened more frequently,” Crossen said.

In this respect, more visits may mean higher costs for insurers within the short term, but in the long run they might avoid dearer treatments.

This presents the associated fee bearers with a dilemma.

“The problem in our system is that the insurer that is covering their costs now is not necessarily the same one that is covering their dialysis 40 years from now, so it's hard to say they're saving money by doing this,” she said.

More access means more visits

In December, Congress prolonged Medicare coverage of telemedicine for 2 years, giving anyone the chance to have interaction within the practice on a everlasting basis. If telemedicine makes visiting the doctor really easy, is it being overused?

Ateev Mehrotra, MD, professor of health policy and medicine at Harvard Medical School, says he hasn't seen any research that convinces him that telemedicine saves the health care system money.

“From my perspective,” he said, “the real question is: Does telemedicine increase health care spending, and if so, by how much?”

In a three-year study of people that went to the doctor for acute respiratory illnesses, he found that only 12% of telemedicine visits replaced an in-person visit. The other 88% were “new customers,” meaning that without telemedicine, the patient would likely have just gotten over their cold and never gone to the doctor in any respect. Ultimately, telemedicine increased annual net spending on colds by $45 per telemedicine visit. User.

Another recent study by the Rand Corporation showed that within the mental health field, telehealth visits greater than made up for the decline in in-person visits in the course of the pandemic, with some disorders being treated increased by 20%.

“When care becomes more convenient, more people will receive care,” Mehrotra said.

Whether this is nice or bad relies on many aspects, including who pays.

In the case of a chilly, “it's good for them if they pay out of pocket for the sedation,” Mehrotra said. “But if we as a society are paying for all these visits, we're worried because a lot of people are catching colds.”

Increased use could drive up premiums for everybody.

Doctors may additionally prescribe antibiotics more steadily via telemedicine, increasing costs and potentially promote antibiotic resistance, suggests a review in 2022 Clinical infectious diseases.

While research on return visits is mixed, one other study published in 2021 by researchers on the University of Michigan found that patients whose first visit was via telemedicine were significantly more more likely to return for a second visit inside per week.

The authors said that “potential savings from shifting primary care to a direct-to-consumer telemedicine environment should be weighed against the possibility of higher spending on follow-up care.”

Is it value the associated fee?

Mehrotra, a practicing physician, argues that asking whether telemedicine saves money is just not fair.

“When a new drug, a new procedure or a new MRI machine comes to market, we never ask, 'Does it save money?'” he noted. “Instead, we ask whether the health improvement we are seeing is worth the cost.”

Policymakers need to evaluate the impact of telemedicine on patients and consider whether it's cost-effective in each specialty.

“Based on my research and clinical experience, I think telemedicine is a great idea for treating opioid use disorder, for example. I'm a big believer in telestroke,” he said. “But when it comes to telemedicine for colds, I'm not so sure.”

He envisions a system by which doctor visits deemed “less valuable” (reminiscent of a reassuring video call for a chilly) could end in higher co-payments for the patient or lower reimbursement for the doctor than for an in-person visit.

It also matters who uses telemedicine.

Specifically in the course of the pandemic, research found that white patients in urban areas were probably to make use of telehealth for outpatient visits, while people in low-income and rural areas and racial minorities were less more likely to use it, partly as a consequence of connectivity.Problems.

Doctors consider that addressing these access disparities could go a great distance toward making telemedicine accessible to the individuals who need it most and can profit most financially from it.

Priceless care

For some patients, the advantages are hard to place a price on. Francis Richard, 72, who lived in Mendocino County, California, took a two-hour shuttle (a technique) to see a physician for his advanced type 2 diabetes and kidney disease.

“My husband wasn't tired,” said his wife Marie. “He was tired of the drive.” She says the wait for a private visit was often weeks or months.

His nephrologist suggested that Francis be treated via telemedicine.

He took consultations via Zoom when Francis needed in-person care at a smaller hospital closer to home and worked to establish home dialysis.

During her visits at home, Marie often sat next to Francis in bed, holding the phone while the doctor examined him, asking questions and sometimes cracking a joke.

She has never met the person on screen, Dr. Jose Morfin, in person, and her husband has only met him once.

But she now considers him a member of the family.

“I wish my husband was still alive and could tell you this himself,” said Marie, who lost Francis in January. “But this has prolonged his life. You have made us feel so supported.”

This sort of care, she said, is priceless.