Telehealth’s role in modern healthcare: A case for permanent Medicare coverage

Telehealth has revolutionized healthcare by making medical services more accessible and cost-effective, particularly for elderly, rural, and underserved populations. During the COVID-19 pandemic, temporary policy changes expanded telehealth under Medicare, allowing millions of Americans to receive remote medical care. However, these benefits are at risk as legislative extensions near expiration. Without permanent policy changes, patients and healthcare providers could lose access to a proven efficient, cost-saving, and life-changing system.

As technology advances, telehealth is no longer a temporary solution but an integral part of modern healthcare. Congress must take action to solidify telehealth as a permanent feature of the Medicare system. Doing so would ensure continued healthcare access, reduce costs, and enhance patient outcomes across the country.

The impact of telehealth on healthcare accessibility

One of the most significant advantages of telehealth is its ability to expand healthcare access, particularly for patients who face geographic or physical barriers to in-person care. Before the pandemic, Medicare restricted telehealth services to patients in rural areas, requiring them to visit designated medical facilities for virtual consultations. These restrictions limited telehealth’s potential and created unnecessary challenges for those in need of care.

During the public health emergency, temporary policy changes removed these restrictions, allowing patients to access telehealth services from their homes. This shift led to a dramatic increase in telehealth adoption, nearly three times the pre-pandemic rate, according to the American Medical Association (AMA).

Reaching underserved communities

Access to healthcare remains a challenge for many, especially in rural areas where medical facilities are scarce. Patients in these communities often face long travel times to see a doctor, while those with mobility issues or chronic illnesses may struggle to attend in-person appointments. A telehealth appointment helps bridge this gap by allowing individuals to connect with healthcare providers remotely, ensuring timely medical attention without the added burden of travel.

Beyond rural areas, telehealth has also improved healthcare access for urban and suburban populations. Many patients, especially those in low-income communities, benefit from virtual visits that save time and money. By allowing remote access to specialists, telehealth ensures that patients receive the care they need without long wait times or financial hardship.

Telehealth’s role in reducing healthcare costs

Virtual medical consultations offer both convenience and cost savings, benefiting patients and the healthcare system alike. By minimizing expenses and streamlining care, they make medical services more accessible and efficient.

A 2023 study found that cancer patients who used telehealth saved an average of 2.9 hours per visit and up to $186 in travel expenses and lost wages. Similarly, a 2018 report by the Centers for Medicare and Medicaid Services (CMS) estimated that telehealth saved patients $60 million in travel costs alone. Given the rapid expansion of telehealth since 2020, today’s savings are likely much higher.

Lowering emergency room visits

Emergency departments experience less strain when patients have alternative options for non-urgent medical needs. Many individuals seek ER care for conditions that could be addressed through primary care or specialist consultations. With remote access to physicians, unnecessary hospital visits can be reduced, ensuring that emergency resources remain available for critical cases.

A Yale School of Medicine study found that telehealth is just as effective as in-person visits for certain medical conditions, including palliative care. Patients who received remote palliative care had similar “quality-of-life” scores to those who visited doctors in person, demonstrating that telehealth can effectively manage long-term health needs.

Environmental and system-wide savings

Beyond direct financial savings, telehealth has environmental benefits. A study by UC Davis Health estimated that telehealth reduced travel by 54 million miles across five University of California health systems during the first two years of the pandemic. By cutting down on patient transportation, telehealth contributes to lower carbon emissions and decreased strain on public infrastructure.

Additionally, telehealth reduces administrative costs associated with in-person visits, such as hospital overhead expenses and staff hours required for patient intake and scheduling. By streamlining healthcare delivery, telehealth supports a more efficient system that benefits both providers and patients.

The need for legislative action

Despite its success, expanded Medicare telehealth coverage remains temporary. While Congress has extended telehealth provisions multiple times since 2020, these policies are set to expire. A short-term extension was included in a recent government funding resolution, but a long-term solution is necessary.

The CONNECT for Health Act

Lawmakers from both parties are working to make telehealth expansion permanent. The CONNECT for Health Act (S. 2016/H.R. 4189) seeks to eliminate outdated Medicare restrictions, ensuring patients can receive virtual care from their homes, no matter where they live. This legislation would ensure that telehealth remains a viable option for all Medicare beneficiaries, providing stability for both patients and healthcare providers.

The House Ways and Means Committee recently passed a bill that would extend telehealth flexibilities for another two years, but healthcare advocates argue that a permanent fix is needed. The AMA and other medical organizations continue to push for legislative action to guarantee long-term telehealth access.

Payment parity for telehealth services

For telehealth to be sustainable, fair reimbursement policies must be in place. The AMA supports coverage parity, meaning that if a service is covered for in-person visits, it should also be covered via telehealth when it meets the same standard of care. This approach ensures that physicians receive appropriate compensation for virtual visits and that patients are not discouraged from choosing telehealth due to insurance discrepancies.

Payment parity also applies to the mode of telehealth services. Whether a consultation occurs through video, audio-only, or an in-person visit, reimbursement policies should be uniform to maintain equitable access to care. Ensuring fair compensation for telehealth providers encourages continued investment in virtual healthcare infrastructure and promotes widespread adoption of remote care services.

Future of telehealth in healthcare delivery

Virtual care is no longer just a temporary solution from the pandemic—it has become a vital component of modern medicine. With advancements in technology, high-speed internet, and remote patient monitoring, healthcare providers can now offer more effective and accessible services. Integrating virtual care into everyday medical practice can help create a system that is more patient-centered, flexible, and efficient.

Hybrid models of care: One of the most promising developments in telehealth is the rise of hybrid care models, which blend in-person visits with virtual consultations and remote monitoring. This approach allows physicians to offer more personalized care while maximizing the efficiency of healthcare resources.

For example, chronic disease management can benefit from a combination of in-person check-up and remote monitoring. Patients with conditions like diabetes or hypertension can track their vitals at home, share data with their doctors, and receive timely interventions—all without frequent clinic visits.

Expanding digital literacy and access: For telehealth to reach its full potential, digital literacy and broadband access must improve, especially in underserved communities. The AMA has advocated for expanding digital literacy programs and increasing internet access to ensure that all patients can benefit from telehealth services. Strengthening efforts to support historically marginalized communities will help bridge the digital divide and create a more inclusive healthcare system.

Ensuring long-term success: The continued success of telehealth depends on legislative support, technological advancements, and provider adoption. By making Medicare telehealth expansion permanent, Congress can ensure that millions of Americans continue to receive high-quality, cost-effective care.

Modern healthcare has greatly benefited from virtual medical services, which have expanded access, lowered costs, and improved patient outcomes. The pandemic highlighted their effectiveness, but the temporary policy changes that enabled wider use must now become permanent. Congress has the chance to solidify the future of remote care by passing the CONNECT for Health Act and ensuring fair payment policies.

By embracing telehealth as a long-term solution, the healthcare system can become more efficient, equitable, and patient-centered. The time to act is now—before millions lose access to a service that has transformed healthcare delivery.