Law Averting Government Shutdown Extends Medicare Telehealth Coverage until Sept. 30

‘It’s important to virtually every American’

Medicare coverage for telehealth appointments has broad bipartisan support, says Kyle Zebley, senior vice president of public policy for the Washington-based American Telemedicine Association. It sets a standard for other insurers as well.

“Telehealth is important because it breaks down geographic barriers to care,” he says. “It’s important to virtually every American.”

Nearly three-quarters of adults 50 and older said they used telehealth services at least once in the past 12 months, according to a January 2024 AARP poll. Nine in 10 said they were somewhat or very satisfied with their experience; about half of those surveyed were on Medicare, the federal insurance program that helps pay health care costs for adults age 65 and older and some younger than 65 with disabling conditions.

Telehealth is most popular among people 65 and older with long-term disabilities, as well as those who qualify for both Medicare and Medicaid, according to KFF, a Washington-based nonpartisan nonprofit formerly known as the Kaiser Family Foundation that studies health care trends. Medicaid is a federal and state program that covers health and long-term care costs for people with limited income and assets.

“People with Medicare are accustomed to checking in with their health care providers from the comfort of their own home,” says Andrew Scholnick, government affairs director at AARP. “Some people are using technology to assist with managing chronic conditions or see specialists that work far away.”

Medical appointments at home help those with disabilities

If the Medicare coverage for telehealth that’s now in place isn’t extended beyond Sept. 30, patients will have to travel to an office or medical facility for most telemedicine services. Those not in a rural setting could still have certain Medicare telehealth services covered, including monthly consultations about home dialysis for kidney failure; diagnosis and treatment of sudden stroke symptoms; and some mental health care.

In the first quarter of 2020 before the pandemic, fewer than 7 percent of Medicare patients used telehealth services, according to CMS data. That shot up to nearly 47 percent the next quarter.

By the end of 2023, the percentage had dropped substantially, to about 13 percent of people using original Medicare, but that’s still twice the rate of those using telehealth before the pandemic, says Alex Cottrill, senior policy analyst for KFF’s Medicare policy program.

“Telehealth can be a lifeline for people with disabilities, especially for disabilities that impact their mobility,” Cottrill says. People whose incomes are low also may have a tougher time physically getting to a doctor’s office or may not be able to miss work for an in-person visit.

Benefits include better management of chronic conditions

How much telehealth costs Medicare is difficult to assess, he says. The practice often uses fewer resources and takes up less clinician time. The extra convenience may mean that more people will use medical services, but in the long run, that may also mean lower costs if regular care prevents more serious illnesses later.

Medicare now pays providers the same rates for telemedicine and in-person appointments. 

Zebley says he’s optimistic Medicare telehealth coverage will continue, even if it is in a series of extensions.

“It’s just that Congress, the federal government, has difficulty doing basic things. It’s a fraught moment in time,” he says. “They’ll make us sweat it. It might be last minute, but I think we’re going to get it done.”