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PRESIDENT SIGNS MAJOR TELEMEDICINE LEGISLATION

Contact: Jonathan D. Linkous, Phone: 202-223-3333
Dateline: Washington, DC, December 27, 2000

Last week, President Clinton has signed long-awaited legislation increasing Medicare reimbursement for telemedicine services. The legislative language was included in the combined budget bill that passed both the United States Senate and House of Representatives.

Approval of the improved coverage is a clear sign of strong bi-partisan support for the continued expansion of telemedicine and provides both a real and symbolic victory for advocates. The original bill came about through the efforts of Senator James Jeffords (R-VT) along with the support and work of Rep. John Thune (R-SD).

The legislation substantially improves existing Medicare coverage of telemedicine and serves as a major step forward in expanding such services throughout the U.S. Among the most significant improvements, the language:

  • Expands eligible service areas for covered telemedicine services from restricted rural health shortage communities to include all non-metropolitan counties and existing urban Medicare demonstration sites
  • Expands the eligible telemedical services that can be billed to Medicare
  • Eliminates a required fee splitting requirement between presenting health professionals at the local and referring sites
  • Includes a new $20 facility fee
  • Allows store-forward services to be billed for services provided in Alaska and Hawaii
  • Keeps in place existing Medicare reimbursement for teleradiology, remote cardiac monitoring and related services that are available throughout the country

Also included in the measure is important language clarifying that telehomecare is an eligible service under the new Prospective Payment System that governs use of Medicare dollars for homecare.

The bill is set to go into effect October 1, 2001. It is expected that HCFA will be issuing rules governing changes in the program early next year.

The language is included within Sections 223 and 504 of H.R. 5661. The bill is available for viewing on the official Web site for federal legislation (Thomas) at http://thomas.loc.gov/, by typing in H.R. 5661 under "Bill Number."

The American Telemedicine Association (www.americantelemed.org), a non-profit organization, promotes greater access to medical care via telecommunications technology. Established in 1993 and headquartered in Washington, DC, ATA works closely with medical societies, Congress and others to resolve barriers to the advancement of telemedicine through the professional, ethical and equitable improvement in health care delivery. Membership in the Association is composed of both individual professionals and organizations. ATA sponsors the world's largest meeting and trade show focusing exclusively on telemedicine. ATA 2001 will be held June 3-6 in Ft. Lauderdale, FL.

© 2001 American Telemedicine Association
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