|
This is an archive page. The links are no longer being updated.
Testimony on Telemedicine by Robert A. Berenson, M.D., Director,
Center for Health Plans & Providers, Health Care Financing
Administration, U.S. Department of Health and Human Services
Before the House Commerce Subcommittee
on Health and Environment
September 7, 2000
Chairman Bilirakis, Congressman Brown, distinguished Subcommittee
members, thank you for inviting me to discuss Medicare coverage
of telemedicine. Telemedicine, with its ability to provide
medical services via telecommunications systems, holds great
promise for extending access to care in rural and other medically
underserved areas. We understand that rural beneficiaries
face unique challenges in accessing the medical care they
need, particularly access to specialists. Helping them is
a high priority for us. And we share the Secretary=s
commitment to promoting telemedicine where appropriate.
To date, telemedicine usage in Medicare has been limited.
The Balanced Budget Act (BBA) of 1997 expanded coverage options,
but also included several restrictions that preclude telemedicine=s
use under conditions where it is commonly being used outside
of Medicare. We are concerned that this is limiting the potential
of telemedicine in Medicare. However, we also have a number
of concerns regarding broader implementation of telemedicine.
There is very little published, peer-reviewed scientific data
available on when telemedicine use is medically appropriate.
It is difficult to project potential cost implications. And
there are potential program integrity issues that should be
addressed proactively.
To help address these concerns, we are conducting extensive
research and several demonstration projects. We are particularly
interested in learning more about:
- specific clinical circumstances when telemedicine is medically
appropriate;
- which health care providers are clinically appropriate
for telemedicine presentations; and,
- the potential uses and abuses of Astore-and-forward@
technology, in which there is no real-time interaction between
patient and provider.
We are conducting demonstration projects specifically examining:
- the feasibility, acceptability, cost, and quality of teleconsultation
services;
- the potential role of telemedicine in diabetes management;
and,
- rural physicians=
perceived barriers to utilizing telemedicine.
We also are consulting with academic and military experts
who are using telemedicine in situations beyond those now
allowed under the Medicare statute. We are working with other
Department of Health and Human Services agencies, including
the Health Resources and Services Administration=s
Office of Rural Health Policy and Office for the Advancement
of Telehealth, as well as the Agency for Healthcare Research
and Quality. In addition, the Department=s
Assistant Secretary for Planning and Evaluation has commissioned
a study on assessing approaches to evaluating telemedicine,
which should further enlighten our work.
These efforts are ongoing, and we are not yet able to reach
firm conclusions or make responsible recommendations. As mentioned
above, there is very little published, peer-reviewed scientific
data in this field, which makes our current research efforts
all the more critical for determining how telemedicine coverage
should be expanded. However, preliminary indications from
our ongoing work suggest there may well be additional clinical
circumstances, beyond those paid under current Medicare law,
where telemedicine is appropriate. There also may well be
additional health care personnel able, but not allowed under
current law, to make telemedicine presentations. We will continue
our telemedicine research efforts and compile findings in
a report that will make firm recommendations on how the benefit
should be expanded and what program integrity protections
may be needed. We want to work with Congress as we proceed
to develop the data necessary for responsible decisions about
how to expand the use of telemedicine in Medicare.
To further help us in all our efforts to better serve rural
beneficiaries and providers, including the use of telemedicine
services, we have established a Rural Health Initiative within
our agency. This Initiative includes senior agency leaders
and a direct rural contact staffer in each of our Regional
Offices to increase and coordinate attention to rural issues
and closely monitor how laws and regulations governing our
programs affect rural beneficiaries and providers.
Background
The BBA significantly expanded Medicare=s
authority to cover telemedicine. Previously, telemedicine
coverage in Medicare was limited to situations in which no
face-to-face contact between patient and provider is generally
necessary; for example, in radiologic interpretation of x-rays.
However, the BBA expansion continued to place strict limits
on telemedicine coverage. For example:
- Telemedicine services may only be provided to a beneficiary
in a rural health professional shortage area (HPSA);
- Telemedicine services are limited to Aconsultations@
for which payment currently may be made under Medicare.
This is a key limitation, as the American Medical Association
Physicians= Current
Procedure Terminology (CPT) defines consultation as a Aface-to-face@
physician and patient encounter, meaning that the patient
must be present at the time of the consultation. Therefore,
a Medicare Ateleconsultation,@
is a medical examination under the control of the consulting
practitioner, in lieu of an actual face-to-face encounter,
that must take place via an interactive audio-video telecommunications
system;
- Only physicians or practitioners described in section
1842(b)(18)(C) of the Social Security Act may provide teleconsultations.
This also is a key limitation, as registered nurses and
other medical professionals not recognized as practitioners
under this section of the Medicare statute may not receive
payment for a teleconsultation, even though they commonly
serve as telepresenter outside of Medicare. Additional health
care professionals, such as clinical psychologists, clinical
social workers, and physical, occupational, or speech therapists
who are able to receive Medicare payment in limited circumstances,
but are not specifically listed in the statute as Medicare
providers, also are precluded from receiving payment for
teleconsultation; and,
- The law specifically prohibits payment for line charges
or for facility fees, and mandates that consulting and referring
practitioners share payments.
On November 2, 1998, we published a final rule in the Federal
Register implementing the telemedicine provisions of the
BBA. The rule explains the geographic limits for reimbursement,
the practitioners that are eligible to present patients and
act as consultants, the teleconsultive services and technologies
that are covered, and how payment will be made.
Regarding the mandate that consulting and referring practitioners
must share payments, the rule stipulates that 75 percent of
the fee go to the consultant and the remaining 25 percent
go to the referring practitioners. This split is based on
the relative work for practitioners at both ends of the consultation
and an inherent recognition that different consultations call
for different levels of effort. As a result, the fee split
reflects the projected level of new work done by each practitioner
over the course of various teleconsultations.
The rule also specifies that the eligible CPT codes for consultations
that can be covered under the statute can be used for a number
of medical specialties, such as cardiology, dermatology, gastroenterology,
neurology, pulmonary, and psychiatry. We will cover additional
consultations for the same or a new problem if the attending
physician or practitioner requests the consultation, and if
it is documented in the medical records of the beneficiary.
Telemedicine in Other Settings
Outside of Medicare, telemedicine is being used in many circumstances
not allowed under current Medicare law. Again, there is a
paucity of published, peer-reviewed literature on the appropriateness
of many of these uses. However, telemedicine is being used
for much more than interactive consultations. These include
evaluation and management services that are common in physician
office visits, psychotherapy, pharmacologic management, sleep
studies, physical and occupational therapy evaluation, and
speech therapy.
AStore-and-forward@
technology also is being used in which there is no real-time
interaction between patient and provider. Instead, a referring
provider will examine a patient and then send a video clip
or a photographic scan, along with the patient=s
medical record, to a distant consulting practitioner. The
consulting practitioner will then review the file and make
a diagnosis. Military and academic health care providers,
in particular, are having apparent success with Astore-and-forward@
for diagnosing dermatology cases. And it is being used for
several other specialties, such as opthalmology, cardiology,
nuclear medicine, and sleep.
Also, outside of Medicare, telemedicine presentations are
commonly made by health care professionals, especially registered
nurses and licensed practical nurses, who are not allowed
to make such presentations under current Medicare law. Some
telemedicine programs use nurses for virtually all telepresentations,
with generally high satisfaction ratings from both patients
and physicians. And we are examining this through one of our
demonstration projects where we are allowing registered nurses
to make telemedicine presentations.
In Medicaid, at least 17 States (Arkansas, California, Georgia,
Iowa, Illinois, Kansas, Louisiana, Montana, Nebraska, North
Carolina, North Dakota, Oklahoma, South Dakota, Texas, Utah,
Virginia, and West Virginia) are covering telemedicine, often
under circumstances not now allowed under Medicare law. States
must satisfy Federal requirements of efficiency, economy,
and quality in telemedicine coverage, but generally are encouraged
to use the flexibility inherent in Federal law to create innovative
payment methodologies for telemedicine. For example, States
are not required to split fees as in Medicare, and may make
separate reimbursements to both the referring physician for
an office visit and to the consulting physician for a consultation.
States also can cover network line charges, facility fees,
technical support, depreciation on equipment, and other costs
not allowed under Medicare law, as long as the payment is
consistent with the requirements of efficiency, economy, and
quality of care.
Current Research
We recognize the potential benefits these additional telemedicine
uses may offer in Medicare. But we feel compelled to proceed
with due caution because of the paucity of published, peer-reviewed
scientific literature on when and where these other uses are
clinically appropriate. We also are concerned about the effect
of telemedicine on quality or care, the potential for abuse,
and the difficulty in establishing program integrity parameters
without the kinds of solid, scientific, evidence we generally
rely on in determining when a given service is medically appropriate.
To address these outstanding concerns, we are conducting
extensive research and demonstration projects, and developing
a report that will include specific recommendations on how
to expand the Medicare telemedicine benefit. To collect data
on these issues, we have worked with telehealth projects receiving
grant funding through the Office for the Advancement of Telehealth
at the Health Resources and Services Administration. We also
received data from the telemedicine directorate at the Walter
Reed Army Medical Center and the Telemedicine Center at Ohio
State University Medical Center.
Also, in conjunction with the Agency for Healthcare Research
and Quality, we have contracted with the Oregon Health Sciences
University to evaluate several issues pertaining to Medicare
coverage policy. These efforts have helped us understand how
telemedicine is being used outside Medicare. This study involved
an assessment of the clinical and scientific literature dealing
with the cost-effectiveness of telemedicine, specifically
looking into the areas of Astore-and-forward@
technology, patient self-testing and monitoring, and potential
telemedicine applications for non-surgical medical services.
Within Medicare, we are conducting research demonstration
projects to help us better understand telemedicine. We are
working through Columbia University to conduct the Informatics,
Telemedicine, and Education Demonstration Project, as required
by the BBA. This randomized, controlled study will explore
whether the use of advanced telemedicine technology improves
clinical outcomes for diabetics in New York City and rural,
upstate New York.
Another demonstration to assess the feasibility, acceptability,
cost, and quality of teleconsultation services involves 110
Medicare-certified facilities in North Carolina, Iowa, West
Virginia, and Georgia. It also includes a bundled payment
rate that is negotiated to cover both the facility and physician
fees for telemedicine services. Utilization of telemedicine
in the project so far has been limited. And we are now considering
whether to remove the bundled payment feature, which may be
contributing to the low utilization levels, from the project.
To better understand usage patterns, we also are examining
rural providers=
perceived barriers to telemedicine.
We also are examining whether it is appropriate to provide
payments for teleconsultation to beneficiaries in homebound
settings. And we also are working with the Center for Health
Policy Research at the University of Colorado to evaluate
the impact of telemedicine coverage on access to, and quality
of, care, and to analyze rural physicians=
perceived barriers to telemedicine.
A key concern for us as we work with Congress in exploring
possible expansions is how to ensure that telemedicine is
used appropriately. There is significant potential for over-utilization
that would be difficult to monitor and prevent, since we have
so little data to guide us in determining when telemedicine
is, in fact, medically appropriate. AStore-and-forward@
technology, in particular, has the potential to substantially
increase the number of consultations billed to Medicare without
regard to medical necessity.
Another key concern is the difficulty in projecting costs
for telemedicine expansions. There are, as yet, no good data
on the extent to which expanded coverage for telemedicine
would increase claims. There are no reliable data on the extent
to which additional claims would represent appropriate care
that should be, but is not now, being delivered. And there
are no reliable data on the extent to which expanded coverage
would invite inappropriate claims or other abuse. The lack
of data, as well as program and payment experience, in these
areas warrants a careful, measured approach as we proceed.
Issues such as scope of coverage and expansion of eligible
areas need to be carefully studied and considered. And we
need reliable evidence to determine when telemedicine is an
appropriate substitute for services that traditionally require
the physical presence of a patient.
Rural Initiative
Telemedicine is only one part of our efforts to improve access
and services for rural beneficiaries. We are redoubling our
efforts to more clearly understand, and actively address,
the special circumstances of rural providers and beneficiaries.
Last year we launched a new Rural Health Initiative and are
meeting with rural providers, visiting rural facilities, reviewing
the impact of our regulations on rural health care providers,
and conducting more research on rural health care issues.
We are participating in regularly scheduled meetings with
the Health Resources and Services Administration=s
Office of Rural Health Policy to make sure that we stay abreast
of emerging rural issues. And we are working directly with
the National Rural Health Association to evaluate rural access
to care and the impact of recent policy changes.
Our goal is to engage in more dialogue with rural providers
and ensure that we are considering all possible ways of making
sure rural beneficiaries get the care they need, including
use of telemedicine. We are looking at best practices and
areas where research and demonstration projects are warranted.
We want to hear from those who are providing services to rural
beneficiaries about what steps we can take to ensure they
get the care they need.
We have put together a team for this rural initiative that
includes senior staff in our Central and Regional Offices
and dedicated personnel around the country. The work group
is co-chaired by Linda Ruiz in our Seattle regional office
and Tom Hoyer in our central office headquarters in Baltimore.
Each of our ten regional offices now has a rural issues point
person that you and your rural provider constituents can call
directly to raise and discuss issues, ideas, and concerns.
A list of these contacts and their respective States is attached
to my testimony.
Conclusion
Telemedicine holds great promise for improving access to
care, particularly for beneficiaries in rural and other underserved
areas. Our ongoing research efforts should help address the
lack of scientific data on its appropriate uses. That will
help us understand whether and how current restrictions on
Medicare coverage for telemedicine should be changed.
We are very grateful for this opportunity to discuss our
efforts to help rural providers and beneficiaries, and to
explore further actions we might take to address their concerns
in a prompt and fiscally prudent manner. I thank you again
for holding this hearing, and I am happy to answer your questions.
MEDICARE REGIONAL RURAL REPRESENTATIVES
July 2000
REGION I: Jeanette Clinkenbeard
Boston 617-565-1257
Serving: Maine, New Hampshire, Vermont, Massachusetts,
Connecticut, and Rhode Island
REGION II: Elizabeth Romani
New York 212-264-3958
Serving: New York, New Jersey, Puerto Rico, and
the Virgin Islands
REGION III: Joe Hopko
Philadelphia 215-861-4192
Serving: Pennsylvania, Maryland, Delaware, West
Virginia, and Virginia
REGION IV: Catherine Cartwright
Atlanta 404-562-7465
Serving: Kentucky, North Carolina, South Carolina,
Tennessee, Mississippi, Alabama, Georgia, and
Florida
REGION V: Gregory Chesmore
Chicago 312-353-1487
Serving: Minnesota, Wisconsin, Michigan, Illinois,
Indiana, and Ohio
REGION VI: Becky Peal-Sconce
Dallas 214-767-6444
Serving: New Mexico, Oklahoma, Arkansas, Louisiana,
and Texas
REGION VII: Robert Epps
Kansas City 816-426-5783
Serving: Nebraska, Iowa, Kansas, and Missouri
REGION VIII: Penny Finnegan
Denver 303-844-7117
Serving: Montana, North Dakota, South Dakota,
Wyoming, Utah, and Colorado
REGION IX: Sharon Yee
San Francisco 415-744-2935
Serving: California, Nevada, Arizona, Hawaii,
Guam, and American Samoa
REGION X: Jim Underhill
Seattle 206-615-2350
Serving: Washington, Oregon, Idaho, and Alaska
HHS Home (www.hhs.gov) |
Topics (www.hhs.gov/SiteMap.html) |
What's New (www.hhs.gov/about/index.html#topiclist) |
For Kids (www.hhs.gov/kids/) |
FAQs (answers.hhs.gov) |
Site Info (www.hhs.gov/SiteMap.html) |
Disclaimers (www.hhs.gov/Disclaimer.html) |
Privacy Notice (www.hhs.gov/Privacy.html) |
FOIA (www.hhs.gov/foia/) |
Accessibility (www.hhs.gov/Accessibility.html) |
Contact Us (www.hhs.gov/ContactUs.html)
|