Virtual Care

State of Play: President Biden’s fiscal year 2024 budget continues the administration’s commitment to telehealth with an increased budget and funds in the REConnect program to bring broadband access to unserved areas. The “Prescription Digital Therapeutics Act,” which would provide coverage and payment for digital therapeutics under the Medicare program, has been reintroduced and referred to the Senate Finance Committee. Bipartisan legislation has also been introduced in the House of Representatives to allow employers to offer all workers standalone telehealth benefits in addition to traditional health plans. The Medicare Payment Advisory Commission (MedPAC) is examining telehealth benefits in Medicare and seeking data on lab reports and patient outcomes. Troy Tazbaz is the new director of the Food and Drug Administration’s (FDA) Digital Health Center of Excellence. Early this year, the center released an annual report of its accomplishments. The FDA hosted a workshop on the role of digital health in clinical drug trials.

HLC Position: Activities continue in 2023 to educate lawmakers on the value and benefits of telehealth and virtual care, addressing unfounded criticisms that it unnecessarily increases costs and duplicates existing healthcare services. Making the evidentiary case for the value of virtual care is essential in gaining permanence for the regulatory flexibilities that were instituted during the COVID-19 pandemic. Policy support also must be provided for safe and efficient digital connectivity that enables patients to receive essential healthcare in their homes.

HLC 2023 Activity:

• In February, HLC’s Policy Committee hosted Brendan O’Leary, deputy director of the Digital Health Center of Excellence at the FDA’s Center for Devices and Radiological Health (CDRH). Mr. O’Leary covered recent developments in digital health at the FDA.
• On February 13, HLC responded to the Centers for Medicare and Medicaid Services’ (CMS) proposed rule requesting comments on health IT standards and implementation specifications. HLC expressed support for CMS’s proposal to require MA organizations to develop and maintain procedures to offer digital health education to beneficiaries with low digital health literacy to assist them with accessing medically necessary covered telehealth benefits. HLC also requested that CMS conduct annual assessments of digital health literacy across the Medicare population to help inform best practices and lessons learned.
• HLC sent comments to Senator Brian Schatz (D-HI) and Representative Mike Thompson (D-CA) in regard to the CONNECT for Health Act, urging for the removal of existing telehealth prohibitions under Social Security Act Section 1834(m), and supporting policies, such as allowing federally qualified health centers and rural health clinics to permanently offer telehealth services, as well as encouraging Congress to examine other ways to integrate telehealth services into existing forms of care and coverage.