Health 2.0 - Insurance Coverage and Broadband Expansion For Telemedicine Services

Whether or not an insurance company will provideSome states like Colorado limit mandatory
coverage for telemedicine services or not iscoverage for telemedicine to rural counties with
generally controlled by the company'spopulation census under 150,000 people. Most of
interpretation of its policies. Many insurancethe 11 states require telemedicine services to be
companies do voluntarily provide telemedicinein real time "synchronus") or near real time
coverage. Some insurance policies require "face to("asynchronus"). (I have been looking for an
face" provision of services or specifically excludeopportunity to use those two words).
telemedicine coverage. In most states the issueThere is likely to be a dramatic growth in
of telemedicine coverage is left to the discretiontelemedicine services in the coming decade as the
of the insurance companies in their plan designs.federal government pursues the expansion of
Recently, Virginia passed Senate Bill 675, nowbroadband capability as part of the FCC's National
signed by the governor, which mandatesBroadband Plan. The FCC recommends the
insurance coverage for telemedicine services,establishment of a Healthcare Broadband
which it defines as the "use of interactive audioInfrastructure Fund to help cover the cost of
video or other electronic media used for thetelemedicine in medically underserved rural areas.
purpose of diagnosis consultation, or treatment." ItIt proposes allocating at least $29 Million Dollars
excludes audio only telephone, email and faxannually to the Indian Health Service to improve
transmissions. Virginia thus joins 11 other statesits broadband capability and extending broadband
that have passed some form of mandatorygrants to nursing homes, healthcare administrative
insurance coverage for telemedicine. Virginia, likeoffices, health care data centers and other health
most of the others, does not requirecare locations. It supports increasing federal
reimbursement for the technical cost ofreimbursements for telemedicine services and
telemedicine services, but does require paymenteliminating regulatory barriers to the expansion of
comparable to that for face to face delivery oftelemedicine technology.
medical services. Deductibles and co-pays may beThe visit to the doctor's office may soon be an
applied, but at no higher rates than face to faceexperience of the past, with physicians making
services. The Virginia bill also proscribes lifetimevirtual home calls.
caps on telemedicine services.