Telehealth Lowers Costs For Patients And Providers

Rising health care costs can often force Americans to forgo care, leading to worsening health. In fact, a recent study showed that 51 percent of working-age Americans struggle to afford their health care. It is important that patients have the tools needed to access affordable care and cost-savings where possible. Telehealth can often provide these vital cost-saving opportunities and is crucial in lowering care costs for both patients and providers, while increasing access to quality care. 

During the COVID-19 pandemic between January 2020 and February 2021, the average telehealth users’ monthly health care expenses fell from $1,099 to $425, or a 61% decrease in care expenses. This means that patients are saving up to $121 each visit – with climbing rates of inflation and an unstable economy, these savings can be a lifeline for Americans.

One of the most compelling reasons for telehealth is its convenience for patients, which can impact travel burdens that create barriers to care in accessing transportation, taking time off from work and finding childcare. Medicare beneficiaries especially rely on the health care savings they see via telehealth and the convenience it provides. The Centers for Medicare and Medicaid Services estimate that telemedicine saves Medicare patients $60 million on travel, with a projected estimate of $100 million by 2024 and $170 million by 2029. CMS also noted that estimates tend to underestimate telemedicine’s impact, higher projections estimate closer to $540 million in savings by 2029. 

Telehealth has also proven effective at keeping patients out of the emergency room (ER), the most expensive place to receive care, and improving adherence to treatment. By keeping patients out of the ER and helping them more effectively manage their health, telehealth can improve adherence and preventative care, which would result in significant savings for patients, taxpayers and the entire health care system. From January 2020 to February 2021, the average telehealth patient saw their monthly ER visit rate fall from 8.5 percent to 3.03 percent. These findings confirm prior research that found telehealth allowed providers to deliver early interventions to individuals, resulting in the use of fewer intensive and expensive services. In fact, research shows that telehealth tools cut hospital emergency department costs by more than 30 percent. Physicians recognize this need too – in a survey of more than 2,200 physicians, 44 percent said telehealth decreases care costs. 

In their recent recommendations for reducing chronic disease risk factors in patients and managing chronic diseases, the Community Preventative Services Task Force found that the use of telehealth can significantly improve treatment adherence, specifically related to medication adherence and self-management goals. With the use of telehealth, physicians can implement medication reminders and utilize medication management and monitoring tools. Telehealth also allows patients to communicate with their physicians more often, and schedule follow-up visits more conveniently.

Voters recognize the benefits and need for expanded virtual care services and the cost savings it can provide. In a recent voter survey, of the nearly 61 percent of voters who utilized telehealth within the past year, 66 percent of respondents were concerned about being unable to pay for health care. Of those who face financial insecurity, 84 percent are in support of a permanent solution for telehealth. 

Patients and providers nationwide are counting on continued access to lower cost, virtual care. Congress must take action now to protect this vital access to telehealth without onerous restrictions. Learn more about how Congress can act now to safeguard access to telehealth HERE.