Shift to Managed Care Plans May Escalate Telemedicine Use

The trend toward managed care insurance plans may drive increased telemedicine use, according to an American Telemedicine Association news release.

The number of patients who are covered under a managed care plan, which pays a flat fee for treatment, has increased 26 percent from 58 million in 2005 to 73 million today, according to the release. While the traditional fee-for-service model incentivizes providers to bill for as many services as possible, ATA predicts the new capped payment model may encourage healthcare providers to use telemedicine as a means of lowering cost and maintaining or improving quality.

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