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Mandated Report from the MedPAC Offers Insights on the Utilization of Telehealth During the Public Health Emergency

By John W. Kaveney on June 23, 2023
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On June 15, 2023, the Medicare Payment Advisory Commission (MedPAC), a nonpartisan independent legislative branch agency that was created to advise Congress on a range of issues affecting Medicare, issued its 2023 Report to Congress. Included therein was a report, mandated by the Consolidated Appropriations Act, on the usage of telehealth services during the public health emergency (PHE) and an analysis of the association between expanded telehealth coverage and healthcare quality, access, and costs.

Discussed in the Telehealth Report, among many other things, was the overall utilization of telehealth during the pandemic.

FFS Medicare spending for telehealth services was very low in 2019 ($130 million) but rose dramatically during the early months of the PHE, peaking at $1.9 billion in the second quarter of 2020, as providers and beneficiaries shifted rapidly from in-person visits to telehealth. Telehealth spending declined in the latter half of 2020 and in 2021, falling to $827 million in the fourth quarter of 2021. Similarly, between 2019 and 2020, the number of FFS beneficiaries who received at least one telehealth service paid under the PFS accelerated rapidly from 239,000 to 14.2 million (40 percent of Part B FFS beneficiaries), then declined in 2021 to 9.7 million (29 percent of Part B FFS beneficiaries).

While the latter part of 2020 and 2021 showed a drop-off in the utilization of telehealth services from its peak in the early months of the PHE in 2020, even as the pandemic eased, telehealth spending remained at an amount over six times what it was pre-PHE. Moreover, the number of beneficiaries utilizing telehealth remained steady at 29% into 2021, which is over forty times more beneficiaries than utilized telehealth pre-PHE. The MedPAC’s annual survey of Medicare beneficiaries also revealed that 40% of telehealth users said they were interested in continuing to use telehealth after the PHE. Thus, while it remains to be seen whether telehealth becomes a permanent fixture in the delivery of services to Medicare beneficiaries, there certainly remains a demand.

The Telehealth Report also commented on the question of whether expanded telehealth coverage impacted quality, access, and cost during the PHE. While the MedPAC qualified its comments by indicating that any conclusions were limited because of a time lag in claims data, which could cloud the results due to COVID-19 surges during the available period of time (i.e. 2021), the report nonetheless conveyed some preliminary conclusions. The MedPAC reviewed Medicare fee-for-service administrative data to compare population-based outcomes across hospital service areas (HSAs) with different levels of telehealth service use. The MedPAC also compared rates of hospitalization and clinician encounters for the various groups of HSAs.  The MedPAC concluded that “during the pandemic, greater telehealth use was associated with little change in measured quality, slightly improved access to care for some beneficiaries, and slightly increased costs to the Medicare program.” The MedPAC cautioned that further research, including the review of more recent data as it becomes available, is critical to truly assess these items.

As Congress grapples with the ultimate questions of what telehealth should look like beyond 2023 and 2024, as the various extensions expire, what remains clear is that the PHE has drastically changed how healthcare is provided to patients. In addition, the rate at which telehealth has been utilized over the past few years is likely to signal a desire for its continued availability into the future. Thus, lawmakers are going to have a difficult time putting the genie back in the bottle and returning telehealth-based Medicare services to the much narrower pre-PHE framework.

Photo of John W. Kaveney John W. Kaveney

Partner, Healthcare and Litigation

John provides legal guidance to healthcare sector clients on a broad variety of topics, including Medicare/Medicaid reimbursement issues, corporate compliance, data privacy and cybersecurity concerns, healthcare provider licensure and medical staffing concerns, involuntary commitment laws, and general healthcare regulatory…

Partner, Healthcare and Litigation

John provides legal guidance to healthcare sector clients on a broad variety of topics, including Medicare/Medicaid reimbursement issues, corporate compliance, data privacy and cybersecurity concerns, healthcare provider licensure and medical staffing concerns, involuntary commitment laws, and general healthcare regulatory support. He represents a diverse roster of healthcare entities, including for-profit and nonprofit hospitals and health systems, academic medical centers, individual physicians and physician groups, ambulatory surgery centers, ancillary service providers, medical billing companies, skilled nursing and rehabilitation facilities, behavioral health centers and pharmacies.

John advises on Medicaid reimbursement matters before the New Jersey Division of Medical Assistance and Health Services (DMAHS), which administers the state’s Medicaid programs, and handles Medicare reimbursement disputes, both in New Jersey and in numerous other states, before the federal Provider Reimbursement Review Board (PRRB).

In the area of corporate compliance, John supports clients on matters including the implementation of new, and the assessment and improvement of existing, compliance programs. He assists healthcare clients in navigating compliance audits, internal investigations, and governmental investigations related to compliance issues, including potential violations of the federal Stark Law, Anti-Kickback Statute (AKS), and Civil Monetary Penalties law (CMP). He further provides general guidance concerning compliance and regulatory matters under state and federal healthcare laws.

On issues related to information privacy and cybersecurity at the intersection of healthcare law, John assists providers with issues arising under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH). This includes the implementation and assessment of privacy and security policies and procedures to ensure the proper protection and utilization of protected health information (PHI) both by healthcare providers and the business associates with which they contract. In addition, he represents healthcare clients in investigating, reporting, and remediating information breaches and the liability such breaches create under various information privacy and security laws.

John also counsels healthcare providers with professional licensure issues and advises hospitals and health systems regarding their medical staff bylaws and corresponding policies and procedures, as well as assisting with internal investigations of medical staff members and the corresponding disciplinary process. He further provides legal guidance related to New Jersey’s involuntary commitment laws, and provides representation in civil litigation.

John serves as Editor-In-Chief of Healthcare Perspectives, Greenbaum’s blog covering issues of interest to the healthcare industry.

Results may vary depending on your particular facts and legal circumstances.

Contact information:

jkaveney@greenbaumlaw.com | 973.577.1796 | vCard | LinkedIn

For more information visit the Greenbaum, Rowe, Smith & Davis LLP website.

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  • Posted in:
    Health Care and Life Sciences
  • Blog:
    Healthcare Perspectives
  • Organization:
    Greenbaum, Rowe, Smith & Davis LLP
  • Article: View Original Source

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