Telemedicine is Here to Stay!

There is currently a virtual explosion occurring in the benefits market from digital health apps, benefit administration platforms, to telemedicine. Most employer medical plans have a telemedicine component included. Prior to COVID-19, telemedicine was used for low-severity issues such as colds, ear infections and pinkeye. Self-funded plans, in particular, allow the employer to recognize significant savings when employees utilize the telemedicine option. Additionally, it is more cost-effective and convenient for the employee and their family members. Many physicians are however still sorting out the billing details of administering virtual services. 

During a telemedicine visit, patients typically see a new/ different physician each time. During the COVID-19 crisis many primary care physicians are seeing their regular patients in a virtual setting. Having a primary care relationship is critical, particularly as it relates to early care intervention. So, telemedicine will still be effective for treatment of minor issues but it should not be a replacement for seeing your primary care doctor on a regular basis and maintaining that relationship.

Employers should become familiar with how to access telemedicine and make it available to employees and their families. Most of my clients have a telemedicine component included in their medical plan. However, in Western Pennsylvania, engagement still remains relatively low (2–4%). Telemedicine is a disruptor with respect to how healthcare is traditionally delivered. There are several factors that should have an impact on future utilization: The number of millennials continues to grow and they are typically comfortable using telemedicine. With the current crisis, many Americans are continuing to work from home and that creates a greater need for telemedicine. There is also a tremendous shortage of primary care physicians in the United States. Telemedicine allows fewer physicians to see more patients and the system to triage more effectively. 

Today’s consumers expect instant results and healthcare consumers are no different. With telemedicine, there is no appointment and no wait time for members. Employers want to save money and the technology of telemedicine allows for significant potential savings- for many the cost is $40 per virtual visit verses $125 for a primary care visit or $500+ on average for an emergency room visit. Telemedicine can be a great alternate way to access some specialists that rarely have available appointments (e.g. dermatologists). 

Urgent care centers, which have become a strategic component to managing healthcare and keeping costs down, did not exist until about 5-10 years ago in most communities. Many carriers and providers still report up to 80% of ER visits should have been handled in an urgent care setting. The industry expects to see a high percentage of urgent care issues handled via telemedicine in the near future. Part of what is driving this is the low co-pays associated with telemedicine, which range from $0 to $15 for minor issues. Some providers like Teladoc also offer behavioral and dermatological solutions virtually as well. 

Now is the perfect time to have the conversation about the benefits of telemedicine with employees. Telemedicine is easy, efficient and cost-effective for employers and employees!