Massachusetts lawmakers are debating the question of payment
parity for telemedicine services in the wake of resistance from
health insurers over HB 267. Earlier versions of the bill required
telemedicine services to be reimbursed at the same rate as
in-person services. Opponents of the payment parity language in the
earlier versions of the Massachusetts bill contend that it
undermines the ability of health insurers to negotiate rates with
providers and, in turn, to pass those savings along to consumers.
Health plan representatives argue that the cost of providing
services through telemedicine is generally lower, and therefore
reimbursement should be lower. In response to these concerns, the
current version of the bill allows insurers and providers to
negotiate the rate of reimbursement for telemedicine services.
Supporters of the current bill note the need for legislative action
regarding telemedicine, as Massachusetts continues to lag behind
other states in developing telemedicine legislation. The House and
Senate must complete their respective reviews of the bill no later
than July 31.
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