Study: Telemedicine Expansion Did Not Significantly Increase Spending

Research published in JAMA Network Open found that broader telemedicine access during the COVID-19 pandemic did not lead to major increases in healthcare visits or costs across Medicare, Medicaid and commercial insurance populations.

Key Highlights

  • The study analyzed claims data from over 3 million U.S. adults enrolled in various insurance plans between 2019 and 2023.
  • Telemedicine visits declined slightly by 2.4%, and overall healthcare spending fell by 0.5%, with no statistical significance.
  • No significant changes in utilization or spending were observed across urban, rural, Medicare, Medicaid, or commercially insured populations.
  • Findings suggest telemedicine mainly served as a substitute for in-person care rather than increasing overall access or costs.
  • Further research is needed to understand telemedicine's long-term impact on healthcare quality, outcomes, and spending.

A new study led by researchers at University of California, Los Angeles found that expanded telemedicine use during and after the COVID-19 pandemic did not significantly increase overall healthcare visits or medical spending across major payer groups, according to findings published May 11 in JAMA Network Open.

As detailed in a media release issued May 11, the researchers analyzed claims data from more than 3 million U.S. adults enrolled continuously in Medicare fee-for-service, Medicare Advantage, Medicaid or commercial insurance plans between 2019 and 2023.

The study examined the effects of telemedicine policy changes implemented by the Centers for Medicare & Medicaid Services during the COVID-19 pandemic, including payment parity for virtual visits, waived geographic restrictions and reduced patient cost-sharing requirements.

“Our findings suggest neither prediction came true on a national scale,” said John N. Mafi, M.D., M.Ph., associate professor-in-residence of medicine at UCLA’s David Geffen School of Medicine and lead author of the study, in the media release. “As telemedicine use grew, visits and spending in heavy users tracked closely with patterns in lighter users.”

Researchers found telemedicine visits declined 2.4% and healthcare spending fell 0.5% overall, though neither change was statistically significant. The study also found no statistically significant increases or decreases in utilization or spending across urban, rural, Medicare, Medicaid, commercially insured or socially vulnerable populations.

The authors noted that while lawmakers have debated whether expanded telemedicine flexibilities could increase healthcare utilization and costs, the findings suggest telemedicine has functioned more as a substitute for in-person care rather than a major expansion of healthcare access.

Senior author Katherine Kahn, M.D., distinguished professor of medicine at UCLA and senior natural scientist at RAND, said in the release that additional research is needed to better understand telemedicine’s long-term impact on quality, outcomes and spending.

The study was funded by Arnold Ventures, with additional support from the National Institutes of Health and the National Institute on Aging.

About the Author

Melinda Taschetta-Millane

Melinda Taschetta-Millane

Melinda Taschetta-Millane is Market Content Director of Healthcare Editorial, and Head of Content for Healthcare Innovation.

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