Permanent Payment Parity: States Embrace Telehealth’s Essential Role in Healthcare Reform

In recent years, telehealth has seen a surge in adoption triggered by the COVID-19 pandemic. Payment parity, a policy requiring that healthcare providers receive the same reimbursement for telehealth visits as in-person visits, has been at the forefront of discussions in the healthcare sector. To adapt to this new normal, numerous states have enacted temporary payment parity measures in response to the global health emergency. Today, we witness a transition from these temporary measures to more permanent legislation.

According to a report by Manatt, Phelps & Phillips, LLP, many states are now implementing payment parity on a full-time basis. As of August 2023, no fewer than 21 states have implemented such policies, a clear expression of their commitment to the burgeoning telehealth sector. The exact number of states legislating payment parity highlights the tremendous potential telehealth initiatives have in restructuring healthcare coverage across the United States.

A move to permanent payment parity legislation is an evident recognition of the significant role that telehealth plays in the healthcare sector. Despite challenges in the standardization of these laws across all states, their existence signals a shift in how healthcare provision is perceived, making telehealth an integral part of the wider healthcare framework.

As with any transformative policy, the move to permanent payment parity also poses new challenges and raises pertinent legal discussions among healthcare providers, lawmakers, and other relevant stakeholders. A thorough understanding of these changes is crucial for legal professionals advising healthcare clients in this evolving landscape.

In the coming months, all eyes will be on the evolving nature of telehealth laws across states, a reflection of past efforts to adapt the health care system to the stresses of COVID-19, and future efforts to innovate and transform it. Observers are recognizing that these changes reflect a desire – not merely to return to a pre-pandemic status quo – but to move forward and robustly champion the cause of accessible and high-quality healthcare for all citizens.