ATA proposed bill could save Medicaid $180M
A legislative proposal developed by the American Telemedicine Association (ATA) to expand the use of telemedicine for Medicaid beneficiaries with neonatal healthcare needs could save the federal government approximately $186 million over 10 years, according to an analysis of the proposal conducted by healthcare consulting firm Avalere Health.
Commissioned by ATA to conduct a Congressional Budget Office (CBO)-style evaluation, the Washington, D.C.-based Avalere determined that the proposed legislation will save money if it successfully reduces high cost pre-term birth rates among Medicaid beneficiaries. It would encourage providers to participate by implementing state shared savings plans, the costs of which the federal government would pay 90 percent of during the first two years, and would require participating providers to produce performance reports. Citing research conducted by the Institute of Medicine and the American Academy of Pediatrics, Avalere determined that treatment of pre-term births cost a total of $16.9 billion in 2006, with 85 percent of the cost delivered in early infancy, and that Medicaid accounts for roughly 40 percent of annual spending on pre-term births.
According to Avelere's Dec. 9 Avalere memorandum, the proposed legislation would alter the Social Security Act to permit states to develop plans to provide medical assistance to eligible individuals requiring pregnancy-related services enroll in a "birthing network." “The proposal would provide Medicaid coverage of telemedicine for neonatal care via a comprehensive care birthing network," ATA said. "These networks could leverage telemedicine technologies to more effectively treat conditions associated with high-risk pregnancies."
Commissioned by ATA to conduct a Congressional Budget Office (CBO)-style evaluation, the Washington, D.C.-based Avalere determined that the proposed legislation will save money if it successfully reduces high cost pre-term birth rates among Medicaid beneficiaries. It would encourage providers to participate by implementing state shared savings plans, the costs of which the federal government would pay 90 percent of during the first two years, and would require participating providers to produce performance reports. Citing research conducted by the Institute of Medicine and the American Academy of Pediatrics, Avalere determined that treatment of pre-term births cost a total of $16.9 billion in 2006, with 85 percent of the cost delivered in early infancy, and that Medicaid accounts for roughly 40 percent of annual spending on pre-term births.
According to Avelere's Dec. 9 Avalere memorandum, the proposed legislation would alter the Social Security Act to permit states to develop plans to provide medical assistance to eligible individuals requiring pregnancy-related services enroll in a "birthing network." “The proposal would provide Medicaid coverage of telemedicine for neonatal care via a comprehensive care birthing network," ATA said. "These networks could leverage telemedicine technologies to more effectively treat conditions associated with high-risk pregnancies."