ASE recently released the results of our 2017 Healthcare Insurance Benefits Survey.  48% of Michigan employers surveyed have either implemented or plan to implement telemedicine services in 2017.  This is a rising trend in healthcare that encompasses two-way video, email, smartphones, and other technology to make a virtual diagnosis.

Both healthcare providers and employers like telemedicine because it saves money and streamlines care.  Costly and sometimes unnecessary doctor or urgent care visits are reduced.  According to Towers Watson, telemedicine could save employers $6 billion per year if their employees routinely utilized such services instead of visiting urgent cares, emergency departments, and physician offices when appropriate. 

Since telemedicine is still quite new, the challenge is getting leadership and employees on board and willing to use it.  To encourage its use, health insurance providers often waive or reduce the copay for telemedicine, compared to a $15-$25 copay typical for an office visit.  Urgent care and emergency department visit co-pays are even higher. 

Telemedicine services are ideal for ailments such as sore throats, coughs, rashes, sinus pain, etc. If an employee is experiencing life threatening symptoms, they should still proceed to the nearest ER.  A recent study shows that telemedicine patients score lower for depression, anxiety, and stress, and have 38% fewer hospital admissions.

If you are considering adding telemedicine as an option to your health plan, here are some pros and cons:

Pros

·       Healthcare cost savings - Telemedicine reduces unnecessary non-urgent ER and urgent care visits and cost less than an office visit.

·       Extended access to healthcare - Employees in rural or remote areas benefit from quicker and more convenient physician access.

·       Better patient care quality - Telemedicine improves the timeliness of care. Patients can address healthcare issues quickly with real-time urgent care consultations and learn about treatment options within minutes.

Cons

·       Reduction in continuity of care – An employee’s primary care provider may not have access to records from telemedicine visits and end up with an incomplete medical history. Service provider shuffling increases the risk that a doctor won’t know a patient’s history or have notes about care routines.  Employee education on how to properly use telemedicine is important.

·       Its use with HSAs is complicated - Telemedicine technically cannot be used in conjunction with today’s popular HDHP with HSA plans. Telemedicine’s lack of a copayment violates the terms of an HSA.

Telemedicine is a $17.8 billion industry, and it’s expected to grow 18.4% annually from now until 2020.  If you do utilize it within your health plans, be sure to educate employees about its features and benefits.  Employee education is the second most utilized measure for healthcare cost control methods according the ASE survey.  46% of Michigan employers surveyed stated that education around plan features and costs is utilized as a cost containment strategy.

The complete ASE 2017 Healthcare Insurance Benefits Survey is available now to ASE member participants in their ASE Dashboard.  If you are a non-member interested in purchasing this data, please contact ASE’s Compensation and Benefits Surveys department at [email protected] or 248.223.8051.

Sources: Crain’s Detroit Business, SHRM, GriffinBenefits.com, evist.com, ASE Healthcare Insurance Benefits Survey - 2017