Legislation Extends Pay Parity for Telehealth and Telemedicine Providers through the End of 2024
The Assembly Health Committee voted Monday on a bill, sponsored by Assemblyman Herb Conaway, Jr., to extend pay parity for telehealth and telemedicine providers until the end of 2024. Under A5757, reimbursement payments for providers using telemedicine and telehealth will continue to be equal to or no less than the reimbursement received for in-person consultations through next year.
Many health providers began offering telehealth services to their patients during the COVID-19 pandemic. The federal government through the CARES Act stipulated pay parity for Medicare and Medicaid, and many private insurers followed suit. Pay parity rates are set to expire at the end of this year, and the federal government has not yet decided to further extend pay parity or to make it permanent. This legislation aims to ensure that important telehealth services are not lost at the end of the year.
During the previous legislative session, Governor Phil Murphy conditionally vetoed telehealth pay parity legislation and directed the Department of Health to access the costs and impacts of the practice in New Jersey. The DOH expects the study will be ready next year. By extending pay parity through the end of 2024, Bill A5757 provides legislators the time to review the data once the study is complete to make informed recommendations.
“Extending pay parity for telemedicine and providing time for the government to study its impact in New Jersey supports continuity of care for our citizens and acknowledges the evolving medical landscape,” said Assemblyman Conaway (D-Burlington). “By taking the time to thoroughly review the Department of Health’s study, we are recognizing the value of a healthcare professional’s expertise, regardless of how they deliver care.”
The bill received a vote of 11-0.