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Good News for Telemedicine and Telehealth Providers: Pay Parity Extended for One Year

On December 21, 2023, Assembly Bill No. 5757 was signed into law.  The legislation extends payment parity for telehealth services and ensures continued access to crucial remote healthcare services for New Jersey residents, including those who face barriers to obtaining in-person care.

Specifically, the legislation requires that health benefits plans reimburse providers for telehealth and telemedicine services at the same rate as in-person services.  However, there are limited exceptions which include a carve-out for healthcare services provided by a telemedicine or telehealth organization that are not also available through that organization on an in-person basis.

Additionally, A5757 only provides for a one-year extension of the original COVID-19-born legislation and will expire on December 31, 2024.  Any future extensions will likely be predicated on a review of a Department of Health study that is currently underway regarding the utilization of telehealth and telemedicine and its effects on patient outcomes, quality and satisfaction, and access to care. The goal of the one-year extension is to provide lawmakers with the time to review the result of the study and make informed recommendations moving forward.

As one might expect, there is groundswell of support for legislation promoting telehealth and telemedicine.  According to the Centers for Disease Control and Prevention, telehealth and telemedicine are effective approaches to ensuring services are available to those who live in rural areas and the efficient monitoring of patients with chronic conditions.  As such, even a one-year extension to the pandemic-era legislation is welcome news for telemedicine and telehealth companies for the time being.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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