ACA Driving Growth in Telemedicine by Insurers, Employers
September 27, 2014 in News
The Affordable Care Act’s push to reduce health care costs has been a boon to companies that offer telemedicine as a lower-cost alternative to costly emergency department visits, Fortune reports.
For example, one company called Teladoc attributes its recent growth to the ACA. Officials say the company, which was founded in 2002, saw revenues increase by 100% in 2013 and has gained significant investments, including $50 million in a Series F fundraising round, bringing the company’s total funding to around $100 million.
Teladoc also has reached deals with various major health insurers and employers to include coverage for virtual visits in health plans similar to the way they would cover in-office visits.
Teladoc employs about 550 physicians who are on-call during their spare time. The physicians can treat various symptoms and can prescribe treatments remotely using the service, which links patients with the providers for an annual subscription fee and a $40 copayment per video or phone appointment.
Teladoc CEO Jason Gorevic said the ACA has been “an accelerator” for the company, which has become the largest telemedicine provider.
Gorevic noted that as more people enroll in coverage through the ACA’s insurance exchanges during the law’s upcoming second open enrollment period, he expects that more employers will begin embracing telemedicine services (Wieczner, Fortune, 9/24).