More states are seeking federal approval to use Medicaid funds for telehealth services as they work to address persistent budget deficits and a growing shortage of in-home care providers, the Louisville Courier-Journal reports.
Indiana already provides Medicaid reimbursements for telehealth. Meanwhile, Kentucky’s Cabinet for Health and Family Services recently asked for federal permission to use Medicaid funds for such services.
About the Technology
Some telemedicine products use cameras to help remote caregivers monitor elderly individuals and people with disabilities. The caregivers can alert residents or family members of health or safety issues that arise.
In addition, electronic sensors can detect temperature changes, carbon monoxide levels and other risk indicators. Some telehealth products also provide services such as medication reminders and food preparation guidance.
Cost Benefits for States
One provider of telemedicine services, called Rest Assured, typically charges $10 an hour, which is about half as much as in-home care. Telehealth services also are significantly less expensive than nursing home care, which can cost upward of $5,000 monthly.
A 2010 study in the Journal of Telemedicine and Telecare found that Indiana could reduce spending by $13.4 million annually if about 450 residents used telemedicine services. However, officials say they have yet to realize that amount of savings because residents have been slow to adopt the technology (Howington, Louisville Courier-Journal, 4/24).
