Ohio, New Jersey Governors Sign Telehealth Bills Into Law

Ohio Gov. Mike DeWine and New Jersey Gov. Phil Murphy have signed into law bills that will expand access to telehealth in their respective states.

DeWine signed the Telemedicine Expansion Act, which will widen access to telehealth services in several ways, including allowing a wider variety of providers to conduct telehealth visits, such as school psychologists, optometrists, pharmacists, physician assistants, and more.

Further, the law increases the types of provider sites that can submit claims to Medicaid for telehealth services. The new list includes federally qualified health centers, rural health clinics, ambulatory healthcare clinics, outpatient hospitals and Medicaid school programs.

In addition to the above expansions, the law imposes certain restrictions on payers. It prohibits a health benefit plan from imposing higher out-of-pocket prices for telehealth services than those for comparable in-person services and states that neither private nor public payers can exclude coverage for a service solely because it is provided via telehealth.

The law also requires payers to provide coverage for asynchronous communication, that is, communication that does not occur between a patient and a provider in real time. This includes texting pictures or descriptions of symptoms that providers see and diagnose at a later time.

The bill's sponsors believe that it will not only help increase access but also curb rising costs.

"By passing House Bill 122 we can give all Ohioans greater access to physical and mental health treatment, allow our providers to take full advantage of modern technology, and reduce the time and travel burden many Ohioans incur to seek medical assistance," said bill co-sponsor Rep. Adam Holmes (R-Nashport), in a news release. "And we can accomplish all of this without raising healthcare costs."

The Buckeye Institute, an independent research and educational think tank based in Ohio, echoed Holmes.

"During the pandemic Ohioans witnessed that free-market policies such as expanding access to telehealth services is not only popular but offers real benefits to doctors and patients," said Rea S. Hederman Jr., executive director of the Economic Research Center at The Buckeye Institute and vice president of policy, in a statement.

The bill was passed by the Ohio House of Representatives in April and by the Senate earlier this month.

Meanwhile, New Jersey's telehealth bill saw a tougher battle. Murphy rejected the bill last month, stating that the cost to taxpayers could be "substantial."

But now, Murphy has signed the bill, with the caveat that the state's Department of Health conduct an in-depth study on telehealth use and its effects on patient outcomes, quality, and satisfaction, as well as access to care in order to inform future decisions on telehealth payment structures.

"Telehealth and telemedicine services have been critical during the COVID-19 pandemic and will stay with us long after the pandemic is over," said Murphy in a statement. "New Jerseyans have greater access to the healthcare they need with the proliferation and expansion of these services, and with this legislation, we are ensuring that this new technology can remain viable as we emerge from the pandemic while also ensuring that New Jersey remains at the forefront of innovative healthcare policy that serves all New Jerseyans."

The bill requires payers to reimburse providers for all forms of healthcare, including behavioral health, delivered through telehealth at the same rate as in-person care, and it bans payers from placing restrictions on locations from where services are provided, and the technological platforms used.

The enactment of the bills comes amid growing calls to preserve telehealth access after the COVID-19 pandemic ends.

Earlier this month, the American Hospital Association and 15 other healthcare organizations launched a campaign that aims to solidify access to telehealth services across the country during and after the public health emergency.

New Jersey and Ohio join other states that have taken matters into their own hands and made permanent the telehealth flexibilities enacted during the pandemic, like Washington state with its audio-only telehealth law.