Texas Governor Continues Payment Parity for Telehealth Through 2020

State-regulated health plans in Texas will continue to reimburse for telehealth services at the same rate as in-person care through the end of the year.

Governor Greg Abbott announced the payment parity deal last Friday, a move designed to help care providers dealing with a surge of cases brought about by the coronavirus pandemic. He said the state’s Employee Retirement System and Teacher Retirement System would also continue payment parity for telehealth through 2020.

"Since the COVID-19 pandemic began, the State of Texas has expanded telehealth options and availability so that Texans can continue to access the health care services they need,” Abbott said in a press release. "Millions of Texans have chosen to use telemedicine over the past several months, and this new agreement with Texas network health insurers will help ensure that Texans can continue utilizing telehealth options. I thank the health plans for stepping up to meet the needs of our state during the COVID-19 pandemic.”

The announcement continues one of several emergency measures enacted in by state and federal governments to expand coverage for and access to telehealth during the pandemic.

While connected health advocates are lobbying to make a number of these emergency provisions permanent, payment parity is a contentious issue. Many private health plans oppose the concept, arguing they should be the ones to set reimbursement rates with providers. Supporters, meanwhile, say parity is needed – at least for a while - to convince providers to adopt telehealth.

Just last week, the Ohio-based Buckeye Institute released a paper supporting a bill that would update and improve the state’s telehealth regulations. The bill doesn’t include payment parity.

“Private insurers have recognized the promise of telehealth and have already shown a willingness to expand telehealth coverage, but they are still learning where the true potential and value for telehealth really lies,” the paper’s author, James Woodward, PhD, says. “A payment parity requirement at this early stage would prematurely signal that telehealth treatment options are interchangeable with in-person visits in terms of cost and quality. Medical studies, however, do not warrant this conclusion or pricing structure inasmuch as there are still many areas in which telehealth’s medical value is not yet established.”