Next Generation For Real

April 7, 2015 by By InTouch Health

For decades, TV ads have been promoting the “next generation” of products, whether it’s a soft drink or smartphone or laundry detergent. The phrase has been so overused that we’re wary of it.

But now there’s a “next generation” announcement that’s the real deal: the Next Generation ACOs (Accountable Care Organization) unveiled last month by CMS (Centers for Medicare and Medicaid Services). There’s much to applaud about this announcement because it offers many things that are indeed “new and improved” – especially when it comes to telehealth.

A Next Generation ACO must have at least 10,000 aligned members – or 7,500 if it’s in a rural area. To qualify for next-gen status, an organization must provide access to both telehealth services and home visits. The new model also has more sensible financial metrics and goals than the preceding Pioneer ACO model.

Next Generation ACOs are now allowed to cover and reimburse for telehealth services just like Medicare Advantage plans do today. The new model lifts the longstanding requirement that beneficiaries must live in a rural community. That’s great news for the 80 percent of Medicare beneficiaries who live in large metropolitan areas.

It didn’t take long for telehealth advocacy groups to sing the praises of the new ACO structure. “This is an important change in CMS policy and attitude,” said Jonathan Linkous, chairman of the American Telemedicine Association. “We hope it will encourage CMS and Congress to further open up all value-based payment plans to telehealth.”

His comments were echoed by leaders of the Alliance for Connected Care. “This policy is a critical step forward in expanding the use of telehealth services in Medicare, which will allow for greater care coordination and improved quality of care,” said Alliance chairman Joe Peterson, M.D. “It represents a major victory for patients and the broader telehealth community, which has been gathering evidence of telehealth’s benefits for decades.”

For years, many telehealth proponents have been patiently waiting for the CMS to take this long overdue step. Now it’s time to pinch ourselves because it’s not a dream any more. The Next Generation ACO model will help bring telehealth services to nearly 40 million Americans who previously didn’t qualify. It’s a bold innovation that truly lives up to its name.