Health Tech Newsletter: Telehealth Extension, Hormone Therapy Concerns, and Google’s Shift
As lawmakers rush to pass a bill to keep the government operating, health tech is on the agenda. Policies that expanded Medicare coverage for telehealth during the COVID-19 pandemic are set to expire at the end of the month unless Congress acts to extend them.
Extending these policies for several years is a popular approach, but it’s likely contingent on a budget agreement rather than a short-term funding measure. A House bill circulating over the weekend included short-term telehealth extensions, as expected. However, given the looming possibility of a government shutdown and intense political divisions in Washington, the outcome remains uncertain.
Telehealth’s Budget Impact
Researchers from the University of Michigan recently released preprints that offer a positive outlook on telehealth’s budgetary effects. One study examined traditional Medicare claims for “evaluation and management” services before and after the pandemic, concluding that increased telehealth use did not lead to overall growth in E&M costs. Another paper analyzed claims data and suggested that expanded telehealth use may, in fact, reduce downstream Medicare costs.
These findings could influence the Congressional Budget Office’s (CBO) analysis, although the CBO previously concluded that an expansion of telehealth would likely increase spending. Here’s an interesting CBO deck outlining factors that can affect spending.
In a Health Affairs perspective, Ateev Mehrotra and Jared Perkins suggest policymakers consider lower payment rates for telehealth services to make a long-term expansion of telehealth in Medicare “more affordable” and politically more feasible. They reason that telehealth, in theory, should cost less to deliver. Mehrotra is currently studying the question of price elasticity which is the impact of reimbursement changes on telehealth usage.
Concerns Over Hormone Therapy via Telehealth
Several telehealth companies, including popular names like Noom and Hims & Hers, are increasing their services to include hormone treatments for conditions like low testosterone, perimenopause, and menopause. This trend emerges as the financial model behind selling compounded versions of GLP-1 weight loss medications becomes less promising.
As STAT’s Katie Palmer reports, this expansion has the potential to improve access to care for conditions that carry stigma. However, hormone treatments can pose risks, leading to concerns that some new firms might provide substandard care. At least one undercover study found that telehealth companies can prescribe testosterone even when it is not medically necessary.
Google Shifts Focus from ‘Health Equity’
For years, Google has emphasized health equity in its health messaging. However, a detailed report on its health impact released last month revealed the absence of the term. A new story details how Google revised its website, removing mentions of health equity and references to addressing social and economic factors that contribute to health disparities across different population groups. The company’s page on health equity is now titled “health optimization,” and its global head of health equity has a new job title: Global head of health optimization.
These changes appear to correspond with the political climate, specifically actions taken by the previous presidential administration and highlight the significance of these changes.
Other News:
- Hinge Health to go public: The virtual physical therapy company filed to go public. The company made $390 million in revenue in 2024 and posted a net loss just under $12 million.
- AdvocateMH Update: The new mental health company from former Cerebral CEO David Mou and former NIMH head Thomas Insel has secured $6.2 million in seed funding.
- Memora Health’s Sale: Before Memora Health’s “fire sale” to Commure, the company’s CEO told investors the company had $20 million in annual recurring revenue. In actuality, revenue was $1.2 million in 2023 and roughly $1.5 million year-to-date by October 2024, according to documents shared with investors.
- VA’s Oracle Implementation: The Department of Veterans Affairs announced that 13 facilities will go live with the Federal Electronic Record System in 2026. The system is now expected to be live at all VA medical facilities “as early as 2031.”
What We’re Reading
- Millions in U.S. live in places where doctors don’t practice and telehealth doesn’t reach, KFF Health News
- Abortion pill prescriptions are now being tracked in parts of the US — with help from a little-known tech company, Business Insider
- Five years of Covid exacted a terrible toll. Another epidemic has claimed even more lives, STAT
