In recent years, telemedicine has begun to transform how patients obtain outpatient healthcare services. With benefits for both employers and employees, this is a service that more employers are including in their health plan coverage and you may want to include in your small business health insurance group plan as well.

But before you make any decisions, it’s important to understand how telemedicine works and what the benefits of telemedicine are so that you can make an informed decision if it’s the right choice for your small business. Continue reading to find out more about telemedicine for employees.

What is telemedicine?

Telemedicine refers to a service that allows providers to connect to patients online. A patient can be in one location while the doctor or nurse is in another. They can even be on opposite sides of the world. All you need to use this service is a smartphone, computer, or tablet.

However, employers looking at offering telemedicine to their employees need to make sure that their group insurance and other insurance providers will pay for these services. You can check with your health insurance group or self-funded insurance plan to ensure that your policy covers telemedicine.

What are the benefits of telemedicine for employees?

When you implement telehealth for employees, you can save money and avoid the disruption of scheduling an in-person doctor’s appointment. Additionally, people without health insurance can access medical care by utilizing affordable telehealth services.

Telemedicine makes going to the doctor more convenient, as employees can take the appointment at their desk or in an available conference room. Here are several benefits of telemedicine for employees:

Provides outpatient medical care remotely

Telemedicine utilizes modern communications technologies to provide patients with remote access to healthcare. It is primarily used for outpatient services, where there is not a need for hands-on care. For example, patients might make telemedicine appointments if they have a cough, fever, or stomach issues, as these health concerns can typically be treated remotely. 

Waiting rooms are also full of sick people that may have the flu, COVID-19, and other contagious diseases. Telehealth gives sick patients the care they need without exposure to other viruses and germs. 

_{Source: Medical cost trend: Behind the numbers 2020, PwC Health Research Institute}

Helps employers control health insurance costs

There are various telemedicine benefits for employers, namely that telemedicine can help mitigate increasing health insurance plan costs. Telemedicine appointments generally bill for less than comparable in-office services, which means insurance companies do not have to pay providers as much for claims. These savings can help insurers keep premiums more affordable for employers and employees, ultimately lowering both parties’ overall payments. Because small business health insurance group plan premiums are so high, any way they can be kept in check is typically welcomed by employers. The average annual premium for an employer-sponsored family plan was $20,576 in 2019, and employers commonly ended up paying around $14,561 of this for each employee who had a family plan. At over $14,500 per employee family plan, just a small reduction in premium costs results in substantial savings.

Provides convenient care for employees

For employees, the benefits of telemedicine are obvious. In addition to any financial incentives offered by a plan (and many group plans offer incentives), it is far easier to get treatment remotely rather than going to a doctor’s office, clinic, or hospital. This is especially true when seeking after-hours care, trying to manage childcare and/or work needs, or during inclement weather. Telemedicine is also beneficial for people who live in rural areas with less access to quality health care. 

Telehealth appointments are also generally much faster than going to an in-person doctor’s appointment as they eliminate the need of a waiting room. With telemedicine, you can get seen and diagnosed faster than ever before.

Provides easy access to specialists 

Not everyone has a doctor they visit regularly and some people may need to access specialists, which can be expensive depending on your health insurance plan. However, with telemedicine for employees, you can save money on small business insurance claims by encouraging sick employees to access their relevant specialist online when it’s most convenient for them.

Provides medical access for the uninsured

Telemedicine benefits for employees matter even more if a significant part of your staff does not participate in your health insurance plan. Some telemedicine companies accept cash payments from those with no insurance, which means more people will have access to health care when needed. This can directly impact your business as well, as physically and mentally healthy employees are typically more productive.

Are there any disadvantages for telemedicine for employees?

Of course, telemedicine for employers comes with its own set of challenges. Reduced care continuity means that employees can get a random healthcare provider online. Also, the primary care physician might not have access to records from telehealth services. Additionally, in person consultations typically include access to more technology.

Telehealth services certainly aren’t the best option for every healthcare visit. However, they can expand options for employees that have few other choices.

In addition to these challenges, coordination of benefits of telehealth services may prove challenging to your HR or benefits staff. So, it’s important to weigh the pros and cons so your organization can decide if telemedicine is the right choice.

How to encourage the use of telemedicine for employees

If you decide to use telemedicine for employees, it’s important to get the word out to them so they know what services are covered by your group health insurance. Additionally, you’ll need to determine whether to include telehealth appointments for your group dental insurance and group vision insurance, as not every provider pays for this service.

In order to encourage employees to try these more affordable services, review the advantages and disadvantages in staff meetings or send out interoffice communications. Remind employees how important it is to receive care when they feel unwell. Many sick employees come to work because they don’t want to give up their time off. So, it can help to clarify your policy on coming to work sick. Additionally, having access to online health services can save your organization time and money when it comes to productivity.

Also, reach out to your medical, dental, and vision health care providers for instructions on how to download telemedicine apps and mention those apps in your conversations with your employees.

Deciding on telemedicine for your small business health insurance group plan

Determining whether telemedicine is a service that your business should include in its health insurance group plan is ultimately a decision that you must make based on the specific circumstances surrounding your business and employees. Keep in mind, though, that providing any extra benefits (and especially benefits that employees use) could help your business attract more quality employees, improve overall employee satisfaction, and reduce annual turnover.

Telemedicine has become increasingly popular in recent years. The advantages that telemedicine can offer employers are confirmed by how many businesses have chosen to include it in their plans’ covered services. Since 2015, there has been nearly a 50-percent increase in the number of employers who have plans that cover telemedicine, with just 27 percent including coverage in 2015 and 74 percent offering coverage in 2018.

eHealth is a great healthcare partner for your business

For help assessing your business’ situation and whether telemedicine makes sense for your small business, you can contact one of the knowledgeable agents at eHealth. Our small business health insurance agents are available from 8:00 a.m. to 8:00 p.m. EST and are happy to help you make a decision that is right for your company. You can also compare available small business health plans via the eHealth website.