Committee examines bill to require telehealth pay parity with in‑person visits

Senate Bill 83, presented Feb. 11 to the Alaska Senate Health and Social Services Committee by Senator Matt Clayman, would require health insurers and certain public employer plans to reimburse health care providers for telehealth services at the same rate as in‑person services. The sponsor said the measure aims to preserve and expand access to care across Alaska, especially for rural residents and people with transportation or mobility barriers.

"Senate Bill 83 will ensure pay parity for telehealth requiring health care insurers to reimburse at the same rate for telehealth services as in person care," Senator Matt Clayman said. Clayman and staff described a bill that inserts a new section into AS 21.42 and aligns definitions and employer plan obligations; the bill’s sectional analysis lists an effective date of July 1, 2025.

Testimony included economic and clinical perspectives. James Rebitzer, a health economist at Boston University, told the committee parity can reduce insurers’ incentive to "free ride" and thereby support private investment in telehealth capacity, particularly important in a geographically large state. "Mandating equal payment can help solve an economic problem that the private parties can't solve on their own," Rebitzer said. Alaska providers testified that parity affects whether they offer telehealth as a financially sustainable option. Dr. Sammy Mack, owner of Alaska Telepsychology, said inadequate telehealth reimbursement drives patients to large national platforms and undermines continuity of care in rural communities. Nurse practitioner Christine Sagan said telehealth improved access and lowered no‑show rates in her practice but that negotiated commercial contracts sometimes reimburse telehealth at lower rates than in‑person care.

Committee members asked whether insurers already pay parity, whether parity will raise overall costs, and how parity affects access and total cost of care. Director Laurie Wing Hyre of the Division of Insurance said conversations with commercial insurers indicated they believe they already pay parity in most instances, though she noted there may be plan nuances to investigate. Senator Sandy Hughes pressed on cost questions, asking whether higher telehealth reimbursement could raise overall spending even as access increases; invited witnesses argued the broader effects on preventive care and avoided higher‑cost services must be considered. The sponsor and staff also noted that Medicaid/Alaska Care already has telehealth parity and that over 20 states have enacted parity laws in recent years.

The committee did not vote on SB 83 and the chair said the bill would be set aside and returned for further consideration and public testimony at a later hearing.