Committee extends telehealth parity, hears hospitals and providers urge permanence

The Senate Health and Human Services Committee voted to release Senate Bill 2988 on Oct. 7, extending reimbursement parity for telemedicine and telehealth services for an additional year.

Witnesses described telehealth's role in maintaining access and equity since the pandemic. Jess Boyle of Children's Hospital of Philadelphia told the committee that virtual consultations allow pediatric specialists to serve medically complex children across New Jersey without moving high-risk infants long distances. "Reimbursement parity is critical for maintaining access to this care," Boyle said.

Josh Bridal, government relations director for the Medical Society of New Jersey, said parity protects practices that maintain in-person services while also offering virtual care, and warned that payment reductions could push clinicians to stop offering telehealth. "If payments are reduced, there are a certain number of clinicians...who will cease to provide that service," Bridal said.

James Darley of the Fair Share Hospitals Collaborative and other hospital leaders argued parity preserves access for patients with transportation or caregiving constraints and is supported by data showing comparable or improved outcomes when telehealth is used alongside in-person care.

Committee members asked about interstate licensing compacts and cost differentials. Testimony noted that providers generally must be licensed where the patient is located and that interprofessional consults are one regulatory flexibility; advocates suggested exploring compacts to improve cross-state continuity of care. The bill was released with committee members acknowledging the need for a longer-term conversation about making parity permanent and its fiscal implications.

Committee action extends the COVID-era parity policy for another year; supporters urged the committee to pursue a permanent solution after further conversations about cost and regulatory alignment.