Committee for a Responsible Federal Budget

Fiscal Considerations for the Future of Telehealth

Though telehealth has the potential to reduce some health care expenditures, both the Congressional Budget Office (CBO) and the Government Accountability Office (GAO) project that increased use of telehealth will add to overall health care costs. Based on a recent CBO score of a five-month extension of pandemic authorities, permanent expansion could cost Medicare alone $25 billion over ten years, even without expanded use. As telehealth use grows, there is the potential for even greater costs in both federal health care programs and the private sector.