Does telemedicine save lives? Evidence on the effect of telemedicine parity laws on mortality rates

Abstract

AbstractBetween 1995 and 2018, just over half of U.S. states enacted laws requiring private insurance plans cover medical care provided remotely. These telemedicine parity laws likely increase health care access, particularly in areas with few providers, by granting patients access to specialists or primary care providers located elsewhere. We estimate the effect of telemedicine parity laws on mortality rates of all causes and for causes of death due to conditions more frequently treated with telemedicine. Mortality rates decline postparity laws, driven by decreases in ischemic heart disease deaths. Ischemic heart disease mortality rates decline by about 6% in the difference‐in‐differences specification and 9% in the event study estimation. These effects are concentrated in counties located in the fringes of metropolitan areas. We also estimate declines in hospital admissions postparity law, consistent with improved health outcomes. Our results suggest that relaxing current telemedicine regulations would reduce mortality rates.