Overview
Telehealth billing encompasses the claim submission process for virtual patient encounters including synchronous audio-video visits, audio-only telephone visits, asynchronous store-and-forward communications, and remote patient monitoring services. Telehealth billing requires specific combinations of CPT codes, modifiers, and place-of-service codes, and the rules have evolved substantially through the COVID-19 Public Health Emergency (PHE) and subsequent permanent and temporary CMS policies.
Key telehealth billing elements: (1) CPT code selection — standard E/M codes (99202–99215 office) or telehealth-specific codes (99421–99423 online digital E/M, 99441–99443 telephone E/M pre-2024 deprecated). (2) Modifier 95 (synchronous telemedicine service via audio-video) — appended to standard E/M or telehealth codes when service delivered via real-time audio-video. (3) Modifier 93 (synchronous telemedicine service via audio-only) — appended for audio-only visits that would have qualified as audio-video but were conducted via telephone. (4) Place of service codes: POS 02 (telehealth provided other than in patient's home), POS 10 (telehealth provided in patient's home); Medicare professional claims have used POS 02 and POS 10 since January 1, 2024, and Medicare pays telehealth furnished to a patient at home at the non-facility PFS rate. (5) Originating site fee (HCPCS Q3014) billed by the originating site where patient is located, when applicable.
Medicare telehealth coverage expanded substantially during the COVID-19 PHE (2020). Originating-site restrictions were waived; patients could receive telehealth from home; originating site could be anywhere in the country. Audio-only visits became payable. Many additional services were added to Medicare's approved telehealth services list. Post-PHE, some flexibilities extended through 2024 and 2025 via Congressional legislation; some became permanent; others are set to expire unless extended.
Under the permanent rules in CMS's Telehealth & Remote Monitoring booklet (MLN901705, December 2025), the patient must be at an authorized originating site, such as a physician office, hospital, critical access hospital, RHC, FQHC or skilled nursing facility, in a county outside a metropolitan statistical area or a rural HPSA; the home is a permitted originating site only for mental health and substance use disorder treatment and monthly ESRD-related assessments, and there are no geographic limits for substance use disorder and mental health services, home dialysis for ESRD or acute stroke. Since January 1, 2025, audio-only interaction is allowed when the patient is at home and cannot use, or does not consent to, video and the practitioner can use video; behavioral and mental health telehealth can be audio-only with the patient at home, with an in-person visit within 6 months of the first telehealth visit and annually after, subject to exceptions. CMS pays RHCs and FQHCs for medical telehealth through December 31, 2026. Congress has repeatedly extended wider temporary flexibilities, so confirm the rules in force for the date of service on the CMS telehealth page.
Commercial payer telehealth coverage varies. Many commercial plans have broader permanent telehealth coverage than Medicare. State telehealth parity laws in 43+ states require commercial plans to cover telehealth at rates comparable to in-person services. Medicaid telehealth coverage varies by state; some states require parity, others have broader telehealth coverage, others narrower.
For RCM, telehealth billing workflow requires: correct CPT code and modifier selection based on service type and delivery mechanism; appropriate place-of-service coding (POS 02 versus POS 10 based on patient location); documentation of audio-video versus audio-only delivery; documentation of patient consent to telehealth where required; state licensing validation (provider licensed in patient's state, unless specific exceptions apply); technology standards verification (HIPAA-compliant platform).
Cross-state licensure is a persistent telehealth compliance challenge. Providers delivering telehealth to patients in states where the provider is not licensed face regulatory exposure. Interstate Medical Licensure Compact, Nurse Licensure Compact, and specialty compacts enable multi-state licensure for some practitioners. State-specific waiver programs, especially for mental health care, provide additional flexibility. Front-office workflows should verify patient location at visit time (required for POS coding) and confirm provider licensure in that state.
Technology and platform requirements include HIPAA-compliant secure video platforms; the HHS Office of Civil Rights post-PHE returned to enforcing HIPAA compliance after PHE-period enforcement discretion. Practices using consumer-grade platforms during PHE should transition to HIPAA-compliant platforms with Business Associate Agreements.
Industry benchmark
CMS Telehealth Services MLN Fact Sheet. Medicare Telehealth Services List (updated annually). Interstate Medical Licensure Compact. State telehealth parity statutes.
Worked example
A primary care provider conducts a video visit with an established patient for hypertension follow-up. Patient is at home. Correct billing: CPT 99213 (established patient E/M moderate complexity), Modifier 95 (synchronous audio-video), POS 10 (patient at home). Reimbursement: equivalent to in-person 99213 at standard MPFS rate. If the visit had been audio-only due to patient connectivity issues, Modifier 93 would replace Modifier 95; some services are not payable audio-only under current Medicare rules.
Look it up in CMS data
Free reference pages and tools rebuilt from the current CMS release files, for looking up the CMS data behind this term.
Frequently asked questions — Telehealth Billing
When is Modifier 95 used?
On claims for synchronous telehealth services delivered via real-time audio and video. Appended to standard E/M or telehealth-specific CPT codes. Signals to the payer that the service was delivered via telehealth technology rather than in-person.
What's the difference between POS 02 and POS 10?
POS 02: telehealth provided other than in the patient's home (for example, the patient is at another clinic, the originating-site fee scenario). POS 10: telehealth provided in the patient's home. Medicare has required these two codes on professional telehealth claims since January 1, 2024 and pays home telehealth at the non-facility rate; other payers set their own POS rules.
Is audio-only telehealth covered by Medicare?
For specific services. Since January 1, 2025 Medicare allows audio-only interaction when the patient is at home and cannot use, or does not consent to, video and the practitioner is capable of video; behavioral and mental health services can be audio-only with the patient at home. Modifier 93 identifies audio-only delivery. Temporary flexibilities enacted by Congress change the picture, so check current CMS guidance for the date of service.
What cross-state licensure issues affect telehealth?
Providers delivering telehealth to patients in states where they are not licensed face regulatory exposure. Interstate Medical Licensure Compact, Nurse Licensure Compact, and specialty compacts enable multi-state licensure. State-specific waivers exist for mental health. Verify patient location and provider licensure at visit time.
CMS guidance
The Medicare Learning Network publication that CMS issues on this topic, cited by ICN and publication date:
- Telehealth & Remote Monitoring(MLN901705, )Medicare telehealth and remote monitoring coverage, place of service and modifiers.
Disclaimer
This glossary entry is operational reference for revenue-cycle and medical-billing professionals. It is not legal, clinical, or contractual advice. Industry benchmarks cite named public sources where available; always verify against the current guidance from the authority body before relying on a number in a contract, policy, or compliance filing.