Rising Virtual Doctor Visit Rates Unsettle Employers, Insurers

Insurers and telehealth companies are tussling over rates for care delivered online or over the phone, but a shift in how doctors and other providers are reimbursed may ultimately help lower costs for patients, employers, and insurers.

The Covid-19 pandemic prompted the Department of Health and Human Services to loosen restrictions on the use of telehealth, and the agency raised the rate at which it reimburses many telehealth services covered by Medicare to match higher in-person rates—at least temporarily. Many insurers have followed suit for commercial rates.

Those decisions spurred concerns the higher rates could shatter the promise of ...