Top 6 Telehealth Billing and Reimbursement Challenges in 2025
You’ve treated the patient, completed the visit, and submitted the claim, but your telehealth reimbursement has still been delayed or denied. It’s a story every provider knows too well. As virtual care expands, telehealth and behavioral health billing complexities continue growing, quietly cutting your revenue. However, in 2025, telehealth has become a fundamental part of healthcare across the USA, driven by patient demand and rapid technological advancement. While it offers convenience for patients and providers, it also brings new telehealth billing and compliance challenges. Careful navigation is essential to prevent denied claims, revenue leakage, and compliance penalties.
This blog highlights the top six telehealth billing challenges in 2025 and the proven strategies for overcoming them.
Challenge #1: Frequent Changes to Telehealth Reimbursement Policy
The rules and regulations for telehealth billing have changed frequently as Medicare’s telehealth reimbursement updates its policies, codes, and payment rules. That’s why reimbursement is becoming more difficult every day. Let’s first learn about the telehealth reimbursement policy of 2025 and then how to overcome those challenges.
01. Physical & Geographic Restrictions Return
Medicare is restricted to the pre-pandemic rules that allow services only from approved originating sites, specifically in rural or remote locations.
02. Limited Provider’s Eligibility
The era of temporary waiver has ended, and only core providers are eligible for billing rights. However, allied providers (PTs, OTs, speech, and audiologists) cannot bill for telehealth services.
03. FQHCs/RHCs Distant Site Limits
Temporary billing will end after December 2025. Federally Qualified Health Centers and Rural Health Clinics will not be allowed to provide distant telehealth services after 2025.
04. Behavioral Health In-Person Requirement
Behavioral health patients should see a provider within six months or at least once a year to ensure telehealth billing coverage.
05. Controlled Substances Prescribing Tightens
The DEA has proposed strict teleprescribing rules involving same-state prescribers, prescription caps, PDMP checks, and patient identity verification for initial encounters.
Solutions to Overcome Challenges
Overcoming the policy’s evolving challenges is crucial to avoiding risks and protecting yourself from high penalties. Below are solutions to navigate changes in Medicare telehealth reimbursement policy.
01. Stay Updated with Policy Alerts
Track CMS, DEA, and telehealth resource updates regularly to follow the updated policies of the billing process and adapt billing workflow.
02. Invest in Flexible Billing Systems
Use billing software that follows billing updates, payer-specific rules, and real-time claim edits for telehealth reimbursement changes.
Challenge #2: Complexity of Telehealth Billing Codes
Telehealth is connected with the CPT and HCPS codes, modifiers, and service indicators. Inaccurate codes and modifiers can lead to denial risks and revenue loss. CMS and private payer telehealth billing are refining coverage that frequently changes CPT and HCPCS codes.
Telehealth-specific codes for behavioral health telehealth billing, prolonged services, and remote patient monitoring billing in 2025 have been complicated. Misuse of the billing codes, like billing an audio visit with a video visit, can result in denied claims, revenue leakage, and compliance risk. The following are the solutions to overcome the complications of telehealth billing codes.
01. Use Centralized Codes Library
To avoid confusion and enhance claim denials, incorporate a centralized repository for CPT, HCPCS, and telehealth modifiers for the staff.
02. Ongoing Staff Training
Provide specified training to medical billing and coding staff to stay informed about codes, modifiers, and payer differences to accurately follow coding and modifying rules to reduce claim rejection rates.
03. Implement Audits
Conduct an internal audit to analyze coding errors, potential risks, and compliance issues to correct them before they affect the telehealth reimbursement process.
04. Leverage Billing Services
Better to utilize experienced and specialized telehealth billing services companies to follow reimbursement rules.
05. Provide Expert Support
Connect with outsourcing telehealth billing services experts and specialized firms to stay updated with the changing codes and payer requirements.
Challenge #3: High Rates of Claim Denials in Telehealth Reimbursement
The most struggling phase for healthcare providers is dealing with claim denials. High rates of claim denials can directly impact your revenue cycle for virtual care. Due to limited time, many healthcare providers submit claims without verifying and end up with claim denials, leading to revenue loss. The primary reasons for high rates of claim denials in telehealth reimbursement are:
- Fail to use correct and accurate CPT codes for telehealth and modifiers.
- Missing information, such as patient and provider location, and the document communication method.
- Not getting pre-approval for services from the insurer for specialty care.
- Fail to follow proper payer guidelines such as patient eligibility, provider types, and service coverage.
- Claiming twice without verifying that the particular claim has already been submitted.
How to Overcome Those Challenges
Here are some easy tips and solutions to overcome the challenges and reduce claim denials.
01. Verify Patient Information
Verify each piece of information, especially insurance coverage for telehealth. It helps lower the risk of denial and maximize revenue.
02. Use an Automated Solution
Implementing automated solutions like billing and coding software can automate the process without any errors, reducing the rate of claim denials.
03. Submit Claims Within Timeframe
Insurance companies set a limited timeline for claim submission of 120-180 days. To avoid claim denials, follow the timeframe and submit the claim within the specific time.
04. Coding Expert Support
Optimize your billing management with the support of coding experts or medical billing companies to ensure accurate coding.
Challenge #4: Specialty-Specific Challenges in Telehealth Billing
The billing process is not the same for all specialties. Payment methods and coding for remote patient monitoring, behavioral health, and chronic care are different. Due to specialty-specific requirements, providers get confused, face claim denials, and experience administrative burden. Let’s learn about specialty-specific challenges.
See More: How AI Is Redefining the Future of Billing Automation
01. Behavioral Health
The requirement of new patients’ visits can lead to complex scheduling and add risk of reimbursement denials.
02. Remote Patient Monitoring
Payers use different RPM codes (e.g., 99453, 99454, 99457) for payment coverage. Frequent updates make it difficult for providers to comply with regulations.
03. Home Health
Home health services provide convenience and efficient patient care, but they are not directly reimbursed by Medicare, leading to financial loss.
How to Overcome Challenges
These solutions will help you to overcome these specialty-specific telehealth challenges.
01. Integrate Hybrid Care
Implement and use hybrid care models to schedule patient in-person visits on time and document hardship exceptions to ensure coverage.
02. Use Billing Software
Use billing software to stay updated on payer-specific RPMs and rules. It helps to capture missing codes and errors before claim submission, ultimately reducing the chances of denials.
03. Audit Regularly
Document each thing with the correct codes and audit regularly to avoid duplicate claim processing.
04. In-Person Visits
Ensure that in-person visits and telehealth services are provided with the payer policy to fulfill specialty-specific requirements.
05. Communicate Clearly
Discuss the coverage clearly with the patients and expand revenue through the private payer contracts and cash-pay telehealth.
Challenge #5: Workflow Inefficiencies and Billing Software Gaps
Many providers follow the proper and updated reimbursement policies but face revenue loss due to workflow inefficiencies and billing systems. Older real-time coding, manual data entry, and siloed systems between clinical and billing staff can result in high administrative costs, claim denials, and reimbursement delays.
How to Overcome Challenges
These workflow inefficiencies can have the most impact on telehealth billing in 2025. Follow these guidelines and strategies to streamline the billing process and improve workflow operations.
01. Adopt Modern Billing Software
Integrate the modern billing software with telehealth functionalities like real-time coding libraries, payer-specific rules, and automated claim edits.
02. Integrate Clinical and Billing Systems
Ensure your billing software shares data seamlessly between clinical and billing departments to avoid claim duplications and coding errors.
03. Standardize Workflows
Provide a step-by-step workflow process from patient scheduling to claim submission so that staff can process consistently.
04. Use Automation Tools
Use automation tools to verify codes and patient eligibility, and provide denial alerts to ensure an error-free process.
05.Train and Upskill Staff
Must provide ongoing support and training to the staff to ensure the team is updated with payer rules, system updates, and codes.
Challenge #6: Revenue Cycle Risks in Telehealth Billing for 2025
Telehealth has diversified the opportunities for patient access, but it has also introduced some revenue vulnerabilities in 2025. Shifting CMS rules, payer-specific telehealth policies, and inconsistent reimbursement can cause denials, delays, and compliance issues. Hence, practices that rely heavily on virtual care must predict these RCM risks to protect financial stability.
01. High Claim Denial Rates
Incorrect CPT/HCPCS codes, modifiers, and patient eligibility are common causes of high claim denial rates in telehealth billing.
02. Unpredictable Medicare Reimbursement
The updates policy may delay reimbursement and create unpredictable revenue streams.
03. Private Payer Inconsistencies
Every insurer follows different rules for telehealth that can lead to inconsistencies and confusing payment timelines.
04. Compliance and Audit Exposure
Insufficient documentation and incorrect codes can increase the risks of audits and penalties.
05. Cash Flow Disruptions
Denials and delays overburden the administrative tasks, leading to inefficiencies in the workflow.
How to Overcome Challenges
To overcome these risks and protect your telehealth revenue, these solutions can help you do better.
01. Strengthen Denial Management
If denials occur, find the root cause, correct the submission, and resubmit it within the timeframe to ensure the payments are reimbursed.
02. Enhance Documentation Practices
Train your staff for documentation practices according to the new rules and support medical necessity.
03. Leverage Billing Analytics
Use RCM analytics tools to identify revenue risks, problem payers, and reimbursement patterns earlier.
04. Consider Outsourcing Billing
To avoid risks and workload, connect with the healthcare billing specialist to stay updated with the new rules and trends.
See More: Looking for denial management services in USA? Contact us today!
Conclusion
The rise in remote patient monitoring and digital platforms has shifted many healthcare providers and patients towards telehealth services. Telehealth billing has many advantages, but challenges have also been raised. The difficulties of virtual care billing are frequent policy changes, complex codes, claim denials, specialty-specific challenges, billing gaps, and revenue cycle risks.
Stay updated with policies and coding, train staff, audit regularly, automate processes, adopt modern billing, and use advanced analytics and billing tools to overcome telehealth billing challenges. Telehealth providers must adopt these solutions to avoid risk and overcome challenges in 2025.
Frequently Asked Questions
The major challenge in the telehealth billing is staying up with the evolving rules and payer requirements. CMS, Medicare, and private insurers update the reimbursement policies, coding, and documentation yearly. Providers face confusion in:
- Which telehealth services are eligible for reimbursement?
- How do you use CPT and HCPCS codes accurately?
- Which documents are required for the claim support?
The challenges due to reimbursement policies lead to small mistakes, which result in claim denials and delayed payments. Stay updated with changing regulations and use modern, advanced billing systems to mitigate this challenge.
Remote Patient Monitoring (RPM) billing is the reimbursement process for medical services and data management of patients outside the traditional in-person visit through digital devices. The top requirements for the RPM billing process, as per the CMS guidelines,
- Patient eligibility to get RPM services, such as chronic patients.
- Patient consents to receive RPM.
- An FDA-approved digital device that monitors and records patient data.
- Qualified healthcare professionals.
- Sixteen days of data should be collected within 30 days for billing.
- CPT codes
- 99453: Initial setup and patient education.
- 99454: Device supply and 16+ days data collection to bill once in 30 days.
- 99457: Initial 20 minutes of communication and data review each month.
- 99458: Additional 20 minutes each month.
Staying up to date with the CMS and medicare policies and payer-specific rules frequently is crucial. You can use the following strategies for evolving regulations:
- Follow CMS and Medicare for the policy and code updates.
- Stay updated with the Telehealth Resource Center (TRCs) for guidance on every updated policy.
- Monitor private payer to get their guidelines released quarterly or annually.
- Utilize modern telehealth billing software and tools to reduce compliance risks through automation.
- Outsource medical billing companies to ensure accurate claims and documentation with compliance.
Telehealth billing provides efficient patient care but continuously faces issues, including compliance risks, coding, and documentation gaps. The leading causes of claim denials in telehealth are:
- Incorrect Modifiers: 95, GT, or FQ that indicate services are delivered through telehealth. The claim can be denied automatically due to the wrong code usage.
- Incorrect Code: Use of expired or non-covered CPT or HCPCS codes can result in rejection.
- Patient Eligibility Issue: Claims can be denied if the patient’s insurance does not cover telehealth services or requires prior authorization.
- Insufficient Documentation: Telehealth billing requires exact and accurate data documentation. Insufficient data can cause medical necessity denials.
- Duplicate Claims: Overlapping between CCM and telehealth can confuse and be considered duplicate claims.
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