Telehealth exploded during COVID-19 and evolved into a staple of modern healthcare. As more people ask, is telehealth covered by insurance or why some states lag behind, understanding the patchwork of rules, private insurers, and telehealth parity laws matters more. This guide breaks it down clearly, breaking state-by-state differences, telehealth coverage mandates, restrictions, and what it means for you and your wallet.
What Is Telehealth Insurance?
Telehealth insurance means your plan covers visits—like doctor appointments, therapy, or follow-ups—via phone or video. Your telehealth coverage could include:
- Telemedicine health insurance benefits frequent in modern plans
- Telehealth coverage meaning copays and coinsurance mirroring in-person visits
- Coverage through private insurance companies must meet the requirements and laws of state parity rules
Federal Telehealth Policies (Background)
- Medicare: Expanded coverage through Sept 30, 2025—including telehealth therapy, audio-only, and video in any setting.
- Medicare Advantage: Can extend access beyond basic Medicare.
- Medicaid: Varies, but most states offer some medicaid telehealth insurance coverage.
- Private Plans: 41 states require coverage parity, and 22 require full payment parity (equal pay to providers as in-person).
State-by-State Breakdown
Here’s how U.S. states handle telehealth therapy coverage and insurer requirements:
| State | Coverage Parity* | Payment Parity* | Notes |
| California | Yes | Yes | Full provider payment; applies to mental health |
| Florida | Yes | No | No mandate on provider payment |
| Texas | Yes | Partial | Behavioral health sometimes excluded |
| New York | Yes | Yes | Strong coverage across services |
| Ohio | Yes | Yes | No geographic limit |
| Many others | Partial or none | Varies | See HHS Telehealth Policy Finder |
| *Parities apply only to fully insured plans, not self-funded ERISA plans |
You can view a complete interactive list through HHS policy resources.
Advertisement
Coverage Highlights
- States like California, New York, and Massachusetts are leaders: full telehealth insurance coverage, with equal provider pay for virtual visits.
- Florida and Michigan allow insurers more flexibility—private insurers decide coverage levels.
- Some states focus coverage on specific services—such as mental health, chronic care, or occupational therapy.
- Most plans follow parity for telehealth—but only if the equivalent in-person service is covered.
Key Terms Explained
Payment Parity
Insurers pay the same rate for virtual visits as they would for in-person ones. This benefits providers, making telehealth plans more sustainable.
Advertisement
Coverage Parity
Insurers must not deny telehealth coverage solely because it’s virtual—but can set copays and use limits similar to in-person visits.
Payment Parity vs Coverage Parity
A provider may be covered under coverage parity but reimbursed less if payment parity isn’t mandated.
Telehealth Policy & Restrictions
States can impose rules on:
- Eligible providers
- Types of covered services
- Geographic limits
- Requirements like provider licensure
Which Insurance Covers Mental Health Teletherapy?
- Cigna and Aetna: Through providers like Talkspace and Doctor On Demand, they offer in-network teletherapy covered by insurance; typical copays are $15–$20 per session.
- Blue Cross Blue Shield: Covers online therapy and psychiatry via Talkspace—average $15 copay.
- UnitedHealthcare: Offers virtual visits just like in-person appointments.
- Medicare: Pays for virtual behavioral health visits at the same rate as in-person through late 2025.
And yes, telemedicine insurance coverage extends to specialty departments like chronic disease management, nutrition, rehab, even medication management.
Payment Parity: Why It Matters
When providers receive equivalent payment:
- Fewer providers opt out
- Access improves for patients
- Higher quality virtual care
Without it, telehealth stays limited in access and quality.
Is Telehealth Covered by Insurance After 2025?
- Medicare’s current expansion ends Sept 30, 2025; rural limits may return.
- Medicare Advantage could continue virtual access.
- Federal efforts like the Telehealth Modernization Act aim to cement long-term coverage.
- Private insurance trends suggest sustained telehealth coverage due to consumer demand, cost-efficiency, and provider adoption.
Steps to Check Your Coverage
- Read your policy’s benefits section for “telehealth”, “virtual care”, or “e-visits”.
- Call your insurer, ask “does insurance cover telehealth” and inquire about copays and platforms.
- Confirm provider acceptance—ask if they take your plan.
- Verify parity—is the telehealth visit treated like in-person for cost-sharing?
- Prepare for changes post-2025, especially if you’re on original Medicare.
The Future: Telehealth Trends
- Momentum toward payment parity is growing, with 22 states already mandating it.
- Insurers adding virtual services and insurance-backed programs—like women’s longevity care—are now mainstream.
- Cross-state licensing and provider access are improving via legislation and interstate compacts.
Conclusion
Telehealth insurance is no longer optional—it’s expected. While 41 states require coverage parity and 22 require payment parity, actual benefits depend on your state and plan. Public plans like Medicare and Medicaid offer expanding virtual access, with private insurers following suit. Post-2025 policies may shift geographical rules back for Medicare, but the trajectory points toward meaningful, durable telehealth access.
FAQs
Will telehealth covered by insurance cost me more?
Your copay or coinsurance for a virtual visit is often the same as in-person. But details vary: check your policy or call your insurer to confirm exact costs.
Does Cigna cover telehealth therapy?
Yes, many Cigna plans include in-network providers like Talkspace for telehealth therapy. Copays hover around $20 per session.
What is payment parity in telehealth?
Payment parity means insurers reimburse virtual visits at the same rate as in-person visits. It supports provider participation and sustainable telehealth care.
Do all private insurers offer full telehealth coverage?
Most private insurers cover telehealth under coverage parity laws. But only 22 states mandate payment parity, so reimbursement could vary.
Will Medicaid pay for telemedicine?
Yes, Medicaid covers telehealth in most states—but rules differ. Check with your state’s Medicaid office or provider for coverage specifics.
How long will telehealth be covered by insurance?
Medicare’s current telehealth flexibility continues through Sept 30, 2025. After that, some rules may tighten again, though advocacy and legislation may extend virtual coverage.
Does telemedicine coverage include therapy?
Absolutely. Mental health and behavioural telehealth services are often covered, and parity laws may mandate equivalent treatment to in-person therapy.
Are there limits on virtual therapy access?
Limits depend on your insurer. Many private plans offer unlimited virtual visits with standard copays. But some plans have session caps or out-of-network restrictions.
Can I use telehealth across state lines?
Provider licensure is critical—most require the provider to be licensed in your state. Interstate compacts are making cross-state telehealth easier.
What’s the impact of payment parity laws telehealth?
When providers receive fair pay, more offer telehealth, expanding access and improving service quality. Lack of parity can push virtual care into limited or out-of-network options.