Medicare Telehealth in 2025: What You Need to Know About Behavioral Health Services
Telehealth regulations are evolving, and recent Medicare updates can impact how behavioral health providers deliver care. Understanding what’s new in Medicare telehealth for 2025 is essential to ensuring your clients have continued access to quality mental health services. Here’s how these changes affect your practice and what you can do to stay compliant and deliver accessible care.
Updated May 2025
What’s New in Medicare Telehealth Coverage for 2025?
One of the most significant updates is Medicare’s decision to permanently allow behavioral and mental health services to be provided via telehealth. This means beneficiaries can receive these services from the comfort of their homes, no matter where they’re located. Here are the key points to keep in mind:
At-Home Access for Clients: Behavioral health services can now be provided to patients in their homes regardless of geographic location.
FQHCs and RHCs Can Participate: Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) are now authorized to act as distant site providers, making it easier for patients in underserved areas to receive care.
Audio-Only Options Are Here to Stay: For clients without access to video technology, Medicare will continue to cover behavioral health services conducted over the phone. This ensures that those with limited resources can still get the care they need.
In-Person Visit Requirements for Telehealth
The in-person requirement for telehealth services through Medicare has been delayed through October 1, 2025.
After that date, new rules may affect how frequently Medicare beneficiaries must attend in-person visits (or not) alongside their telehealth care.
Stay tuned for future updates on this requirement!
Billing and Reimbursement Changes for Telehealth Providers
Understanding how these changes affect billing practices in 2025 is important to ensure your services are reimbursed properly. Here’s the rundown:
Same Rate for Telehealth and In-Person Care: Behavioral health telehealth services are reimbursed at the same rate as in-person visits, so you won’t lose out financially when offering virtual care.
Audio-Only Services Get Full Reimbursement: As long as you use the correct billing modifiers, audio-only services will also be reimbursed at the full rate.
Use of Practice Location for Claims: Through December 31, 2025, providers can list their practice address, rather than their home address, on telehealth claims.
Supervision Requirements Under Medicare Telehealth
Medicare has also made it easier for providers to meet supervision and billing requirements for telehealth services. These changes will remain in effect through December 31, 2025.
Direct Supervision Through Video: Providers can fulfill direct supervision requirements using real-time audiovisual communication. This eliminates the need for supervisors and supervisees to be in the same physical space.
Correct Place of Service (POS) Codes:
Use POS 02 for telehealth services delivered outside the patient’s home.
Use POS 10 for telehealth provided in the patient’s home.
Modifiers for Accurate Billing: Use modifier 93 for audio-only services and modifier FQ for services provided by FQHCs or RHCs.
If you need further support on billing for reimbursement, check out my post with tips and strategies for Medicare coding.
What This Means for Medicare Behavioral Health Providers
These updates represent a significant shift in how mental health professionals can deliver care. Here are a few key takeaways for therapists, counselors, psychiatrists, and other Medicare providers:
Improved Access for Clients
Thanks to permanent changes in telehealth coverage, more clients can access mental health services from home, regardless of their location. This is especially important for those in rural or underserved areas, who often face barriers to in-person care.
Flexibility for Providers
Working from home? The new rules allow you to use your practice’s address on claims, so you can maintain a professional presence while offering telehealth services remotely.
Reassurance About Payment
With full reimbursement for both video and audio-only telehealth visits, you can provide care in a way that meets your clients’ needs without worrying about being underpaid.
Simplified Compliance
Clear guidelines for in-person visit requirements, billing codes, and supervision rules make it easier to stay compliant with Medicare regulations while focusing on delivering quality care.
How to Prepare Your Practice for Medicare Telehealth Changes - Now!
To stay ahead of these changes, here are a few steps you can take:
Advocate Through Professional Associations: The in-person visit requirement could still be revised after October 1, 2025. Reach out to your professional organizations and share your concerns or feedback.
Review Billing Practices: Make sure your team is familiar with the new POS codes and modifiers to avoid reimbursement issues.
Educate Clients About Their Options: Let your clients know about their increased access to telehealth services, including audio-only options if they lack video capabilities.
Stay Updated: Medicare’s rules are evolving, so keep an eye on announcements and resources to ensure your practice remains compliant.
Stay Compliant and Informed with Medicare Telehealth Updates
Medicare’s 2025 telehealth updates are a step forward in expanding access to behavioral health services while ensuring providers are fairly compensated. By understanding these changes and preparing your practice accordingly, you can continue providing excellent care to your clients, wherever they are.
For more information, visit Medicare.gov or check out the latest policy changes at HHS Telehealth Policy Updates.
Whether you’re a solo practitioner or part of a larger organization, these changes help create more opportunities to meet the needs of your clients while building a more flexible and accessible practice.
Join the Medicare Consulting for Therapists Facebook Group to get updates on policy changes, ask questions, and connect with other therapists navigating Medicare.
Gabrielle Juliano-Villani, LCSW, helps healthcare organizations, online platforms, and mental health providers navigate Medicare & Medicaid with confidence. With over a decade of experience supporting mental health providers in navigating billing, compliance, and documentation, she now offers consulting and training to help others grow sustainable, compliant practices.