GLOSSARY · TRUST AND COVERAGE

Telehealth parity, laws that make insurers cover virtual visits.

Telehealth parity is a type of state law that requires private health insurers to cover telehealth services the way they cover in-person care, and in some states to pay the same rate.

01

What it means

There are two kinds. Coverage parity requires a plan to cover a service delivered by telehealth if it covers the same service in person. Payment parity goes further and requires the plan to pay the same rate for the telehealth visit as for the office visit. Most states have some form of coverage law; fewer require payment parity, and many laws carve out certain plans or audio-only care.

Self-funded employer plans fall under federal ERISA law and are generally outside state parity mandates. Medicare and Medicaid follow their own telehealth rules, set by Congress and by each state's Medicaid program.

02

Why it matters to a brand operator

Most direct-to-consumer telehealth brands are cash-pay, so parity laws do not change their economics on day one. They start to matter when a brand wants to accept insurance, sell to employers, or lower what patients pay out of pocket. In a payment-parity state, an in-network telehealth visit can be paid like an office visit; elsewhere the rate may be lower.

A brand weighing insurance should also budget for what parity laws leave out: enrolling every provider with every plan, claims and billing work, and the medication side, which runs through a plan's PBM and formulary rather than the brand's own price list.

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How Tessic Health handles it

Tessic Health's providers are licensed in all 50 states, and a completed consult costs the brand a flat $25 in every one of them, so the platform cost of a visit does not change with a state's parity rules.

See the published terms