Medicare Telehealth Use: Trends, Disparities & 2025 Data
Medicare telehealth use remains significantly above pre-pandemic levels, with 12.5% of eligible beneficiaries receiving a telehealth service in the second quarter of 2025, according to recent data. This represents a substantial, though diminished, increase from the peak of 46.7% recorded in the second quarter of 2020, when the COVID-19 public health emergency spurred rapid adoption of remote healthcare.
The continued, elevated use of telehealth comes as temporary pandemic-era flexibilities granting broader Medicare coverage of these services were recently extended through December 31, 2027, under the Consolidated Appropriations Act of 2026. Prior to the pandemic, Medicare telehealth coverage was largely limited to beneficiaries in rural areas and specific provider types, as noted by the Kaiser Family Foundation (KFF).
Analysis of 2024 data reveals disparities in telehealth utilization across different beneficiary groups. Individuals qualifying for Medicare due to finish-stage renal disease (ESRD) or long-term disability exhibited higher rates of telehealth use (37% and 36%, respectively) compared to those eligible based on age (23%). This difference may stem from higher overall healthcare utilization among these populations, as well as a potential preference for the convenience of telehealth or greater ease of access to care.
Beneficiaries dually eligible for Medicare and Medicaid also demonstrated higher telehealth adoption rates (35%) than those solely enrolled in Medicare (23%). This trend aligns with findings that lower income is associated with increased telehealth use, suggesting the potential for telehealth to address healthcare access barriers for beneficiaries with limited resources. Dual-eligible individuals are four times more likely than other Medicare beneficiaries to have incomes under $20,000.
Geographic location also plays a role, with urban beneficiaries (26%) utilizing telehealth at a higher rate than their rural counterparts (19%). This disparity may be linked to differences in access to broadband internet and communication technologies, potentially hindering reliable video telehealth visits in rural areas. Concerns exist that reduced or eliminated coverage of audio-only services could further exacerbate these access issues.
Racial and ethnic differences in telehealth use were also observed. Asian and Pacific Islander (30%) and Hispanic (29%) beneficiaries reported the highest rates, while Black (26%), American Indian or Alaska Native (24%), and non-Hispanic White beneficiaries (24%) had comparatively lower rates. The higher utilization among beneficiaries of color may reflect their increased likelihood of reporting difficulty accessing needed health services, with telehealth potentially offering a solution to these challenges.
The Centers for Medicare & Medicaid Services (CMS) annually reviews and updates the list of Medicare telehealth services, with changes typically taking effect on January 1st. The agency accepts public requests to add or delete services, subject to disclosure during the annual physician fee schedule rulemaking process. A recent FAQ update was published on February 26, 2026, according to CMS.
Currently, Medicare Part B covers a range of telehealth services, including office visits, psychotherapy, consultations, advance care planning, and various rehabilitation therapies. However, the scope of covered services and geographic restrictions have evolved significantly in recent years, particularly in response to the COVID-19 pandemic. Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) can serve as Medicare distant site providers for non-behavioral/mental telehealth services through December 31, 2027.