Medicare has extended key telehealth flexibilities through December 31, 2027, including continued coverage of both audio‑video and audio‑only telehealth for many services. This blog walks through what that means for providers, with a special focus on audio‑only rules and correct place of service (POS) coding.
Telehealth Flexibilities Extended Through 2027
Through December 31, 2027, Medicare beneficiaries can receive telehealth services anywhere in the United States and territories, not just in rural areas or medical facilities. Only after January 1, 2028, will most non‑behavioral telehealth services return to stricter geographic and facility‑based rules.
Key extensions through 12/31/27 include:
- Beneficiary location: Home or other sites across the U.S. remain allowed as originating sites.
- Practitioner types: An extended range of practitioners may bill for Medicare telehealth through 12/31/27.
- Hospital remote services: Hospitals may continue to bill for certain services furnished remotely by hospital staff to beneficiaries in their homes through 12/31/27.
These extensions give practices time to stabilize their telehealth programs and prepare for the post‑2027 landscape.
Audio‑Video Telehealth: The Baseline Modality
For most Medicare telehealth services, the baseline expectation remains a two‑way, real‑time audio‑video connection between the practitioner and the beneficiary. During the extension period, audio‑video telehealth can be used for eligible services regardless of whether the beneficiary is at home or in another qualifying location.
Audio‑Only Telehealth: Requirements Through December 31, 2027
General audio‑only flexibility through 12/31/27
Under current law, Medicare beneficiaries may continue to receive audio‑only telehealth services in their homes through December 31, 2027.
Key points:
- Location: Audio‑only telehealth is permitted when the beneficiary is in their home.
- Patients: Audio‑only can be used for both new and established patients.
These flexibilities apply across 2026 and 2027, aligning with the broader telehealth extension timeline.
Correct Place of Service Codes for Telehealth (Audio‑Only and Audio‑Video)
Accurate POS reporting is essential for correct payment and audit readiness. CMS instructs physicians and practitioners to use POS 02 or POS 10 for Medicare telehealth services. These POS codes apply regardless of whether the encounter is audio‑only or audio‑video, as long as it qualifies as a telehealth service.
POS definitions
- POS 02 – Telehealth Provided Other than in Patient’s Home
Use POS 02 when telehealth services are furnished to a beneficiary who is not in their home, such as in a clinic, nursing facility, or other medical facility. - POS 10 – Telehealth Provided in Patient’s Home
Use POS 10 when telehealth services are furnished to a beneficiary in their home, which CMS defines as a private residence that is not a hospital or other facility.
The POS selection is driven by patient location, not by whether the visit is audio‑only or audio‑video. What changes with audio‑only is whether the service is permitted to be delivered in that modality for that setting and time period, which is currently allowed in the home through December 31, 2027.
Practical Billing and Documentation Tips for Audio‑Only Through 12/31/27
To support compliant billing of audio‑only telehealth services during the extension period, practices should focus on four core documentation elements.
- Modality:
- Document clearly that the encounter was conducted via audio‑only real‑time communication.
- Patient location:
- Record the patient’s location at the time of the encounter.
- Clinical appropriateness and consent:
- Document that the condition and service were appropriate for telehealth and that the patient consented to telehealth.
- Reason for Audio only Visit:
- Document clearly whether the patient is not capable of or does not consent to using audio video communication.
These steps, combined with correct POS coding and adherence to the audio‑only timeframe (through December 31, 2027 in the home), will help providers maintain compliant Medicare telehealth billing.
Key Takeaways for Your Telehealth Program
- Telehealth flexibilities, including home‑based services and expanded practitioner types, are extended through December 31, 2027.
- Audio‑only telehealth is permitted for beneficiaries in their homes through 12/31/27, for both new and established patients, with special ongoing flexibilities for remote mental health services furnished by hospital staff.
- Use POS 10 when the patient is at home and POS 02 when the patient is in another eligible originating site.