The Future of Telehealth Regulation: Key Changes to Watch in 2025
Telehealth has experienced exponential growth in recent years, driven by the COVID-19 pandemic and the increased demand for accessible healthcare. The flexibility of telemedicine has made it a cornerstone in modern healthcare delivery, but with rapid expansion comes evolving regulation. As we look ahead to 2025, it’s crucial for healthcare providers, digital health companies, and telemedicine professionals to stay ahead of regulatory changes that could impact the way they operate.
This blog explores the key regulatory changes on the horizon in 2025, discussing how these shifts will impact licensing, reimbursement, privacy, and practice guidelines. The future of telehealth will be shaped by these regulations, and those who adapt early will be best positioned to thrive in this rapidly growing industry.
1. Interstate Licensing Compacts Will Continue to Evolve
Nurse Licensure Compact (NLC) & Interstate Medical Licensure Compact (IMLC)
The Nurse Licensure Compact (NLC) and Interstate Medical Licensure Compact (IMLC) have been pivotal in streamlining the licensing process for nurses and physicians practicing across state lines. These compacts allow providers to hold one multistate license, giving them the ability to practice in any participating state without the need for individual state licensure.
As of 2025, more states are expected to join these compacts, making it easier for providers to expand their practice. However, the expansion of these compacts may also come with additional regulatory scrutiny. States that join these compacts may impose their own unique requirements that telehealth providers must be aware of. Additionally, there are potential changes in compact eligibility, such as continued professional development or specific state-imposed clinical guidelines, that providers may need to meet to retain their multistate licenses.
Physician Assistant (PA) Compact
In 2025, the PA Compact is expected to take shape, similar to the NLC and IMLC. This compact will allow physician assistants to obtain a multistate license, enabling them to practice in any state that joins the compact without the hassle of acquiring separate licenses.
While this will be a game changer for telehealth companies looking to hire PAs across multiple states, the compact will likely come with specific supervisory requirements. This means that telehealth companies must be prepared to meet state-specific guidelines for PA supervision, even if the compact allows for multistate licensure.
Key Takeaway: For telehealth companies expanding across state lines, ensuring compliance with evolving interstate compacts will be critical. Staying updated on compact requirements and supervisory regulations will help companies onboard providers quickly and efficiently.
2. Reimbursement Policies Are Likely to Expand, but with Conditions
Medicare and Medicaid Telehealth Reimbursement
During the pandemic, Medicare and Medicaid temporarily expanded telehealth reimbursement, allowing for more services to be covered and paid for as in-person visits. These expansions were widely seen as crucial to the growth of telehealth, and many hope that the broader reimbursement policies will become permanent. However, in 2025, the Centers for Medicare & Medicaid Services (CMS) is expected to reevaluate the scope of services eligible for reimbursement.
Telehealth providers should anticipate that while many of the expanded telehealth services will remain covered, stricter guidelines on the quality and type of telehealth services may be imposed. For example, remote patient monitoring (RPM) services may be subject to more stringent requirements, such as more comprehensive data collection or reporting standards, before providers can receive reimbursement.
Private insurers are likely to follow suit, but reimbursement policies will still vary widely between payers. Telehealth companies should also be aware that insurers may impose stricter coverage requirements, including prior authorizations for specific telemedicine services or a cap on virtual visits.
Value-Based Care & Telehealth
One of the most significant changes in telehealth reimbursement that could occur in 2025 is the shift toward value-based care models. Instead of being reimbursed based on the volume of services provided, providers will be compensated based on the quality of care and patient outcomes. Telehealth offers unique opportunities to monitor patient health and improve outcomes through continuous care, but this shift will require providers to adopt new technologies and processes to meet value-based care criteria.
Key Takeaway: Telehealth companies must prepare for a more complex reimbursement landscape in 2025, focusing on meeting new quality metrics and value-based care standards to maximize revenue and remain competitive.
3. Telehealth Privacy & Security Regulations Will Tighten
HIPAA & Beyond: New Data Privacy Regulations
Telehealth has expanded access to care but has also increased the amount of sensitive health data transmitted digitally. As data breaches and cyberattacks become more frequent, telehealth providers can expect tighter regulations around patient privacy and data security.
While the Health Insurance Portability and Accountability Act (HIPAA) currently governs patient privacy, new regulations are likely to emerge by 2025 that impose stricter standards on data encryption, secure communication, and data storage. Federal lawmakers may look to update HIPAA to address modern-day privacy concerns, particularly as new telehealth platforms and apps proliferate.
Additionally, states are already introducing more stringent data privacy laws, such as California’s Consumer Privacy Act (CCPA). In 2025, we may see more states adopting their own versions of CCPA, which will require telehealth companies to develop state-specific privacy policies and processes to stay compliant. Companies will also need to ensure that all communication channels, from video consultations to mobile app messaging, are compliant with both HIPAA and new state laws.
Key Takeaway: Telehealth companies must invest in cutting-edge data privacy and cybersecurity measures. Staying compliant with HIPAA and new state-specific privacy regulations will be essential for safeguarding patient trust and avoiding costly legal issues.
4. The Expansion of Telehealth Across State Lines Will Encounter Federal Involvement
Federal Regulation of Interstate Telehealth
Currently, telehealth is largely regulated on a state-by-state basis, which has created a fragmented system for licensing and practice guidelines. In 2025, federal legislators may seek to create a more unified regulatory framework that streamlines telehealth across state lines. This could involve new federal guidelines that standardize telehealth practices nationwide or an expanded role for the Department of Health and Human Services (HHS) in overseeing telehealth regulation.
If federal regulation is enacted, it could help telehealth providers navigate the complexities of multi-state practice by eliminating some of the discrepancies between state laws. However, the federal government may also impose more stringent standards for telehealth providers, such as requiring uniform protocols for patient consent, record-keeping, and clinical guidelines.
Telehealth for Federal Employees
There is also discussion about expanding telehealth coverage for federal employees, which could set a precedent for other large-scale employers. In 2025, federal agencies may expand telehealth services for employees under the Federal Employees Health Benefits (FEHB) program. If this happens, it could lead to more telehealth-friendly policies being adopted by private employers and insurers.
Key Takeaway: Federal involvement in telehealth could streamline regulations but also introduce new national standards. Telehealth companies must stay vigilant in monitoring any federal legislative changes that could impact their operations.
5. Licensing for Behavioral and Mental Health Telehealth Providers Will Evolve
Increased Demand for Behavioral Health Services
Telehealth has opened new avenues for delivering mental and behavioral health services, but this area of telemedicine has been fraught with unique regulatory challenges. In 2025, expect to see significant changes in how mental health telehealth providers are licensed and reimbursed.
Many states are considering introducing specific licensing requirements for telehealth providers delivering mental health services. This could include specialized training in telehealth modalities or additional certifications for handling sensitive patient information. Licensing compacts similar to the NLC and IMLC may also emerge for mental health providers, making it easier for them to practice across state lines.
Parity Laws for Mental Health
As telehealth continues to grow, there will likely be more pressure on state and federal lawmakers to enact telehealth parity laws, which require insurers to cover telehealth services at the same rate as in-person visits. Mental health services are likely to be at the forefront of this movement, as the demand for virtual mental health care continues to rise. In fact, the global digital mental health market is expected to grow from $17.06 billion in 2023 to $55.82 billion by 2030. In 2025, telehealth companies should prepare for changes in parity laws that could significantly impact how mental health services are reimbursed.
Key Takeaway: Telehealth companies offering behavioral and mental health services must be prepared for stricter licensing and reimbursement guidelines. Investing in the right training and certifications will be essential for maintaining compliance.
6. Telehealth Practice Guidelines Will Be Further Defined
Standardization of Telehealth Practice Guidelines
As telehealth becomes more mainstream, there will be increased pressure to standardize telehealth practice guidelines. In 2025, expect more clear-cut rules on how telemedicine should be practiced, from the tools used to how follow-up care is handled.
Medical boards and associations will likely introduce more detailed clinical guidelines for telehealth in specific specialties, such as dermatology, cardiology, and mental health. These guidelines will outline best practices for virtual consultations, patient education, and treatment plans, ensuring that telemedicine meets the same standard of care as in-person visits.
Specialization in Telehealth
Telemedicine has long been seen as a generalist’s practice, but in 2025, we may see the rise of telehealth specialization. Regulatory bodies may begin to impose specialty-specific telemedicine licensing or certification, requiring telehealth providers to undergo additional training in order to practice virtually in certain fields, such as pediatrics or oncology.
Key Takeaway: Telehealth providers should be prepared for the development of more defined practice guidelines in 2025, with specialization in telemedicine becoming increasingly important. Staying current with clinical guidelines will be essential for providing high-quality care.
Conclusion
The future of telehealth regulation in 2025 will bring both opportunities and challenges. As interstate licensing compacts expand, reimbursement policies evolve, and privacy laws tighten, telehealth providers and companies must stay informed and adapt to the changing landscape. The key to thriving in this new era will be investing in compliance infrastructure, adopting value-based care models, and staying ahead of new practice guidelines.
For telehealth companies, embracing these regulatory changes early will provide a competitive edge, allowing them to scale operations, attract top talent, and deliver high-quality care across state lines. As telemedicine continues to grow, understanding and navigating these regulatory changes will be the foundation for long-term success.
