The Telemedicine Boom: How It’s Reshaping Access, Risk and Coverage

Telemedicine has taken the healthcare industry by storm. With more than 116 million people using digital health treatment globally in 2024 – up from 57 million in 2019 - the momentum is palpable. Even more, the global telemedicine market is expected to reach $121 billion in 2025, growing to $432.31 billion by 2032.

Telemedicine complements traditional care, helping accelerate patient access and enhancing patient-provider communication. Virtual visits can address and resolve issues faster than in-person appointments and allow for timely follow-ups when needed. Of course, as telemedicine becomes more integrated into modern healthcare, the risk landscape expands. Liability coverage and risk management strategies must evolve to keep pace with emerging exposures. 

Telemedicine is Transforming Healthcare Access

Telemedicine is opening doors to health services, particularly in historically underserved areas. Instead of driving hours to the nearest facility, the approximately 75 million patients who live in healthcare deserts can receive virtual consultations, saving time on in-person visits for more complex cases.

Even outside of healthcare deserts, the convenience of telemedicine is transformative. Today, virtual visits account for 23% of all healthcare encounters nationwide, signaling a permanent shift in how care is delivered. Moreover, physicians using telemedicine surged from 43% before the COVID-19 pandemic to 88% in its aftermath. Specifically, physicians in radiology, psychiatry and cardiology are the most frequent users of telemedicine.

Considerations for Insurers
Redefining Liability Coverage

With this transformation comes new challenges. Despite its digital nature, telemedicine must adhere to the same regulatory standards as traditional care. Notably, the ease of exploring new avenues of virtual patient support, such as mental health services, brings unique liability implications.

Medical liability coverage for telemedicine must account for a range of exposures that differ from in-person care. This includes:

• Malpractice coverage that reflects risks associated with remote diagnosis, treatment delays and patient miscommunication.
• Cross-jurisdictional liability for providers treating patients in multiple states.
• Vicarious liability for digital health platforms that employ or contract with medical professionals.
• Scope-of-practice-related claims tied to the use of mid-level providers such as nurse practitioners and physician assistants delivering virtual care.
   

One of the most pressing concerns is cross-state licensing. Since telemedicine has no physical borders, providers must be licensed in every state where they treat patients. Ensuring compliance across multiple states presents a significant regulatory challenge.

Modernizing Risk Management

The rise of telemedicine in chronic care management also requires careful attention. As more patients rely on virtual visits for ongoing treatment, insurers must evaluate proper qualifications, scope of service and licensing requirements to ensure proper risk mitigation.

Additionally, documentation practices must be strengthened. While a provider may only see a few screens of information during a virtual consultation, the full context may be much longer. Comprehensive documentation is essential for maintaining accurate patient records and protecting against liability claims.

Technology introduces another layer of complexity. Strong, reliable internet isn’t always guaranteed, so insurers must confirm protocols are in place for dropped calls and reconnection procedures. Incomplete exchanges of information due to technical issues could impact patient outcomes, creating liability risks. Although platform glitches and system failures typically fall outside of traditional liability coverage, requiring separate policies.

Further, healthcare deserts are often also digital deserts. While telemedicine can expand accessibility in some of these areas – particularly where broadband is more available than physical clinics – many regions remain underserved on both fronts. Insurers have an opportunity to advocate for improved digital infrastructure, helping to guarantee telemedicine can truly reach those who need it most.

What’s Next?

As the telemedicine market continues to grow, several innovations are set to reshape the landscape:

• AI-powered treatment plans: Artificial intelligence will become a greater force, assisting with diagnoses and treatment recommendations. The key will be balancing AI-driven efficiency with human oversight.
• Wearable health technology: Devices like smartwatches are enhancing real-time patient data collection. With metrics like heart rate, sleep and physical activity seamlessly uploaded to patient portals, virtual care could become even more precise – and with AI filtering the data, providers could help with early interventions.
• Expansion into new specialties: Telemedicine is moving beyond traditional primary care and mental health care, offering patients more pathways to specialized services like tele dentistry and remote physical therapy. 
   

Telemedicine today has only scratched the surface. As virtual healthcare becomes mainstream and grows across practice areas, it will continue to bring new risks and coverage complexities. Insurers must stay ahead of these changes by adapting policies and risk management strategies to keep up with the dynamic digital health landscape.