US Telemedicine Market Analysis

US Telemedicine Market Executive Summary

US telemedicine market size is at around $25.54 Bn in 2022 and is projected to reach $84.88 Bn in 2030, exhibiting a CAGR of 16.2% during the forecast period. Telemedicine is a method of obtaining healthcare visits with doctors, psychiatrists, or nurses over the Internet using your phone or computer. These meetings are typically video calls via an app or platform, while some providers also offer online chat messaging, email help, and phone calls. The goal of telemedicine is not to replace doctor appointments at clinics. Instead, they should be used to supplement traditional healthcare. Telemedicine can be used to communicate with a doctor to see if you need a physical appointment, seek or renew drug prescriptions, examine and treat minor health concerns, and access counseling and other mental health treatments.

The telemedicine market in the US is quickly expanding, driven by technological improvements, changes in healthcare delivery methods, and increased demand for access to healthcare services. Telemedicine is becoming more widely employed in a variety of medical specialties, including primary care, mental health, and specialty care. It is especially beneficial for people who live in remote or underdeveloped locations, or who have difficulties obtaining standard healthcare services owing to mobility or other restrictions. Furthermore, it has witnessed an increase in its use during the COVID-19 pandemic, which severely affected healthcare facilities, and it allowed it to lower the risk of infection.

As primary care remains a hot spot for private equity, pharmacy chains, and health insurers, companies like Everside Health have received $164 Mn in growth equity funding to accelerate its growth and support potential M&A opportunities, and CVS Health has made a $100 Mn investment in Carbon Health, both of which will focus on primary care, including mental and occupational health, virtually and on-site or near-site to employers. New features and services to provide predictive patient care that treats the full person rather than just their symptoms. In the US, a lack of access to high-quality primary care has aggravated chronic illnesses, exacerbated mental health issues, and increased healthcare expenses. to integrate more mental health specialists into its health centers and to expand its technology capabilities in order to achieve better therapeutic outcomes.

Market Dynamics

Market Growth Drivers

The telemedicine market is driven by the rising prevalence of chronic diseases coupled with the increasing geriatric population; favorable government efforts, reforms, and regulations promoting telehealth; a shortage of healthcare professionals; and growing awareness of the benefits of telehealth. Other factors driving the growth of this market include the development of artificial intelligence & virtual assistants, as well as the use of technologies such as telerobots. Telemedicine is dependent on technology, and technical advances, such as the development of new platforms, wearable devices, and sensors, are allowing for the delivery of more effective and efficient telemedicine services. In 2022, 67 Mn people in the US were reported to have active wearable devices. Nearly half of the users (47.33%) use the devices on a daily basis, with the majority (82.38% weighted) eager to share health data from wearables with their care providers.

Market Restraints

There are several causes for market limitations in the growth of telemedicine these vary from rising interest rates, which have made operational conditions less appealing in the US, to Russia's invasion of Ukraine, the consequences of which have reverberated throughout the global economy. However, a lack of acceptable standards in comparison to traditional healthcare systems, as well as patient privacy and confidentiality concerns also have been reported to hinder market expansion by 24%. Telemedicine appointments may not be covered by your insurer. Only 26 states compel insurance to cover or reimburse telemedicine costs. However, rules are constantly changing, and additional states may compel insurers to limit cost-sharing in the future. To connect via an unencrypted channel or a public network, hackers or others may get unauthorized access to data. Also, some apps do not have the ability to prescribe or refill prohibited drugs.

Competitive Landscape

Key Players

• MDlive
• Amwell
• Twilio
• Teladoc Health
• Doctor on Demand
• Zoom Video Communications
• Access Telecare
• VSee

Notable Recent Deals

October 2022 - UnitedHealth Group completed its acquisition of Change Healthcare after overcoming the Department of Justice in federal court in its attempt to halt the $13 Bn transactions. UnitedHealth, the insurance behemoth, announced the deal's completion, highlighting the firms' shared ambition for simplifying and adapting the healthcare system to the requirements of payers, providers, and patients. The partnership intends to link and streamline the essential clinical, administrative, and payment systems on which healthcare providers and payers rely to serve patients. Reduce friction and increase efficiency to benefit the entire health system, resulting in lower costs and a better experience for all stakeholders.

September 2022 – CVS Health has agreed to pay $8 Bn for Signify Health, beating out possible buyers such as Amazon and UnitedHealth in a bidding war for the home healthcare provider. With the acquisition of Dallas-based Signify, CVS Health will gain 10,000 clinicians as well as technology to enable providers, insurers, and employers to manage in-home care. CVS has been attempting to become a full-service healthcare provider, which management has stated will demand a presence in primary care as well as the inclusion of in-house doctors.

Healthcare Policies and Regulatory Landscape

The American Telehealth Association (ATA) pursues regulatory and legislative corrective steps to guarantee that all telehealth providers act in unison to benefit the telehealth requirements of US citizens. They intend to investigate the telehealth tax provision for High Deductible Health Plan (HDHP) and Health Savings Account (HSA), allow telehealth services to be treated as an excepted benefit, waive the in-person requirement for the prescription of controlled substances via telehealth, and increase the focus of Congress on the acute hospital care at the home program beginning in January 2023. The Telehealth Modernization Act, CONNECT for Health Act, Telemental Health Care Access Act, Telehealth Response for E- prescribing Addiction Therapy Services Act, and TREATS Act are the legislative priorities before the COVID-19 Public Health Emergency (PHE) ends. If Congress does not act before the PHE expires, telehealth access for the over 60 Mn Medicare beneficiaries will cease overnight.

Reimbursement Scenario

Medicaid and Medicare have the most beneficiaries in the US insurance market, and telehealth services are compensated based on the plan of service by the insurance provider. MDLIVE accepts insurance depending on your policy; urgent care appointments cost less than $82, dermatological appointments cost $95, and psychiatric sessions cost $284. In the absence of health insurance, LiveHealth takes $175, otherwise, visits are $59 for an initial psychiatry appointment and $75 for follow-ups. The individual pays $75 for a medical consultation, $129 for a 25-minute mental health (psychology) consultation, $179 for a 50-minute mental health (psychology) consultation, $299 for an initial psychiatry consultation, and $129 for follow-up psychiatric visits at Doctor on Demand. Amwell works with numerous insurance companies and services range from $79 or less for urgent care to $279 for online psychiatry. Insights10's thorough report provides the reimbursement breakdown by the insurance service provider as well as services delivered under the plan.