Increase in telehealth charges cause FEDS to investigate

Article

Telehealth-based care is being closely monitored for unnecessary charges

Due to the rise of virtual health care, the United States government is monitoring telehealth for misuse. Before the pandemic, 15% of private insurers handled their primary care through telephone or video. After lockdown, however, the use of video and telephone visits increased significantly to 80% and remains around 48% today.1

In response to the public health crisis, the Department of Health and Human Services (HHS) expanded the number of Medicare patients eligible for telehealth-based primary care.1 While examining the data, the Office of Inspector General's investigators discovered a pattern of higher-than-average complexity billing for telehealth visits. Some 22% of telehealth visits were billed at the highest complexity level for new patients, compared with 16% for in-person visits.1

Chris Schrank, assistant inspector general for investigations, says there is no evidence that shows widespread fraud in telehealth, though it could be legitimate reasons for a visit to be more complex. It is something that will be closely monitored, he says.

Unnecessary exams and visits

Telehealth fraud is a type of scam that involves setting up fake doctor visits for patients. These visits are usually carried out for the purpose of billing for the services that the scammers provide.1

In Several investigations related to this type of fraud in the past have taken place.1 In September 2020, the U.S. Department of Justice announced the largest healthcare fraud enforcement operation ever conducted.

With the rise of telehealth, it is possible that more sophisticated fraudsters will try to capitalize on the system.

Despite the risk of fraud, the expansion of telehealth will continue, says Lisa Caplan, senior vice president of care delivery technology services for Kaiser Permanente.

A survey conducted by Kaiser Permanente revealed that many of its members are interested in having video visits in the future for the convenience.2 Before the emergency legislation was enacted, patients in rural areas could chat with doctors or specialists only from a distance. Changes in telehealth allow people in rural areas to access it from their homes.

Reference

1. Owens B. Feds Investigating telehealth charges in ppsurge. Medscape. April 26, 2021. Accessed July 19, 2021. https://www.medscape.com/viewarticle/949957?src=WNL_dne_210428_mscpedit&uac=371986PX&impID=3338219&faf=1#vp_1

2. Byron J. Video visits convenient and high quality, Kaiser Permanente members say. April 30, 2019. Accessed July 21, 2021. https://spotlight.kaiserpermanente.org/video-visits-convenient-and-high-quality-kaiser-permanente-members-say/

Newsletter

Want more insights like this? Subscribe to Optometry Times and get clinical pearls and practice tips delivered straight to your inbox.

Recent Videos
Presenters from the Collaborative Care Symposium 2025 give their key takeaways from their presentations.
Erin Tomiyama, OD, PhD, FAAO, offers actionable advice for myopia management and perspective for practitioners ready to refine their approach.
Extended lotilaner 0.25% therapy shows meibomian gland benefits
Mitch Ibach, OD, FAAO, details a presentation he gave with Tanner Ferguson, MD, at the Collaborative Care Symposium 2025.
Carolyn Majcher, OD, FAAO, details a Collaborative Care Symposium 2025 presentation given with Prethy Rao, MD.
Mitch Ibach, OD, FAAO, details the importance of identifying the best candidates and practicing comanagement for refractive surgery.
Lori Wright, JD, sat down to talk about a presentation at Collaborative Care Symposium about the risk under federal statutes and how to minimize that risk as an optometrist or an ophthalmic practice.
Rachelle Lin, OD, MS, FAAO, on collaborating more effectively on neovascular retinal cases
Mark Bullimore, MCOptom, PhD, details the importance of preparing optometric students for myopic patient care in a Collaborative Care Symposium (CCS) 2025 presentation.
Peter Hersh, MD, stated that the key takeaway from a handful of presentations he gave at CCS 2025 is that successfully treating patients with keratoconus is identifying the disease early.
© 2025 MJH Life Sciences

All rights reserved.