Telehealth costs surpass office visits across U.S.

NEW YORK, UNITED STATES — FAIR Health’s Monthly Telehealth Regional Tracker observed a slight decline in telehealth usage across the United States, with claim lines decreasing from 4.86% in April to 4.82% in May 2024, marking a 0.8% drop.
However, the Western region of the U.S. saw an increase in telehealth claim lines from 6.31% to 6.52%, a rise of 3.3%.
In contrast, other regions, such as the Northeast, Midwest, and South, experienced minor declines of 0.7%, 0.4%, and 0.1%, respectively.
Mental health dominates telehealth services
Mental health conditions remained the leading category for telehealth services in May 2024, accounting for 68.6% of all telehealth claims in the U.S.
This trend was consistent across all regions, reflecting a growing global reliance on telehealth for mental health support.
The most common mental health diagnoses included generalized anxiety disorder and major depressive disorder, which together made up more than half of all mental health telehealth claims.
Age group utilization patterns
The age group 31-40 emerged as the largest share of telehealth claim lines nationally and across all regions, including the South and West.
Notably, between April and May, the Midwest and Northeast saw a shift from the 19-30 age group to the 31-40 age group.
Both age groups consistently represented over 20% of telehealth claim lines in every region.
Telehealth costs exceed in-office visit expenses
In May 2024, telehealth services were generally more expensive than traditional in-office visits. The median cost of telehealth services was $117 in the U.S., compared to $114 for in-office visits. The Northeast reported the highest costs, at $130, while the South had the lowest, at $110.
This trend underscores the growing financial implications of telehealth as a healthcare delivery method.
Changes in diagnostic and specialty areas
While mental health remained dominant, other diagnostic categories experienced shifts.
Acute respiratory diseases and infections fell in the ranking, replaced by endocrine and metabolic disorders in the Northeast and diabetes mellitus in the West.
In terms of specialties, family practice rose to third nationally, and psychiatric nurses gained prominence in the Midwest and West.
FAIR Health’s commitment to transparency
FAIR Health’s Monthly Telehealth Regional Tracker, launched in May 2020, continues to provide valuable insights into telehealth trends.
FAIR Health President Robin Gelburd emphasized the organization’s commitment to healthcare transparency, stating, “We are happy to share these continuing windows into telehealth utilization as this venue of care evolves.”
This comprehensive data offers a clearer understanding of telehealth’s evolving role in healthcare, highlighting regional variations and the increasing importance of mental health services in telehealth settings.