4 Most Common Payment Challenges for Telehealth Platforms (and How to Overcome Them)

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4 Most Common Payment Challenges for Telehealth Platforms (and How to Overcome Them)

At one point in time, telehealth stopped being a niche alternative option and has become a core part of modern healthcare.

This was especially true during the pandemic, where, much like remote working and Zoom calls, telehealth started off as a trend, but even after the pandemic, it stuck.

As more people were forced to partake in telehealth because of unfortunate circumstances, those same people came to realize that it isn’t all that bad; in fact, it was actually an excellent and practical solution they never wanted even to try, because to be fair, it does sound a bit complicated. But it really isn’t.

The only places where issues do happen are with things like digital billing, insurance reimbursements to disputers, and healthcare practices. And if platforms don’t overcome these issues, they’ll discourage patient retention and undermine financial stability.

In this article, we’ll go over the four biggest problems telehealth platforms need to solve. And we’ll go over ‘how’.

Challenge 1 – Billing and Insurance Reimbursement Complication

The biggest difficulty for telehealth practices, or at least one of the top three, is insurance reimbursement. As opposed to office visits, telehealth billing is more in the section called gray areas. Coverage rules change state by state, by insurer, and even by plan.

What one payer will reimburse as a telehealth visit, another will not pay at all.

This inconsistency is further developing the following issues:

1. Delayed revenue – Claims are bounced back or require several resubmissions.
2. Denied claims – Insurers can deny telehealth codes outright.
3. Administrative burden – Staff spend excessive time monitoring coding updates and resubmissions.

For small practices, cash flow is no longer reliable. A given month’s revenue may look great, and then the next one is more like a denials-filled month. In the long term, the gap between services provided and payments received can put extreme pressure on the business.

Potential solutions:

• Use billing software specifically designed for handling telehealth codes that updates automatically.
• Train staff in payer-specific telehealth policies.
• Have transparent and upfront patient pricing to avoid arguments when insurance doesn’t cover a session.

Streamlining reimbursement is less about eliminating the issue and more about reducing its impact with smart preparation.

Challenge 2 – Patient Trust in Digital Payments

Healthcare transactions are sensitive by nature. Patients must feel confident that not only is their care safe, but also their payment data. Many patients often remain very insecure about paying online, especially for healthcare.

This hesitation has real consequences:

• Abandoned payments when patients freeze at checkout.
• Late or missed payments happen if patients avoid electronic bills.
• Uncertain collections that disrupt revenue cycles.

That means not only must providers defend their systems, but they also need to prove it convincingly and clearly.

Trust-building techniques:

• Offer different types of payments (credit card, ACH, HSA/FSA).
• Use familiar and secure payment gateways.
• Clearly and in simple terms, explain charges.
• Highlight encryption and security certifications within patient portals.

Consumer trust in payments isn’t just technology. It’s also about transparency and confidence.

Challenge 3 – Chargebacks and Risk of Fraud

As is the case with eCommerce businesses, telehealth professionals also face the risk of chargebacks and fraud.

Chargebacks occur when patients dispute charges with their card issuer, indicating that the service did not turn out as expected. Fraud can also be caused by stolen card numbers used to book services.

Both situations come with high costs:

• Fees per chargeback in administrative costs.
• Revenue lost from refunded sessions.
• Potential penalties from processors (e.g., Visa, Mastercard, etc.) if dispute rates rise.

For smaller practices or new startups, excessive chargeback ratios can really result in losing the ability to process payments altogether. That’s why many telehealth businesses that operate in high-risk categories turn to custom solutions.

For instance, a specialized telehealth merchant account will often come with fraud tools, a higher tolerance for disputes, billing features that are fully tailored for online healthcare, etc. These can help keep providers operational even during times of higher-than-average disputes.

Proactive steps are necessary.

Fraud screening applications, detailed transaction histories, and prompt responses to patient questions can all be used to decrease disputes before things escalate.

Challenge 4 – Recurring (Subscription) Payment

Monthly therapy sessions, nutritional counseling, wellness memberships, and everything similar are now run on subscription models, and while the model produces reliable income, it also introduces recurring payment issues.

The following issues are typical:

• Expired or canceled card failed charges.
• Low fund declines.
• Patient drop-off when automatic recurring charges aren’t clear or easy to reverse.

These problems may not seem like a big deal, but multiplied across hundreds or thousands of patients, even a very small percentage of failed recurring charges can mean big lost revenue.

Solutions are:

• Automatic card updater software that refreshes outdated information.
• Alternative payment options for patients.
• Transparent subscription terms to avoid confusion.

Comparing the Challenges and Solutions

To see the main points perspective, this is a quick comparison:

Conclusion

Telehealth has value that cannot be disputed, and it’s been seen through expanding access and convenience for patients.

But every virtual consultation is more than the customer can see, because behind it is a complex payment system that is crucial in making practice thrive. Insurance obstacles, issues with patient trust, chargebacks, and recurring billing are all hard challenges. If they are left unchecked or overlooked, that can ruin the growth.

There’s usually a solution for any challenge. In this scenario, it’s up to a secure infrastructure and transparent and clear communication.

If that’s taken care of, the rest is much easier. Payment frictions won’t happen as often, plus if providers prepare on time and adapt, the future of digital healthcare is going to be reliable and sustainable.

2 Interlinking Opportunities:

From https://yourhealthmagazine.net/article/telemedicine/how-is-telehealth-transforming-patient-access-to-healthcare/ with anchor telehealth

From  https://yourhealthmagazine.net/article/family-primary-care/benefits-and-limitations-of-telehealth/ with anchor healthcare providers