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What is the difference between telemedicine and telehealth?
The underlying concept of telemedicine has traditionally described the use of technology to provide clinical medical services when the healthcare provider and patient are separated by geographic distance. In recent years, the term telehealth has risen as a favorable expansion upon telemedicine. Telehealth not only includes clinical services but also non-clinical medical services such as education, research, and administrative functions. (Source: The Association of Telehealth Service Providers)

Have states passed bills legislating physician licensure for telemedicine?
Twenty-seven states, and the District of Columbia, have taken no action regarding interstate telemedicine licensure. These states rely upon their statutory 'practice of medicine' clauses, which are typically vague enough to require a full license for diagnosis, treatment, or other direct patient care. In many cases, these clauses can be reasonably construed to consider patient care via telemedicine as the practice of medicine without explicitly stating so. (Source: "Interstate Licensure of Telemedicine Practitioners" by Glenn Wachter, Telemedicine Research Center)

What happens with licensure if telemedicine crosses state lines?
In most cases, a physician must be licensed in the state where the patient is. However, the individual states’ regulation of professional licensure creates complicated situations.

For example, State A’s statute narrowly defines telemedicine and allows ongoing telemedicine interaction not limited to opinions or consultations. But in State B, the statute defines telemedicine very broadly and limits its application. Thus, a physician in State C can be involved in telemedicine interaction using video communication every day with a patient or physician in State A without requiring a license from State A. This same physician could not contact a State B patient, unless she had provided prior treatment to that patient in State C.

Professionals have to know the laws of each state prior to a telemedicine interaction to avoid violation of that state's laws, and they can be individually subjected to board certifications, tests, fees, and other accreditation requirements in order to obtain licensure in all 50 states. (Source: The Association of Telehealth Service Providers)

Does insurance pay for telemedicine?
In some cases it does, but in most cases “No”. The cost-saving aspects of telemedicine are not adequately understood by insurance companies. Since telemedicine results in less time lost from work, employers who finance insurance programs can be a major force for change. If employers insisted that telemedicine services be covered by their insurance plans, things could change significantly. (Source: The Association of Telehealth Service Providers)