POS 02 is the place of service code for telehealth when the patient is not at home, for example at a clinic, hospital or other site, while the provider is somewhere else. For Medicare, services billed with POS 02 are paid at the lower facility rate. When the patient is at home, the code is POS 10 instead.
What is POS 02?
CMS names POS 02 “Telehealth Provided Other than in Patient’s Home” and defines it as “The location where health services and health related services are provided or received, through telecommunication technology. Patient is not located in their home when receiving health services or health related services through telecommunication technology.” The current wording took effect on January 1, 2022, and applied to Medicare from April 1, 2022.
When to use POS 02
- The patient is at a clinic, hospital, nursing facility or other site that is not their home, and the provider joins by video or, where allowed, audio.
- The patient is at work or school, places that are not their home.
- The originating site, where the patient is, may bill its own originating site facility fee (HCPCS Q3014) when Medicare rules allow it.
How POS 02 is paid
Medicare pays telehealth billed with POS 02 at the Physician Fee Schedule facility rate, because the site where the patient is carries the overhead. Commercial and Medicaid plans set their own rules: some pay telehealth at the same rate as in-person care, and some ask for a different place of service plus a modifier. See CMS telehealth guidance (opens in a new tab) for Medicare’s current list of covered services and modifier rules.
Common POS 02 mistakes
- Using POS 02 when the patient was at home. That is POS 10, which Medicare pays at the higher non-facility rate.
- Using POS 02 for a commercial plan that wants POS 11 with modifier 95, or the reverse.
- Billing a service that is not on the payer’s telehealth list.
- Not documenting where the patient and provider were, and that the visit was by video or audio.
Frequently asked questions
Does POS 02 need a modifier?
It depends on the payer and the year. Medicare uses modifier 93 for audio-only services where they are allowed, and its rules for modifier 95 have changed more than once, so check the current CMS guidance and your contractor. Commercial plans publish their own requirements.
Is POS 02 still used for patients at home?
Not since 2022. POS 10 was created for telehealth in the patient’s home, and POS 02 now means the patient is somewhere else.
Related place of service guides
- POS 11: office
- POS 10: telehealth in the patient’s home
- POS 02 vs. POS 10: which telehealth code to use
- POS 22: on-campus outpatient hospital
Place of service definitions are quoted from the CMS Place of Service code set (opens in a new tab). Telehealth rules have changed often since 2020 and differ by payer; this guide reflects general guidance as of October 2026.
Telehealth claims getting denied?
We check place of service, modifiers and each payer’s telehealth rules before your virtual visit claims go out.