POS 10 vs POS 02 after the COVID-19 pandemic, remote health services have emerged as a major part of healthcare. As per the Fortune Business Insights report, the telehealth market size is 186.41 billion USD in 2025 and expected to be hundreds of billions till 2034. So, you should realize that incorrect use of the Place of Service (POS) code will lead to a loss in the form of rejected claims, revenue decline, and wasted time.
POS (Place of Service) codes were introduced in 2022 to overcome issues while dealing with telehealth services provided to patients at home or a place other than a healthcare unit. If you want to claim telehealth bills efficiently and accurately, then a clear difference between POS 10 and POS 02 codes is important to study. Medicare and other well-known payers give reimbursement rates with respect to coding. Any mistake in coding will lead to rejection or delay of your claim.
We are dedicated to providing updated and authentic knowledge on medical billing. This blog will cover in depth the difference between POS 10 vs POS 02 to ensure your smooth and hassle-free billing.
Consequences of Error in Documentation of POS Codes
Consistent errors in the use and documentation of POS codes affect the healthcare provider in the form of financial instability, audit complexities, and poor patient relationships. These are the common issues due to errors in medical billing:
- Delayed Payments
- Claim denials
- Underpayment
- Loss of revenue
- Increased Administrative Burden
- Poor Customer Relationship
- Recoupment Demands
- Audit Failure
What is POS 10?
POS 10 code describes the provision of telehealth services to a patient at home or a private residence, not a hospital or clinic. It was introduced to separate telehealth services provided at home from other telehealth services.
Key Components of POS 10?
The main elements of POS 10 are;
- Telehealth services are delivered remotely
- The patient is located at home
- Healthcare provider and patient in different locations
- Non-facility billing
When to Use POS 10?
- The visit is conducted by video or audio
- Documentation confirmed the patient was at home during the encounter
- The insurance company identifies POS 10 as a telehealth-covered service
What is POS 02?
POS 02 highlights telehealth services provided to patients other than at their home. This code separates the POS 10 services (services provided at home) from the other telehealth services. It helps in the identification of the non-facility-based telehealth services provided.
Key Components of POS 02
The main elements of POS 02 are:
- Telehealth services are provided remotely when the patient is not located at home
- Services delivered in any medical facility or clinical setting
- Requires documentation of accurate patient location
Where to Use POS 02?
Use POS 02 when a telehealth service is provided and the patient is not at home. This code is used to show that the patient was located in a non-home setting, which helps payers process the claim correctly.
POS 02 will be applicable when the patient is in:
- Workplace, School, or Public Place
- Hotel or a Shelter Home
- Hospital or clinic
- Any nursing facility
Documentation Requirements for POS Codes
POS 10 code requires a brief documentation that confirms the presence of the patient at home during the services. The document should outline patients’ consent and remote services in detail. Finally, all the aspects of documentation should meet the telehealth reimbursement requirements.
POS 02 documentation demands the location details of the patient during the encounter. The patient should be outside of the residence at the time of the telehealth session. The document should have the site type, services provided, and proof of the telehealth
services session. Moreover, modifiers are also used with POS codes for more elaboration.
POS 10 vs POS 02 documentation starts by confirming the mode of communication, whether it is a secure video platform or audio-only telehealth.
Always record the date, start time, end time, and total duration of the encounter.
Clearly document the patient’s location at the time of service, as this determines whether POS 10 or POS 02 applies.
Write clinical notes that are sufficient to support medical necessity, since audits and denials often focus here.
Follow CMS compliance rules closely to avoid claim issues.
For audio-only visits, document patient consent and clearly explain the reason video was not used.
Maintain thorough documentation using a simple internal checklist.
Ensure the correct mode is indicated, such as video conferencing versus phone-based telehealth, so each visit is properly supported for billing
Reimbursement Rates of POS 10 vs POS 02
According to CMS (Centers for Medicare and Medicaid Services), cases under POS 10 are paid at non facility rate and POS 02 cases at a facility rate. Non-facility rate is usually higher because the provider bears practice overhead. So, POS 02 reimbursement rates are lower than POS 10.
How to Use POS Codes with Modifiers?
Modifiers are extensions used with the original CPT and POS codes to cover more details about the procedure and services provided in a visit. Followings are modifiers for POS codes:
- Modifier 93: For audio-only services.
- Modifier 95: For real-time audio and video telehealth services.
- Modifier GT: Some companies used to indicate telehealth services
Key Difference Between POS 10 and POS 02
| Feature | POS 10 | POS 02 |
| Patient Location | Residence | Other than Home |
| Billing Type | Non-Facility Billing | Facility Based Billing |
| Reimbursement Impact | Paid at Non-Facility rate | Paid at Facility Rate |
| Common Location | Patient’s Home | Hospital, Clinic, or Workplace |
Practical Guide for POS 10 and POS 02 Billing:
Be careful while billing with POS 10 and POS 02 codes about these parameters:
Location Verification
Location confirmation is very important while using the POS codes. If the documentation fails to verify the patient location, then there is no chance for claim approval. So, at the very first, you should add the location of the patient during teleheath session with proper proof.
Use Appropriate Modifier
Modifiers are helpful in describing the case more efficiently. That is why the chances of your claim’s instant approval increase when you use an appropriate modifier.
Follow CMS Guidelines
CMS regularly works on the quality and outcomes of the health care system, including health insurance. It updates the billing guidelines from time to time. Checking and following CMS guidelines will update your billing journey by enhancing your claim’s approval ratio.
Conclusion
Telehealth is rapidly growing in this era. With proper use of POS codes and smooth medical billing, you can gain it successfully. POS codes are the codes used to describe where telehealth is provided. POS 10 covers the home-based telehealth, and such cases are paid on non facility rate. POS 02 visits are paid on the basis of the facility rate. Reimbursement rate for non facility setting are hihger. So, if you understand a clear difference between POS 10 and POS 2, you can get your claims instantly approved with higher rates. Always follow CMS guidelines during documentation to avail maximum returns.
FAQS
What is a POS modifier?
Modifiers are 2 characters code added with POS 10 or POS 02 for more elaboration of the procedure and service provided. Such as modifier 95 and modifier 93.
How to use modifier 95 for POS 10 code?
Yes! Modifier 95 with POS 10 describes audio-video telehealth services provided to a patient at home.
What is the difference between POS 10 and POS 02?
POS 10 describes telehealth services given to the patient at home, while POS 02 is used for telehealth services provided other than at home.
Does POS 10 code pay more than POS 02?
Yes! POS 10 usually pays more than cases of POS 02 because it is reimbursed at the non-facility rate.
Can POS 02 be used for a patient at home?
No, POS 02 should not be used if the patient is at home. POS 10 is applicable to the telehealth services provided at home.
