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This paper is divided into several major sections. Following the introduction, the research methodology is outlined in the second section. This is followed by a discussion of the policy issues and their significance. The major findings and analysis are presented in two sections. The first discusses the current status of physician reimbursement as it relates to telehealth. It also describes how Canada and selected foreign countries deal with this problem. This is followed by a discussion of a number of policy options for addressing the reimbursement issue. Each option is examined in terms of its pros and cons. The second last section identifies several related issues. The paper ends with a discussion of telehealth reimbursement issues from a broader policy perspective.