• In late January 2026, Medicare confirmed it would sharply scale back coverage of telehealth services to mainly rural areas and specific mental health uses, raising fresh questions about demand for Teladoc Health’s virtual care offerings.
• While Teladoc’s revenue base is still largely tied to commercial health plans rather than Medicare, the policy shift amplifies existing concerns about its BetterHelp user declines, competition and path to profitability.
• We’ll now examine how the Medicare reimbursement rollback, alongside Teladoc’s BetterHelp headwinds, influences the company’s broader investment narrative.

We've found 12 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

What Is Teladoc Health's Investment Narrative?

To own Teladoc Health today, you have to believe that virtual care can move beyond its pandemic halo and become a durable, integrated part of mainstream healthcare, even as growth slows. The Medicare rollback complicates that story at the margin, but the immediate financial hit looks limited given Teladoc’s heavier reliance on commercial health plans. Instead, the bigger near term swing factors remain execution on its integrated 24/7 Care and cardiometabolic programs, the uptake of new partnerships, and whether BetterHelp can stabilize after its drop in active users. The steep share price slide and low price to sales multiple suggest the market is heavily discounting Teladoc’s ability to reach sustained profitability. Medicare’s move reinforces that reimbursement and demand risk sit right at the center of that debate.

However, investors should also recognise how BetterHelp’s user trends could reshape Teladoc’s earnings story. Despite retreating, Teladoc Health's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Five Simply Wall St Community fair value estimates span roughly US$9 to over US$42 per share, underscoring how far opinions diverge. Set that against Teladoc’s slow expected revenue growth and ongoing losses, and you can see why it pays to weigh multiple viewpoints before deciding how much execution risk you are comfortable with.

Explore 5 other fair value estimates on Teladoc Health - why the stock might be worth just $9.12!

Build Your Own Teladoc Health Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Teladoc Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Teladoc Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Teladoc Health's overall financial health at a glance.

Contemplating Other Strategies?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

• AI is about to change healthcare. These 110 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Outshine the giants: these 24 early-stage AI stocks could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.