This article is introducing the current development of telehealthcare and reviewing the past history and effect in Taiwan. Since 2006, the government has deployed several projects to facilitate the development of telehealthcare, which including U-Care (2006), 10 year projecton long term care (2007), Taiwan 12 construction project (2008), and six emerging industries (2009). The currently running project, Telehealthcare Service Development Program, started in 2007. This project is targeting Diabetes Mellitus and the population with Hypertension and also developing two models of service delivery, a Homecare/Community service model and an Institutional Care service model. Seven services are delivered in Homecare/Community service model, which are tele-physiological monitoring, member health management, tele-consulting, tele-health education, medication safety services, living resource referral, and emergency management; five services are delivered in Institutional Care service model, which are tele-consultation, tele-physiological monitoring, tele-visiting for family members, medication safety services, and tele-health education. The significant benefit outcomes for members in this project relate to hospitalization rate, ER admission rate, self-care monitoring, institutional infection rate, unexpected readmission rate, and redundant medication rate, and also the acceptance rate and satisfaction for both members and caregivers and reductions in the burdens on members' family are also relatively high. In the future, development of telehealthcare service will rely on amendment of the current legislation/decree by government, incentivizing of the services by healthcare/insurance providers, and introduction of new business models by all involved industries.