Dive Brief:
Telehealth flexibilities in Medicare have been preserved for another six months, just weeks before the pandemic-era changes to virtual care policy were set to expire.
The flexibilities, which significantly expanded telehealth coverage for Medicare beneficiaries, were extended through Sept. 30 as part of a short-term government funding bill signed by President Donald Trump over the weekend.
Telehealth groups cheered the move, but noted another short-term extension creates unpredictability for providers. “The uncertainty surrounding telehealth coverage over the last several months reiterates the need for a permanent telehealth solution that provides peace of mind for both patients and providers,” Julia Mirich, spokesperson for Telehealth Access for America, said in a Friday statement.
Dive Insight:
The continuing resolution signed into law Saturday allows temporary changes to telehealth rules first enacted during the COVID-19 pandemic to continue, such as allowing patients to receive telehealth care in their homes or expanding the types of providers who can offer virtual care.
Before the public health emergency, coverage of telehealth in Medicare was largely restricted to beneficiaries living in rural areas or certain types of facilities or services.
Some of the pandemic-era flexibilities have been made permanent, but others still operate on temporary waivers. The changes were extended at the end of 2022 for two years, and it appeared they would continue through the end of 2026 with another stopgap funding bill in December.
That legislation was torpedoed, however, after Trump and allies like Elon Musk criticized the bill’s cost. Lawmakers scrambled to put together another package, but it only extended the telehealth flexibilities through the end of March — creating another looming deadline for providers and telehealth advocates.
The latest stopgap funding bill gives them a six-month reprieve. It also extends the CMS’ Acute Hospital Care At Home program through the end of September. The program, first enacted during the pandemic to boost hospital capacity during COVID surges, allows approved Medicare-certified facilities to provide inpatient level care in patients’ homes.
However, some telehealth policy changes, like first-dollar coverage for telehealth on high-deductible health plans, didn’t make it into the bill, according to the American Telemedicine Association. They expired at the end of last year.
The uncertainty stemming from another short-term extension is also an impediment to telehealth use, telehealth groups and providers say. Health systems may struggle to justify further investment in virtual care if reimbursement isn’t clear, and other insurers often follow coverage decisions made by Medicare.
Telehealth has typically received bipartisan support from lawmakers, and Trump initiated the flexibilities during his first term. Additionally, Dr. Mehmet Oz, the physician and TV personality nominated to lead the CMS, said telehealth would be a “major focus” to help rural populations access care during a confirmation hearing Friday.
“This clearly indicates the administration views telehealth as vital to our healthcare system,” Kyle Zebley, executive director of ATA Action, the advocacy arm of the American Telemedicine Association, said in a statement.
