September 15, 2025

Please find below the latest developments in federal and state virtual care policy as well as research, data, and polling on virtual care. 

This is the public update of the Alliance, issued quarterly. The biweekly Alliance newsletter is now members-only. Was this email forwarded to you? Subscribe here or feel free to contact us about membership. 

Alliance Advocacy Highlights 

Statutory authorization for Medicare telehealth expires September 30, 2025. 

We expect an extension to be passed by Congress in September, but there is a risk of potential lapse if Congressional leaders do not come to an agreement to fund the federal government by the end of September. Over the summer, the Alliance laid the foundation in response to this upcoming threat –

Alliance for Connected Care Leads 350 Health Care Stakeholders Urging Congress to Extend Medicare Telehealth Access Before September 2025 Deadline (8/11) - In a strong show of national consensus, 350 health care stakeholder organizations have signed a letter urging Congressional leadership to take immediate action to preserve access to Medicare telehealth services beyond their scheduled expiration in September 2025. The letter calls on Congress to enact the longest possible extension of existing telehealth authorities, with a minimum two-year extension needed to ensure continuity of care and operational stability for patients, providers, and the health care system at large.

Alliance Asks Congress to Differentiate Medicare Telehealth “Cliff” from Federal Funding Deadlines (8/7) - The Alliance for Connected Care sent letters to Congress asking that Congress work to differentiate the Medicare telehealth “cliff” from the federal funding deadlines. If there is a short extension until December, the Alliance asked that Congress seeks to mitigate the significant patient/provider disruption caused by the potential for a lapse.

The Alliance continues to strongly advocate and push for an extension of expanded telehealth flexibilities this fall. 

Alliance Updates

Drug Enforcement Administration Telehealth – The Alliance led a letter, signed by over 200 organizations to Terry Cole, Administrator of the Drug Enforcement Administration (DEA), requesting his leadership in addressing the telemedicine services the DEA oversees, which ends in December 2025. Highlighted coverage include Healthcare Dive, Behavioral Health Business, MedCity News and Inside Telehealth. Additionally, the Alliance for Connected Care submitted input on the Office of National Drug Control Policy’s 2026 National Drug Control Strategy. The Alliance continues to push the envelope on this advocacy workstream before it expires on December 31, 2025.

Commercial Market Telehealth – After many years of advocacy, over 32 million individuals will be able to permanently receive pre-deductible coverage of telehealth services. 

• On July 3, 2025, Congress passed H.R. 1, which includes Section 71306, allowing for permanent extension and retroactive implementation of this important telehealth policy. 
• The Alliance has been a leader in this advocacy work, including most recently lobbying the Senate Finance Committee and co-leading a letter with other telehealth advocates in support for this important telehealth policy. Highlighted coverage in Fierce Healthcare.
• The Alliance also published a resource document, “Health Policy in Action”, which outlines what this means for employers and employees.

Alliance Submitted Statements and Comments to 

• The Alliance submitted responses to the CY 2026 Medicare Physician Fee Schedule proposed rule and the CY 2026 Hospital Outpatient Prospective Payment System proposed rule. See below for more information about the telehealth provisions in the Medicare Physician Fee Schedule proposed rule. 
• The Alliance advocated for the inclusion of provider location in the CY2026 Physician Fee Schedule. In a letter, the Alliance requested CMS leadership to ensure that telehealth practitioners working from a home-based location are not mandated to report their private residence to the federal government for purposes of enrollment or billing.
• The House Energy & Commerce Committee held a markup around H.R. 3219, which would reauthorize the telehealth network and telehealth resource centers grant programs. Earlier this year, the Alliance sent a letter asking Congressional Appropriators to include a $14 million request for the Telehealth Resource Centers (TRC) program at the Health Resources and Services Administration (HRSA) in FY2026 appropriations. 
• The House Ways and Means Health Subcommittee Hearing on Digital Health Data on June 25. Advancements in digital health have leveraged greater flexibility in care, optimized the remote workforce to meet America’s health needs, and enhanced seamless data flow across patients, practitioners, and settings. Harnessing the power of digital health data through telehealth and RPM allows providers to better manage patients with chronic conditions, high-risk post-acute circumstances, and low access to care otherwise.
• The Ensuring Lawful Regulation and Unleashing Innovation To Make America Healthy Again Requests for Information on July 14. As the Medicare population continues to age, and clinician shortages worsen, the use of technology to manage patients with multiple chronic conditions or in high-risk post-acute circumstances are not just an imperative, but a necessity.
• The Centers for Medicare and Medicaid Services (CMS) Health Technology Ecosystem RFI. The Alliance believes that the delivery of health care should be seamless across modalities.

Hospital at Home - The Alliance joined 140 organizations in a letter to Congress urging inclusion of a five-year extension of the Acute Hospital Care at Home (AHCaH) waiver program in the upcoming September government funding package.

Congress

Rural Health Transformation Program in Reconciliation – Section 71401 of H.R. 1 provides funding for a “Rural Health Transformation Program.” As part of the rural health transformation plan, states can use funds to prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management; and prioritize data and technology driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient's home as is possible. Additional information about the grant funding opportunity can be found here. Additional resources can be found here.

Rep. Carter (R-GA): Introduction of the Telehealth Modernization Act of 2025 (9/2) - Reps. Carter (R-GA) and Dingell (D-MI) introduced the Telehealth Modernization Act of 2025, which extend telehealth flexibilities for seniors on Medicare through fiscal year 2027. Sens. Scott (R-SC) and Schatz (D-HI) are leading the companion bill in the Senate. 

Rep. Frankel (D-FL): Introduction of the Connected Maternal Online Monitoring (MOM) Act (8/15) – On August 15, Reps. Frankel (D-FL), Salazar (R-FL), Castor (D-FL), and Letlow (R-LA) introduced the Connected Maternal Online Monitoring (MOM) Act (H.R. 4977), which would identify and address barriers to coverage of remote physiologic devices under State Medicaid programs to improve maternal and child health outcomes for pregnant and postpartum women.

Rep. Adrian Smith (R-NE): Reconciliation Package Confronts Rural Health Challenges (8/1) – Rep. Adrian Smith (R-NE) published an op-ed on access to health care for patients and providers in rural communities. “Leveraging technology can open new ways for providers to reach and improve outcomes for rural patients…the One Big Beautiful Bill Act, which I supported in the House and President Trump signed into law earlier this month, lowers barriers to telehealth services through a permanent provision based on my Telehealth Expansion Act. This ensures the millions of Americans with High-Deductible Health Plans can access affordable telehealth options before meeting their full deductible.”

Rep. Buchanan (R-FL): Introduction of the Hospital at Home Extension Bill (7/10) – Reps. Buchanan (R-FL), Smucker (R-PA), and Evans (D-PA) introduced the Hospital Inpatient Services Modernization Act (H.R. 4313), which would extend acute hospital care at home waiver flexibilities, and to require an additional study and report on such flexibilities. Sens. Scott (R-SC), Warnock (D-GA), Tillis (R-NC), Smith (D-MN), Blackburn (R-TN), and Whitehouse (D-RI) introduced the companion legislation in the Senate (S. 2237).

Rep. Matsui (D-CA): Introduction of the Telemental Health Care Access Act (6/10) – On June 10, Reps. Matsui (D-CA) and Balderson (R-OH) introduced the Telemental Health Care Access Act (H.R. 3884), which would ensure coverage of mental and behavioral health services furnished through telehealth by removing the in-person requirement permanently. Sens. Smith (D-MN) and Cassidy (R-LA) introduced the companion legislation in the Senate (S.2011). The Alliance for Connected Care endorsed this bill.

Rep. Thompson (D-CA): Introduction of the CONNECT for Health Act (6/26) – Reps. Thompson (D-CA), Schweikert (R-AZ), Matsui (D-CA), and Balderson (R-OH) introduced the House-version of the CONNECT for Health Act (H.R. 4206). The bill includes several provisions that would expand telehealth access for Medicare beneficiaries. Sens. Schatz (D-HI), Wicker (R-MS), Warner (D-VA), Hyde-Smith (R-MS), Welch (D-VT), and Barrasso (R-WY) introduced the Senate companion (S. 1261) in April.

Sen. Blackburn (R-TN): Introduction of the Rural Patient Monitoring Access Act (4/30) – Sens. Blackburn (R-TN), Warner (D-VA), and Reps. Kustoff (R-TN), Pocan (D-WI), Balderson (R-OH), and Davis (D-NC) introduced the Rural Patient Monitoring (RPM) Access Act (S. 1535/H.R. 3108), which would ensure Medicare patients in rural and underserved communities have access to remote physiologic monitoring services, which lower costs and improve access to care by using technology to collect and transmit patient health data to health care providers.

Key Telehealth Issues the Alliance is Advocating for in the Medicare Physician Fee Schedule Proposed Rule

While CMS does not have statutory authority to waive geographic and originating site restrictions for telehealth, the Alliance respectfully urged CMS to continue to work with Congress and other federal agencies to ensure long-term certainty and access to the full spectrum of virtual care options for Medicare beneficiaries.

Administration

HHS Office of Inspector General: Billing for Remote Patient Monitoring in Medicare (8/28) - In its review, HHS OIG found a small group of medical practices with billing that warranted further scrutiny. About 4,600 practices routinely billed for RPM, billing about 70 enrollees per year. Of the 4,600 practices, less than 50 practices were potentially fraudulent.

Health Affairs: To Promote Health Through Wearables, Embed Them In New Payment Models (8/28) – Joshua Liao, a MedPAC commissioner and serves on the Physician-Focused Payment Model Technical Advisory Committee (PTAC), underscores the need to not only encourage adoption of wearable devices but also reform the systems surrounding their use. Historical experience within and beyond health care teaches that to maximize potential benefits, technological advancements must go beyond point solutions—that is, tools meant to solve specific, narrow problems—and occur within systems-level change.

CMS: Remote Patient Monitoring Guidance (5/5) – CMS released a frequently asked question page on remote patient monitoring as well as updated its Medicare Learning Network (MLN) guidance to include RPM.

Telehealth Research, Reports and Surveys

The American Heart Association (AHA) launched a program to support heart failure patients after they leave the hospital.

American Heart Association Connected Care™, Powered by Cadence is a remote care program that helps patients recover safely at home with 24/7 clinical support and easy-to-use devices that track their vital signs.

Hospitals can refer eligible patients to American Heart Association Connected Care, Powered by Cadence prior to discharge. Once enrolled, Cadence takes care of enrolling patients in the program, helping patients understand their potential financial obligation, teaching them how to use their devices, monitoring vital sign readings, and providing ongoing clinical support—at no cost to the hospital.

The pilot program will improve patient outcomes, reduce readmissions and extend care beyond the hospital walls.

Telehealth News and Market Developments

MedCity News: Telehealth Safe Harbor Is A Win-Win For Workers And Employers (8/17) – Roughly half of all Americans have now had a virtual visit, and the vast majority of those patients have embraced virtual care for a growing list of needs including everyday urgent care, talk therapy, and longitudinal support for chronic and complex conditions. Amid widespread physician shortages and the persistent access barriers — geographic, social, and/or financial — that prevent too many people from getting essential care, virtual care has become a lifeline for millions. Pre-deductible telehealth coverage has proven to be a powerful lever to help employees make healthcare decisions that are mutually beneficial for themselves, their loved ones, and the health of their employer.

Abilene Reporter News: Congress Is Right to Keep Telehealth Affordable for Job Creators (8/17) – Doug Peters, president and CEO of the Abilene Chamber of Commerce, applauded the passage of provisions from the Telehealth Expansion Act of 2025, which made flexibility permanent for high-deductible health plans telehealth. “With more than 60% of Texans enrolled in an employer-sponsored high-deductible health plan, telehealth helps keep these plans affordable and accessible. In turn, businesses can retain talent, boost productivity and support a healthier, more resilient workforce.”

8vc: AI Doctors Won’t Work For Free (8/4) – A wave of AI services companies are reshaping industries by automating knowledge work previously thought to demand human judgment. Most payments in healthcare flow not from individual consumers but health insurance companies. The Center for Medicare and Medicaid Services (CMS) sets the rules for how all types of health insurance pays hospitals, doctors, and other types of clinicians. But it has not clearly defined a way to pay for AI that assists doctors or that autonomously renders a service. The bots won’t work for free. To get AI into care delivery, CMS needs to create payment rails for AI-native healthcare too.

Fierce Healthcare: Cadence Launches Advanced Primary Care Management Pathway (7/1) – Cadence, a remote monitoring service provider, has created an advanced primary care business to help health systems provide better care with artificial intelligence and connected devices. The APCM model, proposed by CMS, is an additional monthly bundled payment that promotes the ongoing relationship between primary care providers and patients. It pays for things like having 24/7 access to the provider’s team, coordinating care within a week of a hospital discharge, home visits, expanded hours and secure messaging options. Cadence has provided remote monitoring services since 2021.

Fierce Healthcare: Doximity Jumps into AI Scribe Market, Offering a Free Tool for Doctors (7/24) – Doximity, an online platform for medical professionals, rolled out an AI medical scribe that is available free of charge to all verified U.S. physicians, nurse practitioners, physician assistants and medical students with a verified Doximity account. The scribe tool is highly portable, available on both desktop and mobile, supporting in-person and virtual care. The note-taking experience is embedded directly into the Dialer interface so doctors can conduct virtual visits and document care from a single, unified screen.

Forbes: Closing The Distance: Fixing Access To Care In Rural America (7/22) – Former Senator Bill Frist published an op-ed about fixing health care access in rural America. In particular, Frist reviews Teledoc Health, where he served on the board. Telehealth growth was nationwide and proved especially valuable in rural, underserved regions with few nearby providers or limited public transportation options. Additionally, telehealth has proved especially beneficial for mental health treatment, with some patients actually preferring a virtual visit due to persisting stigma around mental health care.

Maryland Reporter: College Students Move Across State Lines and Lose Access to Therapy as a Result (5/19) – Young people all over the United States lose access to their therapists when they move across state lines, simply because therapists aren’t licensed to practice everywhere. States license health service providers — and even in an age of virtual medical appointments, they can only offer care to patients in a state where they’re licensed.

US District Court of New Jersey: Telemedicine Providers Lose Challenge to New Jersey Licensing Mandate (5/13) – Two out-of-state specialist physicians failed in their constitutional challenge to a New Jersey law mandating that health-care professionals providing telehealth in the state be licensed there. The US District Court for the District of New Jersey said that the physicians didn’t plausibly allege that the state’s licensure requirement violates the US Constitution’s dormant commerce, privileges and immunities, and free speech clauses, or parents’ substantive due process right to choose their children’s health care. As background, the doctors, the patients, and the patients’ parents sued the state to lift the telemedicine licensure requirement, arguing that it’s unconstitutional.

Upcoming Events & Hearings

September 24 - Telehealth Centers of Excellence, "Expanding Access, Easing Burden: Telehealth Innovations in Complex Settings."

September 30 - Health Policy Futures Lab, "Rural Health Transformation Planning Summit." 

Please subscribe to this newsletter and send any news or events to rikki.cheung@connectwithcare.org for inclusion.