On January 27, 2026, the U.S. House of Representatives passed H.R. 7148, the Consolidated Appropriations Act, which would extend several Medicare telehealth flexibilities implemented during the COVID-19 public health emergency (PHE) through December 31, 2027. These Medicare telehealth flexibilities are otherwise set to expire on January 30, 2026, absent further congressional action. While the proposed extension would provide short-term regulatory stability for patients who rely on access to medical care through telehealth, telehealth companies and providers must continue to monitor evolving federal and state compliance requirements, including professional licensure, coverage and reimbursement rules.
Continued Support for Telehealth
Most notably, the proposed legislation would continue to permit Medicare reimbursement for covered telehealth services furnished to patients in their homes. Prior to the PHE, Medicare generally limited telehealth coverage to patients located in rural areas and receiving services at approved healthcare facilities.
For many telehealth companies and clinicians, home-based virtual care has become integral to patient access and day-to-day operations. Absent congressional action, Medicare’s telehealth coverage will be significantly limited, creating immediate reimbursement uncertainty and operational disruption that will reduce patient access to medical care.
Key Telehealth Flexibilities Proposed for Extension:
The proposed legislation would extend reimbursement for telehealth services through December 31, 2027, including the following key changes:
- Geographic Location and Originating Site Restrictions: Continuation of the temporary removal of geographic limitations and expansion of permissible originating sites for telehealth services.
- Distant Sites: Authorization for Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) to continue serving as distant site providers.
- Audio-Only Telehealth: Continued coverage for audio-only telehealth for non-behavioral and non-mental health services.
Together, these flexibilities support the continued expansion of scalable, multi-state telehealth platforms and promote broader patient access to virtual care.
Impact on Patients, Telehealth Companies, and Providers
If the legislation does not pass before January 30, 2026, the expiration of these provisions will represent a significant shift for providers and patients who have relied on telehealth as a primary mode of health care. If the flexibilities are permitted to expire, claims submitted for telehealth services furnished after January 30, 2026, may be denied by Medicare Administrative Contractors (MACs). Providers may also be subject to audits or recoupment actions if they continue billing for services that do not comport with the pre-waiver reimbursement requirements.
How Frier Levitt Can Help
Frier Levitt closely monitors developments in federal and state telehealth policy and advises telehealth organizations, providers and administrative companies on regulatory compliance, reimbursement strategy and operational risk management. Contact Frier Levitt to learn how we can support your telehealth operations in this evolving regulatory environment.
