On February 3, 2026, the President officially signed into law H.R. 7148, the Consolidated Appropriations Act (the “Act”), extending key Medicare telehealth flexibilities through December 31, 2027. These flexibilities, originally implemented during the COVID-19 public health emergency (PHE), were set to expire in early 2026 while congressional action was pending. However, passage of the Act extends the timeline for Congress to consider permanent telehealth legislation without creating a substantial cliff in Medicare beneficiary patient access to care.
The extension provides short-term regulatory stability for patients, providers, and telehealth platforms that have come to rely on virtual care delivery. However, the continuation of these flexibilities does not eliminate the need for careful compliance planning, particularly with respect to licensure, prescribing, reimbursement, and state-specific telehealth requirements.
Key Medicare Telehealth Flexibilities Extended Through 2027
The new legislation continues Medicare reimbursement for covered telehealth services and preserves several critical regulatory modifications, including the following:
- Geographic and Originating Site Restrictions: Medicare will continue to reimburse telehealth services furnished to beneficiaries in their homes, regardless of geographic location.
- Expanded Distant Site Provider Eligibility: Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) may continue to serve as distant site providers for Medicare telehealth services.
- Continued Coverage for Audio-Only Services: Medicare will continue to reimburse certain audio-only telehealth services, including non-behavioral and non-mental health services.
- Expanded Practitioner Eligibility: The extension preserves expanded eligibility for certain healthcare professionals to furnish telehealth services under Medicare, including physical therapists, speech-language pathologists, and occupational therapists.
Operational and Compliance Implications
Although the extension provides regulatory stability through 2027, telehealth companies and providers must continue to prioritize regulatory compliance and closely monitor evolving requirements. Importantly, the federal extension does not override state-specific requirements for telehealth stakeholders. Organizations should use this period of extension to strengthen internal controls and ensure continued compliance with applicable federal and state requirements.
Key areas of compliance review should include:
- Medicare Reimbursement and Billing Compliance: Ensuring that telehealth claims comply with current CMS coding, documentation, and coverage rules to mitigate audit and recoupment risk.
- Licensure and Corporate Practice of Medicine: Confirming compliance with state licensure, registration, and entity-structuring requirements for multi-state operations.
- Prescribing and Controlled Substance Compliance: Aligning telehealth prescribing practices, particularly for controlled substances, with applicable federal and state regulations.
- Privacy and Data Security: Maintaining compliance with HIPAA, state privacy laws, and emerging technology governance standards.
How Frier Levitt Can Help
Frier Levitt closely monitors developments in federal and state telehealth policy. We advise telehealth organizations, healthcare 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.
