Connected Care Update

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.  

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.

Virtual Direct Supervision

CMS proposed to expand services allowed under direct supervision for all services described under § 410.26, except for services that have a global surgery indicator of 010 or 090. 

However, CMS did not propose to extend its current policy to allow virtual direct supervision for teaching physicians and residents. The Alliance and its members were very concerned by the potential end of virtual supervision for teaching physicians and requested CMS to provide a year extension of this flexibility prior to making any decision that would so drastically affect the medical workforce and the preparation of new clinicians to offer telehealth.