Telehealth Modernization Act Also Introduced, to Extend Medicare Flexibilities Through 2027
WASHINGTON, DC, SEPTEMBER 4, 2025 – ATA Action, the advocacy arm of the American Telemedicine Association, today submitted comprehensive comments to Dr. Mehmet Oz, Administrator, Centers for Medicare & Medicaid Services (CMS), in response to the draft CY2026 Medicare Physician Fee Schedule (PFS), while urging CMS to collaborate with Congress to make permanent or extend the COVID-19 telehealth flexibilities for as long as possible before the September 30 deadline. Read our full PFS comment letter here.
In the comment letter, ATA Action commends President Trump’s leadership for his visionary support of telehealth and CMS for its continued commitment to modernizing the Medicare program. ATA further recommends the Agency also address important flexibilities left out of the draft rule, which will expire in just weeks, including:
- Waiving originating and geographic sites
- Audio-only coverage
- Expansion of Medicare telehealth list to include therapists
- Allowing Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) to serve as distant sites
- Temporary waiver of telemental health in-person requirement
- Continuation of Acute Hospital Care at Home Program
“We are in a race against time, with only 26 days left until the Medicare telehealth flexibilities and the Acute Hospital Care at Home program expire at the end of September. This would potentially leave millions without the ability to access a healthcare provider remotely and set back the clock on technological progress in care delivery,” said Kyle Zebley, executive director, ATA Action and senior vice president, public policy at the ATA. “We strongly support CMS’s efforts to make the COVID-19 telehealth flexibilities permanent, where permissible under current authority. However, we cannot and will not ease up on our urgent petition to the Administration and Congress to take actions that are in the best interest of our healthcare system and the patients it serves.”
In its most comprehensive comment letter to date, ATA Action also stressed the importance for CMS to permanently allow telehealth providers to use their practice address, not their home address, on Medicare billing and enrollment forms. If allowed to expire on December 31, it would raise serious privacy and safety concerns for clinicians and significantly increase administrative burdens for providers and health systems alike.
Further, ATA Action encouraged CMS to take action on provisions in the PFS related to telehealth, digital health, and virtual foodcare, including:
- Facilitate Diagnostic Testing By Virtual Care Providers
- Finalize Proposed Modification of the Medicare Telehealth Services List and Review Process
- Clarify, Finalize, and Extend Medicare Diabetes Prevention Program (MDPP)
- Expand the Advanced Primary Care Management (APCM) Codeset to All Providers
- Expand Digital Mental Health Treatment Code Proposals and Codes
- Expand Coverage for Digital Therapeutics With New Codes
- Create Separate Coding and Payment For Medically Tailored Meals
Telehealth Modernization Act Introduced
In another important step forward earlier today, U.S. Representatives Earl L. “Buddy” Carter (R-GA) and Debbie Dingell (D-MI) also introduced the Telehealth Modernization Act of 2025, a bill to extend telehealth flexibilities for seniors on Medicare through fiscal year 2027. A Senate companion bill is being led by U.S. Senators Tim Scott (R-SC) and Brian Schatz (D-HI).
“This comprehensive legislation advances many of ATA Action’s top priorities and is a strong step toward expanding access, improving care, and modernizing how services are delivered across the country. Our deep thanks to these policy champions for their continued efforts to ensure quality healthcare for all patients, no matter where they live,” Zebley added. “We need these demonstrations of bipartisan, bicameral support, and collaboration between Congress and the Administration, to build a bridge across the precipice that will otherwise leave patients without a lifeline to their healthcare providers.”
Read the full Telehealth Modernization Act text here.
About ATA Action
ATA Action recognizes that telehealth and virtual care have the potential to transform the healthcare delivery system by improving patient outcomes, enhancing the safety and effectiveness of care, addressing health disparities, and reducing costs. ATA Action is a registered 501c6 entity and an affiliated trade organization of the American Telemedicine Association.