Telehealth Modernization Act

Bill Number: S. 2709
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Health
Status: Introduced
Latest Action: 2025-09-04: Read twice and referred to the Committee on Finance.
Last Updated: 2026-06-11T18:34:22Z

AI-Generated Summary

Purpose

The legislation, titled the "Telehealth Modernization Act," aims to extend temporary flexibilities for telehealth services under the Medicare program established during the COVID-19 public health emergency. It also addresses related areas such as hospital care at home, durable medical equipment oversight, language access in telehealth, rehabilitation services, and diabetes prevention programs.

Key Provisions

Extension of telehealth flexibilities: Amends Section 1834(m) of the Social Security Act to prolong geographic and originating site waivers, eligible practitioner expansions, payments for Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs), audio-only services, and mental health in-person requirements until September 30, 2027 (or October 1, 2027, in some cases).
Hospice care telehealth: Extends use of telehealth for face-to-face encounters prior to hospice recertification until September 30, 2027, with new requirements for modifiers on claims starting January 1, 2026, and exceptions in certain oversight scenarios.
Acute Hospital Care at Home: Extends the waiver program until 2030 and mandates a detailed study and report by September 30, 2028, comparing quality, costs, outcomes, and other metrics between in-person and at-home care.
Durable Medical Equipment (DME) integrity: Adds rules effective January 1, 2028, for including items with aberrant billing patterns on a Master List and allowing prepayment claim reviews; applies similar rules to prosthetics and orthotics. Requires a report by January 1, 2026, from the HHS Inspector General on fraud risks in clinical diagnostic laboratory tests.
Language access guidance: Directs the Secretary of Health and Human Services to issue updated guidance within one year on best practices for interpreters, accessible instructions, digital portals, and multilingual materials for individuals with limited English proficiency.
In-home cardiopulmonary rehabilitation: Allows audio-video technology for services in the home from September 30, 2025, to January 1, 2027, and permits virtual presence of supervising clinicians.
Medicare Diabetes Prevention Program (MDPP): Permits virtual-only suppliers starting January 1, 2026, through December 31, 2030, with no enrollment limits and adjustments for administrative locations and cross-state claims.

Significant Changes to Existing Law

Extends multiple COVID-era telehealth waivers under Medicare from September 30, 2025, deadlines to September 30, 2027 (or October 1, 2027), including for mental health services and hospice encounters.
Introduces new payment rules for FQHCs and RHCs furnishing telehealth services in fiscal years 2026 and 2027 under existing prospective payment systems.
Adds fraud prevention mechanisms for DME and laboratory tests, including Master List inclusions based on billing patterns and mandatory studies/reports.
Creates a follow-up study requirement for the Acute Hospital Care at Home initiative, focusing on selection bias, quality metrics, costs, and socioeconomic factors.
Mandates specific guidance on telehealth accessibility for limited English proficiency populations and allows virtual options in rehabilitation and diabetes prevention programs.

Potential Impacts

On government agencies: Increases administrative workload for the Centers for Medicare & Medicaid Services (CMS) in implementing extensions, conducting studies, issuing guidance, and performing claim reviews; requires additional reporting from the HHS Inspector General.
On citizens: May sustain broader access to telehealth for Medicare beneficiaries, particularly in rural or underserved areas, and improve options for mental health, hospice, rehabilitation, and diabetes prevention services, while adding safeguards against fraud that could affect DME access.
On international relations: No direct impacts identified in the legislation.

Main Stakeholders Affected

Medicare beneficiaries, especially those relying on telehealth for mental health, hospice, rehabilitation, or preventive services.
Healthcare providers, including physicians, hospitals, FQHCs, RHCs, and hospice programs.
Suppliers of durable medical equipment, prosthetics, orthotics, and clinical laboratory tests.
Health information technology vendors, language service providers, and patient advocates focused on limited English proficiency.
Federal agencies such as CMS and the HHS Office of Inspector General.

Notable Legal, Constitutional, or Political Implications

Builds on existing amendments to the Social Security Act without introducing new constitutional challenges, as it operates within established Medicare authority.
Emphasizes program integrity through billing reviews and studies, which could lead to future regulatory actions on fraud prevention.
Reflects ongoing policy efforts to transition temporary pandemic-era flexibilities into longer-term Medicare rules, with a focus on equity in language access and virtual care delivery.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Scott, Tim [R-SC]

Cosponsors (15)

Sen. Schatz, Brian [D-HI], Sen. Hyde-Smith, Cindy [R-MS], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Tillis, Thomas [R-NC], Sen. King, Angus S., Jr. [I-ME], Sen. Sullivan, Dan [R-AK], Sen. Smith, Tina [D-MN], Sen. Capito, Shelley Moore [R-WV], Sen. Coons, Christopher A. [D-DE], Sen. Blackburn, Marsha [R-TN], Sen. Warnock, Raphael G. [D-GA], Sen. Boozman, John [R-AR], Sen. Shaheen, Jeanne [D-NH], Sen. Ossoff, Jon [D-GA], Sen. Justice, James C. [R-WV]