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Proposed Budget Bill Extends Telehealth, Hospital at Home Flexibilities Again

By January 22, 2026No Comments

By Eric Wicklund, Healthleadersmedia.com

Congress is moving forward with a healthcare package that would, among other things, extend the telehealth waivers and the CMS Acute Hospital Care at Home (AHCaH) program.

According to news reports Tuesday out of Washington DC, the bill, part of a package being prepared for a vote to fund government agencies and avoid a potential shutdown, would extend the telehealth flexibilities through 2027 and the AHCaH program through 2030. It would also boost this year’s funding for community health centers to $6.4 billion and enable Medicare coverage for multi-cancer early detection screening tests.

Advocates reacted with cautious optimism to the news, noting that the bipartisan bill will still have to pass muster with GOP fiscal conservatives – and be approved by President Trump.

“We’ve seen before that even strong, bipartisan proposals can face unexpected hurdles late in the process, which is why it’s important not to take any outcome for granted when it comes to Congressional legislation,” Alexis Apple, vice president of federal affairs for the American Telemedicine Association and deputy executive director of ATA Action, said in a press release. “This momentum is real and meaningful, and it is a very good sign that telehealth provisions continue to advance with bipartisan support. We are optimistic this legislation can move forward, as it includes a number of strong bipartisan priorities and is not tied to the more partisan homeland security funding debate currently underway.”

Aside from the extensions, the bill would extend coverage for in-home cardiopulmonary rehabilitation services through 2027; enhance Medicare coverage of durable medical equipment (DME) services; mandate that the Health and Human Services Department issue guidance within a year on improving virtual care services for patients with limited English proficiency; and include digital health companies in the Medicare Diabetes Prevention Program through 2029.

The bill, if passed into law, provides some measure of relief for healthcare leaders mapping out their telehealth and Hospital at Home strategies, but advocates were quick to point out it’s just another in a long line of extensions approved by federal regulators since they were enacted in 2020 during the COVID pandemic.

Without this deal, the telehealth waivers and AHCaH program would expire in less than two weeks.

Supporters say the telehealth flexibilities in particular are needed to help expand and improve virtual care services offered through health systems and hospitals. Without any assurance that they would be permanent, leadership has to develop and fund programs with the understanding that they may have to be shut down when the waivers expire.

Through those flexibilities, the government has:

  • Waived geographic restrictions on telehealth coverage and use;
  • Expanded the list of providers able to bill Medicare for telehealth services;
  • Allowed audio-only telehealth services;
  • Eased originating site restrictions on telehealth so that the patient can receive treatment at home;
  • Waived the in-person requirement for telemental health treatment;
  • Enabled telehealth service for hospice care; and
  • Enabled Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) to use telehealth.