Telehealth Flexibilities Extended
On March 15, the president signed a continuing resolution, styled the “Full-Year Continuing Appropriations and Extensions Act of 2025” (hereinafter, “the Act”). In addition to keeping the government funded through the end of the current fiscal year, the Act extends certain telehealth flexibilities in Medicare cases that had been set to expire at the end of this month to September 30 instead.
According to the American Telemedicine Association (ATA), the legislation enables telehealth visits to originate in a wider range of locations, including patients’ homes. It also permits additional qualified provider types to deliver virtual care. “The Acute Hospital Care at Home Program was also extended through September, allowing Medicare-certified hospitals to furnish inpatient-level care in patients’ homes.” Finally, according to The Center for Telehealth and e-Health Law, the Act extends the authorization for audio-only telehealth services until September 30, 2025, which benefits patients who don’t have, or struggle with, video technology, as well as those living in areas with limited broadband infrastructure.
Telehealth supporters will view the passing of the Act as a win, at least in the short term; but they are still working to see these flexibilities made permanent. Their hopes have been bolstered by recent comments made by President Trump’s nominee to head up the Centers for Medicare and Medicaid Services (CMS), Dr. Mehmet Oz, who described telehealth as “a major focus,” stating “it’s one of the areas I think we’ll be able to make major inroads because there are no opponents to this.” If so, telehealth may be in good shape over the long haul.
Medicare Pay Raise Legislation
A bipartisan group of legislators in the U.S. House of Representatives introduced a bill a little over a month ago that would cancel the provider pay reductions for Medicare services that went into effect on January 1 of this year. The proposed legislation would make the rate change in the RBRVS conversion factor effective on April 1 and would be applicable for the balance of 2025. In other words, the current 2.83 percent Medicare pay cut would end on the last day of this month.
Known as the Medicare Patient Access and Practice Stabilization Act of 2025, the bill now making its way through Congress would not just rescind the conversion factor reduction but would actually provide a further increase in reimbursement rates. According to a joint letter from 130 medical societies to House Speaker Mike Johnson, the bill would also add a two percent increase in the RBRVS conversion factor. According to Fierce Healthcare, services furnished after March, “would see a 6.62 [percent] increase—offsetting the pay cut, adjusting for inflation and prorating the first three months of pay cuts.”
The bill was introduced by Representative Gregory Murphy of NC, a medical doctor. The legislation has 103 co-sponsors representing both major political parties. It remains to be seen if and when it will be voted on by the entire House. Then, of course, it would have to make its way through the U.S. Senate before making heading to the president’s desk. Many were hoping it would be included as part of the recently enacted continuing resolution, but such was not the case.
Corporate Transparency Act
On March 2, 2025, the U.S Department of the Treasury announced that, with respect to the Corporate Transparency Act (CTA), not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will also not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect.
Late last year, a federal court called into question the constitutionality of the CTA; and, so, things have been in a state of limbo concerning whether or not physician groups, for example, would need to meet the reporting requirements that were to begin this year. But now, the U.S. Treasury Department has further removed another leg out from under the CTA’s applicability and essentially rendered the act moot, at least within the boundaries of the United States.
The Department announced that it will be issuing a proposed rule that will narrow the scope of the rule to foreign reporting companies only. “Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest,” according to the Treasury Department’s website. So, for those American medical group practices that were concerned about having to meet these reporting requirements, the federal government has just made your life a little less stressful.