Extension of Telehealth Flexibilities, Exclusion of “Doc Fix”
On March 15, 2025, the President signed into law the Full-Year Continuing Appropriations and Extensions Act of 2025 (H.R.1968) to maintain federal funding and extend temporary Medicare telehealth flexibilities through September 30, 2025, which is the end of the fiscal year (FY). However, this spending package excluded the so called “doc fix” to reverse the 2.83 percent Medicare pay cut for physicians which was effective January 1, 2025.
Exclusion of Doc Fix
This has been the fifth consecutive year of Medicare physician pay cuts in addition to the Centers for Medicare & Medicaid Services (CMS) estimation of a 3.5 percent rise in the Medicare Economic Index (MEI), which measures the inflation of physician practice costs.
Many medical groups have criticized this bill for not addressing the pay cut, including the Medical Group Management Association (MGMA), American Society for Radiation Oncology (ASTRO), the American College of Radiology (ACR) and the American Medical Association (AMA), among others. Yet, physician advocates and lobbying groups are still optimistic Congress will address this issue through the reconciliation bill later this year.
In a press release, Congressman Greg Murphy, M.D. said, “…Congress cannot delay protecting Medicare beneficiaries’ access to affordable, high-quality care any further. I appreciate Speaker Johnson’s leadership and his commitment to addressing these harmful cuts through budget reconciliation.”
Extension of Telehealth Flexibilities
Initially introduced during the COVID-19 pandemic, the telehealth flexibilities have been essential in expanding healthcare access for Medicare beneficiaries. This includes the removal of geographic restrictions; expansion of practitioners to offer telehealth services; coverage of audio-only consultations; allowance of Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) to provide telehealth services; and delay of certain in-person requirements for mental health services.
While telehealth and medical groups applauded the telehealth flexibilities extension for another six months, they also noted another short-term extension creates uncertainty for providers and patients. They continue to advocate for more permanent solutions beyond the pandemic era flexibilities.
In a statement by Telehealth Access for America (TAFA), spokesperson Julia Mirich said, “The uncertainty surrounding telehealth coverage over the last several months reiterates the need for a permanent telehealth solution that provides peace of mind for both patients and providers. Congress must prioritize permanent protections to put patients first and unlock the full potential of telehealth.”
