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Proposals for the U.S. Department of Health and Human Services in the draft funding package released Tuesday by the U.S. House of Representatives include extending Medicare telehealth flexibilities through Dec. 31, 2027, and a five-year extension of the hospital-at-home program through Sept. 30, 2030.
The proposed legislation would also boost funding for biomedical research and provide grants to increase rural telehealth opportunities for veterans.
WHY IT MATTERS
The Consolidated Appropriations Act of 2026, also known as the "minibus," includes three bills for the fiscal year ending Sept. 30, 2026.
Healthcare stakeholders are optimistic that the bipartisan legislation can move forward because it is not tied to homeland security funding, according to Alexis Apple, deputy executive director, ATA Action, and vice president of federal affairs at the ATA.
"This momentum is real and meaningful, and it is a very good sign that telehealth provisions continue to advance with bipartisan support," Apple said in a statement shared with Healthcare IT News on Tuesday.
In addition to the Medicare telehealth and Acute Hospital Care at Home Program waiver extensions, ATA noted the House's draft spending bill includes several critical provisions for telehealth:
- Extends in-home cardiopulmonary rehabilitation flexibilities through Jan. 1, 2028
- Enhances certain durable medical equipment requirements under Medicare
- Requires that HHS issue guidance within one year on furnishing telehealth services to individuals with limited English proficiency
- Includes virtual diabetes suppliers in the Medicare Diabetes Prevention Program through Dec. 31, 2029
Proposed bill language also indicates $5 million in grants for public or nonprofit private entities through the Rural Emergency Hospital Technical Assistance Program and up to $1 million in grants "for the purchase and implementation of telehealth services and other efforts to improve healthcare coordination for rural veterans between rural providers and the Department of Veterans Affairs," under the Social Security Act.
"We are urging strong, swift action now, and we will continue pressing until this package is enacted," Apple said.
In addition, a summary of the Fiscal Year 2026 bill by the Appropriations Committee Democrats highlights the proposal's rejection of funding cuts for biomedical research, estimated at $19 billion below the 2025 level.
"This package increases funding for the National Institutes of Health, investing in research to treat and prevent diseases like cancer, Alzheimer’s and ALS," Rep. Rosa DeLauro, D-Conn., the committee's ranking member, said in an announcement.
THE LARGER TREND
"While this package does not provide a permanent solution, it represents a significant win for ATA Action and for patients who rely on telehealth services across the country," Apple added, citing "continued strong support" by the Trump Administration and telehealth champions in Congress.
The American Telemedicine Association has pointed to the permanent first-dollar coverage of High Deductible Health Plans-Health Savings Accounts in last year's passage of the One Big Beautiful Bill Act as notable federal support of virtual care services.
However, if Congress does not pass the spending bill, and telehealth flexibilities are not extended before the Jan. 30 deadline in another way, a government shutdown could cause widespread disruption of telehealth services for Medicare patients.
Last year, a prolonged government shutdown resulted in telehealth and HAH payment uncertainties and compliance risks. Many healthcare providers then scaled back or paused services.
"Seeing the government shutdown stall our telehealth progress has been deeply disheartening and disruptive," Dr. Helen Hughes, medical director in the office of telemedicine at Johns Hopkins Medicine and a member of ATA's Center of Digital Excellence, said at the time.
ON THE RECORD
"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," Apple cautioned in her statement about the draft FY2026 spending proposal.
Andrea Fox is senior editor of Healthcare IT News.
Email: afox@himss.org
Healthcare IT News is a HIMSS Media publication.
