Funding Bill Signed – Telehealth Flexibilities Reinstated

On February 3, 2026, Congress passed and the President signed the FY 2026 appropriations package, ending the partial federal government shutdown.

With the exception of the Department of Homeland Security (which is funded through February 13, 2026, to allow continued negotiations), all federal agencies are now funded through September 30, 2026.

What it means:

• Medicare telehealth flexibilities are reinstated and extended through December 31, 2027.
• Hospice face-to-face (F2F) recertifications may again be completed via telehealth, subject to new statutory guardrails.
• Telehealth flexibilities supporting home health, including removal of geographic restrictions and expanded originating sites for Medicare telehealth services, are extended through December 31, 2027.
• The bill includes a five-year extension of the Acute Hospital at Home program.
• Hospice-specific telehealth guardrails now in law

Telehealth may not be used for hospice F2F encounters if:

• The hospice is subject to the Provisional Period of Enhanced Oversight (PPEO);
• The patient is located in an area subject to a CMS hospice enrollment moratorium (not currently applicable to LAO members); or
• The physician or nurse practitioner performing the encounter is not enrolled in Medicare or is not properly opted out.

Beginning January 1, 2027, CMS will also require use of a claims modifier to indicate when a hospice F2F encounter is completed via telehealth.

Important implementation note:

CMS has indicated that it will need time to implement the new hospice telehealth guardrails and related requirements. LeadingAge is actively engaging CMS and will push for clear guidance and adequate notice before any new operational changes take effect.

What to do:

• Hospice providers may resume telehealth F2F recertifications as permitted under the extended authority and existing CMS guidance.
• Continue monitoring CMS guidance related to implementation of hospice-specific guardrails.
• LeadingAge Ohio will share additional updates and education as CMS releases more details.