New U.S. Appropriations Act Extends Medicare Telehealth Flexibilities Through Jan 2026

The U.S. House has approved and the President has signed H.R. 5371, the Continuing Appropriations and Extensions Act of 2026, which ends a 43-day government shutdown and reinstates funding for federal agencies, including the Centers for Medicare & Medicaid Services (CMS).

This legislation extends Medicare telehealth flexibilities through January 30, 2026, ensuring continued access to telehealth services that have been vital during the COVID-19 pandemic. Retroactive payments for telehealth services delivered during the government shutdown, beginning October 1, 2025, are included, allowing for reimbursement of claims held during the lapse in funding. Telehealth policies will revert to the pre-shutdown framework, maintaining the flexibilities initially established during the public health emergency period and extended through September 30, 2025. These provisions, including government funding, are temporary and set to expire at the end of January 2026 unless further Congressional action is taken.

 The legislation's status underscores ongoing legislative negotiation pressures around funding and telehealth policy permanence. The American Academy of Sleep Medicine (AASM) and other stakeholders continue advocacy efforts focused on securing permanent telehealth coverage rights, which have significant implications for payer-provider dynamics, regulatory compliance, and service delivery models in the post-pandemic healthcare landscape.

This act provides temporary regulatory certainty for healthcare providers and payers navigating telehealth reimbursement and policy, maintaining the current insurance marketplace equilibrium for Medicare telehealth benefits for the near term.