Yesterday, February 3, 2026, President Trump signed the Consolidated Appropriations Act, 2026 into law.
While the major national headlines focused on ending the government shutdown, this piece of legislation includes significant “wins” for healthcare providers. The key news for our clients is the “extenders”—the renewal of critical reimbursement policies that were on the brink of expiring. For our physician groups and ambulance agency partners, this legislation provides much-needed financial stability.
Here is a breakdown of the key changes we are tracking:
1. Telehealth: The Two-Year Green Light
For our private physician clients, the “will they or won’t they” era of telehealth regulation has a definitive answer (well, definitive for at least 2 years). The new law extends the current Medicare telehealth flexibilities through December 31, 2027.
- No Geographic Restrictions: Your patients can continue to receive care from the comfort of their homes, regardless of whether they live in a rural or urban area.
- Audio-Only Reimbursement: We will continue to successfully bill for audio-only E&M and mental health services, ensuring you are compensated for patients who lack high-speed video access.
- Delayed In-Person Requirements: The mandate requiring an in-person visit within six months of a telehealth mental health service remains paused.
2. A Lifeline for Ambulance Agencies
Ambulance providers have been facing a potential “reimbursement cliff” due to the expiration of temporary add-on payments that were due to expire January 31, 2026. This legislation officially secures these payments for an extra two years, protecting the bottom line for our EMS and transport partners.
- Rural & Super-Rural Protections: The 3% rural and 22.6% “super-rural” add-ons have been extended through December 31, 2027.
- Urban Add-on: The 2% urban transport increase remains in effect.
Note: These add-ons are not always automatic—they require precise geographic coding and modifier application. Agencies and their billing partners audit current ambulance claims to ensure every trip is correctly designated to capture these newly secured bonus percentages.
3. “Honest Billing” and Site-Neutrality
The legislation takes a major step toward “site-neutral” payments by requiring off-campus hospital departments to use a unique National Provider Identifier (NPI).
This is a significant win for private physicians. For years, hospitals have been able to charge higher “facility fees” for the exact same services performed in a private office. This “Honest Billing” provision levels the playing field, making private practice more competitive and transparent. While this law was signed February 3rd 2026, it is to be expected that there will be an implementation period and a more defined effective date will be released in the future.
4. New Frontiers: Multi-Cancer Early Detection (MCED)
For those in the oncology space, the inclusion of the Nancy Gardner Sewell Medicare MCED Screening Coverage Act is significant. This creates a formal pathway for Medicare to cover innovative blood tests that screen multiple cancers at once.
The Nancy Gardner Sewell Act creates the authority for coverage, but actual Medicare reimbursement for these blood tests will likely not begin until 2029. Physicians and billing partners should keep an eye out as the specific HCPCS codes and coverage determinations develop for these screenings. Ensure your oncology and pathology practice stays aware of this cutting-edge development in preventative care and is ready when official billing for these services begins.
The Bottom Line
This legislation is a victory for stability. Whether you are a specialist expanding your telehealth reach or an ambulance agency serving a rural county, the rules of the game are now set for the next two years. We can all take a deep breath of relief knowing that the limbo game is over – at least until 2028!
Click here to access a full copy of the Consolidated Appropriations Act, 2026.
