The agency is delaying the end of Medicare payments for third-party remote patient monitoring services until 2029 following outcry from the virtual care industry.

The CMS sent shockwaves through the virtual care industry in July when it announced plans to end payment for RPM services provided by third-party vendors. In many cases, healthcare providers contract with companies for RPM services, where care teams remotely monitor vital signs and other health metrics and step in when patients fall outside established ranges, indicating changes to their condition. This ability to intervene quickly has been credited with improving outcomes, reducing hospitalizations and readmissions and supporting chronic disease management.

But according to the CMS, third-party contracting has led to fraud and improper billing for services. The agency cited reports from HHS' Office of Inspector General to back up its claims, stating that outsourcing RPM services can result in situations where the healthcare provider billing for the RPM service may not be involved in, or have enough oversight of, the care delivered by the third party.

So, in the proposed 2027 Medicare Physician Fee Schedule, CMS said that Medicare would only pay for RPM services provided by clinical staff employed by the practice where the patient is receiving care. This means that healthcare organizations cannot bill for third-party RPM services, in which contracted companies provide and set up the necessary technology and employ the care teams that monitor patients' health metrics.

The proposal was meant to take effect at the beginning of 2027, but in the final rule, CMS deferred the start date to the beginning of 2029.

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