WASHINGTON, D.C. – Following the Centers for Medicare & Medicaid Services’ (CMS) release of its final 2026 Physician Fee Schedule (PFS) rule, the Connected Health Initiative (CHI) commended the agency for advancing numerous modernizations and improvements that will improve support for and access to digital health tools, while CHI also urged for further action on critical reforms.

“We are encouraged by CMS’s clear recognition in the 2026 fee schedule of digital health technology’s vital role in improving patient outcomes, reducing costs, augmenting population health management, and supporting the healthcare workforce, as demonstrated through policy updates across a number of different areas,” said Brian Scarpelli, executive director of the Connected Health Initiative. “Technologies such as remote monitoring devices, paired with artificial intelligence (AI) tools that enable care teams to quickly and efficiently leverage the patient-generated health data they collect, are the key to positively transforming the care each and every Medicare beneficiary receives.”

CHI specifically applauds CMS for finalizing several key digital health advancements, including:

  • Updating coverage of remote physiologic and therapeutic monitoring to reflect updates in coding.
  • Reinforcing support for portal-based and non-face-to-face modalities, reflecting the tech-savvy habits of beneficiaries and their care teams.
  • Finalizing modernizations to the Medicare Diabetes Prevention Program, notably by providing new support for virtual delivery of diabetes prevention services to beneficiaries.
  • Enabling Federally Qualified Health Centers and Rural Health Clinics, providers on the front lines dealing with some of America’s most vulnerable communities, to use digital health tools.
  • Expanding coding and payment for digital mental health treatments.
  • Finalizing the proposed Ambulatory Surgical Model, which aims to promote interoperability, integrate remote monitoring and telehealth, and encourage the use of AI-driven clinical decision support and predictive analytics.
  • Advancing support for virtual direct supervision, which will assist in addressing the ongoing healthcare workforce shortage.
  • Modernizing and enhancing access to the Medicare Telehealth Services List.

While these steps are encouraging, CHI urges the agency to address critical remaining gaps such as advancing the systemic payment modernizations needed to support AI/Software-as-a-Service’s use across Medicare, and increasing flexibilities on telehealth practitioner location reporting of their home address.

CHI looks forward to continuing to work with CMS to implement the positive changes in this rule and to advance solutions for the remaining challenges to ensure all Medicare beneficiaries can access modern, technology-enabled care.

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About Connected Health Initiative

The Connected Health Initiative (CHI) is the leading policy advocate on digital health issues. Led by a steering committee that includes stakeholders from across the healthcare sector, CHI accomplishes essential policy changes that responsibly support the development and use of digital health innovations to improve individual patient experiences and outcomes, reduce costs, enhance population health management, and augment the clinician experience.