Medicare Telehealth Waivers 2025: Impacts on Psychiatry, Advocacy Efforts, and Why FasPsych is Your Resilient Partner in Behavioral Health

Medicare Telehealth Waivers 2025: Impacts on Psychiatry, Advocacy Efforts, and Why FasPsych is Your Resilient Partner in Behavioral Health

The Medicare telehealth waivers are a series of temporary policy flexibilities implemented by the Centers for Medicare & Medicaid Services (CMS) during the COVID-19 public health emergency (PHE), which officially ended in May 2023. Initially set to lapse with the PHE’s conclusion, these waivers have been extended multiple times by Congress to sustain expanded virtual care access amid ongoing recovery needs. The most recent extension, via the Full-Year Continuing Appropriations and Extensions Act, 2025, pushes the expiration to September 30, 2025—now just weeks away as of early September 2025—unless further legislative action intervenes. These waivers were designed to expand access to virtual healthcare by relaxing longstanding restrictions under Section 1834(m) of the Social Security Act. Key components include waiving geographic and originating site requirements (allowing services from any U.S. location, including patients’ homes, rather than limiting to rural areas or specific facilities), permitting audio-only visits for certain services, expanding the list of eligible providers (such as therapists and audiologists), enabling Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) to bill as distant sites, and delaying in-person mandates for mental health services. These changes have dramatically increased telehealth utilization, with Medicare visits surging from under 1 million in 2019 to over 128 million in 2020, and have been credited with maintaining care continuity during the pandemic—particularly in psychiatry, where virtual visits have addressed acute shortages and improved access to behavioral health.

Why FasPsych Remains the Top Choice Regardless of Medicare Telehealth Waivers 2025 Outcomes

In the ever-evolving landscape of telehealth regulations, FasPsych stands resilient as the premier provider in telepsychiatry, irrespective of whether Medicare telehealth waivers are extended or expire. Our commitment to excellence ensures that we operate strictly within all current regulations, adapting seamlessly to federal and state guidelines to maintain compliance and deliver uninterrupted care. FasPsych’s dedicated team conducts ongoing policy research, monitoring developments in real-time to stay ahead of changes like those stemming from the One Big Beautiful Bill Act (OBBBA) and impending waiver deadlines. This proactive approach allows us to provide the best possible services for our clients, offering flexible models to mitigate any disruptions and optimize outcomes for behavioral health organizations. As an industry leader with experience, FasPsych has been through several policy changes and will continue to adapt and provide excellent service, making it the best partner for navigating Medicare telehealth waivers 2025.

Navigating the Medicare Telehealth Waivers 2025 Landscape: Preparing for Potential Changes and Why FasPsych Leads in Telepsychiatry

As the September 30, 2025, deadline approaches for the expiration of these key Medicare telehealth waivers—extended most recently through the Full-Year Continuing Appropriations and Extensions Act, 2025—the healthcare landscape is poised for potential shifts. These flexibilities, originally introduced during the COVID-19 public health emergency, have enabled widespread access to virtual care, and preparing for their possible evolution can help ensure continued progress in service delivery. This article explores the detailed potential impacts of changes to the Medicare telehealth waivers 2025 on psychiatry, ongoing legislative efforts to extend or permanize them, and how FasPsych positions itself as the premier choice in telepsychiatry and locum tenens amid this transition. Drawing from expert analyses and industry insights, we’ll highlight why proactive planning is key to embracing opportunities, even as extensions appear promising.

Potential Impacts of Medicare Telehealth Waivers 2025 Changes on Psychiatry: Opportunities for Adaptation

If Congress does not extend the Medicare telehealth waivers beyond September 30, 2025, Medicare telehealth rules would revert to pre-pandemic guidelines starting October 1, offering a chance for psychiatry providers to innovate and strengthen care models. This evolution could encourage a focus on resilient strategies that enhance access and efficiency in mental health services where telepsychiatry continues to play a vital role.

Ripple Effects on Medicaid Programs

While the Medicare telehealth waivers 2025 primarily affect Medicare, their expiration could have ripple effects on Medicaid programs, as many states have aligned their telehealth policies with federal flexibilities to promote consistency. Medicaid, which covers over 90 million low-income Americans, often mirrors Medicare’s expansions for telehealth reimbursement, especially for behavioral health. If waivers lapse, states may revert to more restrictive policies, potentially reducing coverage for audio-only visits or home-based services, leading to decreased access for vulnerable populations and increased administrative burdens for providers in psychiatry. However, some states have made permanent changes independent of federal waivers, creating a patchwork of regulations that underscores the need for adaptable solutions in mental health care.

Intersections with the Ryan Haight Act and DEA Declarations

Additionally, the Medicare telehealth waivers 2025 status intersects with the Ryan Haight Act and the Drug Enforcement Administration’s (DEA) emergency declaration post-COVID. The Ryan Haight Online Pharmacy Consumer Protection Act of 2008 generally requires an in-person evaluation before prescribing controlled substances via telehealth. During the PHE, the DEA waived this requirement, allowing telehealth prescriptions without in-person exams, which has been extended through December 31, 2025. If Medicare waivers expire without alignment, it could complicate integrated care, particularly for psychiatric medications involving controlled substances like benzodiazepines or stimulants. The DEA is currently rulemaking for permanent telehealth prescribing flexibilities, but uncertainty persists, potentially limiting virtual mental health treatment options if stricter rules return, affecting medication management and crisis interventions in psychiatry.

Evolving Patient Locations and Access in Psychiatry

Currently, beneficiaries can receive telehealth services from any location in the U.S., including their homes, without geographic limitations. If changes occur with Medicare telehealth waivers 2025, services might focus more on rural areas and approved originating sites like hospitals or clinics—potentially excluding homes for most non-behavioral health visits. For mental health, adjustments to in-person requirements for telemental health could prompt more integrated care plans, potentially improving treatment adherence while reducing barriers for those with mobility issues, chronic conditions, or in underserved communities.

Broader Systemic Issues in Psychiatry

Potential changes with Medicare telehealth waivers 2025 encourage a proactive stance against issues like in-person service demands, uncompensated care, and staffing needs, fostering innovation in telepsychiatry programs. In mental health, where workforce needs are met at only 28% capacity, this could drive solutions to economic burdens exceeding $290 billion annually from untreated disorders, promoting equity for rural and vulnerable populations through reduced emergency visits and better health outcomes.

Ongoing Legislative Efforts for Medicare Telehealth Waivers 2025: Building Momentum for Positive Change

With the deadline approaching, bipartisan support is growing in Congress to extend and enhance these flexibilities, opening doors for sustained innovation. Over 350 organizations, including the American Hospital Association (AHA), American Medical Association (AMA), and American Physical Therapy Association (APTA), are advocating for robust extensions. The Center for Telehealth and e-Health Law (CTeL) is actively engaged, emphasizing congressional action for permanent extensions and equipping stakeholders with resources for the evolving landscape. Other groups, such as the American Occupational Therapy Association (AOTA), are championing short-term wins while advancing comprehensive reforms.

 Key Bills and Actions for Medicare Telehealth Waivers 2025

Preserving Telehealth, Hospital and Ambulance Access Act (H.R. 8261): Introduced by Reps. David Schweikert (R-Ariz.) and Mike Thompson (D-Calif.), this bipartisan bill would extend flexibilities through 2026, including geographic exemptions, home-based services, audio-only options, and a moratorium on in-person requirements for mental health. It unanimously passed the House Ways and Means Committee in May 2024 and includes a five-year extension for HaH waivers.

Telehealth Modernization Act of 2024 (H.R. 7623): Passed by the House Energy and Commerce Committee, this bill was amended to align with H.R. 8261 for a two-year extension, focusing on similar flexibilities.

CONNECT for Health Act (H.R. 4189/S. 2016): With over 100 cosponsors in the House and 60 in the Senate, this aims for permanent removal of geographic restrictions and expansions for FQHCs/RHCs. It’s seen as a long-term solution but may face delays.

Senate Finance Committee action is anticipated soon, potentially attaching extensions to must-pass funding bills before September 30. Advocacy groups like HIMSS and APTA are prioritizing permanency for specific providers, such as physical therapists. While encouraging, political dynamics—such as funding adjustments in legislation like OBBBA—underscore the value of preparation.

Why FasPsych is the Best Choice in Staffing Amid Medicare Telehealth Waivers 2025

In this dynamic environment, FasPsych excels as the leading provider in telepsychiatry and locum tenens, with strong staffing for telemedicine and expanded on-site offerings. Established in 2007, FasPsych offers scalable, customizable virtual care via long-term placements, on-demand consultations, and flexible models like pay-by-visit or pay-by-hour. This adaptability helps organizations respond to patient volumes and funding shifts, lowering overhead and securing access to qualified psychiatrists and nurse practitioners.

While FasPsych primarily focuses on telepsychiatry and does not significantly utilize hybrid or on-site care at present, these options are ones we are fully prepared for and can implement as requested if policies change, ensuring readiness for any regulatory or market shifts. This preparation puts FasPsych in the best position for the future, allowing us to pivot seamlessly as needed. Amid these uncertainties, this is a terrible time to do direct hiring, given the high costs—recruitment fees often reach 25–30% of a psychiatrist’s starting salary (exceeding $300,000), with turnover costing $250,000–$500,000 per departure—and lengthy timelines of 6–12 months to fill roles. Instead, it’s the right time for temporary staffing through FasPsych, which saves up to $200,000 per new hire by deploying clinicians in weeks and handling administrative burdens. FasPsych understands this is a pain point for mental health facilities, and our account managers are working closely with current customers while implementation specialists assist new clients to navigate these challenges effectively. For FQHCs and Community Mental Health Centers (CMHCs), reliant on Medicaid amid OBBBA’s $1.02 trillion cuts over a decade, FasPsych delivers cost-effective solutions with a $4 return per $1 invested and 30% reduced no-shows. In the face of political volatility that strains mental health resources and worsens shortages, FasPsych ensures stability, streamlining operations and prioritizing patient results. FasPsych actively backs CTeL and congressional initiatives to extend and make permanent telehealth waivers, championing lasting behavioral health access. As an industry leader with experience, FasPsych has been through several policy changes and will continue to adapt and provide excellent service, making it the best partner.

FasPsych firmly believes telepsychiatry remains the optimal solution for addressing mental health needs efficiently and effectively. However, in FasPsych’s view, the waivers are likely to be extended due to robust bipartisan backing, though without certainty—delays or lapses might cause short-term challenges. Therefore, immediate planning is vital to avoid reactive measures. Drawing from the Titanic analogy, evading fiscal obstacles like OBBBA via delayed responses risks disaster, whereas direct, short-term tactics safeguard operations and care quality. Delaying could lead to abrupt staffing cuts, service overloads, and cost surges—emphasizing the need for prompt telemedicine adoption.

FasPsych’s implementation experts collaborate closely with clients to sustain service availability for patients, tailoring strategies that uphold telepsychiatry’s advantages while navigating any regulatory adjustments.

Partner with FasPsych Today for Medicare Telehealth Waivers 2025 Solutions

Don’t delay amid policy shifts—fortify your organization with telemedicine solutions built to adapt. Contact FasPsych to speak with an implementation expert who can assist in rolling out telepsychiatry now and planning for future changes. Head to https://faspsych.com/partner-with-us/ or call 877-218-4070 to craft durable care frameworks that guarantee continuity in uncertain times. Take action today to protect your finances and patient care—your forward-thinking move could define success tomorrow.