CMS Proposes Rule Curbing Vendor-Run Remote Monitoring Payments
CMS has proposed a rule that would stop Medicare from reimbursing providers who contract with third-party health tech vendors to administer remote patient monitoring, instead paying only when the service is delivered by staff at the clinician's own facility. The proposal responds to HHS Office of Inspector General reports from 2024 and 2025 flagging fraud risk, poor data collection, and fragmented care when outside vendors run these programs. It applies only to traditional Medicare, not Medicare Advantage, but critics warn Medicare Advantage plans, Medicaid programs, and private insurers could adopt similar restrictions, and that rural facilities relying on vendors for capacity reasons would be hit hardest. More than 230 health tech vendors, health systems, and advocacy groups have signed a letter opposing the rule, while Humana, Blue Cross Blue Shield Association, and Sutter Health have expressed support.