Expands health care services provided by telehealth to include services delivered through a facility licensed under article twenty-eight of the public health law that is eligible to be designated or has received a designation as a federally qualified health center, including those facilities that are also licensed under article thirty-one or article thirty-two of the mental hygiene law.
Summary
S03359 expands New York’s telehealth reimbursement rules. It amends the Public Health Law to require telehealth services to be reimbursed on the same basis, at the same rate, and to the same extent as comparable in-person services, while clarifying that providers are not entitled to reimbursement for facility-type costs that are not actually incurred in a telehealth setting. The bill also preserves existing conditions tied to federal financial participation for certain additional telehealth modalities, provider categories, originating sites, and audio-only telephone services.
The bill specifically broadens telehealth coverage for services delivered through certain Article 28 facilities that are designated, or eligible to be designated, as federally qualified health centers, including facilities that are also licensed under the mental hygiene law. For services provided through these facilities, telehealth reimbursement would be paid at the applicable in-person rates or fees established by law or by the relevant state oversight agencies. The bill also extends the sunset date of the underlying telehealth reimbursement framework from April 1, 2026 to April 1, 2028, while making the new changes effective April 1, 2026.
Impact
The bill would amend section 2999-dd of the Public Health Law and extend the expiration date of the 2022 telehealth reimbursement law. Its practical effect is to preserve and expand Medicaid and related reimbursement rules for telehealth, especially for federally qualified health centers and facilities serving behavioral health and addiction populations under the Mental Hygiene Law. It affects providers, managed care and Medicaid reimbursement systems, and state agencies responsible for setting or certifying rates, including the Office of Mental Health, the Office of Addiction Services and Supports, and the Office for People With Developmental Disabilities.
Sentiment
The available voting history suggests strong support for the bill, with unanimous Senate Health Committee votes recorded in both 2025 and 2026. The bill’s framing as an expansion of access to telehealth services, particularly for community health and behavioral health settings, indicates generally favorable sentiment among supporters. No committee transcript excerpts were provided, so the record does not show detailed debate or opposition arguments.
Contention
The main policy issues reflected in the text are reimbursement scope and fiscal conditions. The bill limits payment for telehealth-specific services by excluding facility fees and similar costs that are not incurred in a remote setting, and it conditions reimbursement for some expanded modalities and audio-only services on federal financial participation. Potential points of contention are therefore likely to involve state Medicaid costs, whether telehealth should be reimbursed identically to in-person care, and how broadly federally qualified health centers and mental health/addiction providers should be included. No explicit opposition is shown in the provided materials, but these reimbursement and funding conditions are the most likely areas of debate.
Same As
Expands health care services provided by telehealth to include services delivered through a facility licensed under article twenty-eight of the public health law that is eligible to be designated or has received a designation as a federally qualified health center, including those facilities that are also licensed under article thirty-one or article thirty-two of the mental hygiene law.
Expands health care services provided by telehealth to include services delivered through a facility licensed under article twenty-eight of the public health law that is eligible to be designated or has received a designation as a federally qualified health center, including those facilities that are also licensed under article thirty-one or article thirty-two of the mental hygiene law.
Permits certain registered pharmacy technicians to assist a licensed pharmacist in preparing prescriptions in facilities licensed pursuant to articles twenty-eight or thirty-one of the public health law, or a pharmacy owned and operated by such facility, under the direct supervision of a licensed pharmacist employed by such facility.
Adds services delivered, to individuals with developmental disabilities and traumatic brain injury, through a facility licensed under article twenty-eight of the public health law, to the requirement that telehealth services be reimbursed at the applicable in person rates or fees regardless of the location of the patient or the clinician.
Provides that no facility fee shall be charged for services when a hospital-based facility is a distant site for health care services delivered by telehealth unless the service is provided by a health care provider not authorized to bill a professional fee separately for the service.
Provides that no facility fee shall be charged for services when a hospital-based facility is a distant site for health care services delivered by telehealth unless the service is provided by a health care provider not authorized to bill a professional fee separately for the service.