Fair Telehealth Billing Act of 2026
- Sponsor
- Rep. Hayes, Jahana [D-CT-5]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Jun 24, 2026
Bottom line
The Fair Telehealth Billing Act of 2026 aims to reduce healthcare costs for consumers by eliminating redundant facility fees for telehealth services, ensuring patients are only charged for the professional service rendered remotely.
What it actually does
This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit health care providers and facilities from billing a separate facility fee for telehealth services. This prohibition applies when the health care provider delivering the telehealth service is already authorized to bill independently for their professional services. The bill also grants the Secretary of Labor the authority to assess civil monetary penalties of up to $10,000 per violation for non-compliance, with an effective date of January 1, 2028.
Proponents argue
Supporters argue that facility fees for telehealth are an outdated practice that unfairly inflates healthcare costs, as patients are not physically utilizing a facility. They contend that eliminating these fees will make telehealth more affordable and accessible, aligning billing practices with the virtual nature of the service and reducing unexpected charges for consumers covered by ERISA plans.
Opponents contend
Opponents might argue that facilities still incur legitimate overhead costs associated with providing telehealth services, such as technology infrastructure, administrative support, and compliance, which facility fees help cover. They may contend that prohibiting these fees could reduce the financial viability of offering telehealth, potentially limiting access to care, especially for smaller or rural providers, or shifting costs to other services.
The bill is very concise and can be read and understood quickly, making it accessible for immediate evaluation.
Section 2(a) and 2(b)
Prohibition on Telehealth Facility Fees and Enforcement
This provision amends the Employee Retirement Income Security Act of 1974 (ERISA) to prevent healthcare providers and facilities from charging a distinct 'facility fee' for telehealth services. This prohibition applies specifically when the healthcare provider delivering the telehealth service is already authorized to bill independently for their professional services. Furthermore, the bill grants the Secretary of Labor the authority to assess civil monetary penalties of up to $10,000 per violation against any provider or facility found to be in non-compliance, with the prohibition taking effect for services furnished on or after January 1, 2028.
Supporters argue
Supporters argue this provision directly addresses a common source of unexpected and unjustified costs for patients receiving telehealth. They contend that a facility fee is illogical for a service not rendered in a physical facility, and its elimination will foster greater transparency and affordability in virtual care, encouraging its use.
Critics contend
Critics might argue that facilities incur legitimate operational costs (e.g., technology, administrative staff, regulatory compliance) to support telehealth infrastructure, even if a physical room isn't used. They may contend that prohibiting these fees could force facilities to absorb these costs, potentially leading to reduced telehealth offerings, higher charges for other services, or financial strain, especially for smaller practices.
Tradeoffs
The provision balances the goal of reducing patient costs and increasing telehealth affordability against the potential financial impact on healthcare facilities that rely on facility fees to cover overhead associated with maintaining telehealth infrastructure and services.