Insurers Opposed Medicare Remote Monitoring Rule
Major health providers have pushed back against a proposal requiring remote monitoring services to be provided by direct employees.
Updated on Sept. 23, 2026 in Healthcare
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Should Medicare restrict medical providers from using third-party contractors for remote patient monitoring services?
UnitedHealth Group, CVS Health, and Kaiser Permanente submitted formal opposition letters to the Centers for Medicare and Medicaid Services regarding a new billing proposal. The rule would mandate that remote patient monitoring services be delivered exclusively by direct employees of a billing practice rather than third-party contractors.
Why it matters
The proposed regulation could significantly disrupt how healthcare providers manage chronic conditions like heart failure and diabetes by restricting the use of external staffing models. Insurers are concerned that the requirement would limit the operational flexibility currently used to support remote patient care initiatives.
Three major healthcare entities have formally challenged the CMS proposal, which currently seeks to limit third-party contractor use for services tracking hypertension, diabetes, and heart failure. The potential impact on clinical operations remains subject to ongoing federal review.
The players
UnitedHealth Group
This large diversified healthcare company operates both insurance and clinical services on a national scale.
CVS Health
A prominent American health solutions company that operates retail pharmacies, a pharmacy benefit manager, and health insurance plans.
Kaiser Permanente
This integrated managed care consortium provides comprehensive healthcare services across several U.S. regions.
Centers for Medicare and Medicaid Services
This federal agency within the U.S. Department of Health and Human Services administers the Medicare and Medicaid programs.
The details
The Medicare proposal aims to ensure that patient monitoring is handled internally by a billing practice's staff, effectively banning the common industry practice of outsourcing to third-party firms. While insurers are fighting the mandate, UnitedHealthcare has independently sought to restrict payments for remote monitoring services, citing concerns over the efficacy of these programs.
Timeline
In September 2026, major insurers submitted their formal opposition letters to the Centers for Medicare and Medicaid Services.
Market Landscape
This dispute over labor requirements reflects a broader tug-of-war between federal regulators and private insurers over the standard of care delivery. The outcome will likely determine whether healthcare companies can continue to leverage outsourced networks to manage growing patient populations.
Patients who rely on remote monitoring for chronic conditions may face shifts in how their care is coordinated if these billing rules are enacted. The changes could eventually influence the availability of these support programs depending on how health networks adapt their staffing models.
The takeaway
The healthcare industry is increasingly focused on the intersection of technological monitoring and federal reimbursement policy. Providers should monitor how these administrative requirements affect the accessibility of digital chronic disease management tools.
Further reading
Learn more about the evolving regulatory environment in the Healthcare section.
Live Poll
Should Medicare restrict medical providers from using third-party contractors for remote patient monitoring services?
