Goodsurance

Policy & oversight

Proposed Medicare Ban on Third-Party Remote Monitors Could Hit Rural Patients Hardest, With Program Spending Up Nearly 30-Fold Since 2019

A new KFF Health News analysis documents the spending surge behind the contested CMS proposal and identifies rural traditional Medicare patients as the population most at risk if the third-party vendor ban takes effect.

By the Goodsurance editorial teamOctober 27, 2026

Medicare spending on remote physiologic monitoring grew from just under 7 million dollars in 2019 to over 194 million dollars by 2023, according to a KFF Health News report published October 26, 2026. The analysis arrives as a contested CMS proposal to end payments for programs run by third-party health technology vendors remains pending.

The proposal, included in the 2027 Physician Fee Schedule released in July 2026, would restrict Medicare reimbursement for remote monitoring to services provided by the clinician's own facility staff. Outside health technology companies would no longer qualify for payment. A public comment period on the rule closed in September 2026. Despite the spending growth, only about 1 percent of traditional Medicare patients currently use remote physiologic monitoring. The proposed change applies only to traditional Medicare, not to Medicare Advantage plans, which cover more than half of all Medicare beneficiaries.

Medicare remote monitoring spending grew from 7 million dollars to 194 million dollars since 2019. A proposed CMS rule could end payments for outside vendor programs, and rural patients may face the largest gap in access.

Rural health facilities are most reliant on outside vendors to operate monitoring programs because most lack the internal staff to manage them independently. If the rule takes effect, traditional Medicare patients in rural areas would have the fewest alternatives for the connected devices used to track conditions such as hypertension, heart failure, and diabetes between clinical visits.

More than 230 health organizations, technology companies, and advocacy groups have opposed the proposal, while some major insurers have expressed support. Congressional members have also written to CMS requesting the proposal be reconsidered before finalization. The final version of the 2027 fee schedule had not been published as of late October 2026.

In plain words

Medicare is a health insurance program for older adults and some people with disabilities. Remote monitoring lets patients use devices at home, like a blood pressure cuff or a blood sugar meter, to send health readings to their doctor. The doctor can check on the patient without an office visit.

A new report says Medicare spent about 7 million dollars on these programs in 2019. By 2023 that number had grown to 194 million dollars.

The federal agency CMS wants to change the payment rules. Right now, many doctors work with outside tech companies to run these programs. Under the proposal, Medicare would pay only if the doctor's own office does all the work. Outside companies would no longer be paid.

This change would hurt rural patients the most. Rural clinics usually do not have enough staff to run these programs on their own. They depend on outside companies to help.

More than 230 health groups have said they do not want this change. Some large insurance companies do support it. Members of Congress have also asked CMS to think again before making the change final. As of October 27, 2026, CMS has not yet published the final rule.

Source: KFF Health News
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