ASP Insight · State Regulatory · New York · Published August 15, 2026

New York has extended commercial telehealth payment parity under Public Health Law Article 29-G, Section 2999-dd through April 1, 2028. In the same window, the NYS Medicaid program has tightened its audio-only rules: audio-only is covered when it resolves an access barrier, not when it is chosen for provider convenience, and full parity still does not extend to Article 28 clinic rates. The extension is a planning window, not a permanent floor, and the audit target the policy language telegraphs is per-visit modality-selection documentation.

Apr 1, 2028
NY parity sunset (PHL 2999-dd)
Jul 1, 2026
NJ parity sunset (contrast)
Access, not convenience
Medicaid audio-only standard
Per visit
Modality rationale to document

What actually changed, in one read

Two policy currents are moving in opposite directions in New York at the same time, and providers who read only the headline will miss the second one.

The first current is favorable. The parity provision in NYS Public Health Law Article 29-G, Section 2999-dd, which requires covered telehealth services to be reimbursed on par with comparable in-person services, has been extended through April 1, 2028. Commercial telehealth revenue in New York now has a defined runway of roughly two more rate cycles.

The second current is a tightening. The NYS Medicaid telehealth policy update published in the health.ny.gov Medicaid Update addresses audio-only coverage and modality-selection standards directly. The language is precise: audio-only telehealth is a coverage answer to a member's access barrier, such as lack of video-capable technology or broadband, not a scheduling answer to a practice's convenience. And the update stops short of granting full payment parity for Article 28 clinics, leaving facility-side telehealth economics unresolved.

The dated timeline every New York telehealth operator should pin

Statutory basis

PHL Article 29-G, Section 2999-dd

New York's telehealth parity provision: covered telehealth services reimbursed on par with comparable in-person care. This is the section whose life was just extended.

STATUTE
PHL
29-G
Now, 2026

Medicaid Update tightens audio-only

The NYS Medicaid telehealth policy update (health.ny.gov Medicaid Update) sets modality-selection standards: audio-only is covered for member access barriers, not provider convenience, and Article 28 clinics do not get full parity.

AUDIT SIGNAL
MCD
UPD
July 1, 2026

New Jersey parity expires first

For contrast: New Jersey's parity extension runs only through July 1, 2026. Multi-state groups will feel the sunset mechanics in NJ almost two years before NY, a live preview of what an expiration looks like.

CONTRAST STATE
NJ
7/1/26
2026 to 2027

The planning window

Roughly two rate cycles in which parity-level telehealth revenue is dependable in NY. This is the window to fix documentation, model payer mix without parity, and negotiate contracts that do not silently key off the statute.

OPERATE
PLAN
April 1, 2028

NY parity sunset under current law

Unless Albany extends again, the Section 2999-dd parity requirement expires. Every telehealth-dependent pro forma in New York should carry a post-2028 scenario without parity-level rates.

SUNSET
4/1
2028

Parity extended, parity withheld: the two-track reality

Extended through 4/1/2028

Commercial parity, PHL 2999-dd

  • Covered telehealth services paid on par with comparable in-person services.
  • Runway now defined: through April 1, 2028 under the extended provision.
  • A statutory floor for contract negotiations, while it lasts.
  • Contrast: New Jersey's equivalent runs only through July 1, 2026.
Tightened / withheld

Medicaid audio-only and Article 28

  • Audio-only covered where an access barrier justifies it, per the Medicaid Update's modality-selection standards.
  • Provider convenience is explicitly not a qualifying rationale.
  • Full parity is not extended to Article 28 clinic reimbursement.
  • The standard is per encounter, which makes it per-encounter auditable.

Read together, the message from Albany is coherent: telehealth is a durable covered modality, but the state intends to police how the modality is chosen, and audio-only is where that policing will start. When a policy document defines a selection standard, it is defining an audit criterion. Recoupment reviews do not ask whether the visit happened; they ask whether the record shows why this modality was the right one for this member on this date of service.

The window is finite

April 1, 2028 sounds distant. In revenue-cycle terms it is two budgeting cycles, one or two payer-contract renewals, and one EHR template project away. New Jersey providers get no such runway: their parity extension ends July 1, 2026.

AUG 2026 · TODAYJUL 2026 · NJ SUNSET (PASSED WINDOW)APR 1 2028 · NY SUNSET

Why modality-selection documentation is the audit target

The Medicaid Update's audio-only language does something subtle: it converts a billing question into a clinical-judgment question. Coverage no longer turns only on whether the service code is telehealth-eligible; it turns on whether the chosen modality was appropriate for the member. That determination lives in the chart, or it lives nowhere.

Practices that bill audio-only encounters today typically capture the modality as a place-of-service code and a modifier. Almost none capture, in a structured field, the reason audio-only was used instead of video or in-person: the member had no video-capable device, no reliable broadband, a disability that made video unusable, or declined video after being offered it. Under the modality-selection standards, that missing sentence is the difference between a defensible claim and a recoupable one.

Article 28 clinics carry a second exposure. Because the update stops short of full parity for them, clinic CFOs cannot assume telehealth encounters yield the same facility economics as in-person visits. Any Article 28 organization modeling telehealth expansion on commercial-parity assumptions is modeling the wrong payer's rules.

Operator to-do list: what to change before your next audit cycle

  1. Add a modality-rationale field to every telehealth encounter template. One structured picklist (no video device, no broadband, disability accommodation, member declined video, clinical appropriateness) plus a free-text line. Make it required when place of service or modifier indicates audio-only.
  2. Sample-audit your last 90 days of audio-only claims. Pull Medicaid audio-only encounters and check whether the record states why audio-only was used. Score the gap now, before an external reviewer scores it for you.
  3. Separate your Medicaid and commercial telehealth assumptions. Commercial parity runs to April 1, 2028 under PHL 2999-dd. Medicaid audio-only and Article 28 clinic rates follow the Medicaid Update, not the parity statute. Two rule sets, two revenue models.
  4. Build a post-2028 scenario into every telehealth pro forma. Model your New York telehealth book at contracted non-parity rates and know the revenue delta today. The extension is a window, not a floor.
  5. Check contract language against the sunset. If a commercial contract's telehealth rate exists only because the statute compels it, negotiate an explicit rate term that survives April 1, 2028. Do not let your rate silently expire with the law.
  6. If you operate in New Jersey too, treat July 1, 2026 as your rehearsal. NJ's parity extension ends first. Whatever contract and rate disruption you experience there is the drill for New York in 2028.

Sources cited

  • NYS Public Health Law, Article 29-G, Section 2999-dd, telehealth payment parity provision, extended through April 1, 2028.
  • NYS Medicaid telehealth policy update on audio-only coverage and modality-selection standards, NYS Department of Health, health.ny.gov Medicaid Update.
  • New Jersey telehealth payment parity extension, in effect through July 1, 2026, cited for interstate contrast.

This analysis cites government primary sources only. It is regulatory analysis, not legal advice; confirm current statutory text and Medicaid Update guidance with counsel before changing billing policy.

Make the 2028 window count

ASP-RCM Solutions helps New York and multi-state provider groups turn regulatory windows into revenue discipline: telehealth documentation templates that survive modality audits, payer-mix models that separate parity-backed revenue from contract-backed revenue, and denial-prevention workflows built on each state's actual rules. If telehealth is a material line on your P&L, the time to pressure-test it is while parity still holds.

Talk to our regulatory revenue team