To amend title XVIII of the Social Security Act to remove in-person requirements under Medicare for mental health services furnished through telehealth and telecommunications technology.

HR1867, introduced in the House on March 5, 2025, aims to permanently remove in-person requirements for Medicare mental health services furnished through telehealth. The bill is currently in the early stages of the legislative process, having been referred to the Committee on Energy and Commerce and the Committee on Ways and Means. This action is significant as it seeks to codify the expanded telehealth flexibilities that emerged during the COVID-19 pandemic, specifically for mental health services under Medicare. This bill does not authorize or appropriate new funding. Instead, it modifies existing Medicare reimbursement policy by removing a specific restriction. The mechanism is regulatory relief, ensuring that Medicare will continue to cover virtual mental health services without the need for an initial in-person visit. This policy change directly benefits telehealth providers by stabilizing and expanding their addressable market within the Medicare population. The money trail involves continued reimbursement from CMS to eligible mental health providers for services delivered via telehealth, which in turn supports the platforms and services offered by companies like Teladoc Health and American Well. Structural winners include pure-play telehealth companies with significant exposure to mental health services. Teladoc Health ($TDOC), through its BetterHelp platform, is a direct beneficiary as it provides extensive virtual mental health care. American Well Corporation ($AMWL) also stands to benefit as its platform facilitates telehealth services for various providers, including mental health. The permanent removal of these requirements reduces regulatory uncertainty and ensures a stable market for these services. The recent Executive Order on Accelerating Medical Treatments for Serious Mental Illness, while focused on psychedelic therapies, broadly signals a supportive environment for mental health innovation and access, which aligns with the intent of HR1867 to expand mental health service delivery. Based on the provided market data, both $TDOC and $AMWL have shown positive price trends recently. $TDOC is currently at $5.99, with a +1.18% change over 7 days and +16.54% over 30 days. $AMWL is at $6.19, with a +2.66% change over 7 days and +17.05% over 30 days. These trends suggest that the market is already anticipating or reacting to a favorable environment for telehealth, which HR1867 would further solidify. The bill's legislative path involves committee review, and if successful, would proceed to a House vote, then Senate consideration, and finally presidential assent. Given its bipartisan sponsorship (Mr. Hern (R-OK), Mr. Suozzi (D-NY), Mr. Fitzpatrick (R-PA), Ms. Lee of Nevada (D-NV), and Ms. Malliotakis (R-NY)), it has a reasonable chance of progressing.