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DEA and HHS Issue its Third Extension of Telemedicine Flexibilities through 2025

Client Alert

The Drug Enforcement Administration (DEA) together with the U.S. Department of Health and Human Services (HHS) has extended telemedicine flexibilities for the prescribing of controlled medication through December 31, 2025.

Prior to telemedicine flexibilities, the Ryan Haight Act required that a prescribing provider could only prescribe controlled medications to patients whom they had evaluated in-person. The DEA made temporary exceptions to this Act in 2020 in response to COVID-19, granting prescribing providers the authority to prescribe Schedule II-V controlled medications from a telemedicine evaluation alone. However, these prescriptions still had to comply with the requirements outlined in the DEA guidance documents, DEA regulations, and applicable Federal and State laws.

The DEA received more than 38,000 comments in response to its set of proposed telemedicine rules in March 2023 and held two days of listening sessions as a result. This feedback prompted the DEA and HHS to ultimately extend the current telemedicine flexibilities through the end of 2024. While the two agencies continue working to issue a final set of telemedicine regulations, they decided to extend telemedicine flexibilities for a third time through December 31, 2025.

This extension benefits both patients and providers by ensuring expanded patient access to these prescriptions and allowing sufficient time for providers to become compliant with any new standards that may eventually appear in the final set of regulations.

If you have questions about the DEA and HHS’s decision to issue a third extension of telemedicine flexibilities, please contact BMD Healthcare Member Daphne Kackloudis at dlkackloudis@bmdllc.com or Attorney Kate Crawford at khcrawford@bmdllc.com.


Corporate Transparency Act to be Re-evaluated

Recent federal rulings have impacted the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. While reporting requirements were briefly reinstated, FinCEN has now paused enforcement and is reevaluating the CTA. Businesses are no longer required to submit reports until further guidance is issued. For updates and legal counsel, contact BMD Member Blake Gerney.

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.