A provision in Alaska's HB14 eliminates insurer discounts on telehealth reimbursement—a change that directly affects small practices and behavioral health providers.
Most Alaska health service owners don't realize that a provision buried in HB14 (Medical Assistance; Insurance; Disability/Workers' Compensation) is about to change how insurers pay them for telehealth services. Starting January 1, 2027, insurers will no longer be allowed to reimburse telehealth at lower rates than in-person care.
Under Section 2 of HB14, a new subsection (c) has been added to Alaska Statute 21.42.422. It mandates that health insurance carriers must reimburse telehealth services at the same rate as equivalent in-person services. This eliminates what has been standard practice across much of the insurance industry: paying less for a telehealth visit than for the same service delivered in a clinic or office.
The language is straightforward. Insurers cannot apply a lower reimbursement rate to telehealth simply because it's delivered remotely. If an in-person behavioral health session, primary care visit, or specialist consultation has a set reimbursement rate, the telehealth equivalent must receive the same payment.
This rule applies directly to health service providers who bill commercial insurance, Medicaid, and other insured plans in Alaska. The impact is most significant for:
Small independent practices that have adopted telehealth to expand access or compete with larger health systems but have seen margins eroded by insurer rate discounts.
Behavioral health providers (therapists, counselors, psychiatrists) who rely heavily on telehealth and have historically faced the steepest reimbursement cuts for remote visits.
Rural and underserved area providers who use telehealth to reach patients across geographic distances and depend on stable reimbursement to sustain operations.
The rule does not apply to self-funded employer plans or federal programs like Medicare, which operate under different regulatory frameworks.
Reimbursement parity removes a structural disadvantage that has made telehealth financially risky for smaller providers. When insurers paid 20–40% less for telehealth visits, providers had to choose between absorbing the loss, limiting telehealth services, or shifting costs elsewhere. Parity eliminates that forced choice.
For practices that have already invested in telehealth infrastructure and staff training, this rule protects that investment. For practices considering telehealth expansion, it removes a major financial barrier to entry.
This also affects your planning timeline. The effective date is January 1, 2027. Providers should begin tracking which insurers currently apply telehealth discounts and prepare to renegotiate contracts or verify compliance as the date approaches.
Review your current insurance contracts to identify which payers apply telehealth rate reductions. Document the discrepancy between in-person and telehealth reimbursement rates. As 2027 approaches, you'll want to confirm that insurers have updated their fee schedules to reflect the new requirement.
The provision is found in Section 2 of HB14, specifically the new subsection (c) to AS 21.42.422, on page 4 of the bill text.
For a detailed, business-specific guide to HB14's provisions affecting your practice, contact your state health care trade association or local provider network.