New Jersey Telehealth Update: Access Expanded, Pay Parity Extended, Licensing Upheld
New Jersey on June 23, 2026, adopted Assembly Bill 4852, which, effective immediately, amends telemedicine requirements for prescribing Schedule II controlled dangerous substances (CDSs).1
Prior to this legislation, prescribing a Schedule II CDS via telemedicine generally required an initial in-person examination and subsequent in-person visits every three months. The new law preserves the existing carve-out permitting providers to prescribe Schedule II CDSs to minor patients without an in-person examination as long as the provider first obtains written consent from the minor's parent or guardian. The law adds several important exceptions to the in-person examination requirements:
- Specified Patient Populations. The in-person requirements do not apply to patients in active cancer treatment, receiving hospice or palliative care, or residing in long-term care facilities.
- Certain Terminally Ill and Substance Use Disorder Patients. Patients undergoing evaluation, consultation or treatment under the Medical Aid in Dying for the Terminally Ill Act or patients receiving medications for substance use disorder treatment are also exempt from the in-person examination requirements.
- Adult Stimulant Prescriptions. For adult patients prescribed Schedule II CDSs, providers may conduct the initial examination via telemedicine but must conduct an in-person visit within 30 days. Thereafter, providers must maintain contact with the patient – either in-person or via telemedicine – at least every three months, with at least one of those contacts being an in-person visit each year.
Importantly, all Schedule II prescriptions via telemedicine must be issued using live, two-way audio-video technology, and providers must meet the same standard of care applicable to in-person settings. The new law continues to direct licensing boards to adopt rules ensuring quality of care and preventing fraud in telehealth services.
Telemedicine Pay Parity Extended
On June 30, 2026, New Jersey adopted Senate Bill 3947, which extends New Jersey's requirement that health plans (including fully insured plans, Medicaid and NJ FamilyCare, but not self-funded employer plans) reimburse telemedicine services at the same rate as equivalent in-person services. This "pay parity" requirement, which was set to expire July 1, 2026, will now remain in effect through December 31, 2027. As originally introduced, the bill would have permanently established pay parity; committee amendments scaled this back to a temporary extension.
Third Circuit Upholds New Jersey Physician Licensing Requirements for Telemedicine
On August 31, 2026, the U.S. Court of Appeals for the Third Circuit issued an opinion2 upholding New Jersey's requirement that physicians obtain a New Jersey medical license before providing telemedicine to patients located in the state. The Third Circuit rejected a challenge by two out-of-state physicians and three New Jersey residents, concluding that the licensure requirement advances the state's important interest in protecting patient health and safety and applies equally to in-state and out-of-state physicians.3
The court noted that New Jersey offers a streamlined application process for out-of-state physicians already licensed in good standing elsewhere, with fees of approximately $550 and processing times of about three months. Physicians in states participating in the Interstate Medical Licensure Compact – a multistate agreement that expedites licensing – can obtain a New Jersey license for $700 in a matter of weeks.
Key Takeaways
Given recent developments, New Jersey providers who prescribe Schedule II CDSs via telemedicine should review their prescribing protocols and patient consent procedures to ensure compliance with the new requirements.
Further, because telemedicine pay parity has been extended and will not expire until December 31, 2027, providers should continue to monitor legislative developments for potential impact to reimbursement rates thereafter.
Lastly, New Jersey healthcare providers and practices that rely on out-of-state physicians for telemedicine services should review provider licensure, credentialing and onboarding procedures to ensure compliance with New Jersey's telemedicine and licensure requirements.
For questions about these developments, please contact the authors.
Holland & Knight's New Jersey Business Law Team supports our New Jersey-based clients and others doing business in the state. For more information about how Holland & Knight can assist with a specific New Jersey-related matter, please reach out to Leonard Bernstein, Richard Smith or Alison Keppel.
Notes
1 New Jersey classifies substances as Schedule II CDSs if such substances 1) have high potential for abuse, 2) have currently accepted medical use in treatment in the U.S. or currently accepted medical use with severe restrictions, and 3) abuse of which may lead to severe psychic or physical dependence. The complete Schedule II CDS list can be found at N.J. Stat. Ann. § 24:21-6.
2 MacDonald v. President of the New Jersey State Board of Medical Examiners, No. 25-2090 (3d Cir. Aug. 31, 2026).
3 The plaintiffs argued that because telemedicine consultations consist largely of speech – diagnoses, treatment recommendations and medical advice – New Jersey's licensing requirement is a content-based restriction on speech subject to heightened First Amendment scrutiny. The Third Circuit agreed the law is content-based but held that the long-standing history of medical licensing laws justified a less demanding standard of review.