COVID Flexibilities for Direct Supervision Become Permanent

The COVID-19 public health emergency resulted in widespread changes in the delivery of health care items and services to patients, particularly those that required “direct supervision” under Medicare Part B. The Centers for Medicare & Medicaid Services relaxed the direct supervision requirement during the PHE to include circumstances where a physician (or other practitioner) was “immediately available” by virtual presence through two-way audio/video real-time communications technology. Effective January 1, 2026, CMS adopted this relaxed definition of direct supervision permanently for a broad category of services.

New I.G. Issues First Report

The first report issued under the new OIG Inspector General, T. March Bell, highlights the OIG’s reliance on “advanced analytical tools and the collaborative skills of its innovative, multidisciplinary workforce” to identify, prioritize, and mitigate risks.

OIG Concerns Persist Amid Workforce Reductions

Significant federal workforce reductions and numerous government-wide programmatic changes headlined the 2025 news cycle. Under that backdrop, the U.S. Department of Health and Human Services, Office of Inspector General fulfilled its annual statutory obligation by releasing its 2025 Top Management and Performance Challenges Report.

NJ Enacts “Magic Mushroom” Law

In his final days as Governor, Phil Murphy signed the “magic mushroom” bill into law. The law establishes a pilot program for three, to be selected, hospitals in the state to participate regarding administration of psilocybin to qualified patients.

New Jersey Mandates Electronic Employee Separation Reporting

Every employee separation in New Jersey, from resignations to layoffs, must now be reported electronically through the Department of Labor’s Employer Access Portal. This means employers must proactively report separations, including terminations, resignations, layoffs, retirements, and other forms of job separation – regardless of whether the employee files for unemployment benefits.