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Many new laws went into effect in January 2025 in the states we serve. Learn which ones are likely to affect your healthcare practice.
States have already begun rolling out new laws in the new year. Because several of these laws affect healthcare professionals and practices, it is crucial to know what changes have already been implemented or what changes to expect. Below is a summary of some of the significant laws that take effect in January 2025 in the states where we practice.
Illinois
Physical Therapy (PT) via Telehealth
On January 1, Illinois enacted HB5087. This law amended the Illinois Physical Therapy Act to allow PT services to be delivered via telehealth under specific circumstances. Telehealth may be used to deliver PT services when addressing issues of access to care, improving the delivery of care, and enabling PTs to assess and direct the patient’s performance in the patient’s own environment.
However, initial PT evaluations without a referral or established diagnosis must be performed in person by a licensed PT unless telehealth is necessary due to a documented hardship. Hardships include geographical, physical, or weather-related conditions.
This law emphasizes that providing physical therapy services primarily through telehealth must be an exception rather than standard practice. Patients receiving telehealth PT services must be able to request and receive in-person services at any time during the treatment. In addition, PTs providing telehealth services must have the capacity to provide in-person services in Illinois. All telehealth services require documentation supporting the clinical justification for remote delivery.
If you are a PT in Illinois planning to offer telehealth services under this law, consider revising your patient intake forms to reflect this additional delivery method. Include language clarifying that you will provide telehealth services only under limited circumstances.
For more details, see our related blog, “New Telehealth Provisions in Illinois’ Physical Therapy Practice Act.”
Administering Medications
Under SB3779, effective January 1, licensed clinical social workers (LCSWs) and licensed social workers (LSWs) in Illinois may possess and administer opioid antagonists, such as Naloxone, to reverse opioid overdose. Employers must provide training in opioid antagonist administration and establish policies governing these medications’ acquisition, storage, transportation, and administration.
If you employ LCSWs or LSWs in Illinois who will provide these services, ensure you establish clear policies regulating opioid antagonist use in your practice.
Insurance Coverage
Several new insurance coverage laws also took effect on January 1. For example, HB2443 requires new insurance plans to cover medically necessary hearing equipment and related services for all individuals of all ages, not just those under 18. In addition, HB3639 caps the total price of a twin-pack of medically necessary epinephrine injectors (EpiPens) at $60 or less.
The Health Care Protection Act (HB5395) also went into effect, notably banning “step therapy,” which requires patients to first try and fail on a treatment preferred by insurance companies before being given access to a more expensive treatment.
New York
Paid Leave for Prenatal Healthcare
On January 1, New York became the first state in the US to offer paid time off specifically for prenatal healthcare and pregnancy-related medical services. Under the Paid Prenatal Leave Law, New York employees are entitled to at least 20 hours of paid time off annually for pregnancy care, separate from other leave policies. Covered pregnancy-related healthcare includes physical examinations, monitoring and testing, and fertility treatments.
Employees receive all 20 hours upfront, with no accrual requirement, and the new law applies to employers of any size. If you own a practice in New York with employees, update your existing leave policies to incorporate this new requirement.
Insurance Coverage
Under S5481A, effective January 1, insurance must cover neuropsychological tests that diagnose dyslexia under certain circumstances. In addition, S7114A requires insurance to cover the cost of at least two EpiPens per year, with an out-of-pocket cap of $100. S1965A requires insurance plans with drug coverage to include prescribed prenatal vitamins.
California
Human Oversight in Healthcare Settings
Effective January 1, the Physicians Make Decisions Act requires that licensed healthcare providers make final decisions about medical treatments, even when artificial intelligence (AI) is involved in the process. Under this law, any denial, delay, or change in care based on medical necessity must be reviewed and decided by a licensed physician or other qualified healthcare provider with relevant expertise in the specific issues.
California healthcare providers should prepare for future regulations that balance AI utilization with human oversight in healthcare settings.
Paid Family Leave
Effective January 1, AB 2123 allows employees to take paid family leave without first exhausting their accrued vacation time. This applies when employees need leave to care for a sick family member, bond with a new child, or address needs related to a family member’s active military duty. The new law applies to employers of all sizes.
If you own a practice in California with employees, your leave policies should reflect this change.
Freelance Worker Protection
The Freelance Worker Protection Act, which went into effect on January 1, establishes new requirements for hiring or retaining freelance workers. Independent contractors delivering services worth $250 or more must receive a written contract detailing the payment terms and the work that will be performed.
Hiring parties of any size must pay the freelance workers by the date provided in the contract or within 30 days after the completion of work. In addition, hiring parties must retain the contract for at least 4 years.
If your practice hires healthcare providers as independent contractors in California, ensure that you retain a contract in writing and comply with the minimum requirements of this new law.
Wisconsin
Certifications for Disabled Parking by Physical Therapists
Effective January 1, Senate Bill 964 expands the authority of physical therapists to certify eligibility for disabled parking plates and cards. PTs may now certify to the Department of Transportation when individuals have disabilities that limit their ability to walk, qualifying them for a disabled parking license plate or card.
Wisconsin PTs interested in providing this service should update their intake forms accordingly.
Provisional Licenses for International Physicians
Assembly Bill 954 creates a provisional license pathway for internationally trained physicians to practice medicine and surgery under the supervision of certain licensed physicians. After maintaining good standing during three consecutive years of full-time practice in Wisconsin, the provisional license converts to a standard license to practice medicine and surgery. This measure aims to address Wisconsin’s physician shortage.
Expansion of Long-Term Care Program
Wisconsin expanded its Family Care program on January 1. The Family Care program is a long-term care Medicaid program for older adults and adults with disabilities. The program operates through managed care organizations (MCOs) that plan and provide covered services, maintain provider networks, and work to improve care quality. The number of MCOs available to members in a nine-county region in Wisconsin increased from two to four, expanding access to this program.
Texas and the District of Columbia
No new laws are going into effect this month in Texas or the District of Columbia that will likely affect most private outpatient healthcare practices. However, new regulations may arise later in the year.
Get Legal Support
These summaries highlight key changes that might affect your practice, but additional provisions or regulations may apply. While adapting to new regulations can be challenging, we can help you navigate these requirements. If you’re in one of the states where we have licensed attorneys, schedule a free consultation to learn how we can help you.
This article is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
