Summary
The Connected MOM Act, now Public Law 118-210, mandates the Centers for Medicare & Medicaid Services (CMS) to report on and provide resources for state Medicaid coverage of remote physiologic monitoring devices for maternal health. This directly expands the market for remote patient monitoring technologies and services within Medicaid.
Market Implications
The Connected MOM Act creates a new, federally supported revenue stream for remote patient monitoring companies within the Medicaid system. This will drive increased demand for devices and services, leading to a bullish outlook for companies like Teladoc Health ($TDOC), LabCorp ($LH), Quest Diagnostics ($OMCL), and Amwell ($AMWL). Expect these companies to see increased contract opportunities and revenue growth from state Medicaid programs.
Full Analysis
Public Law 118-210, the Connected Maternal Online Monitoring Act, requires CMS to identify and support state Medicaid programs in covering remote physiologic devices and related services for pregnant and postpartum women. This is not a study; it is a directive for CMS to act, creating a clear pathway for increased adoption and reimbursement of these technologies within Medicaid. The focus on maternal and child health outcomes provides a strong incentive for states to implement these coverages.
The money trail for this legislation flows through state Medicaid programs, which will receive resources from CMS to facilitate the coverage of remote monitoring. This means increased demand for devices and services from companies providing remote patient monitoring (RPM) solutions. While no specific dollar amount is appropriated in the summary, the expansion of coverage across state Medicaid programs represents a significant increase in the total addressable market for RPM providers. Companies with established RPM platforms and devices are positioned to benefit from this expanded coverage.
Historically, similar legislative actions expanding telehealth and remote monitoring coverage have led to increased market capitalization for companies in the space. For example, during the COVID-19 pandemic, temporary expansions of telehealth reimbursement in 2020 led to significant gains for telehealth providers. Teladoc Health ($TDOC) saw its stock price surge over 100% from March to July 2020. While this bill is specific to maternal health and Medicaid, it mirrors the mechanism of expanding covered services, which historically drives demand and revenue for providers. Another example is the 21st Century Cures Act of 2016, which promoted digital health, leading to sustained growth in health tech.
Specific winners include companies that provide remote physiologic monitoring devices and services. Teladoc Health ($TDOC), through its Livongo platform, offers remote monitoring solutions. LabCorp ($LH) and Quest Diagnostics ($OMCL) are major diagnostic providers that could integrate remote monitoring services. Amwell ($AMWL) also offers virtual care and remote monitoring capabilities. Companies specializing in blood glucose monitors, blood pressure cuffs, and other connected health devices will see increased demand. Losers are not directly identifiable, as this bill expands a market rather than restricting it.
What happens next is that CMS will issue guidance and provide resources to states, which will then begin to update their Medicaid policies to include coverage for these remote monitoring services. This process will unfold over the next 12-24 months, with initial state-level policy changes expected to begin in late 2025 and early 2026. Companies should position themselves to engage with state Medicaid agencies and healthcare providers to capitalize on these new coverage opportunities.