May 2026 Healthcare Compliance Update: Licensure, Telehealth, PBMs, and Provider Mobility

by | Jun 29, 2026

Disclaimer: This information has been gathered from a variety of sources. Although Verisys has made every effort to provide complete, accurate and up-to-date information, Verisys makes no warranties, express or implied, or representations as to the accuracy or reliability of this information. The information is fluid and evolving. Verisys assumes no liability or responsibility for any errors or omissions in the information contained in this resource.

Healthcare regulatory activity in May focused on provider mobility, pharmacy benefit manager oversight, telehealth prescribing, teledentistry, and workforce screening. Some of the items below are enacted and approaching implementation; others are proposed and should be tracked for status changes before compliance teams update policies, credentialing rules, or operational workflows.

Key Takeaways for Compliance Teams

  • Provider mobility is accelerating. Arizona, Oklahoma, North Carolina, Tennessee, Maryland, Georgia, and Iowa all advanced licensure, compact, or workforce flexibility measures that may affect credentialing, privileging, and roster management.
  • Pharmacy, PBM, and prescription workflows remain a regulatory priority. Federal PBM ownership legislation, Tennessee’s FAIR Rx Act, Rhode Island’s PBM certificate requirement, and Pennsylvania pharmacy technician registration all warrant close monitoring.
  • Telehealth and teledentistry models need workflow review. New Jersey’s Schedule II telehealth prescribing bill is proposed, while South Carolina’s teledentistry framework is enacted and effective.
  • Screening and monitoring programs should refresh source maps. NPDB personal accounts, Montana board consolidations, Tennessee background check proposals, and New York disclosure proposals may affect how organizations monitor provider status and adverse information.

U.S. Congress, House of Representatives:

Bipartisan lawmakers have introduced H.R. 8779, the Patients Before Monopolies (PBM) Act, a sweeping federal bill aimed at reversing vertical integration in the healthcare supply chain. The legislation would strictly prohibit common corporate ownership between Pharmacy Benefit Managers (PBMs), health insurance companies, and retail or specialty pharmacies. If enacted, the bill establishes a rigid, one-year divestiture timeline forcing impacted conglomerates to completely unwind their integrated pharmacy assets or face automatic financial penalties, including profit disgorgement. (US HR 8779)

National Practitioner Data Bank (NPDB):

On May 8, 2026, the NPDB launched a new personal account feature for healthcare professionals. This centralized hub allows practitioners to self-query, review and respond to reports, manage personal information, and receive real-time notifications for future reports. While basic accounts are free, users can opt for a $3 annual subscription to receive certified self-query responses and report disclosure histories. (NPDB Health Care Professionals Accounts)

Arizona:

Legislation has officially passed to enroll Arizona in the Physician Assistant (PA) Licensure Compact. While full operational implementation is pending, the move paves the way for streamlined multistate practice. A complete tracking list of participating jurisdictions can be found on the official PA Licensure Compact website. (AZ SB1238, PA Compact website)

Georgia:

In an effort to address ongoing provider shortages, newly passed legislation introduces a provisional license tier for foreign-trained physicians. This framework allows eligible practitioners to work under supervised clinical arrangements as a stepping stone to earning full, unrestricted licenses. The program is slated to launch as soon as the state legislature completes the required funding appropriations. (GA SB427)

Iowa:

Legislation has been passed to create an emeritus medical license to practice medicine or osteopathic medicine. This license will be available to physicians or osteopathic physicians who are at least sixty years of age, or is or will be primarily engaged in the practice of supervising and training resident physicians. Differences in scope of practice and maintenance requirements will apply. (IA SF469)

Louisiana:

The Louisiana State Board of Medical Examiners (LSBME) has introduced a new, limited volunteer license status for physicians aged 70 and older who wish to maintain a restricted volunteer practice. This specialized status features reduced licensing fees and adjusted Continuing Medical Education (CME) requirements compared to standard active licenses. Notably, this status is distinct from the board’s existing honorary license, as it carries specific, defined limitations on active clinical practice. (LA BOM Newsletter Vol 38 No 2 (page 5))

Maryland:

Newly enacted legislation establishes professional licensing portability for members of the U.S. Foreign Service and their spouses. Under this framework, eligible individuals who relocate due to an official assignment or detail are authorized to practice locally using a valid professional or occupational license issued by another state. The authorization remains valid for the duration of the assignment, provided the practitioner satisfies state good-standing criteria and operates within their established scope of practice. (MD SB418)

Michigan:

Michigan lawmakers are advancing legislation to enter the state into the interstate Dentist and Dental Hygienist Compact. House Bill 4935 recently passed the House with strong bipartisan support and has been referred to the Senate Committee on Health Policy. If enacted, the bill will allow qualifying out-of-state dental professionals to practice in Michigan under a streamlined ‘compact privilege,’ significantly reducing administrative licensing burdens while addressing regional provider shortages. (MI HB4935)

Montana:

Montana has officially consolidated four independent healthcare boards into a single regulatory entity. Under House Bill 438, the Board of Athletic Trainers, Board of Physical Therapy Examiners, Board of Occupational Therapy Practice, and Board of Speech-Language Pathologists and Audiologists have been dissolved. All licensing, disciplinary, and rulemaking functions have been successfully transferred to the newly formed Board of Physical, Rehabilitative, and Developmental Health Care Professionals. (MT Board of Physical, Rehabilitative, and Developmental Health Care Professionals)

Montana has centralized its oversight of several diagnostic and care specialties under the newly created Board of Allied Health Care Professionals. Enacted via House Bill 502, this structural shift dissolves the independent Boards of Clinical Laboratory Scientists, Radiologic Technologists, and Respiratory Care. All historical administrative, credentialing, and disciplinary functions for these fields have successfully transitioned to the unified board’s purview. (MT Board of Allied Healthcare Professionals)

New Jersey:

New legislation has been introduced to update telehealth prescribing limitations for Schedule II controlled substances. If enacted, the proposed modifications would take effect on January 1, 2027, authorizing providers to prescribe these tightly regulated medications virtually, entirely bypassing the historical requirement for an initial or subsequent in-person medical examination. However, certain gatekeeping compliance conditions, including mandatory real-time audio-visual technology and specific diagnostic documentation, would remain strictly in effect. (NJ AB4957)

New York:

Newly proposed legislation seeks to mandate that certain healthcare providers explicitly disclose their disciplinary status to both current and new patients. The framework will clearly define the specific misconduct types, stipulated settlements, or probationary terms that trigger this mandate, as well as the exact mechanism of disclosure. If enacted, these mandatory transparency requirements are slated to take effect on January 1, 2027. (NY AB10022)

North Carolina:

Team-based practice for Physician Assistants will be in effect on 06/30/2026. Board rules are in the process of being finalized and will be posted on the North Carolina Medical Board Rule Change Tracker website. Effective June 30, certain experienced PAs will have the opportunity to practice without the need to establish with a primary supervising physician. (NC BOM Newsletter PA Team-Based Practice)

Oklahoma:

Governor Stitt has officially signed Senate Bill 1653, formally entering Oklahoma into the national Occupational Therapy Licensure Compact (OT Compact). The legislation is set to become operational on November 1, 2026. Once the Oklahoma Medical Board integrates its licensing systems with the compact’s data network, local OTs and OTAs will be able to easily secure multi-state practice privileges. The live registry of active participating states can be monitored on the official Occupational Therapy Licensure Compact website. (OK SB1653, OT Licensure Compact)

Pennsylvania:  

Under Act 140, Pennsylvania pharmacy technicians must successfully complete state registration through the PALS portal by June 28, 2026, to continue practicing. The state’s new two-tier credentialing structure mandates that applicants finish an approved training curriculum, submit an FBI background check, and complete required child-abuse reporting training. (PA Pharmacy Technician Registration Requirements)

Rhode Island:

Newly proposed Rhode Island legislation seeks to mandate that all Pharmacy Benefit Managers (PBMs) secure a formal Certificate of Authority from the Department of Business Regulation (DBR) to operate within the state. The parallel bills (HB 8579 / SB 3060) establish strict operational limitations and outline progressive penalties for statutory violations. While the House framework targets a January 1, 2027 start date, the Senate version is drafted to take effect immediately upon passage.  (RI SB3060)

South Carolina:

South Carolina’s new teledentistry framework (SB 453) went into effect on May 19, 2026, bringing major changes to virtual dental models. Aimed at safeguarding patient care, the law establishes a strict professional conduct code that completely bans purely remote orthodontic prescriptions. Providers are now required to perform a physical, in-person exam and review radiographic imaging before clearing patients for any orthodontic treatment. (SC SB453)

Tennessee:

Tennessee has finalized the framework to issue provisional medical licenses to qualifying internationally trained physicians, with the new pathway taking effect on January 1, 2027. Under this regulation, eligible international medical graduates (IMGs) who have passed standard examination requirements and possess verified credentials can be granted a two-year provisional license. This initiative serves as a supervised transitional pipeline toward earning full, unrestricted licensure within the state. (TN SB2366)

Governor Lee has officially signed Senate Bill 2544, formally entering Tennessee into the Respiratory Care Interstate Compact (RCIC). While the legislation became legally effective upon his signature on May 13, 2026, full operational deployment is pending the national compact reaching its seven-state activation threshold to establish its governing commission. Once finalized, licensed respiratory therapists will be able to seamlessly obtain multi-state privileges. The rolling list of participating jurisdictions can be tracked on the official Respiratory Care Interstate Compact website. (TN HB2145, RC Interstate Compact)

To ensure continuous provider mobility, Tennessee has extended its sunset dates for the Interstate Medical Licensure Compact and the Occupational Therapy Licensure Compact until June 30, 2034. This long-term extension provides key legal stability for telemedicine networks and cross-border clinical practices. Fully updated registries of participating member states remain available on the official IMLC and OT Compact websites. (TN SB1532, TN HB1526OT Licensure Compact, Interstate MD Compact)

Tennessee lawmakers have introduced HB 1917 to restructure behavioral health credentialing titles to match national models. The bill redefines standard LPCs as ‘Limited Practice Professional Counselors’ and elevates LPC/MHSPs to ‘Licensed Professional Counselors’. Notably, the legislation sets a hard deadline of July 1, 2028, to eliminate the issuance of new Limited Practice licenses, acting as a transitional window for incoming professionals to satisfy full clinical assessment requirements. (TN  SB2399)

Tennessee’s proposed Fair Background Check and Due Process Act (HB 2346) introduces strict guardrails on criminal history data. The law would ban CRAs from disclosing any arrest or charge that did not result in a conviction, unless classified as an ‘excluded offense’. Designed to balance candidate due process with employer safety, the bill maintains existing carve-outs allowing companies to run interviews, discuss job-related behaviors, and execute federally required licensing checks. If passed, compliance requirements go into effect immediately. (TN SB2628)

In a sweeping move to level the healthcare playing field, Tennessee has enacted the FAIR Rx Act (SB 2040), legally severing the link between PBMs and pharmacies. Effective January 1, 2027, PBMs cannot possess beneficial interest or control over any pharmacy license holder. Affected healthcare giants are granted a wind-down period until the end of 2028 to execute a mandatory divestiture of their retail lines. With multi-million dollar corporate lobbies actively challenging the bill in federal court, compliance teams must monitor whether a legal stay alters the 2027 implementation timeline. (TN SB2040)

What Compliance Teams Should Do Now

  1. Separate enacted, effective-soon, operationally pending, and proposed items in your regulatory tracker.
  2. Update source mapping for NPDB personal accounts, Montana board consolidation pages, compact websites, and state pharmacy technician registration requirements.
  3. Identify provider populations affected by licensure compact changes, foreign-trained physician pathways, PA practice changes, and emeritus or retired/volunteer license types.
  4. Review telehealth and teledentistry policies for documentation, in-person examination, advertising, and prescribing requirements.
  5. Pre-plan pharmacy and PBM workflows around Pennsylvania registration, Rhode Island PBM certification, and Tennessee FAIR Rx Act developments.
  6. Monitor proposed background screening and disciplinary disclosure bills before changing adverse information reporting or patient disclosure practices.

How Verisys Helps Healthcare Compliance Teams Stay Current

As licensure, sanction, exclusion, adverse action, and board reporting requirements evolve, healthcare organizations need current, source-aware data and repeatable monitoring workflows. Verisys helps healthcare organizations streamline provider, workforce, and entity screening and monitoring so teams can respond faster when regulatory status changes.

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    Verisys empowers healthcare organizations with real-time, verified data solutions for compliance, credentialing, and risk mitigation. Our advanced tools ensure patient safety, streamline hiring, manage payment integrity, and enhance clinical compliance.

About the Author: Verisys

Verisys empowers healthcare organizations with real-time, verified data solutions for compliance, credentialing, and risk mitigation. Our advanced tools ensure patient safety, streamline hiring, manage payment integrity, and enhance clinical compliance.
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