Shares of Teladoc Health (NYSE:TDOC) jumped on Tuesday, rising about 6% as of 1:30 p.m. EDT.
The tech stock's gain follows news that President Donald Trump has signed an executive order to expand telehealth services -- a move that could benefit telehealth specialist Teladoc.
The executive order focuses primarily on expanding benefits to Americans in rural communities. Further, the move will make some recent telehealth efforts under the Trump administration permanent, going beyond the implementations that were specifically for the COVID-19 pandemic.
"These telehealth expansions build on the work the Centers for Medicare and Medicaid Services has done during the public health emergency to more than double allowable telehealth services, greatly expanding access to high quality care," read a press release from the White House this week.
Teladoc saw a surge in virtual visits during Q2, the company revealed in its second-quarter update on July 29. Total visits rose 203% year over year. COVID-19 accelerated adoption of virtual care, management said. But Teladoc also noted that demand remains elevated from levels before the coronavirus, even in areas in which COVID-19 cases have leveled off.